DOMINION income trust 1
ASX: DN1
Platform Availability
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Target Return
1-month BBSW + 3.50% p.a. net of fees
ASX Code
ASX: DN1
Research Ratings
Investment Objective
The Dominion Listed Income Trust 1 seeks to provide monthly income through investing in a portfolio note targeting distributions to Unitholders of approximately the 1-month BBSW rate plus a Margin of 3.50% per annum. The note primarily invests in a portfolio of debt securities, loans, trusts, notes, and bank facilities, and has a maturity date of 6 years, which Realm intends to call on the optional redemption date in 5 years from the issue date.
Investment Strategy
The Dominion Listed Income Trust 1 will invest in a note that intends to gain exposure to debt instruments including loans, trust interests, notes, and bank facilities originated or issued by corporates, banks, and non-bank financial debt issuers who have demonstrated strong financial performance and underwriting, as assessed by the Manager’s investment and risk management process. The note is expected to execute the strategy largely through investing in a blend of various investment funds managed by Realm, however, retains the ability to directly hold securities outside of the funds.
Key Product Information
Trustee | Equity Trustees Limited
(ACN 004 031 298) |
Distribution Frequency | Monthly |
Target Return | 3.50% above the 1-month BBSW per annum |
Issue Price Per Unit | $100 |
Minimum Units Issued | 1,500,000 ($150,000,000) |
Maximum Units Issued | 3,000,000 ($300,000,000) |
Expected Call Date | 5 years from issue date |
Maturity Date | 6 years from issue date |
WHY DOMINION INCOME TRUST 1?
MONTHLY INCOME
Targeted monthly distribution of 3.50% p.a. above the 1-month BBSW. The nature of the structure provides a high level of certainty around the ability to meet the targeted return.
EMBEDDED EQUITY RESERVE
Realm & Co-Investors to provide an Equity Reserve of > 4% or $10m held underneath trust assets as loss absorption to protect holders until maturity date of the note. Any net income must be used to restore the Equity Reserve rather than be distributed.
MATURITY DATE & mARGIN STEP UP
Note to be issued with a maturity date of 6 years, intended to be called in 5 years from issue date. If the note is not called after 5 years, the Margin for the remaining term is increased by 1% per annum until maturity date.
PORTFOLIO DIVERSIFICATION
A Note is a debt instrument and is expected to have low correlation to public equities, and expected to be more correlated to credit markets. The portfolio will benefit from being exposed to Realm’s broad investment strategies and universe.
All website content in respect of the Dominion Income Trust 1 (ARSN 683 392 743) (Trust) is issued by Equity Trustees Limited (ACN 004 031 298; AFSL 240975) (EQT) as responsible entity of the Trust. Dominion Investment Management Pty Ltd (ACN 681 916 030; Authorised Representative No. 001312185) (Dominion) is the investment manager.
The information provided in this website is of a general nature only and has been prepared without taking into account your objectives, financial situation or needs. Before making an investment decision in respect of the Trust, you should consider the current Product Disclosure Statement (PDS) and Target Market Determination (TMD), and any of the Trust’s periodic and continuous disclosure announcements lodged with the ASX, which are available at www.asx.com.au/, and assess whether the Trust is appropriate given your objectives, financial situation or needs. If you require advice that takes into account your personal circumstances, you should consult a licensed or authorised financial adviser.
Note that there is no General Offer made to the public under the PDS and that you can only access the initial public offering of the units in the Trust if invited or if advised by your broker.
Neither EQT nor Dominion guarantees repayment of capital or any particular rate of return from the Trust. Neither EQT nor Dominion gives any representation or warranty as to the currency, reliability, completeness or accuracy of the information contained in this website. All opinions and estimates included in this website constitute judgments of Dominion as at the date of website creation and are subject to change without notice. Past performance is not a reliable indicator of future performance.