Core Property has reviewed the KC Diversified Income Fund, an unlisted fund that invests in a diversified portfolio of property-backed loans, secured by first-ranked mortgages in Australia.
The Manager, Keystone Capital, was established in 2013 and has undertaken over $585M of loans since inception with a 100% preservation of capital for investors.
The Fund was established in January 2017 and only invests in loans backed by first ranking mortgages. The current portfolio provides a diversified exposure to 36 loans in the Keystone portfolio with an average Loan To Valuation Ratio of 58.2%.
The Manager is targeting distributions of 7.0% p.a. (paid monthly), and is currently paying 7.25% p.a.
Core Property rated the Fund in May 2019 and has reaffirmed the rating as RECOMMENDED.
The Fund is open ended with a minimum investment of $25,000.