Launched in 2021, the Squirrel Monthly Income Fund aims to provide an annual return, after fees and before tax, that outperforms the 1 Year New Term Deposit Rate (>$10k) by a margin of 2.00%, through exposure to a diversified portfolio of loans exposed to the NZ residential property market.
Loan exposure is obtained by investing in the Squirrel Wholesale Investment Funds scheme, whose funds obtain their loan exposure through investing via the Squirrel peer-to-peer platform operated by Squirrel Money Limited. Assets of the Squirrel Wholesale Funds may include exposure to fractional and/or whole loans, as well as cash and cash equivalents.
Investment Manager
Squirrel Money Limited
Investment Policy and Objectives
The Fund is designed to provide investors with a regular income return generated through exposure to a diversified portfolio of loans predominantly secured against registered first mortgages on residential property across New Zealand. The Fund’s investment objective is to provide an annual return, after fees and before tax, that outperforms the 1 Year New Term Deposit Rate (>$10k) by a margin of 2.00%.
Investment Strategy
The Fund strategy provides investors exposure to loans made to New Zealand residential property homeowners by investing in the Squirrel Wholesale Investment Funds scheme (“Squirrel Wholesale Funds”), a wholesale managed investment scheme made up of two funds; the Squirrel Wholesale Construction Loan Fund and the Squirrel Wholesale Home Loan Fund. Each of the wholesale funds invest in a diversified range of New Zealand loans in their respective target loan class; construction, home and personal loans. The Squirrel Wholesale Funds obtain their loan exposure by investing via the Squirrel peer-to-peer (“P2P”) platform, where they can invest in either a portion of a loan (a fractional loan), or an entire loan (a whole loan). The Fund may also invest in cash and cash equivalent assets. The investment strategy and asset allocation ranges are set in order for the Fund to achieve its desired return profile and will be reviewed on an annual basis (or when material changes occur).
Benchmark index
Not applicable.
