Keystone Capital KC Diversified Income Fund targeting 9.0% plus p.a. distributions

Core Property has reviewed the Keystone KC Diversified Income Fund, a pooled mortgage fund that is targeting distributions of 9.0%+ p.a. through investing in a portfolio of loans secured by first ranked mortgages.

The Fund provides investors an opportunity to invest in a diversified portfolio of residential and commercial loans with higher returns and higher risks over a shorter time period. The Fund is managed by Keystone Capital which has undertaken over $223M of lending since it was established in 2013 and has maintained a track record of 100% preservation of capital for investors.

The key features of the Fund include

  • Targeted distributions of 9.0%+ p.a. (net), paid monthly
  • Minimum investment of $10,000 with a quarterly withdrawal offer (undertaken on a best endeavours basis).
  • A strict loan approval process with guidelines including: 1) all loans to be secured by a first ranked mortgage, 2) a maximum initial Loan to Valuation Ratio (LVR) of 70%, and 3) an initial loan period of no more than 24 months.
  • The current portfolio consists of 19 loans for $20.2M with a weighted average LVR of 55.1%, and an average loan maturity of 9.9 months.

Core Property has rated the Fund as RECOMMENDED.