Trilogy Monthly Income Trust PDS 22 July 2015 WEB

Trilogy Monthly Income Trust
PRODUCT DISCLOSURE STATEMENT / 22 JULY 2015
Triligy Monthly Income Trust ARSN 121 846 722

Responsible Entity: Trilogy Funds Management Limited
ACN 080 383 679 AFSL 261425

The fund offered under this Product Disclosure Statement (PDS) is the Trilogy Monthly Income Trust ARSN 121 846 722
(Trust) formerly known as the Trilogy First Mortgage Income Trust.
This PDS is dated 22 July 2015 and is issued by Trilogy Funds Management Limited ACN 080 383 679, in its capacity as
Responsible Entity (Trilogy Funds or the Responsible Entity). Trilogy Funds takes responsibility for this PDS. This PDS
contains some general investment advice. It does not take into account your individual objectives, financial situation or
needs. You should take these and your personal circumstances into account when considering whether the information
contained in this PDS is appropriate for you. You should also seek your own financial advice from a licensed adviser
before investing.
In this PDS, we, us and our refer to Trilogy Funds and you and your refer to individual Investors, both as potential
Investors reviewing this PDS and as existing Investors with a holding in the Trust, as the context requires.
No interest in the Trust offered under this PDS is guaranteed or otherwise supported by Trilogy Funds or any of its
Directors or any other party associated with the preparation of this PDS. You should consider this when assessing the
suitability of the investment and particular aspects of risk.
This document can only be used by Investors receiving it (electronically or otherwise) in Australia and New Zealand.
This PDS is available in electronic format, and can be accessed via our website www.trilogyfunds.com.au. If you receive
it electronically, please ensure that you have received the entire PDS and applicable Application Forms. If you are unsure
whether the electronic document you have received is complete, please contact us on 1800 230 099. A printed copy is
available free of charge.
All dollar amounts referred to in this PDS are in Australian dollars. In Section 8.6 we have included a glossary of terms that
are used in the PDS.
Obtaining further information before making a decision

Visit our website www.trilogyfunds.com.au regularly for further information about the Trust, including disclosure against
ASIC benchmarks and disclosure principles, continuous disclosure and Trust updates.
Important: Historical returns are not a reliable guide to future returns. Any returns noted in this PDS represent past
performance only and may not reflect the current and future returns of the Trust. You should not base your decision to
invest in the Trust on past returns.
This PDS supersedes all previous PDSs issued for the Trust. No investments will be accepted on the basis of this
document once it is replaced by a later PDS. Investors who invested in the Trust under a previous PDS should read this
PDS in full to ensure that this Trust continues to meet their investment objectives.
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TRILOGY MONTHLY INCOME TRUST | PDS
Dear Investor,
Trilogy Funds is pleased to invite you to consider an investment in the Trilogy Monthly Income Trust.
The Trust offers Investors access to the attractive returns available through investments in first mortgages
over Australian property through a pooled mortgage trust. The Loans are secured by registered first mortgages
over a portfolio of property, which can include residential, commercial, retail, development sites and
industrial properties. Examples of project types are unit developments, townhouses and land subdivisions for
residential development.
We are very pleased to say that since its inception in February 2007, the Trust has paid its Investors a distribution
every month and paid all withdrawals. The Trusts unit price has also been maintained at $1.00 throughout its history.
We are very proud of our track record managing the Trust and its performance over the past 8 years. We consider
that the returns we have delivered over that time have made us competitive against our peers and demonstrate
our experience guiding this Trust through a constantly changing economic environment (please note that past
performance is not a reliable indicator of future performance). The Trust has experienced significant growth over the
last year with an increase of over 60% in funds under management.
In considering the Trust for potential inclusion in your portfolio, we recommend that you read this Product Disclosure
Statement in full. This, in combination with advice from your licensed adviser, should help you to understand and
assess the risks involved as well as the potential benefits of an investment in this Trust.
We have a team available during business hours to answer any questions you may have. You can reach them by free
call to 1800 230 099 between 8:30am and 5:00pm (AEST). Alternatively you can email info@trilogyfunds.com.au.
There are also additional resources available at www.trilogyfunds.com.au/tmit to help you to consider an investment.
These resources include an explanatory video on how the Trust works, case studies from existing investors and the
most recent variable rate paid.
We look forward to discussing this opportunity with you.
Yours sincerely,
Rodger Bacon
Executive Deputy Chairman
Table of Contents
Section 1 Investment overview......................................................................... 7
Section 2 Key features of the trust................................................................ 10
2.1 Key features table.................................................................................................11
2.2 ASIC benchmarks and disclosure report................................................. 12
Section 3 The Trust...........................................................................................18
3.1 Minimum investment......................................................................................... 19
3.2 Minimum investment period.......................................................................... 19
3.3 How an investment is made........................................................................... 19
3.4 Issuing units........................................................................................................... 19
3.5 Distributions........................................................................................................... 19
3.6 Withdrawals..........................................................................................................20
3.7 Transferring units................................................................................................. 21
3.8 Adding to your investment............................................................................. 21
3.9 Liquidity and liquidity targets....................................................................... 21
3.10 Reporting............................................................................................................... 22
3.11 Wholesale Investors and investing through investment platforms....22
Section 4 About the Trusts Loans................................................................. 23
4.1 Registered first mortgages............................................................................ 23
4.2 Additional security that may be taken.................................................... 23
4.3 Loan-to-Valuation Ratios (LVR).................................................................. 23
4.4 Valuations............................................................................................................... 24
4.5 Borrowers capacity to service the Loan and Loan assessment...... 24
4.6 Adequate property insurance...................................................................... 25
4.7 Loan monitoring and defaults or arrears................................................ 25
4.8 Loan diversification........................................................................................... 25
4.9 Loans yet to be advanced.............................................................................. 26
4.10 Maximum Loan amount.................................................................................. 27
4.11 Maximum Loan term......................................................................................... 27
4.12 Interest rates......................................................................................................... 27
4.13 Capitalisation of interest................................................................................. 27
4.14 Credit contract loans........................................................................................ 27
4.15 Dealing with Mortgage Investments......................................................... 27
4.16 Other assets of the Trust................................................................................ 27
Section 5 - Fees and costs................................................................................. 28
5.1 Consumer advisory warning......................................................................... 29
5.2 Fees and costs..................................................................................................... 29
5.3 Additional explanation of fees and costs............................................... 32
Section 6 - Risk....................................................................................................34
6.1 Introduction...........................................................................................................34
6.2 Risks to consider before investing in the Trust....................................34
6.3 Property market risk.........................................................................................34
6.4 Construction risks.............................................................................................. 35
6.5 Borrower default risk........................................................................................ 35
6.6 Liquidity risk......................................................................................................... 35
6.7 Arrears of the Trusts mortgage portfolio.............................................. 36
6.8 Specific Mortgage Investment risks.......................................................... 36
6.9 Specific Trust risks............................................................................................. 36
6.10 General investment risks................................................................................. 37
6.11 Responsible Entity risk.................................................................................... 37
6.12 Conclusion............................................................................................................. 37
Section 7 About Trilogy Funds Management Limited................................ 38
7.1 Trilogy Funds Management Limited......................................................... 38
7.2 Management experience................................................................................ 38
7.3 Directors of Trilogy Funds............................................................................. 39
7.4 Senior executives............................................................................................... 40
Section 8 - Additional information....................................................................41
8.1 General information............................................................................................ 41
8.2 Summaries of material documents............................................................44
8.3 Additional applications....................................................................................46
8.4 The Custodian and the Custodians disclaimer....................................46
8.5 New Zealand Investors....................................................................................46
8.6
Glossary...................................................................................................................48
Section 9 - Guide to completing the application forms and ID requirements.49
9.1 Guide to the Application Forms.................................................................49

9.2 Completing the Application Form.............................................................49
9.3
I dentification required from Investors...................................................... 51
Corporate directory............................................................................................54
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Section 1 Investment overview

This investment overview provides general information
about an investment in the Trust. The overview does
not take into account any of your personal objectives,
financial situation or needs and does not seek to provide
a personal recommendation to you. You should read
this Product Disclosure Statement in full, particularly the
Risks in Section 6, before making a decision to invest in
this Trust.
Who we are
Trilogy Funds was established in 1998. Following
a merger in 2004 with a wider group of senior
management professionals, Trilogy Funds harnessed
a wealth of expertise in property. Trilogy Funds has a
strong background in structuring and managing property
investments. Our core investment offerings are mortgage
and property trusts. Property is the key commonality,
which capitalises on the strengths of the team and
their experience. More information about our senior
management team is provided in Section 7 and in the
Corporate Profile located on the Trilogy Funds website.
The Trust
The Trust offers Investors an opportunity to invest
in a managed investment scheme holding a pool of
registered, first mortgage Loans to Borrowers for the
purchase, development, construction or re-financing of
Australian property. The Trust is a registered managed
investment scheme that was first offered to Investors by
Trilogy Funds in 2007. It has paid Investors a distribution
every month since inception*.
Investors share in a proportional amount of the risk and
the income from the Trusts Loans. Investors receive a
variable monthly distribution* based on the net returns
from the Loans and cash held.
*(Please note that past performance is not an indicator of
future performance).
The Trust is open to both retail and wholesale Investors.
Wholesale Investors should consider Section 3.11.
Some of the reasons why borrowers choose the Trust

as their financier include:
Trilogy Funds hands-on management style.
All borrowers deal directly with a dedicated lending
manager for the full duration on the loan. This ensures
they have a dedicated contact from the time of their
initial loan enquiry through to the time of the actual loan
submission, which is prepared by the Head of Lending
and submitted to the Lending Committee. For a loan
to be approved, unanimous approval from the Lending
Committee is required. If a development or construction
loan is approved Trilogy Funds appoints a qualified
Quantity Surveyor (QS) for the project. The role of the
QS is to certify the construction draw-downs as well as
reporting to the Lending Committee in relation to the
progress of the project.
Trilogy Funds specialises in managing shorter
term loans.
Traditional lending institutions like banks are often
reluctant to take on short term loans due to the high
level of administration involved. For example, if a
borrowers current loan facility for the construction of a
unit development has expired, the borrower may wish to
refinance and require a loan for only six months whilst
they finalise the sell down of any unsold units.
Satisfaction with their lending experience with Trilogy
Funds is evidenced by the fact that a number of our
borrowers are repeat customers of the Trust. You can
hear what one of our borrowers has to say about their
experience by viewing the video testimonial on our
website at www.trilogyfunds.com.au/services/
private-lending
The Trust is currently in its ninth year of operation and
has to date successfully funded over $70,000,000 of
property transactions. During this period, the Trust
has never suffered a loss of capital and has always
maintained a unit price of $1.00*.
*(Please note that past performance is not an indicator of
future performance).
The Trusts Loans

In Australia, there are borrowers in the market seeking
loans for the development, construction or refinancing
of property.
This Trust is currently financing properties and projects
that primarily have the following characteristics:

units, townhouses and land subdivisions for

residential development;
loans up to $5,000,000; and
loan terms from 6 months up to 24 months.
The investment process
Short Term
Investment
Account
Investor
Cash units
Allocated units
Upon investment, funds are placed

into an Australian bank (in the
Trusts Short Term Investment
Account) and investors are issued
with Cash units.
Cash units become designated

as Allocated units when allocated
to the loan pool. For example,
this occurs upon the approval of
a new loan.
INTEREST RATE
INTEREST RATE
Cash units earn distributions at

the prevailing interest rate given
to the Trust by its bank for cash
deposits.
Allocated units earn distributions

from the pool of mortgage
investments and Allocated cash
assets of the Trust (less fees and
expenses and excluding the income
earned on the Short Term Investment
Account). Allocated units earn a
monthly, variable interest rate.
Distributions are:
calculated DAILY and
paid MONTHLY in arrears.
Investor
chooses
Investor chooses to:
1. Have their monthly
distributions paid to
their bank account; or
2. Reinvest their monthly
distributions to
acquire Cash units.
Distributions are:
CONVERSION TIMEFRAME
Average number of
days investors spent
holding Cash units
before designated as
Allocated units for
the calendar year to
31 May 2015.
calculated DAILY and

paid MONTHLY in arrears.
Check our monthly

performance updates
for the most recent
average.
The withdrawal process

As the diagram above shows, the Trust receives
Investment Monies from Investors and places it into the
Short Term Investment Account (STIA) and issues Cash
units which are purchased for $1.00 per unit. Investors
hold Cash units and earn income from the interest
earned on their Investment Monies in the STIA until their
Investment Monies are allocated into the mortgage pool.
When a new Loan is written and/or funds are drawn
down, Cash units are designated as Allocated units,
which earn income from the interest charged on the
Mortgage Investments. (See Section 3.5 for more details
on how interest is derived on Allocated units).
Every month interest is collected by the Trust from
Borrowers, fees are deducted for the Trusts ongoing
management and the remainder is paid to Investors
holding Allocated units in the form of income
distributions. Allocated unit holders can choose to
receive their monthly distribution into their personal bank
account or reinvest in the Trust and purchase more Cash
units and increase their unit holding.
Trust Investors can add to their investment at any time,
with the minimum top up accepted being $1,000.
The Trust has a withdrawal process tailored to

safeguard its liquidity levels and to protect the interests
of its Investors.
Investors can request the withdrawal of units after they
have held those units in the Trust for two months. A four
month notice period is required to withdraw units, and as
such, the minimum investment period is six months from
when they were issued. This approach assists Trilogy
Fund to manage the Trust effectively in the interest of all
Trust Investors.
Withdrawals may be processed earlier than the end of
the four month waiting period at the discretion of Trilogy
Funds if the liquidity position of the Trust allows this to
occur. Please see Section 3.6 for a full description of the
withdrawal process.
Withdrawal proceeds are normally paid within 10
business days after the expiry of the notice period.
Investors must note, however, that no assurance is given
that processing will always be within that timeframe.
Importantly the Trusts Constitution provides a maximum
of 15 months within which Trilogy Funds must meet
withdrawal requests. The reason for this and what it may
mean to Investors is described in Sections 3.6 and 3.9.
Steps to invest
There are three steps to make an investment in the Trust.
Step 3 Send your Application Form
Step 1 Read this document, and

consider the offer
You have two options for sending your application:
You should read this PDS in full before deciding

whether to invest in the Trust. Pay particular attention
to the risks set out in Section 6 and other information
concerning units, the Trust and its assets. The risks need
to be considered in light of your particular investment
objectives, financial situation and needs. You should
seek your own financial advice from a licensed adviser
before investing.
Step 2 Complete the relevant

Application Form
To make an investment, complete and return the relevant
Application Form that accompanies this PDS. Please take
care to ensure that you complete the Application Form
in the manner outlined in Section 9. The completed form
must be returned in full together with any additional
documentation required as set out in the relevant
Application Form or this PDS.
Option 1
Free post your application to:
Trilogy Funds Management Limited
Reply Paid 1648
Brisbane QLD 4001
Option 2
Scan and email your application to
investorrelations@trilogyfunds.com.au
The application confirmation process

Once your application is received, our Investor
Relations team will communicate with you according
to your communication preference as your application
progresses through our processes. They may also be
in contact with you if further information is required.
The three step application confirmation process is
outlined below.
The minimum application amount is $10,000, and

in multiples of $1,000 thereafter. We will accept the
payment methods listed below.
Cheque
Cheques must be in Australian currency drawn on
an Australian bank. They must be marked Non
Negotiable and made payable to:
The Trust Company Limited ACF TMIT
Direct deposit
You can transfer your investment funds to the
following account:
BSB 124-028
Account number 22287528
Account name
Trilogy MIT
Reference

Your surname, or, if you are an

existing Trilogy Funds Investor,
your Investor ID number
Questions?
For further information on the Trust, please contact
your financial adviser or contact our team.
BPAY
Phone

Free call within Australia 1800 230 099 or

+61 7 3039 2828
Free call within New Zealand +800 5510 1230
You can BPAY your investment funds:
Email
info@trilogyfunds.com.au
Website
www.trilogyfunds.com.au/tmit
Biller Code
364471
Reference number If a reference number has not

already been provided to you,

you can obtain one by calling

Investor Relations on 1800 230

099 or emailing investorrelations
@ trilogyfunds.com.au
Discuss your potential investment

Our Business Development Managers are available
on 1800 230 099 to discuss the Fund with you and
answer your questions about a potential investment. We
are available between 8:30 am and 5:00 pm Monday
to Friday Australian Eastern Standard Time (AEST).
Alternatively you can email info@trilogyfunds.com.au.
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Section 2 Key features of the Trust

2.1
Key features
The information in the table below provides a snapshot of the Trust. Please read the whole PDS and seek any advice
you need before deciding to invest.
Product name
Australian Registered Scheme Number

(ARSN)
121 846 722
APIR Product Information Code
TGY0003AU
Inception
February 2007
Manager and Responsible Entity

The role of Trilogy Funds in acting as the Responsible Entity of the Trust
is to ensure that Trust assets are managed and dealt with in accordance
with the Trusts Constitution, the Corporations Act and this PDS.
Trilogy Funds has established a Lending Committee which considers
all Loan applications in accordance with Trilogy Funds lending policy
guidelines. These guidelines have been developed by Trilogy Funds
personnel who have extensive experience in making and managing
mortgage investments.
In addition, a Compliance Committee has been established to monitor
Trilogy Funds compliance with the Constitution, the Compliance
Plan and the Corporations Act. A majority of the members of the
Compliance Committee must be, and are, external to Trilogy Funds.
Custodian
The Trust Company (Australia) Limited, an independent specialist

custodian, provides custody of the Trusts assets.
Investment strategy
The investment strategy of the Trust is to source Loans for development,

construction or re-financing of Australian property, secured by registered
first mortgages over residential, commercial, retail, development sites and
industrial properties geographically spread over Queensland, New South
Wales, Victoria and the Australian Capital Territory.
Minimum investment
$10,000
Minimum additional investment
$1,000
Distributions
Distributions are paid monthly in arrears at a variable rate. Investors can

choose whether their distribution income is paid into their nominated
bank account or reinvested into the Trust. Refer to Section 3.5 for full
details in relation to distributions.
Withdrawals
The Trilogy Monthly Income Trust has a withdrawal process tailored to

safeguard its liquidity levels and to protect the interest of its Investors.
Investors must hold their investment for a minimum two months before they
are able to request a withdrawal. A four month notice period is then required
for withdrawals.
Withdrawals may be processed earlier than the end of the four month notice
period at the discretion of Trilogy Funds if the liquidity position of the Trust
allows this to occur. This is solely at the discretion of Trilogy Funds.
It should be noted that the Constitution provides a maximum of 15 months
within which Trilogy Funds must meet withdrawal requests. Please refer to
Section 3.6 for full details in relation to withdrawals and liquidity.
11
Fees
No entry or exit fees.

No contribution fees.
Responsible Entity Management fee of 0.7175% p.a.* for
Allocated units.
Other management costs of 0.2640% p.a.* for Allocated units.
No fees are payable for Cash units.
See Section 5.2. Published returns for Investors are net of all fees
charged to the Trust.
*
Reporting
inclusive of GST, less any applicable RITCs
Investors receive the following correspondence regarding their

Trust investment:

Access to current information
receipt of funds notification;

monthly distribution statements;
monthly performance updates;
annual tax statement;
annual periodic (transaction) statement; and
annual financial report (if requested).
You can obtain up to date information in relation to the Trusts

performance and any continuous and other disclosure material at
www.trilogyfunds.com.au/tmit.
This includes RG 45 benchmarks and disclosure principles updates,
and performance updates which report returns payable and the length
of time between the issue of a Cash unit and its designation as an
Allocated unit.
Historical performance
Refer to www.trilogyfunds.com.au/tmit.
Please note past performance is not a reliable indicator of
future performance.
2.2

ASIC benchmarks and

disclosure report
Disclosure against the ASIC RG 45 benchmarks and

disclosure principles is as at the date of this PDS, unless
otherwise stated, and may change during the currency of
this PDS. All financial and statistical data is as at
31 May 2015. These disclosures will be updated at least
semi-annually and if there is a significant adverse change.
Updated disclosures will be available on our website
www.trilogyfunds.com.au and a paper copy of the current
ASIC RG 45 Benchmark and Disclosure Report will also
be provided to Investors free of charge on request.
Benchmarks
The section below sets out briefly:

the benchmark;
how and to what extent Trilogy Funds complies
with the benchmark and if not, why not; and
where additional information is to be found in
this PDS.
Benchmark 1: Liquidity Trilogy Funds meets

the benchmark
To meet this benchmark, the responsible entity must
have cash flow estimates for the scheme that:
Demonstrate the schemes capacity to meet its expenses,
liabilities and other cash flow needs for the next 12 months.
See Section 3.9 for details.
Are updated at least every three months and reflect any
material changes.
Are approved by the directors of the responsible entity
at least every three months.
Benchmark 2: Scheme Borrowing Trilogy Funds meets
the benchmark
not have current borrowings and must not intend to
borrow on behalf of the scheme.
There are no borrowings or intention to borrow
on behalf of the scheme.
12
Benchmark 3: Loan Portfolio and Diversification Trilogy Funds does not meet the benchmark
meet the following:
The scheme holds a portfolio of assets diversified
by size, borrower, class of borrower activity and
geographic region.
Yes, see Section 4.8 for details.
The scheme has no single asset in the scheme portfolio
that exceeds 5% of the total scheme assets.
No, there are seven Loans that represent amounts greater
than 5% of the scheme assets. Cash holdings also exceed
the 5% benchmark figure. Trilogy Funds notes that there
are a limited number of Loans in the portfolio which
makes diversification more difficult. See Section 4.8 for
details. Also see Section 6.3b for the risks associated with
limited diversification.
The scheme has no single borrower who exceeds 5% of
the scheme assets; and
No, there are seven Borrowers who exceed 5% of the
scheme assets. Trilogy Funds notes that there are still
a limited number of Loans in the portfolio which makes
diversification more difficult. See Section 4.8 for details.
Also see Section 6.3b for the risks associated with limited
diversification.
All loans made by the scheme are secured by first
mortgages over real property (including registered
leasehold title).
Yes, all Loans are secured by first mortgages over real
property. See Section 4.1.
Trilogy Funds does not meet the benchmark in respect of
either of the 5% limits referred to above.
Benchmark 4: Related Party Transactions - Trilogy
Funds meets the benchmark
not lend to related parties of the responsible entity or
to the schemes investment manager.
Yes, the responsible entity does not lend to related
parties of the responsible entity. There is no
investment manager.
Benchmark 5: Valuation Policy - Trilogy Funds does not
meet the benchmark
To meet this benchmark, the board of the responsible
entity requires its valuation policy to meet the
following:

A valuer to be a member of an appropriate

professional body in the jurisdiction in which the
relevant property is located.
A valuer to be independent.
Procedures to be followed for dealing with any
conflict of interest.
The rotation and diversity of valuers.
In relation to security property for a loan, an
independent valuation to be obtained:
i.

Before the issue of a loan and on renewal:
B. For all other property, on an as is basis: and
ii.

Within two months after the directors form a

view that there is a likelihood that a decrease
in the value of security property may have
caused a material breach of a loan covenant.
A. For development property, on both an as is

and as if complete basis; and
Trilogy Funds valuation policy meets each aspect of this

benchmark other than i above, specifically Trilogy Funds
does not invariably obtain a new valuation on a renewal
of a loan.
In determining whether there needs to be a revaluation
when a loan is being extended, or there is an increase in
the amount of the borrowing or a change in the interest
rate, the Trilogy Funds Lending Committee will take into
account a number of factors including the Borrowers
Loan history, the amount of the Loan outstanding, the
duration of the extension and other information such
as recent sales and settlements, from local agents and
valuers.
See Section 4.4 for details of Trilogy Funds
valuation policy.
Benchmark 6: Lending Principles Loan-to-Valuation
Ratios - Trilogy Funds meets the benchmark
To meet the benchmark, if the scheme directly holds
mortgage assets, it must meet the following:
Where the loan relates to property development
funds are provided to the borrower in stages based
on independent evidence of the progress of the
development.
Where the loan relates to property development the
scheme does not lend more than 70% on the basis of the
latest as if complete valuation of property over which
security is provided.
In all other cases the scheme does not lend more
than 80% on the basis of the latest market valuation of
property over which security is provided.
Benchmark 7: Distribution Practices Trilogy Funds
meets the benchmark
To meet the benchmark, the responsible entity must not
pay current distributions from scheme borrowings.
There is no current or intended borrowing.
13
Benchmark 8: Withdrawal Arrangements Trilogy

Funds does not meet the benchmark
For liquid schemes to meet the benchmark:
The maximum period allowed for in the constitution for
the payment of withdrawal requests is 90 days or less.
If the scheme has borrowings, it must disclose various

details.
There are no Trust borrowings.
Disclosure principle 3: Loan portfolio
and diversification
No. The maximum period allowed for is 15 months. See

Section 3.6 for the reason behind the 15 months waiting
period in the Constitution.
For pooled mortgage schemes, disclose by number

and value:
The responsible entity will pay withdrawal requests within

the period allowed for in the constitution.
Loans by class of activity and by geographical region.

See Section 4.8.
Yes, Trilogy Funds will pay all withdrawal requests within

the period provided in the Constitution.
The proportion of loans that are in default or arrears for

more than 30 days, by number and value.
See Section 4.7. There are no loans that are in default or
in arrears as at the date of this PDS.
The responsible entity only permits members to withdraw

at any time on request if at least 80% (by value) of the
schemes property is:
i.

ii.

Money in an account or on deposit with a bank

and is available for withdrawal immediately, or
otherwise on expiry of a fixed term not exceeding
90 days, during the normal business hours
of the bank; or
Assets that the responsible entity can reasonably
expect to realise for market value within 10
business days.
Trilogy Funds permits members to withdraw at times

other than those stated in the benchmark. Even though
all cash of the Trust is held on deposit with a bank and
is available for immediate withdrawal, the Mortgage
Investments of the Trust are not assets that Trilogy Funds
can reasonably expect to realise for their market value
within 10 business days.
At any one time more than 20% of the Trusts assets will
be in Mortgage Investments that are not expected to fall
due for repayment within that time period. Nevertheless,
Trilogy Funds only permits members to withdraw when
the Trust is liquid within the meaning of the Corporations
Act. See Section 3.6 for further details.
Disclosure principles
The section below sets out briefly:

the disclosure principle;
the relevant disclosures of Trilogy Funds; and
where additional information is to be found in

this PDS.
Disclosure principle 1: Liquidity
14
Disclosure principle 2: Scheme Borrowing
The nature of the security for loans made by the scheme.

See Sections 4.1 and 4.2.
Loans that have been approved but have funds that have
yet to be advanced and other details.
See Section 4.9.
The maturity profile of all loans.
See Section 4.11.
Loan-to-valuation ratios for loans.
See Section 4.3.
Interest rates on loans.
See Section 4.12.
Loans where interest has been capitalised.
See Section 4.13.
For pooled mortgage schemes, disclose:
The proportion of the total loan money that has been lent
to the largest borrower and the 10 largest borrowers.
See Section 4.10.
The percentage of loans (by value) that are secured by
second-ranking mortgages.
There are no loans secured by second-ranking
mortgages. See Section 4.1.
The use of derivatives (if any).
There is no derivative use in the Trust.
A clear description of the non-mortgage assets of the
scheme, including the value of such assets.
See Section 4.16.
The schemes diversification policy and how the assets
correlate with that policy. See Section 4.8.
Disclose the current and future prospects of liquidity of

the scheme.
See Section 3.9.
The maximum loan amount for any one borrower.

See Section 4.10.
Disclose any significant risk factors that may affect the

liquidity of the scheme.
See Section 3.9.
The method of assessing borrowers capacity

to service loans.
See Section 4.5.
Disclose the policy of the scheme on balancing the

maturity of its assets with the maturity of its liabilities.
See Section 3.9.
The responsible entitys policy on revaluing security

properties when a loan is rolled over or renewal.
Trilogy Funds has procedures in relation to loan renewals.
The Lending Committee will make a determination if a new
valuation is required prior to a renewal. See Section 4.4.
The responsible entitys approach to taking security on

lending by the scheme (e.g. the types of security it takes
and in what circumstances, and whether the security
must be income producing).
See Sections 4.1 and 4.2. The security does not need to
be income producing.
If the scheme invests in, or may invest in, other unlisted
mortgages schemes (whether registered or unregistered)
and the policy on investing in those schemes, including
the extent to which there is a requirement for those
schemes to meet the benchmarks and apply the
disclosure principles.
See Section 4.15.
Disclosure principle 4: Related Party Transactions
Disclose details of any related party transactions
including:
The value of the financial benefit.
See Section 8.1g for the related party arrangement that
has been entered into.
The nature of the relationship.
See Section 8.1g.
Whether the arrangement is on arms length terms and is
reasonable remuneration.
See Section 8.1g.
Whether member approval for the transaction has been
sought and, if so, when.
Disclosure principle 6: Lending Principles Loan-toValuation Ratios

Disclose:
The maximum and weighted average loan-to valuation
ratios for the scheme as at the date of reporting.
See Section 4.3.
Where funds are lent for property development, the
criteria against which the funds are drawn down.
See Section 4.3.
Where funds are lent for property development, the
percentage (by value) of the completion of any property
that is under development as at the date of reporting.
See Section 4.3.
The loan-to-cost ratio of each property development loan
as at the date of reporting.
See Section 4.3.
How and when funds are provided to developers.
See Section 4.3.
Disclose:
If property development loans exceed 20% of the
schemes assets, the responsible entity should identify
the scheme as one that invests a significant component
of funds in property development loans.
See Section 4.3.
If the loan-to-cost ratio of any property development
loan exceeds 75%.
See Section 4.3.
The arrangement was entered into before the

establishment of the Trust and no unit holder approval
was sought.
Disclosure principle 7: Distribution Practices
The risks associated with the related party arrangements.

See Section 6.11.
The source of the current and forecast distributions (e.g.

from income earned in the relevant distribution period,
operating cash flow, financing facility, capital,
application money).
The source for distributions differs between Cash units
and Allocated units. See Section 3.5.
The policies and procedures that the responsible entity

has in place for entering into related party transactions,
including how compliance with these policies and
procedures is monitored.
See Section 8.1g.
Disclosure principle 5: Valuation Policy
Disclose:
Where investors may access the schemes
valuation policy.
The valuation policy is available on the Trilogy Funds
website www.trilogyfunds.com.au/tmit.
Disclose:
If the distribution is not solely sourced from income

received in the relevant distribution period, the reasons
for making those distributions and the risks associated
with such distributions.
Interest charged to a Borrower is typically capitalised
in a development or construction Loan (see Section
4.13). In this case, distributions will be paid from the cash
component of the Trust. There is a risk that cash held by
the Trust will be insufficient to enable distributions to be
paid in any one or more months. See Sections 6.4 and 6.6.
The processes that the directors employ to form a view

on the value of the security property.
Trilogy Funds directors rely on independent valuations to
form a view on the value of the security property.
The frequency of valuations of security property.
See Section 4.4.
Any material inconsistencies between any current
valuation over the security property and the schemes
valuation policy.
No material inconsistencies.
15
If the distribution is sourced other than from income,

whether this is sustainable over the next 12 months.
See Section 3.5.
When the responsible entity will pay distributions and the
frequency of payment of distributions.
See Section 3.5.
Disclose:
If the scheme promotes a particular return on investments,
disclose details of the circumstances in which a lower
return may be payable, together with details of how that
lower return will be determined
and other information.
Not applicable. Trilogy Funds does not promote a
particular return and does not forecast distributions.
Disclosure principle 8: Withdrawal Arrangements
Disclose:
The schemes withdrawal policy and any rights that
the responsible entity has to change the policy.
See Section 3.6.
The ability of investors to withdraw from the scheme when
it is liquid.
Withdrawals are allowed from the Trust when it is a
liquid scheme.
16
The ability of investors to withdraw from the scheme when

it is non-liquid.
The Trust is a liquid scheme. If it were to become an illiquid
scheme all withdrawals would be on the basis provided in
the Corporations Act. The Trust would become an illiquid
scheme in the circumstances described in Section 3.6.
Any significant risk factors or limitations that may affect
the ability of Investors to withdraw from the scheme.
The ability for an Investor to redeem their units from the
Trust is dependent upon its liquidity. The Trusts liquidity
is influenced by additional investments into the Trust and
draw-downs required on approved Loans.
How investors can exercise their withdrawal rights,
including any conditions on exercising these rights.
See Section 3.6.
The approach to rollovers and renewals, including
whether the default is that investments in the scheme are
automatically rolled over or renewed.
Not applicable.
If the withdrawals from the scheme are to be funded
from an external liquidity facility, the material terms of this
facility, including any rights the provider has to suspend or
cancel the facility.
Not applicable as there is no external funding facility.
The maximum withdrawal period that applies to the
payment of withdrawal requests when the scheme is liquid.
There is a maximum of 15 months to meet withdrawals if
the Trust is a liquid scheme.
Any rights the responsible entity has to refuse or

suspend withdrawal request.
See Section 3.6.
The policy of the scheme on balancing the maturity of its
assets with the maturity of its liabilities and the ability of its
members to withdraw.
The policy of the Trust on balancing the maturity of its
assets with the maturity of its liability and the ability of its
members to withdraw is described in Disclosure principle 1:
Liquidity. See Section 3.9.
Disclose:
If the responsible entity makes representations to investors
that they can withdraw from the scheme, disclose:
The grounds for the statement.
See Section 3.6.
The supporting assumptions for the statement.
See Section 3.6.
Disclose:
If the scheme promotes a fixed redemption unit price for
investments (e.g. $1 per unit), the responsible entity must
clearly disclose details of the circumstances in which a
lower amount may be payable, details of how that amount
will be determined and the impact of a default under the
schemes mortgage assets on investors.
The Constitution provides a mechanism for compulsory
redemption of Cash units and Allocated units. If as at the
end of a quarter Trilogy Funds ascertains that the unit
price is less than the fixed withdrawal price of $1.00 per
unit, Trilogy Funds will redeem sufficient Cash units and
Allocated units to bring the unit value of each of the
Cash units and Allocated units back to equal the
withdrawal price.
This is achieved by redeeming an amount of capital from
the Trust equal to the number of whole dollars of the
amount by which the unit value is less than the withdrawal
price of the units.
The basis for the statement.

See Section 3.6.
Any specific risk factors that mean that withdrawal
requests might not be satisfied within the expected period.
See Sections 6.6 and 6.8a.
17
3
N
O
I
T
C
E
S e Trust
Th
18
Section 3 The Trust

An overview of the Trust
The Trust has assets consisting of mortgages and cash.
Initially, Investors Investment Monies in the Trust are
placed in the Short Term Investment Account (STIA)
(either a cash account or a term deposit) held with an
Australian authorised deposit-taking institution (ADI),
and those Investors are issued Cash units. These units
are entitled to income distributions based on the interest
earned in the STIA. When the Investment Monies are
allocated into the mortgage pool, the Cash units become
designated as Allocated units, and the Investors funds
are removed from the STIA. Once the Investors Cash
units become Allocated units they are entitled to income
distributions based on the assets, excluding the STIA,
of the Trust (less fees and expenses and losses). For
the calendar year ended 31 May 2015, the average time
between the issue of Cash units and their designation
as Allocated units was nine days. Investors should note,
however, that past performance is not indicative of future
performance and the period may at any time be longer
or shorter.
The Trust may keep funds such as cash deposits or term
deposits held with an Australian ADI to provide liquidity
to meet the cash requirements of the Trust.
If a Borrower defaults then the property used as security
can be sold and the proceeds used to repay the Loan
made by the Trust together with interest and other costs.
Trilogy Funds will determine which Loans are suitable for
investment. Trilogy Funds policy of Loan diversification
is adopted to help protect the Trust from significant
losses by ensuring risks are not concentrated with one
particular borrower or group of borrowers or in one
particular geographical area or one type of property. It
would be difficult for most individual Investors to match
that kind of diversification when investing on their own.
3.1
Minimum investment
The minimum investment for an initial application is

$10,000, and thereafter in multiples of $1,000. We may
accept a lesser amount at our discretion, which can be
discussed with one of our team by calling 1800 230 099.
Trilogy Funds reserves the right to reject any application
or to allocate a lesser number of units than applied for.
3.2
Minimum investment period
The Trust has a minimum investment period of two

months. After that time a four month notice of
withdrawal may be given. Therefore, the total minimum
investment period is 6 months. Please refer to Section 3.6
for further details.
3.3
How an investment is made
an Application Form accompanying the electronic

copy of this PDS available on Trilogy Funds website
www.trilogyfunds.com.au. The Application Forms are
labelled clearly on the website.
The completed Application Form is to be returned to

Trilogy Funds together with the selected method of
payment. Please refer to Section 9 for further details.
3.4
Issuing units
Issuing Cash units

When an Investors Investment Monies are initially
accepted, interests in the Trust will be issued in the form
of Cash units and each unit will cost $1.00.
Designating Cash units as Allocated units
Investment Monies of an Investor held in the STIA will be
used to invest in the pool of Mortgage Investments. The
Cash units, represented by the amount of the Investment
Monies so used, will then be designated as Allocated units.
Where the amount of the available Mortgage Investments
is less than the total amount in the STIA, the Investment
Monies will be applied to the Mortgage Investments (and
the Cash units designated as Allocated units) in the order
in which the Investors Investment Monies have been
received and accepted by Trilogy Funds.
The earning rate on the Allocated units will then be
determined by the portfolio of mortgages held in
the Trust. Please refer to Section 3.5 for information
regarding the distribution of net interest earned to
Investors who hold Allocated units.
3.5 Distributions
All Loans in the current portfolio expire at varying times.
With Trilogy Funds liquidity policy and active review by
the Treasury Committee and the Board, the Directors, as
at the date of this PDS, have a reasonable basis to state
that distribution practices are sustainable over the next 12
months. This view may change in the future if there is an
increased risk that there could be an influx of withdrawals
that could not be met by the liquidity levels of the Trust
or there is a significant delay in the repayment of Loans
or interest.
Income distribution on Cash units
The proceeds of Cash units (Investment Monies) will be
held in the STIA established with an Australian ADI for
the Trust. The STIA is kept by the Custodian, as an agent
of Trilogy Funds. The Investment Monies held in the STIA
earn interest for the Trust and Cash units are entitled to
income distributions based on interest earned in the STIA
from the date on which cleared funds are deposited until
the Cash units are designated as Allocated units or are
redeemed. Distributions on Cash units do not include
interest earned from Loans.
To become an Investor of the Trust, an applicant must

initially complete either:

an Application Form accompanying this PDS and

included in the application pack; or
19
The distributions on Cash units are calculated daily but

paid monthly or following withdrawal or designation of
the Cash units as Allocated units. Investors can choose
to have this paid into their nominated financial institution
account or it can be reinvested into the STIA as additional
Cash units. By allocating interest daily, the price of Cash
units is maintained at $1.00 per unit.
3.6 Withdrawals
The current interest rate payable on the Trusts

STIA is disclosed on Trilogy Funds website
www.trilogyfunds.com.au or a copy can be posted to you
without charge by contacting Trilogy Funds. Interest rates
will fluctuate from time to time.
While an Investor holds Cash units or Allocated units,

the Investor may make a withdrawal from the STIA by
applying for withdrawal of all or some of the units held.
While there is no minimum amount for a withdrawal,
the Investor must maintain a minimum investment of
$1,000 in the Trust, whether in the form of Cash units or
Allocated units, to remain invested.
Please see Section 6.2b regarding the risk of a delay in

converting Cash units to Allocated units and Section 6.9d
regarding the risk of negative income, which will result in no
distributions being paid in the relevant distribution period.
The withdrawal price for Cash units is $1.00 each.

Investors will also receive, at the same time, their
proportion of the income earned from the STIA referable
to the redeemed Cash units.
Income distribution on Allocated units

The amount of the distribution for Allocated units
is calculated on the income earned in the relevant
distribution period (i.e. monthly) on the assets, excluding
the STIA, of the Trust (less fees, expenses and losses). The
cash for current distributions may be sourced from cash
held by the Trust which:
The withdrawal price for Allocated units is $1.00 each.

Income entitlement will also be paid. Please also refer
to Section 6.9d for more information about the risk of
negative income and its effect on a withdrawal.
where interest is capitalised, is advanced to the

Borrower to enable the Borrower to make the interest
payments due under and in accordance with the
relevant Loan agreement;
where interest is not capitalised, is from interest paid

by Borrowers;
constitutes repayments of Loans by Borrowers; or
constitutes interest received from the deposits of

Allocated cash.
Notice period
After holding the unit for two months, a four month
notice period is currently required for withdrawals.
Trilogy Funds, at its discretion, may waive or reduce
this period. Any waiver or reduction is contingent on
sufficient liquidity in the Trust at the time of the request.
Trilogy Funds may increase the four month notice
period by giving you not less than 30 days prior notice,
provided that it continues to be able to meet withdrawal
requests within 15 months, which as explained below is
the maximum period specified in the Constitution for
satisfying withdrawal requests. Withdrawals will normally
be paid within 10 business days after the expiry of the
notice period. Investors must note, however, that no
assurance is given that processing will always be within
that timeframe.
As the interest on all mortgage Loans is typically

capitalised, the current distribution is sourced from
sources other than the receipt of interest payments from
Borrowers, as noted above. It is Trilogy Funds practice to
pay monthly distributions based on the income earned in
the relevant period but potentially not as yet paid by
the Borrower.
Where Investment Monies are allocated to Mortgage
Investments and the units are designated as Allocated
units, income distributions are calculated daily and
distributed monthly in arrears, in accordance with your
directions on the Application Form. Please also refer to
Section 6.9d regarding the risk of negative income.
Distribution payment options
Investors with Cash units and Allocated units can
choose to have their distributions paid directly into their
nominated financial institution account or into the STIA
as additional Cash units in the Trust.
Investors holding Cash and Allocated units who elect to
reinvest will have their distributions paid into the STIA
and be issued with additional Cash units.
No minimum investment amount applies to any
distribution re-investment.
The preference for payment into the nominated financial
institution account or reinvestment into Cash units can be
20
changed at any time by completing a change of details

form, which is available on our website or by requesting
a copy.
Any withdrawal is subject to compliance with the notice

period and the Trusts liquidity, each as referred to below.
How to make a withdrawal

Investors who wish to withdraw all or part of their
investment in the Trust should complete and sign a
Withdrawal Form and fax, post or deliver it to the Trilogy
Funds office in Brisbane, as advised in the corporate
directory at the back of this PDS.
Withdrawal and Trust liquidity
The liquidity of the Trust affects withdrawals in two ways.
The first is that for the Trust to meet withdrawal requests
from Investors, the Trust must be a liquid scheme. To
be a liquid scheme, not less than 80% of the assets of
the Trust must be able to be realised within the period
specified in the Constitution for satisfying withdrawal
requests. The maximum period specified in the
Constitution for satisfying withdrawal requests is stated
to be 15 months. The reason for not meeting the 90 day
period noted in Benchmark 8 of RG 45 (see Section 2.2)
is due to the fact the Loans of the Trust usually have a
maturity profile between 12 and 18 months. The maximum
withdrawal period must provide a realistic timeframe for
realising these underlying assets. The adoption of the 15
month period means that the Trust can be treated as a
liquid scheme.
In addition, Investors should note that if the Trust is

not liquid at any time, an Investor may only make a
withdrawal in accordance with the provisions of the
Corporations Act and any relief granted by ASIC from
time to time. These provisions prevent Trilogy Funds
from redeeming units (i.e. by allowing withdrawals
by Investors) other than in accordance with certain
procedures including that a pro rata offer must be made
to all Investors in the Trust. As at the date of the issue of
this PDS, it is anticipated that the Trust will continue to be
a liquid scheme.
The second aspect is that even as a liquid scheme,
withdrawals may affect the Trusts liquidity and
therefore the Constitution permits Trilogy Funds, in
certain circumstances, to withhold, suspend or delay
the payment of withdrawals. Specifically, there must be
provision for a circumstance where there are a significant
number of withdrawal requests that potentially exceed
the cash holding at that time of receipt. In this scenario,
the maximum withdrawal period of 15 months would
allow time for Loans to be repaid and payment of
withdrawals made.
The Fund is not an at call cash account and should not
be treated as such.
To ensure that you have up to date information about the

Trust when making an additional investment, Trilogy Funds
suggests that you contact us and we will provide you with
a copy of any new or supplemental product disclosure
statement that has been issued. Investors should keep a
copy of the current PDS and any supplemental product
disclosure statement, as well as any reports or updated
information that Trilogy Funds provides to you, so that
you may refer to these when deciding whether to make a
further investment in the Trust.
3.9
Trilogy Funds has a Liquidity Policy which requires

the updating and tabling of a report to the Treasury
Committee for the Trust on a regular basis and is
presented to both the Executive Committee and the
Board monthly as to cash flow estimates that meet the
benchmark requirements. The Board formally approves the
cash flow estimates at least every three months.
The report uses the following assumptions to monitor
liquidity (these assumptions may change from time to
time as reviewed) and balance the maturity of assets and
the maturity of liabilities:

In the event Trilogy Funds determines that there has

been negative income in the Trust in any period and
that Trilogy Funds is required to effect a compulsory
redemption of both Cash units and Allocated units in
order to maintain the unit price at $1.00 (see Section
6.9d), the payment of any withdrawals that may fall
due for payment between the date Trilogy Funds
ascertains that there has been negative income and the
date the compulsory redemption of units is effected
will be suspended until the compulsory redemption is
completed. Any Cash units or Allocated units in respect
of which there is a pending withdrawal request will
be included in the compulsory redemption. Once the
compulsory redemption is completed, any suspended
withdrawals will be paid on the basis of the reduced
number of Cash units or Allocated units the subject of
the redemption.
3.7
Transferring units
Units, whether they are Cash units or Allocated units, may

be transferred in accordance with the provisions of the
Constitution. A transfer of units must be in writing, signed
by both the seller and the buyer and transfer duty paid (if
applicable) before it is given to Trilogy Funds.
Liquidity and liquidity targets
forecast Investor withdrawals are based on the

larger of:
- known pending withdrawals from withdrawal

requests received; or
- an estimated amount of $100,000 per month.
forecast inflow of funds have been based on estimates

made by Trilogy Funds Sales Department; and
forecast drawdowns have been based on the latest

Lending Department individual Loan forecasts
noting all scheduled inflows and outflows (assets and
liabilities) for individual mortgages.
The assumptions used to monitor liquidity are stress

tested on a regular basis via sensitivity analysis that is
provided to the Treasury Committee.
Some significant risks that may affect the liquidity of the
Trust could be:

a large number of withdrawals of an amount more

than the available liquidity of the Trust; and
borrower defaults.
When units are transferred, Trilogy Funds may charge

a fee of 2% (plus GST) payable to Trilogy Funds based
on the value of the units transferred. This fee has
been waived by Trilogy Funds for the life of this PDS.
Thereafter the waiver may cease. See Section 5.3a.
3.8
Adding to your investment
Current Investors wishing to add to their investment can

do so by completing an Additional investment application
form, which accompanies the current PDS and the
electronic version of the PDS. You may also request
a copy from us. The minimum additional investment
amount is $1,000.
21
The Treasury Committee monitors the maturity of assets

(mortgage Loans and cash) and also the maturity of
liabilities (Investor withdrawals and Borrower drawdowns).
Mortgage Loans may be for a period of up to
24 months duration (and longer, if extended), while
Investor withdrawals require a four month notice period
(and may be longer see Section 3.6). While the Treasury
Committee currently has a target that at least 5% of the
Trust assets are to be held in cash type investments, there
is a risk that liquidity may be insufficient to meet Investor
withdrawals and/or draw down requests to Borrowers (see
Sections 6.6 and 6.8a).
As part of its liquidity policy, cash is held in the STIA.
For investments less than $500,000, the following

tests apply:
Individual wealth test
The person has provided a certificate by a qualified
accountant stating that the person has net assets of at
least $2.5 million or gross income for each of the last two
years of at least $250,000. A company or trust will also
be a wholesale investor if controlled by a person who is
certified as meeting the wealth test. The certificate can be
no more than six months old.
As at the date of this PDS Trilogy Funds has no reason

to believe that it will not have sufficient cash or cash
equivalents to meet its projected cash needs over the
next 12 months or that it will not continue to do so
going forward.
Professional Investor test

The financial product is provided to a professional
investor which includes:

an Australian financial services licensee;
3.10 Reporting
a body regulated by APRA outside of superannuation;
Investors in the Trust will be provided with the following

upon their initial investment:
a body registered under the Financial Corporations

Act 1974;
acknowledgement letter on receipt of

application monies;
acknowledgement letter confirming Cash unit

holding; and
trustees of superannuation funds, approved deposit

funds, pooled superannuation trusts and public sector
superannuation schemes under the Superannuation
Industry (Supervision) Act 1993 with net assets of at
least $10 million; and
acknowledgement letter and Statement of Initial

Investment immediately following the designation of
Cash units as Allocated units.
a person who controls at least $10 million.
Investors also receive:

monthly performance updates;
monthly distribution statements;
an annual statement of taxable income, providing a

summary of distributions earned for inclusion in the
Investors income tax return;
annual periodic statement, which details all

transactions on each Investors account, together with
balances on the number of units held in the Trust; and
annual financial report of the Trust in accordance with

regulatory requirements, if requested.
3.11

Wholesale Investors and investing

through investment platforms
Trilogy Funds will have the discretion to waive or reduce

fees for wholesale Investors or investment platforms.
Any waiver or reduction is available only to persons
who are wholesale investors within the meaning of
the Corporations Act on an individual basis, and only in
accordance with the Corporations Act requirements and
the ASIC class order relief relating to differential fees.
Wholesale Investors
Who is a wholesale investor?
Product value test
Where the initial amount paid by the investor at the time
22
of investment in the Trust is at least $500,000. The person

will remain a wholesale investor even if their investment
subsequently falls below $500,000.
Investment platforms
You may invest in the Trust through an investment
platform, also referred to as wraps and investor directed
portfolio services (IDPS). Trilogy Funds authorises the
use of this PDS as disclosure to investors who wish
to access the Trust through investment platforms
(Indirect Investors).
Indirect Investors who gain exposure to this Trust through
a master trust, wrap account or IDPS do not:

become unit holders in the Trust, nor do they acquire

the rights of a unit holder in the Trust. The operator
of the master trust, wrap account or IDPS has those
rights and can exercise, or decline to exercise, them on
behalf of the Indirect Investors; and
receive interest distributions or reports directly from

Trilogy Funds, nor do they directly participate in
Investor meetings or the winding up of the Trust.
Withdrawal timeframes for Indirect Investors are
dependent on their master trust, wrap account or
IDPS operator.
Indirect Investors in master trusts, wrap accounts or IDPS

should consult their operator to obtain information on
how their operator deals with applications, withdrawals,
transfers, interest distributions and timing, fees and
expenses and monitoring of their investments. Such
Indirect Investors should also read the disclosure
document issued by the operator of the relevant master
trust, wrap account or IDPS.
SECT
Abou
t the
ION 4
Trust
s
Loans
Section 4 - About the Trusts Loans

As at 31 May 2015, Trust assets were as follows:
Drawn Loans
$13,450,718
Cash in the STIA (and receivables)
$8,023,994
Total Funds Under Management
$21,474,712
Current and future Mortgage Investments are Loans

made directly to Borrowers from the Trust secured by
registered first mortgages over residential, commercial,
retail, development sites and industrial properties at
either fixed or variable interest rates.
The Mortgage Investments held by the Trust are held
beneficially for the holders of Allocated units according
to their proportionate share. The legal title to each
Mortgage Investment is held by the Custodian.
4.1
Registered first mortgages
The primary security for each Mortgage Investment held by

the Trust will be a registered first mortgage situated within
specified states and territories in Australia. Registered
means that the mortgage is registered with the Queensland
Department of Natural Resources and Mines or the
equivalent government department in other states.
There are no Mortgage Investments secured by a
second-ranking mortgage.
4.2
Additional security that may be taken
Additional types of security may be taken including

general security agreements and personal guarantees to
support the first mortgage security.
4.3
Loan-to-valuation ratios (LVR)
All Loans approved in the Trust must be at a maximum

LVR of 70% of the latest as if complete valuation
when the Loan relates to a property development or
construction (development Loan). Otherwise, Loans are
offered at a maximum LVR of 70% of the as is valuation
received that was not more than four months old at the
time of Loan approval. As at 31 May 2015 the weighted
average LVR of all the Loans in the Trust was 55.19%.
As at 31 May 2015, the highest LVR for an individual loan
was 66.61%.
Where a Loan is in default, the LVR on that Loan may
exceed 70%. It should be noted that if an advance
of further funds is required in order to complete a
development where a Loan is in default, the LVR may
exceed 70% of the as if complete valuation.
As at 31 May 2015 the LVRs of the existing approved
Loans, in percentage terms, were as follows:
RANGE
Less than 60%
VALUE OF
LOANS
NUMBER OF
LOANS
$13,285,000
13
61% - 70%
$6,692,079
Total
$19,977,079
19
The LVR is calculated on the higher of the approved loan

amount and the drawn loan balance for each Borrower,
divided by the property value.
Development Loans are those where a Borrower
utilises the Loan monies to construct buildings
(e.g. units, houses, commercial or retail property) or to
undertake land development. On the sale of a unit, house,
commercial, industrial or retail building, or part of the
land, all or part of the proceeds are utilised to reduce
the Borrowers debt. Development Loans involve close
supervision by Trilogy Funds. To this end, Trilogy Funds
appoints an external QS, engineer, project manager or
valuer to advise:

the amount of all draw-downs by a Borrower and all

payments which are to be made to contractors in
stages based on the progress of development; and
the costs to complete the project.

23
The Trust invests a significant component of funds in

property development Loans. There are seven property
development Loans which account for 30.79% of the
Trust Assets (including cash assets), at various stages of
development with percentages of completion ranging
from 0% to 83.84%.
The loan to cost ratio of the development Loans range
from 59.33% to 74.95%. Investors should note that none
of the development Loans has a loan to cost ratio that
exceeds 75%.
4.4 Valuations
Trilogy Funds requires valuations to be prepared by an
independent, qualified and registered valuer prior to
advancing loan funds against a property being offered as
security. In all cases, Trilogy Funds requires the valuation to
meet the following criteria (amongst other things):

all external valuations must be performed by a

valuer who is on the panel of Trilogy Funds
approved valuers;
the valuer must be a member of an appropriate

professional body in the state or territory where the
mortgaged property is situated;
Trilogy Funds prefers to instruct the valuer, however

if not, the valuation must be addressed or assigned to
Trilogy Funds for mortgage purposes under Trilogy
Funds standard instructions;
the panel valuer must be independent of the borrower

and Trilogy Funds;
no one valuer conducts more than one third of

the total valuation work undertaken for the Trust
calculated by number of the security properties;
the report must comment as to whether the

mortgaged property represents satisfactory security
for mortgage purposes as appropriate;
valuers must include a statement in their valuation

reports as to whether the valuation complies with all
relevant industry standards and codes;
the valuer must be instructed to prepare the valuation

report in a format which clearly sets out the primary
methodology used and, if so requested, a secondary
check valuation methodology, in accordance with
the instructions;
valuations for construction projects and completed

buildings should state a replacement value in the
valuation for the purpose of Trilogy Funds determining
the amount of insurance required; and
where a loan is for development or construction
purposes, the valuer must assess the property on both
an as is and as if complete basis. All other property
loans are valued on an as is basis.
In terms of when valuations must be obtained:
24
all valuations must not be more than four months old

as at the date of approval of the loan; and
valuations must also be obtained:
at least every four years;
within two months after the directors

form a view that there is a likelihood that
a decrease in the value of security
property may have caused a material
breach of loan covenant; and
for any other reason determined

by the Lending Committee.
At the discretion of the Lending Committee valuations

may also be obtained when the following occurs:

a material change in the terms of the loan, including as

to the amount, duration, or interest rate on renewal;
delay in any construction or development proposal;
information that leads Trilogy Funds to believe that

there may be a variation in the security value;
a material change in the nature of the

building/property;
a material change in the tenancy profile of a building;
a request to vary directorship or ownership of

the borrower or a guarantor company (or its
associates); and
the valuation undertaken for funding is in excess

of four months old as at the time of approval of the
new loan.
4.5

Borrowers capacity to service the

Loan and Loan assessment
A disciplined process is used by Trilogy Funds to evaluate

each loan proposal that is submitted by Borrowers and
for monitoring any Loan that is subsequently approved
by Trilogy Funds. This process reflects the requirements
contained within Trilogy Funds Lending Policy. The
process includes:

a standard loan application form is completed and

signed by the Borrower;
the Borrower or a director of the Borrower entity is

interviewed by a representative of Trilogy Funds;
the Borrowers and/or the projects ability to repay the

loan is evaluated;
a credit check is carried out in all cases; and
Trilogy Funds inspects all property security.
In the case where interest is capitalised in respect of a

development or construction loan, Trilogy Funds will
assess the feasibility of the project. In doing so, Trilogy
Funds relies upon an independent valuers assessment of
the property on an as if complete basis and an as is basis
and has a QS examine the costs to complete the project
and drawdowns required. As part of its loan assessment
process, Trilogy Funds will consider an appropriate amount
to be reserved for capitalised interest before determining
the loan advance and ultimate LVR.
All funds drawn down for a property development are
based on certification by an independent panel QS. After
the QSs report is received, funds are advanced to the

builder/contractor. The QSs report includes a cost to
complete the project.
4.6
Adequate property insurance
Prior to a loan being made, written confirmation must be

given to Trilogy Funds confirming that adequate insurance
over the property to be mortgaged is in place and that the
interest of the Custodian will be noted as mortgagee on
the relevant policies. Insurance coverage is monitored on a
regular basis.
4.7

Loan monitoring and defaults

or arrears
The performance of all Loans is actively and regularly

monitored by Trilogy Funds with respect to timely
payment of interest, adherence to ongoing reporting
requirements and specific Loan covenants. The Lending
Committee is responsible for monitoring any Loans in
default/arrears. Arrears relate to non-payment of principal
or interest after the due date for payment. Default relates
to non-adherence to the conditions of the loan agreement,
such as the need to have adequate insurance in place.
That committee meets on a regular basis (usually weekly).
The Head of Lending reports on all Loans (not just those in
default) at these meetings.
4.8
Loan diversification
The Trust holds a portfolio of Loans diversified by size,

Borrower, class of Borrower activity and geographic
region. The position as at 31 May 2015 was as follows:
Loans by class of activity
CLASS
OF ACTIVITY
Completed
residential units
VALUE OF
LOANS
% OF NUMBER
PORTFOLIO
OF
LOANS
$2,146,832
15.96%
$134,304
1.00%
Completed
residential land
$4,200,025
31.23%
Land
development
residential
$5,780,379
42.97%
Townhouse
development
residential
$1,189,178
8.84%
Total
$13,450,718
100.00%
19
Completed
industrial
In the event that a Borrower is in default of a

Loan condition or is in arrears by failing to make an
interest payment on the due date, the following
actions will be taken:

where a Loan is in arrears more than seven days, the

Borrower will be contacted to arrange collection of
the arrears;
any Loan in arrears more than 30 days (unless

otherwise determined by the Lending Committee
or the Board) may be placed in the hands of Trilogy
Funds solicitors to commence recovery procedures;
enforcement proceedings may commence in

accordance with the following process:
- the mortgagee may become a `mortgagee
in possession or appoint a suitably
qualified administrator;
- a new valuation of the secured property may
be sought; and
- the underlying security may be placed on
the market for sale or, depending on the
nature of the security and where it is deemed
to be in the best interests of the Mortgage
Investors, appointing parties to complete the
development or construction of the property,
prior to such sale process commencing;
the Lending Committee will monitor the progress of

the enforcement proceedings and any other action
taken by Trilogy Funds in connection with the default
or arrears.
At the date of the PDS, there are no Loans in default

or arrears.
25
The following are Trilogy Funds guidelines for the class of activity sector spread of the portfolio. The guidelines reflect
Trilogy Funds experience and accumulated skills in lending on construction projects predominantly in the residential
sector, as well as commercial and industrial sectors. Additionally, Trilogy Funds has experience in lending on land
development projects and consequently it is acknowledged that construction and development projects will be featured
in the sector spread. These percentages are a guide only and the sector spread guidelines are to be reviewed by the
Lending Committee on an ongoing basis. With a currently limited Loan portfolio, achieving and maintaining diversity can
prove challenging. Obviously the percentages outlined in Trilogy Funds Lending Policy are a guide only. However, the
sectoral spread is reviewed by the Lending Committee on an ongoing basis. While Trilogy Funds does not, as at the date
of this PDS, meet its internal sectoral spread guidelines it will work towards doing so as the Loan portfolio increases in
both size and number of Borrowers.
SECTORAL SPREAD AS AT 31 MAY 2015
GUIDELINE BY
NUMBER
% OF LOAN
PORTFOLIO
VALUE OF
LOANS
NUMBER
OF LOANS
Residential
20% - 70%
36.85%
$6,611,088
Commercial
0% - 30%
00.00%
$0
Land
20% - 50%
5.26%
$358,468
Residential
0% - 50%
52.63%
$6,346,858
Commercial
0% - 20%
5.26%
$134,304
100.00%
$13,450,718
Construction and Development
Investment Loans
Total
Cash (as a percentage of total assets)
5% - 20%
VALUE OF
LOANS
Queensland
NUMBER OF
LOANS
$11,316,535
17
$2,134,183
Australian Capital
Territory
Victoria
$13,450,718
19
Trilogy Funds policy is that the proposed security taken

by Trilogy Funds must be located in Australian capital
cities, regional cities and significant towns and areas.
4.9
19
A targeted indicative spread objective of security

locations is:
New South Wales
Total
36.71%
Loans by geographic region as at 31 May 2015

REGION
10
STATE
TARGET BY
NUMBER
AS AT 31
MAY 2015
Queensland
20-50%
89.5%
New South Wales
10-50%
10.5%
Australian Capital
Territory
10-20%
0%
Victoria
10-40%
0%
Information as to the loan portfolio and its diversification

is updated for the Trust not less than semi-annually
and disclosed in the RG 45 Benchmark and Disclosure
Principles Report for the Trust available at
www.trilogyfunds.com.au
Loans yet to be advanced
As at 31 May 2015 the Loans (including capitalised interest) that had been approved but the funds had yet to be
advanced and the funding arrangements in place for any of these undrawn Loan commitments were as follows:
CLASS OF ACTIVITY
Completed residential units

Completed industrial
Completed residential land
Land development residential
Townhouse development residential
Total
APPROVED AMOUNT
(INCLUDING
CAPITALISED
INTEREST)
DRAWN
UNDRAWN/
OVERDRAWN
NUMBER
OF
LOANS
$2,280,000
$2,146,832
$133,168
$140,000
$134,304
$5,696
$5,265,000
$4,200,025
$1,064,975
$10,970,000
$5,780,379
$5,189,621
$1,320,000
$1,189,178
$130,822
$19,975,000
$13,450,718
$6,524,282
19
A Loan may be structured primarily as a Loan commitment so that all or a large component of the amount that may
be advanced is not drawn down by the Borrower for a period of time after the entering into of the Mortgage and the
granting of the security, until needed for the development or construction. As at 31 May 2015 there were no Loans to
Borrowers entered into on this basis.
26
4.10 Maximum Loan amount

The Trust may not lend more than $5 million to any
one Borrower.
Trilogy Funds notes that there are seven Borrowers who
have borrowed more than 5% of the total Loan money.
Trilogy Funds has outlined the risk of lack of diversification
in Section 6.3b.
The following table indicates the range of the interest

rates charged to Borrowers in respect of the Loans as at
31 May 2015:
INTEREST RATE
As at 31 May 2015 the proportion of the total Loan

portfolio that has been lent to the largest Borrower and
the 10 largest Borrowers (see Note 1) was as follows:
VALUE OF
LOANS
NUMBER OF
LOANS
7.00%
$419,550
8.00%
$358,468
8.50%
$239,998
9.00%
$7,728,851
11
9.92%
$719,947
VALUE OF
LOANS
PERCENTAGE
12.30%
$2,509,579
12.67%
$834,751
$2,509,580
18.66%
15.50%
$639,574
$1,714,633
12.75%
Total
$1,438,006
10.69%
$1,152,079
8.57%
$854,278
6.35%
$834,751
6.21%
$719,947
5.35%
$639,574
4.75%
$618,128
4.60%
10
$572,607
4.26%
Rank (largest at 1)
Note 1: There are 19 Loans in the Trusts portfolio.
4.13
$13,450,718
19
Capitalisation of interest
Interest charged to a Borrower is typically capitalised in

a development or construction loan. As at 31 May 2015,
interest had been capitalised on all of the Loans made by
the Trust.
4.14 Credit contract loans

Trilogy Funds is not licensed to provide, and the Trust does
not make, loans that are in the nature of credit contracts
regulated by the National Credit Code.
4.15 Dealing with Mortgage Investments

4.11
Maximum Loan term
The maximum Loan term is 24 months. All Loans may

however be extended subject to the unanimous approval
of the Trilogy Funds Lending Committee.
As at 31 May 2015 the maturity profile of the Loans made
by the Trust was as follows:
TERM OF THE LOAN
VALUE OF
LOANS
Less than 3 months
$3,180,359
More than 3 months

but less than 6
months
$1,429,176
More than 6 but less

than 12 months
$8,841,183
$13,450,718
19
Total
4.12
NUMBER OF
LOANS
Interest rates
The interest rates charged to a particular borrower at any

time reflects a balancing of economic conditions, interest
rates charged by other mortgage providers and the
risks associated with the borrower or the nature of the
security provided.
In accordance with its policy, Trilogy Funds does not
hedge any interest rates.
The Trust may acquire a Mortgage Investment from a

lender by way of transfer or assignment, provided that
the Mortgage Investment meets the lending criteria of the
Trust. The lender assigning or transferring the Mortgage
Investment may be a related party of Trilogy Funds,
including a registered mortgage managed investment
scheme of which Trilogy Funds is the Responsible Entity.
Similarly, the Trust may also dispose of a Mortgage
Investment by way of transfer to another person, if this
is in the interest of the Investors. The transferee may be
a related party of Trilogy Funds, including a registered
mortgage managed investment scheme of which Trilogy
Funds is the Responsible Entity.
4.16
Other assets of the Trust
As at 31 May 2015, total Trust assets were $21,474,712

comprised of 62.64% mortgage Loans ($13,450,718),
36.71% cash and cash equivalents ($7,883,707 of which
$220,425 is for Cash units and $7,663,282 for Allocated
cash) and 0.65% other receivables ($140,287).
Updated disclosures as to Loans made by the Trust and
the other assets of the Trust will be available in the RG 45
Benchmark and Disclosure Principles Report for the Trust
available at www.trilogyfunds.com.au.
As part of the Trusts portfolio diversification, the Trust
may also invest in other registered mortgage schemes
managed by Trilogy Funds. To date this has not occurred.
If this does occur, the registered mortgage schemes into
which the Trust makes an investment will be required
to meet the benchmarks to the extent determined by
Trilogy Funds at the time of investment and apply the
disclosure principles.
27
5
N
O
I
T
C
E
s
S es and cost
Fe
28
5.1
Consumer advisory warning
DID YOU KNOW?

Small differences in both investment performance and fees
and costs can have a substantial impact on your long term returns.
For example, total annual fees and costs of 2% of your balance
rather than 1% could reduce your final return by up to 20% over a
30 year period (for example, reduce it from $100,000 to $80,000).
You should consider whether features such as superior investment
performance or the provision of better member services, justify higher fees
and costs. You may be able to negotiate to pay lower contribution fees and
management costs where applicable. Ask the fund or your financial adviser.
TO FIND OUT MORE

If you would like to find out more or see the impact of the fees
based on your own circumstances, the Australian Securities and Investments
Commission (ASIC) website (www.moneysmart.gov.au) has a managed investment
fee calculator to help you check out different fee options.
The warning is prescribed for inclusion in product disclosure statements and aims to alert Investors to the
importance of value for money; and the compounding value of fees and costs as well as their impact over
time on ultimate benefits. The example given is not intended to represent an investment in this Trust.
For an additional description of the fees and costs charged by this Trust, please read this section in full.
There are no contribution fees for the Trust. When comparing an investment in this Trust through this PDS with
other products in the marketplace, recognise that other products may charge a contribution fee and
you may be able to negotiate a lower contribution fee with the fund or your financial adviser.
5.2
Fees and costs
There are two fees and costs tables overleaf:

Table 1 -

Fees and costs payable from the assets

of the Trust as a whole.
Table 2 -

Fees and costs payable by a Borrower

of the Trust.
The next part of this Section deals with the fees and
charges that may be payable when an Investors Cash
units are designated as Allocated units.
Fees and cost - Allocated units
This table shows fees and other costs you may be charged.
These fees and costs may be deducted from your money,
from the returns on your investment or from the Trust
assets as a whole.
Table 1: Fees and costs that are payable from Fees and costs described are inclusive of GST and less
any available reduced input tax credits (RITC).

the assets of the Trust as a whole
Fees and costs - Cash units
As at the date of this PDS, no fees and charges are
payable by Investors in respect of the Cash units they
hold. This means that Trilogy Funds does not charge any
management cost (fees or expenses), or any establishment
fee, contribution fee, transfer fee, withdrawal fee or exit fee.
Taxes are set out in another part of the PDS.

You should read all of the information about fees and
costs, as it is important to understand their impact on
your investment.
However, Investors must read the information in

Section 5.3a as to the right of Trilogy Funds to
change this position at a future time.
29
Table 1: Fees and costs that are payable from the assets of the Trust as a whole
TYPE OF FEE OR COST
AMOUNT
HOW AND WHEN PAID
$0
N/A
$0
N/A
$0
N/A
$0
N/A
Establishment Fee
The fee to open your investment
in the Trust.
Contribution Fee
The fee on each amount contributed
to your investment in the Trust.
Transfer Fee
The fee on each amount transferred
out of your investment in the Trust to
another party.
Exit Fee
The fee to close your investment in
the Trust.
Management Costs
The annual fees and expenses for managing your investment in the Trust, comprising:
Responsible Entitys management fee Responsible Entitys management
of 0.7175% p.a.
fee of 0.7175% p.a. on the total gross
value of Mortgage Investments and
Allocated cash held in the Trust.
PLUS
Other management costs not
expected to exceed 0.2640% p.a.
Management costs do not include
abnormal expenses referred to in
Section 5.3c.
Total management fees and costs
Other management costs have been

set at 0.2640% p.a. of the gross value
of the Mortgage Investments and
Allocated cash for the duration of
this PDS.
The management fee is calculated

daily and paid monthly in arrears.
Management costs are calculated

daily and paid monthly in arrears.
0.9815% p.a.
EXAMPLE If the amount of the
assets in the Trust comprises a
pool of Mortgage Investments and
Allocated cash totalling $10 million
and Trilogy Funds charges a fee
of 0.7175% p.a. and incurs other
management costs of 0.2640% p.a.
these fees and costs would amount
to $98,150 p.a.
Service Fee
Investment switching fee. The fee for
changing investment options.
Nil
Commissions or other fees payable to mortgage brokers

or advisers are set out in Section 5.3.
Please note, these costs are deducted from your gross
distribution which means you will not be separately
charged for these fees. Therefore the monthly income
distribution you receive is net of the management costs.
The fees and costs deducted during the year from the
gross income of the Trust derived from the Mortgage
Investments and the Allocated cash is divided by the
number of Allocated units on issue to arrive at your
proportion of the yearly fees and noted on your
Annual Statement.
30
N/A
Example of annual fees and costs

The table on the next page gives an example of how the
fees and costs of the Trust can affect your investment over
a one year period. You should use this table to compare
an investment in the Trust with other managed
investment products.
Please note that management costs noted in the
table are payable from the assets of the Trust
as a whole and not from your individual investment
in the Trust.
Fees and costs described are inclusive of GST and less
any available RITC.
EXAMPLE an investment in the Trust
Balance of $50,000 with a contribution of

$5,000 during year
Contribution fees
0%
For every additional $5,000 you put in, you will

be charged $0.00.
PLUS Management Costs
0.9815% p.a.
And, for every $50,000 you have in the Trust you

would be charged $491 (See Note 1).
EQUALS Cost of Trust
0.9815% p.a.
If you had an investment of $50,000 at the

beginning of the year and you put in an
additional $5,000 during the year, you would be
charged fees of from $491 to $540 (See Note 1).
Note 1: Management costs (fees and expenses) are calculated with reference to the gross value of the Mortgage Investments and Allocated cash of the
Trust, not on the amount of your investment. This example assumes that the gross value of the Mortgage Investments and Allocated cash is $50,000 and
that the investment is in Allocated units.
Trilogy Funds is entitled to receive from the Borrower and retain any fees and costs on each Mortgage Investment made
by the Trust. The table below shows the types of fees and costs that Trilogy Funds may charge to a Borrower.
Investors should be aware that the fees and costs paid by the Borrowers form part of the assets of the Trust but are paid
to Trilogy Funds.
Fees and costs described are exclusive of GST.
Table 2: Fees and costs that are payable by the Borrower

TYPE OF FEE OR COST
AMOUNT
HOW AND WHEN PAID
Between 0.50% and 3% of the

loan.
This fee is paid by a Borrower when

an application is withdrawn or at
settlement of the loan.

loan amount p.a.
This fee is paid on a recurring basis

during the term of the loan.
Between one and six months

interest.
This fee is paid on the early repayment

of the loan.
Calculated either as a percentage

of the profit or as a percentage of
the loan amount.
This fee is paid at the date of release

of the security or at such date as is
agreed between Trilogy Funds and
the Borrower.

loan amount.
This fee is paid on or about the date of

commencement of the extended term.
Up to $1,000.
This fee is paid at the date of release of

the security.
Loan Application Fee

This is a fee paid by a Borrower
whether or not the loan proceeds.
Loan Administration Fee
This is a loan monitoring and
administration fee that a
Borrower pays.
Early Repayment Fee
This is a fee a Borrower may have to
pay if the Borrower repays the loan
before the maturity date.
Performance Based Fee
This is a fee that may be payable by a
Borrower from the proceeds derived
from the project, which is the subject
of the loan.
Loan Extension Fee
This is a fee payable by a Borrower
where Trilogy Funds agrees to the
Borrowers application to extend the
loan repayment date.
Security Release Fee
This is a fee payable by a Borrower
where Trilogy Funds releases any
security held, either in full or in part, over
any lot or unit of the security property.
31
5.3

Additional explanation of fees

and costs
as a transfer fee, 2.2% (including GST) of the value

of the units transferred.
The following additional information applies to the Trust:
Trilogy Funds may waive or reduce fees for wholesale

investors and investor platforms. See Section 3.11 for
the circumstances in which it may do so.
a.
Variation and waiver of fees

Trilogy Funds may waive or defer payment of its fees
and costs in whole or in part. If it does so in relation
to fees and costs payable by the Investors, the
amount available for distribution to unit holders
will increase.
b.
Trilogy Funds may cease its waiver or deferral of fees

to which it is entitled from Investors or Borrowers,
either generally or from a Borrower in respect of any
particular Mortgage Investment.
Other management costs include:
For the life of this PDS, Trilogy Funds has waived the
following fees and costs:
custodian fees;
annual management fee and any management

costs for Cash units;
accounting, audit and tax agent fees; and
any transfer fees for Cash units and Allocated

units; and
Investor communication and reporting, postage

and other Trust administration expenses.
any fee payable from default interest received

from a Borrower.
The other management costs have been set for the

duration of this PDS. This means that if the other
management costs are greater than the amount of
0.2640% (including GST less RITC) p.a. of the gross
value of the Mortgage Investments and Allocated
cash during any year, the Responsible Entity intends
to meet the excess from its own funds. However,
Investors should be aware that if the Responsible
Entity is unable to or refuses to meet that excess,
the amounts due to any person (other than the
Responsible Entity) may still be payable out of the
assets of the Trust.
Trilogy Funds may cease waiving all or some of these

fees and management costs but will only do so after
giving at least 30 days notice to Investors and by the
issue of a supplementary or a new product disclosure
statement.
Trilogy Funds may also increase the annual
management fee for Allocated units to which it
is entitled within the maximum limit provided in
the Constitution for the Trust, but once again will
only do so after giving at least 30 days notice to
Investors and by the issue of a supplementary or a
new product disclosure statement. Trilogy Funds may
also increase any other fees payable to it within the
maximum limits provided in the Constitution of
the Trust.
c.
Abnormal expenses
The Constitution also provides for the reimbursement
or payment of other recoverable expenses that are
not incurred on a day to day basis, such as the cost
of amending the Constitution, the cost of producing
the PDS, the cost of Investors meetings, the cost of
litigation, and the like. These abnormal expenses are
met from the assets of the Trust and not from the
Responsible Entitys own funds. Nor are they included
within other management costs to which the amount
of 0.2640% p.a.(including GST less RITC) of the gross
value of the Mortgage Investments and Allocated
cash applies during the currency of this PDS.
d.
Rebate of Responsible Entity management fee

and waiver of fees
Those Investors who invest application monies of
or over an amount determined from time to time
by Trilogy Funds will be entitled to a rebate of a
proportion of the Responsible Entity management
fee charged and a waiver of the transfer fee if this is
normally applicable. Both the minimum investment
The maximum limits provided in the Constitution are

as follows:
the maximum limits for the management fees
provided in the Constitution are 5% per annum of
the aggregate value of the assets of the Trust;
default interest fees of 50% of the difference
between the higher and lower rates of interest
charged and received from a Borrower;
all of the other fees that a Borrower may be
charged; and
32
Other management costs

Management costs for the Trust comprise the
management fee and other Trust expenses,
referred to here as other management costs which
incorporate all relevant expenses and other costs
involved in the day to day management of the Trust
and deriving investment returns. They do not include
transaction and related operational costs or any
abnormal expenses.
amount and the amount of the rebate applicable at

any time will be set out on Trilogy Funds website
www.trilogyfunds.com.au.
Investors will be given at least 30 days notice of
any change of the basis on which we will offer such
a rebate.
e.
GST and Reduced Input Tax Credits (RITC)

In accordance with A New Tax System (Goods and
Services Tax) Act 1999 (GST Act) the Trust is defined
in the GST Act as a financial supply provider (FSP)
as it makes input taxed financial supplies in carrying
out its operations. This affects the Trusts ability to
claim input tax credits on its acquisitions (a FSP may
be entitled to a RITC on its acquisitions in limited
circumstances).
f.
Custodian fees
The Trust Company (Australia) Limited ACN 000
000 993 will be paid a fee for acting as the custodian
of the Trust. The fee is 0.025% p.a. (plus GST) on the
gross value of the Trusts portfolio accrued on a daily
basis. This fee is payable quarterly in arrears with an
annual minimum of $15,000 (plus GST) for the Trust.
As indicated above, the Custodians fees are included
in other management costs.
g.
Mortgage broker fees

Trilogy Funds may be charged a fee by a mortgage
broker or some other person who introduces
borrowers to the Trust. The fee may be an up-front
fee or commission or a trail commission as arranged
with Trilogy Funds payable during the term of the
Mortgage Investment. In any case, the fee will usually
be calculated as a percentage of the loan amount.
Investors should note that Trilogy Funds has elected
to pay such broker and introducer fees from its own
funds and not from the assets of the Trust, despite
the Constitution providing that Trilogy Funds is
entitled to be reimbursed these fees. This position will
not change during the currency of this PDS.
h.
Adviser fees
As at the date of this PDS, Trilogy Funds does not
pay advisers and other intermediaries product
commissions. If your adviser charges you a fee in
connection with an investment in the Fund, your
adviser must tell you about this fee, including the
amount as well as how and when it is payable by
you. Future changes to the legislation may result in
changes to Trilogy Funds practices.
33
6
N
O
I
T
C
E
Sk
Ris
6.1 Introduction
Investors must also understand that the rate of

distributions to Investors differs according to
whether the units that they hold are Cash units or
Allocated units.
All potential Investors should be aware that subscribing

for an investment in the Trust involves various risks.
This section identifies some of the major risks associated
with an investment in the Trust and thus in Mortgage
Investments generally. Prospective Investors should read
the whole of this PDS in order to fully understand such
risks. In the case of an investment in the Trust, the following
considerations generally apply to most Investors.
These comments are intended as a guide only and are
not an exhaustive list. Trilogy Funds recommends that
Investors seek professional financial advice before
making any investment.
6.2

Risks to consider before investing

in the Trust
a.
Capital risk
Unit holder investments in the Trust are not capital
guaranteed. Should the Trust suffer a capital loss
Investors may be charged negative income and may
suffer a capital loss.
b.
Income distribution rate risk

This risk relates to the volatility of income distributions
to Investors. Income distributions to Investors in the
Trust depend upon the return that the Trust receives
from its investments.
Trilogy Funds seeks to minimise fluctuations in
the Investor income distribution rate by ensuring
Mortgage Investments utilise a combination of fixed
interest rate lending and short lending terms (up to
a maximum of 24 months).
34
There is a risk that there may be a delay in designating

Cash units in the Trust as Allocated units. This may
arise, for example, where there is a delay in making
a mortgage Loan from the Trust to Borrowers using
the proceeds of the Cash units. If the delay is for a
protracted period holders of Cash units will continue to
receive the returns generated in the STIA and continue
to be exposed to that level of investment risk.
6.3
Property market risk
Property market risk is the risk that negative movements

in the property market may impact on the Trust and its
capacity to fully recover the amount owing on a mortgage.
Trilogy Funds manages this risk by strictly complying with
its lending guidelines, LVR policies, compliance program,
and collections procedures. It is Trilogy Funds current
policy not to exceed a LVR of 70% for any one new loan.
However in the event of a default, the LVR of 70% may
be exceeded and further monies may be required to be
advanced (for example, to complete a development or
to market a property for sale). Mortgage Investments are
reviewed on an ongoing basis with updated valuations
obtained in accordance with the valuation policy.
a.
Decrease in value of property

Risks associated with a decrease in the value of a
property offered as security in the Trust, may include:
Investors may be charged negative income and may
suffer a capital loss.
a valuation that does not accurately reflect the real

value of the property at the time it was valued. If
the Borrower subsequently defaults on the Loan
then the capital repaid to Investors may
be diminished;
a fall in the value of the property during the term

of the Loan which may diminish capital repaid to
Investors in the event that a Borrower defaults; and
a movement in the property market either

nationally or locally which results in a decrease
in demand for a proposed development, making it
difficult for the Borrower to achieve the expected
sale value of the property.
All the above may lead to an increase in the LVR,

which would then exceed the prudent LVR limits
described in Section 4.3.
b.
6.4
there may be insufficient funds to complete

the development.
b.
Interest capitalisation risk

Loans made from the Trust may require the interest
to be paid periodically during the term of the loan or
in the case of a construction and development loan
a provision for interest may be built into the facility
within the approved LVR. As a risk management
measure, this provision for interest is built into the
loan facility along with the contingency. This enables
Trilogy Funds to control the interest payments and
ensure that they are within the approved LVR limit.
There is a risk that interest payments may not be
recoverable because of:
changed circumstances of the borrower;
Diversification risk
Property market risk may also arise where size
of loan, number of borrowers, class of borrower
activity or geographical region diversification is not
high. The more diversified a loan portfolio is, the
lower the risk generally that an adverse event
affecting one borrower or one type of loan will
simultaneously affect the majority of borrowers,
and therefore put the overall portfolio at risk.
Construction risks
In a construction and development loan, the appointed

contractors and trades may fail to complete the project
for various reasons including that they may have become
insolvent. In this case the borrower will have to source
other contractors or trades to complete works which may
result in an increase in costs of the project. Delays incurred
by the building contractors and trades or increases in
materials and/or labour costs or abnormal weather events,
can increase costs beyond the contingency amount
normally allowed to meet these factors in a construction
agreement. In this case, the borrower may not have
adequate funds to complete the project works.
a.
there may be insufficient materials or expertise

available to complete the development; or
As if complete valuation risk

In some construction and development Loans, the
Trust may lend on a Loan to a LVR of up to 70% of
the value of the development as if it is completed. For
example, a property may be valued by an independent
valuer at $150,000 on an as is basis. However,
the valuer may prospectively value the completed
development at $400,000 with a cost to complete
of $200,000. In such circumstances, the Trust may
approve a loan of up to $280,000 (70% of $400,000)
to assist in the purchase and development of the
property. In these circumstances, the Trust will make
progress payments to enable the development to be
completed.
changed circumstances of the security

property; or
other economic conditions.
Where this occurs there may be insufficient cash
flow in the Trust to meet income distributions or
redemption requests.
6.5 Borrower default risk

Defaults by a borrower may occur for a wide range of
reasons including changes in:

a borrowers circumstances;
the general state of the economy in Australia or other

places in which the borrower does business;
conditions of the particular market in which the

borrowers primary business operates; or
property market conditions.
Default may result in the delay/non-repayment of the

loan amount by the borrower and its failure to meet
interest and fees from its own resources (meaning
non-capitalised interest).
6.6
Liquidity risk
A delay in processing an Investors withdrawal request

is possible where there are a significant number of
withdrawals at the same time, which absorb the cash
reserves of the Trust, or if assets of the Trust are not
sufficiently liquid. Trilogy Funds is required by the
Constitution to satisfy redemption requests within 15
months. In certain circumstances Trilogy Funds may be
entitled to suspend redemptions due to lack of liquidity.
Risks in this type of lending include the risk that:

the property will decline in value during the
development period;
the cost of the development will be greater
than budgeted;
delays in the development may add to interest
and other costs;
35
Liquidity may also be adversely affected in the case of

construction or development Loans where there may be
insufficient funds available to meet drawn down requests
by a borrower. In the case of a failure to meet a draw
down request, this could have the effect that the Trust
is in breach of its lending terms to the borrower and in
turn could delay construction or development of the
Loan project or cause the borrower to be in breach of its
agreements with contractors engaged to perform works.
have to take in enforcing a mortgage regulated

by the NCCP Act are more demanding and may
take longer to implement. In addition, the terms
of the loan may be changed if the borrower is
having or will have trouble making payments by
reason of financial hardship caused by illness,
unemployment or other reasonable cause.
e.
Withdrawals will also be suspended by Trilogy Funds

from the point in time it determines there has been
negative income in a period until the date a compulsory
redemptions of units is completed (see Section 3.6).
6.7

Arrears of the Trusts

mortgage portfolio
Trilogy Funds utilises its property expertise and its lending

policy to secure realisation and exit strategies for all Loans
in arrears. For an update on the Loan portfolio including
arrears, Investors are referred to the disclosures as to the
RG 45 Benchmark and Disclosure Principles Report for the
Trust available at www.trilogyfunds.com.au.
6.8
Specific Mortgage Investment risks
a.
Illiquid nature of underlying asset

As the underlying asset is predominantly real
property, which is relatively illiquid, delays could
occur between a loan going into default and sale
of the property. These delays could affect interest
accruing, but not paid. In these circumstances,
interest accruing would not be available for
distribution to Investors and the amount owing
plus accrued interest and costs may exceed the
amount realised from the sale of the property.
b.
c.
d.
36
Repayment delays
Repayment of Loans may be delayed beyond
the agreed maturity date. This can occur for a
wide variety of reasons including the risk that
construction or development does not proceed
on schedule.
Litigation risk
This is the risk that any lender faces when it takes
legal action to enforce the mortgage by the sale
of the security property. Borrowers may defend
the enforcement proceedings successfully in
whole or in part, in light of judicial interpretation
of the borrowing and enforcement arrangements,
which may vary over time. In addition, courts are
vested with wide discretionary powers, and these
may be exercised in favour of the borrower. It
should be noted that Trilogy Funds is under no
obligation to pursue
further recovery action after the security is sold.
National Consumer Credit Protection Act
(NCCP Act) Regulated loans
Trilogy Funds is not, and has no present intention
to be in the future, licensed to make loans that
are regulated under the NCCP Act. Nevertheless,
a court may for some reason hold that a loan is
so regulated. In general terms, there are limits
on the amount of default interest that may be
charged and the actions that Trilogy Funds may
External dispute resolution risk

Trilogy Funds is a member of an ASIC approved
external dispute resolution scheme (EDR scheme),
in accordance with its obligations in respect of
the Investors. Such an EDR scheme, in addition to
considering complaints by Investors, also form the
view that it is entitled to consider any complaint
that is lodged by a borrower from the Trust, even
if the borrower does not have a NCCP Act
regulated loan.
There is now the additional risk that either
during the course of a loan, or more typically
when Trilogy Funds seeks to enforce the loan,
the borrower lodges a complaint with the EDR
scheme that has the effect of freezing any
enforcement action that is being taken or delaying
any enforcement action that may be taken, while
the EDR scheme considers
the complaint.
6.9
Specific Trust risks
a.
Consultancy services
Trilogy Funds, as Responsible Entity of the
Trust, is dependent upon its consultants (e.g.
an independent qualified valuer) to provide
consultancy services of the quality and at the
times required by it. The ability of the consultants
to do this and the accuracy of their advice cannot
be guaranteed by Trilogy Funds and may be
affected by factors completely outside its control.
b.
Documentation risk
There is a risk of deficiency in the accuracy
of documentation, including the mortgage
documentation entered into for the Trust that
could, in certain circumstances, adversely affect
the recoverability of monies invested by the Trust
and reduce the value of the investment.
c.
Insurance risk
There is a risk that a Borrower from the Trust may
fail to effect property insurance over a secured
property, or indeed may cancel such a policy once
obtained, without prior notification to Trilogy
Funds. Additionally, property insurance obtained
may be inadequate or could be denied due to
a number of circumstances, including the failure of
the borrower to make proper disclosure to
its insurer.
There is also a risk that the insurer may not be

able to meet its financial obligations under the
insurance policy.
d.
Negative income risk

The Trust maintains a unit value of $1.00 per unit
irrespective of whether they are designated as
Cash units or as Allocated units. The net value of
the Trust at any time is derived from the amount

of the cash held, the Loans that have been made,
plus the income that is received less the expenses
that are payable from the Trust. The unit value
is determined by dividing the net value of the
Trust by the total number of units on issue at
the relevant time. The net value (and thence the
unit value must be determined as at the end of
each quarter. If, in any quarter, there is insufficient
income to meet expenses or to compensate for
any reduction in the value of mortgage or other
assets of the Trust, the unit value may be less than
$1.00 per unit. In such a case the Constitution
provides a mechanism under which a sufficient
number of units, both Cash and Allocated, will be
compulsorily redeemed to make up that shortfall
and maintain the value of the remaining units at
$1.00 per unit.

Units will be redeemed pro rata from all unit

holders (including holders of Cash units). For
example, if the Trust had negative income in a
particular quarter that reduced the unit value to
98 cents, 2% of the Cash units and Allocated units
on issue would be redeemed at a nil unit value
and cancelled. This would leave the remaining
98% of units on issue re-valued at $1.00 per unit.
Cash and Allocated units in the Trust cannot be

redeemed during the period commencing on
the date the unit value is determined to be less
than $1.00 per unit and the date the compulsory
redemption is complete.
As at the date of this PDS no units have ever been

compulsorily redeemed under this mechanism
during the term of the Trust. However, Investors
must be aware that past events are not indicative
of future events and there is no guarantee that
compulsory redemption may not be required at
some future time.
e.
Operations risk
There is a risk that Trilogy Funds as Responsible
Entity of the Trust, may fail to adequately identify
and manage the investment risks in the Trusts
portfolio and thus affect the Trusts ability to
pay distributions or reduce the value of the
investment. This includes any such failures
by Trilogy Funds in its capacity as the
Responsible Entity.
f.
Risks specific to Cash units

There is a risk that Cash units will not become
designated as Allocated units for a significant
period of time (see Section 6.2b).
There is also a risk that some of the Cash units

held by an Investor will be compulsorily redeemed
in the event that there is negative income in the
Trust in any period (see Section 6.9d).
Trust. There can be no guarantee that investor confidence

in mortgage or property investment will not change
in a manner adverse to the Investors in the Trust. The
general economic and political climate in which the Trust
operates or other like events are outside the control of
Trilogy Funds.
6.11
Responsible Entity risk
Trilogy Funds is the Responsible Entity of the Fund. In

this capacity, there is the risk that Trilogy Funds may
be removed as the Responsible Entity of the Fund or
that a change of key personnel may adversely affect the
way in which the Fund and the Mortgage Investments
are managed. In addition, in common with most fund
managers, Trilogy Funds is reliant on the effective
operation of a number of computing and systems
processes. It manages these risks by utilising external
service providers, such as those that are provided by the
Custodian, or otherwise in accordance with its internal
information technology policies and procedures. Potential
conflicts of interest risk are addressed by Trilogy Funds in
accordance with its Conflicts of Interest Policy.
6.12 Conclusion
The preceding list of risk factors is not to be taken as
being comprehensive or inclusive of all of the risks
that may be attributable to an investment in the Trust.
These risks, as well as other risks, which have not been
specifically identified, may in the future affect the
financial performance of the Trust.
Consequently, there is no guarantee as to the amount
or timing of the payment of capital, distributions or the
value of the units held in the Trust.
You should seek your own financial advice from a
licensed adviser before investing.
6.10 General investment risks

Changes to the regulatory environment relating to
financial services, taxation and other regimes may
adversely affect Investors in the Trust. Government
policies can affect the Trust in a number of ways that
could be detrimental or beneficial to Investors in the
37
7
N
TIO ds
SEouCt Trilogy Fiumnited

Ab
nt L
e
m
e
g
Mana
7.1
Trilogy Funds Management Limited (Trilogy Funds) has a

strong background in structuring and managing property
investments. The hands-on approach we take to directly
managing investments ensures close monitoring of the
finer details, which leads to opportunities to identify and
add value for investors. This management style lays a
solid foundation for investment performance.
The core investments we offer are mortgage and
property trusts. Property is the key commonality, which
capitalises on the strengths of our team and their
experience. The lending team are highly experienced,
active managers driven by a commitment to deliver
stable returns to investors.
7.2
Management experience
In the area of mortgage lending, property development

and property investment, there is no substitute for
extensive experience, such as that of Trilogy Funds. This
experience is grounded in the disciplines of accounting,
law, financial services, mortgage management and
property lending. In a practical sense it covers all
elements of the property development and investment
process from sourcing and negotiating assets, on-going
management of property, lending against property,
transaction management at all levels, capital structuring
and management.
Experience in these areas and the networks of
contacts developed over many years provide access
to information and knowledge of risks which might
otherwise not be obvious.
Trilogy Funds is dedicated to the property and mortgage
sector and is a specialist direct property and mortgage
funds manager. Each of Trilogy Funds key directors and
executive team in the property and mortgage team has
extensive experience.
38
7.3
Directors of Trilogy Funds

Robert Willcocks
(Independent Chairman)
BA, LLB, LLM
Robert Willcocks is the Independent Chairman of Trilogy

Funds. He was appointed to the Board and as Chairman
in October 2009.
Robert is, and has been, a director of a number
of publicly listed companies. He is currently a director
of the publicly listed companies Living Cell Technologies
Limited, APAC Resources Limited and ARC
Exploration Limited.
He is a former senior partner of the law firm Mallesons
Stephen Jaques (now King & Wood Mallesons).
Since 1994 he has been a corporate adviser in a
range of industry sectors.
Rodger Bacon
(Executive Deputy Chairman)
BCom (Merit), AAICD, SF Fin
Rodger Bacon is a founder and the Executive Deputy
Chairman of Trilogy Funds. Prior to forming Trilogy Funds
in 2004, Rodger was an Executive Director at Challenger
International Limited. In this role his responsibilities
included participation in the establishment of ASX
listed financial services companies, the establishment of
Challenger Annuities to capture 30% of annuities sales
in Australia and the development of a property portfolio
worth more than $2.7 billion. He also acted as Chairman
of the Credit Committee.
Prior to joining Challenger, Rodger worked with the
Schroder Merchant Banking Group for 15 years where he
gained experience in all aspects of funds management
including domestic and foreign fixed interest and
direct property portfolios, management of equities,
research and analysis and corporate finance. He is a
former member of the Schroder Merchant Bank Board
in Australia. Rodger is a Senior Fellow and is a former
National Board Member of the Financial Services Institute
of Australasia and an Associate of the Australian Institute
of Company Directors.
Philip Ryan
(Managing Director)
LLB, GradDipLegPrac, F Fin, FTIA
Philip Ryan is a founder and the Managing Director of
Trilogy Funds and was instrumental in the formation
of the company in 2004. He is also a member of
Trilogy Funds Compliance Committee and Investment
Committee and acts as General Counsel for Trilogy
Funds. Philip has been a solicitor of the Supreme Court
of Queensland and of the High Court of Australia for
30 years, specialising in corporate and commercial law.
Philip was a partner in a Brisbane law firm for 20 years
and was a founding director of the funds management
entity which evolved into Trilogy Funds. In addition to
qualifications in law he has qualifications in mortgage
lending (Diploma of Mortgage Lending) and financial
services and investment and is a Fellow of the Financial
Services Institute of Australasia.
John Barry
(Executive Director)
BA CA
John Barry is a founder and an Executive Director
of Trilogy Funds. He is also Chairman of Westpac RE
Limited and spent five years as a senior consultant to
ABN AMRO in its infrastructure and funds management
area. Prior to joining Trilogy Funds, John was an
Executive Director and Head of Property at Challenger
International Limited, where he was instrumental in its
growth as a broad based financial services company.
He was actively involved in the establishment of the
Endowment Warrants, the acquisition and management
of the Howard Mortgage Trust and the structure and
establishment of Challengers long term annuities. John
is a Chartered Accountant and worked with Coopers
& Lybrand both in Australia and the UK. Following this
he worked in the corporate advisory area of Morgan
Grenfell Australia and was a Director of Rothschild
Australia Limited.
Peter Arnold
(Executive Director)
Peter Arnold has more than 30 years experience in
Australias commercial, industrial and retail property
markets. He also has more than 20 years of funds
management experience, gained with one of Australias
leading unlisted Real Estate Investment Trusts,
Austgrowth Property Syndicates Limited. Peters
expertise spans the property value chain, including
acquisition, development, management, and distressed
property work outs. Prior to joining Trilogy Funds in
2011, Peter co-founded Austgrowth Property Syndicates
Limited, the Responsible Entity for over $230 million
of syndicated commercial, industrial and retail
property funds.
Rohan Butcher
(Independent Director)
BSc Quantity Surveying, Lic Real Estate, Reg Builder
Rohan Butcher is an Independent Director of Trilogy
Funds and an independent member of the Lending
Committee. Rohan has more than 19 years experience
in construction and property having worked in
quantity surveying, estimating, project administration,
development management, planning and project
management across both construction and development
projects. He has been involved in a number of major
projects within the residential, retail and commercial
property sectors, while undertaking a variety of senior
appointments with major public and private companies.
Rohan is a member of the Urban Development Institute
of Australia.
39
7.4
Senior executives
David Hogan
(Head of Property Assets)
AFAIM, A Fin
David Hogan is the Head of Property Assets at Trilogy

Funds. He is also the Chairman of Trilogy Funds
Lending Committee and a member of the Treasury
Committee. David has over 40 years experience, which
encompasses all aspects of commercial property debt
and the establishment and management of unlisted
property trusts. Prior to joining Trilogy Funds, David was
an Executive Director at Challenger Property Capital
Limited where he was involved in the development of
Challengers $2.6 billion global commercial property
portfolio. He provided debt funding and property
acquisition services to Challenger and was a member
of the Howard Mortgage Trust Lending Committee.
David is an Associate Fellow of the Australian Institute
of Management, an Associate of the Financial Services
Institute of Australasia and a former member of the
Property Council of Australia.
Paul Wood
(Head of Lending)
BAppSc (Property Economics) and
GradCertProjMgt
Paul Wood joined Trilogy Funds in 2007. Paul is
responsible for sourcing new lending opportunities,
preparing loan submissions for the Lending Committee
and managing Loans from inception to completion and
repayment. Paul has more than 10 years property lending
experience with companies such as AMP Bank, Suncorp
Metway and ANZ Bank and has been responsible for
managing and maintaining a construction lending
portfolio in excess of $300 million.
Justin Smart
(Chief Operating Officer)
BA Com, CPA
Justin Smart was appointed as Trilogy Funds
Chief Operating Officer in July 2007 and is a Certified
Practising Accountant. His role with Trilogy Funds is to
manage operations incorporating finance, administration,
marketing, information technology and human resources.
Prior to joining Trilogy Funds, Justin held various senior
management roles within the financial services sector. He
has worked with Aussie Home Loans and QBE Insurance,
acted as the Financial Controller for the Australian
Commonwealth Governments HIH Insurance Relief
Scheme and was the Financial Controller for Charles
Taylor Consulting (UK listed Mutual Insurance Manager)
for their Australian operations. Justin commenced his
career with a multi-national Chartered Accounting firm,
specialising in audit. He was seconded across various
Australian offices as well as their New York office. Justin
is a member of the Trilogy Funds Treasury Committee.
40
SECT
Addit
ional
This additional information section does not purport to

be an exhaustive statement of any or all of the provisions
contained in the documents described. In particular,
the provisions of the Corporations Act can affect the
construction and operation of the Trust and Trilogy
Funds obligations.
8.1
General information
a.
Continuous disclosure
As at the date of this PDS, the Trust is a disclosing
entity. Being a disclosing entity means that Trilogy
Funds must lodge half-yearly and annual financial
reports of the Trust with ASIC, as well as notice of
important events as they happen.
All of this information may be inspected at or
obtained from ASIC or the registered office of
Trilogy Funds.
If you wish to receive a copy of the latest audited
accounts of the Trust in which you are an Investor,
please contact the Responsible Entity. Trilogy
Funds intends to follow ASIC good practice
guidance contained in Regulatory Guide 198
Unlisted disclosing entities: Continuous disclosure
obligations to meet its continuous disclosure
obligations. This means that Trilogy Funds has
elected to update Investors by posting continuous
disclosure notices on its website
www.trilogyfunds.com.au.
information that Investors and their

professional advisers reasonably require
to make an informed investment
decision; and
information that might reasonably be

expected to have a material influence on
the investment decision of a reasonable
person, as a retail client
inform
ation
b. Taxation
Trilogy Funds cannot give tax advice on
investments in the Trust or in relation to
withdrawals from the Trust. Investing in a
managed fund such as the Trust is likely to have
taxation consequences. Australian tax laws
are complex and subject to change. The tax
comments below are only in respect of Australian
tax and are based on the current law in Australia
as at the date of this PDS. The tax comments
in this section are only relevant for Australian
resident investors that hold their interests in the
Trust on capital account. Further, they may not be
relevant to investors that are subject to special
tax rules such as banks, insurance companies,
managed investment trusts, tax exempt
organisations and dealers in securities. Trilogy
Funds advises you to seek professional tax advice
on your proposed investment in the Trust before
making a decision to invest.

Trusts are generally not subject to tax on their

net income. Rather, the investors in the trust are
generally assessed on their proportionate share
of net income of the trust. This is the case even
where distributions are reinvested into the trust
or where no cash distributions are made by the
trust to its investors. The trustee of a trust may be
liable to withhold tax on any distribution made to
non-residents to the extent that the distribution
is interest, dividends or a fund payment, and is
from an Australian source. Trilogy Funds will send
investors an annual tax distribution statement
each year to assist in the preparation of their
income tax return.
Taxable distributions from the Trust should

primarily be in the form of interest income and
revenue gains from financial arrangements. On the
basis that the Trust will not make any tax timing
elections pursuant to the Taxation of Financial
Arrangement rules, such income and gains should
be determined on a compounding accruals basis
or realisation basis, depending on whether the
This information is likely to be:

ION 8
41
returns are sufficiently certain. Where temporary

differences exist, non-assessable distributions may
also be made by the Trust. Any tax losses made by
the Trust cannot be distributed to investors.

For an Australian resident investor, the disposal or

withdrawal of any unit in the Trust may give rise
to a capital gain or capital loss that is included in
the net capital gain calculation of that investor for
the relevant period. Australian income tax may be
payable on any net capital gain that is made for a
period. A capital gain would be made where the
capital proceeds from the disposal or withdrawal
exceeds the cost base of the relevant unit. A
capital loss would be made from the disposal or
withdrawal where the reduced cost base is greater
than the capital proceeds from the disposal or
withdrawal. In order to determine their net capital
gain position from the disposal or withdrawal of
any unit, investors will need to adjust the tax cost
base of each unit in the Trust for any tax deferred
distributions that have been received from the
Trust on that unit. Further, a discount may be
available for certain investors in calculating the
net capital gain. Such a discount is available on
capital gains made on units in the Trust (after the
application of capital losses) where the units have
been held for at least 12 months. The discount is
one-half for resident individuals and trusts, and
one-third for complying superannuation funds.
Resident investors will be asked to provide their

tax file number (TFN) or Australian Business
Number (ABN) or exemption number in the
application form. If this information is not
provided, the Trust is required to deduct tax from
the taxable component of any distributions at the
highest marginal rate plus the Medicare levy and
the deficit levy.
All non-resident investors should seek the advice

of a professional tax adviser in relation to
withholding taxes.
c. Privacy
Trilogy Funds is committed to protecting the
privacy of its Investors. It is bound by the Privacy
Act 1998 as amended from time to time (Privacy
Act) and the principles and procedures to be
adopted under that legislation. The Privacy Act
regulates, among other things, the collection,
storage and security, quality, management,
correction, use and disclosure of and access to
personal information. By applying to invest in
the Trust, the applicant consents to personal
information being used by us for the purposes
for which it was provided and for other purposes
permitted under the Privacy Act.
The Application Forms accompanying this PDS
require Investors to provide personal information.
Trilogy Funds, and any service providers to
Trilogy Funds or to the Trust (including the
Custodian) may collect, hold and use your personal
information in order to assess your application,
service your needs as an Investor, provide facilities
and services to you, to the Responsible Entity and
to the Trust and for other purposes permitted
under the Privacy Act and other legislation, such as
the anti-money laundering and counter terrorism
financing (AML/CTF) laws.
42
Taxation, AML/CTF and other laws also require

some of the information to be collected in
connection with your application. If you do not
provide the information requested or provide us
with incomplete or inaccurate information, your
application may not be able to be processed
efficiently, or at all.
Trilogy Funds may disclose your information (or
parts of it) to government agencies who may
lawfully request it, but only when it is required by
law to do so. Information may also be disclosed
to external parties on your behalf, such as your
financial adviser (if the advisers name appears on
the Application Form), unless you have instructed
Trilogy Funds in writing to do otherwise. Trilogy
Funds may also disclose your personal information
to its service providers (mailing houses, lawyers
and others) to enable the printing, distribution and
administration of documents relevant to
your investment.
Your personal information may also be used by
Trilogy Funds to administer, monitor and evaluate
products and services, gather, aggregate and
report statistical information, assist you with any
queries and take measures to detect and prevent
fraud and other illegal activity. It may also be
allowed or obliged to disclose information by law
and to report on risk management matters.
You are entitled to access, correct and update all
personal information which Trilogy Funds holds
about you. The information held may be obtained
by contacting Trilogy Funds. You should contact
us if you have concerns about the completeness or
accuracy of the information we have about you or
if you would like to access or amend your personal
information held by us or our service providers.
Please advise Trilogy Funds of any changes to
information you have provided to us using the
change of details form as provided on Trilogy
Funds website www.trilogyfunds.com.au.
Any complaint you have as to how we have
handled your personal information will be dealt
with in accordance with our Privacy Policy.
A copy of our current Privacy Policy is available on
our website and a paper copy will be sent to you
free of charge on request. Changes will be made
to our Privacy Policy from time to time to reflect
changes in the law, including the Privacy Act. If you
have any questions relating to our Privacy Policy
please contact us by email, facsimile or telephone
during normal business hours. Our contact details
are set out in the corporate directory.
d. Complaints
Investors may lodge complaints in relation to
Trilogy Funds conduct in its management and
administration of the Trust, by contacting
Trilogy Funds. Contact details are shown in the
corporate directory.
The Trusts Constitution and Compliance Plan
contain provisions governing how complaints must
be dealt with. Trilogy Funds is a member of an
external complaints resolution scheme. The name
and contact details of this scheme are located in
the corporate directory.
e.
Cooling off
If an Investor changes their mind about investing in
the Trust, the Investor has the right to ask to have
their application monies returned if the cooling
off rights given by the Corporations Act apply to
the investment. For so long as the Trust is a liquid
fund the cooling off rights apply to the Trust. Those
Investors who are wholesale clients within the
meaning of the Corporations Act do not have any
cooling off rights.
decide to delay or refuse any request or transaction,

if it is concerned that the request or transaction may
breach any obligation of, or cause the Responsible
Entity to commit or participate in an offence under,
any AML/CTF Law, and the Responsible Entity or
any of its related bodies corporate, affiliates,
associates or officers will incur no liability to you if it
does so.
g.
To exercise this right, if available, an Investor must

do so within 14 days after the earlier of receiving a
confirmation of their investment with Trilogy Funds,
or the end of the fifth day after the date units were
issued.
Trilogy Funds is the manager and Responsible Entity

of a number of registered managed investment
schemes, including an unlisted mortgage scheme
that, like the Trust, makes loans secured by registered
first mortgages. The Trust may invest in a Mortgage
Investment, through that scheme, as a mortgage
investor alongside other mortgage investors. It may
also be a co-lender, by making a loan to a borrower
that ranks equally with a loan made to that borrower
by mortgage investors in that mortgage scheme.
In each such case, the loan must conform to the
lending criteria of the Trust.
Trilogy Funds must receive instructions before the

end of the 14 day period for the exercise of cooling
off rights to be effective. Repayment of application
monies under cooling off rights is subject to an
adjustment if Trilogy Funds has re-valued the assets
of the Trust (leading to a compulsory redemption of
units) during the period the investment is held.

Wholesale Investors and investment platforms

As a wholesale Investor or an operator of the
master trust, wrap account or IDPS you do not
have any cooling off rights under the
Corporations Act. Indirect Investors should
contact the operator of the master trust, wrap
account or IDPS through which they are investing
to obtain details of the cooling off rights, if any,
that they have.
f.
Anti-money laundering
The Responsible Entity is required to comply with
the Anti-Money Laundering and Counter-Terrorism
Financing Act 2006 (Cth) (AML/CTF Law). This
means that the Responsible Entity will require you
to provide personal information and documentation
in relation to your identity and that of any beneficial
owners when you invest in the Trust. The Responsible
Entity may need to obtain additional information and
documentation from you to process your application
or subsequent transactions or at other times during
your investment. The obtaining of information will be
pursuant to the AML/CTF program that has been
adopted. The Responsible Entity may need
to identify:

transferees of interests in the Trust. The

Responsible Entity will not register a

transfer until all relevant information has

been received and you or your

transferees identity or that of its

beneficial owners has been

satisfactorily verified;

your estate. If you die while you are the

owner of an interest in the Trust, the

Responsible Entity may need to identify

your legal personal representative prior

to transferring ownership or making any

payments; and

anyone acting on your behalf, including

under your power of attorney.
In some circumstances, the Responsible Entity may

need to re-verify this information and may request
additional information.
By applying to invest in the Trust, you also

acknowledge that the Responsible Entity may
Related party disclosure and issues

Trilogy Funds has a strict policy of no related party
lending. Since inception the Trust has not engaged in
any related party lending.
The Trust may also acquire a Mortgage Investment

from, or transfer a Mortgage Investment to, a
related party of Trilogy Funds including an unlisted
mortgage scheme of which it is the Responsible
Entity. Any such acquisition or disposition must be
made in accordance with the lending and realisation
policies of the Trust and the related party policies
and procedures of Trilogy Funds.
Trilogy Capital Services Pty Ltd (TCS) is the holding
company of Trilogy Funds. TCS is engaged by Trilogy
Funds to provide staff, facilities and miscellaneous
services in connection with the operation of the
Trust by Trilogy Funds. Trilogy Funds pays a fee to
TCS which reflects the cost of providing services to
Trilogy Funds. It pays this from its own funds. The
financial benefit paid to TCS by Trilogy Funds as
fees varies from month to month, according to the
services provided.
If TCS incurs costs and expenses in connection with
the management of the Trust, it will be entitled to
be reimbursed these by Trilogy Funds at cost, from
the management costs of the Trust, but this will be
limited to 0.24% of the gross value of the Mortgage
Investments and Allocated cash held in the Trust.
The financial benefit paid to TCS by Trilogy Funds
for these costs and expenses varies from month to
month, according to the costs and expenses incurred
in the period.
The arrangement between Trilogy Funds and TCS is
on an arms length commercial basis and is reflected
in a management agreement between them. TCS
may also receive fees from Borrowers for services
provided directly to them. These are not services
of the nature set out in Section 5.2 and relate to
matters such as the provision of sales and marketing
assistance. No fees are paid for these services from
the Trust or from Trilogy Funds own funds. They
are not related to the borrowing from the Trust
and are incurred and paid in accordance with the
arrangements between the Borrower and TCS.
43
The Directors and certain executives of TCS have

a beneficial interest in Trilogy Funds and may
benefit from any fees derived by it. TCS may
also receive fees where it has advised or assisted
the Borrower in marketing or selling stock in
developments undertaken.
Directors, employees of Trilogy Funds and other
related parties may hold units in the Trust from time
to time. These units will be acquired and held on the
same terms as any other Investor in the Trust.
Mr Ryan is a consultant for a Brisbane law firm
which may be engaged from time to time to
perform legal work on behalf of the Trust.
Mr Butcher is the Director of a project management
company which may be engaged from time to time
to consult to the Trust.
The Trust has registered itself with the IRS and

procedures are in place to ensure that the Trust
meets its customer due diligence and ATO
reporting obligations.
Mr Barry is the Director of a company which may be

engaged from time to time to consult to the Trust.
In accordance with both the Compliance Plan for
the Trust and its related party policy, compliance
with these policies and procedures, including
the entering into and approval of any related
party transaction, is monitored by Trilogy Funds
compliance officer, the managing director and the
Board. In addition, the Compliance Committee
members may obtain such independent advice on
related party transactions as they and the Board
determine is reasonably necessary. A register of
related parties is maintained by Trilogy Funds and
is monitored by its compliance officer.
h.
Environmental and ethical considerations

While Trilogy Funds intends to conduct its affairs in
an ethical and sound manner, its investment criteria
do not include giving weight to labour standards,
environmental, social or ethical considerations when
making, retaining or realising an investment of the
Trust.
i. FATCA
The Foreign Account Tax Compliance Act
(FATCA) was enacted by the United States (US)
Congress in March 2010 to improve compliance
with US tax laws. FATCA will impose certain due
diligence and reporting obligations on foreign
(non-US) financial institutions, including the Trust.

44
On 28 April 2014, Australia and the US signed

an intergovernmental agreement to assist in
the facilitation of FATCA for Australian financial
institutions such as the Trust. A key objective of
the intergovernmental agreement is to support
Australian compliance with FATCA in a way that
reduces its overall burden on Australian business.
This includes reporting the information to the
Australian Taxation Office (ATO) under the
existing AustraliaUS tax treaty arrangements
rather than the US Internal Revenue Service (IRS).
Under FATCA:

A broad range of Australian financial

institutions are affected, including banks,

some building societies and credit unions,

specified life insurance companies,

investment funds, custodial institutions

and some brokers these financial

institutions have been required to register
with the IRS. The Trust is also such an
Australian financial institution and has
registered itself with the IRS.
Australian financial institutions will be
required to review customer accounts to
determine whether they are reportable
accounts (US citizens or US tax residents)
under the intergovernmental agreement.
The institutions will be required to report
to the ATO in the 2015 and future
calendar years the required account
information for the previous calendar year
(supplied in the IRS FATCA XML
Schema format).
The information reported to the ATO will
then be passed on to the IRS by the ATO
8.2 Summaries of material documents

a.
The Constitution for the Trust

The Constitution is the primary document which
establishes the structure of the Trust. Some of the
provisions of the Constitution are summarised below.
Other provisions of the Constitution are outlined in
other sections of the PDS and are consequently not
included here.
If necessary, Investors should seek independent
professional advice in relation to the terms of
the Constitution.
Units in the Trust
The beneficial interest in the Trust is divided into
units. Each Investor whose Investment Monies are
in the STIA has a beneficial interest in that account
in the proportion that the number of Cash units
held bear to the total number of Cash units on
issue. Where Investment Monies are invested in
Mortgage Investments, the Cash units are designated
as Allocated units and the beneficial interest of an
Investor in the pool of Mortgage Investments is the
proportion that the number of Allocated units held
bear to the total number of Allocated units on issue.
The role of Trilogy Funds
Trilogy Funds is responsible for managing the Trust
and may only deal with the assets of the Trust in
accordance with the Constitution, the Corporations
Act and the PDS. It may appoint agents or other
parties to do anything that it is authorised to do in
connection with the Trust.
Termination of the Trust
The Trust will terminate:
if Trilogy Funds considers that the Trusts
investment strategy cannot be accomplished; or
by resolution of the Investors in the Trust.
Retirement/removal of Trilogy Funds
Trilogy Funds may retire as Responsible Entity of the
Trust by calling a meeting of Investors in the Trust
explaining the reason it wants to retire, therefore,
enabling Investors to vote for a new Responsible Entity.
Investors may remove Trilogy Funds as Responsible

Entity of the Trust at a meeting of Investors of the
Trust where Investors holding at least 50% of the
units in the Trust vote for the removal. Trilogy Funds
is entitled to be reimbursed for all expenses relating
to the termination of the Trust and the retirement
or removal of the Responsible Entity and the
appointment of a replacement.
Liabilities of Investors
Investors are not liable to Trilogy Funds or any
creditor of Trilogy Funds in excess of the amounts
subscribed or to be subscribed by way of Investment
Monies. However, the question of the ultimate liability
of a beneficiary for claims against a Responsible
Entity or other trustee in an arrangement such as this
has not been finally determined by a court.
Trilogy Funds right of indemnity and limitation of liability
Trilogy Funds has a right of indemnity out of the assets
of the Trust for all expenses and costs incurred in the
proper performance of its duties under the Constitution.
This indemnity does not apply to those expenses
incurred by Trilogy Funds where it does not incur the
expenses in the proper performance of its duties.
Trilogy Funds is not liable for any loss to any person
(including an Investor) arising out of any matter
unless it failed to exercise due care and diligence. In
particular it is not liable where:
in good faith it relied on advice from a
professionally qualified consultant;
it is hindered, prevented or forbidden to do an act
or thing by any law; or
in respect of any Application Form or notice
it relied in good faith on a forged signature or
inaccurate details.

Registers
Trilogy Funds or its appointed agent will keep and
maintain a register of Investors of the Trust and any
other register required by the Corporations Act.
Trilogy Funds must cause the register to be altered
when informed by an Investor of any change of name
or address.
Trilogy Funds must appoint an auditor to audit the

accounts and the Compliance Plan for the Trust. The
audits must be conducted in accordance with the
provisions of the Corporations Act.
b.
appointment of agents;
management of the Trust;
custody of the assets of the Trust;
valuations;
methods for the handling of Investment Monies,
income and payments;
complaints handling and dispute resolution;
audits;
conflict of interests;
monitoring, resolving and reporting suspected
breaches of the Corporations Act; and
formation and operation of the
Compliance Committee.
c.
Loan agreement
A loan agreement will be entered into between
the Custodian and the Borrower in respect to each
Mortgage Investment. This agreement contains
provisions as to the terms on which the particular loan
constituting the Mortgage Investment is to be made.
It contains specific terms with respect to (amongst
other things) the calculation of interest and the loan
monitoring fee, method of repayment and right of
early repayment.
d.
Mortgage and collateral security documents

The terms of the mortgage documentation used by
Trilogy Funds are comprehensive and are similar to
those used by other lenders including banks and
financial institutions generally. The terms address
such issues as the rights and powers given to the
mortgagee in the event of default. Other documents
can include general security agreements or mortgage
debentures over the borrowing entity and guarantees
from various individuals, for example, directors of the
borrowing entity. All security documents are prepared
by experienced lawyers selected by Trilogy Funds.
e.
Custody deed
Trilogy Funds and the Custodian have entered into
a custody deed. Under the deed, the Custodian will
hold the assets of the Trust in compliance with the
Corporations Act, regulatory requirements and ASIC
policy.
Meetings of Investors
Trilogy Funds may convene a meeting of Investors in
the Trust at any time and when required to do so by
the Corporations Act.
Each Investor is entitled to attend and vote at

meetings of Investors. Meetings must be conducted
in accordance with Part 2G.4 of the Corporations Act,
except as modified by the Constitution.
Compliance Plan for the Trust

Trilogy Funds has adopted a Compliance Plan for the
Trust. The Compliance Plan addresses issues such as
compliance with laws and Trilogy Funds ethical
standards and comprises structural and operational
maintenance elements.
The Compliance Plan includes provisions that set out
the procedures to be adopted for:
Changing the Constitution

The Constitution may be amended by:
a special resolution of the Investors in the Trust; or
Trilogy Funds, if it reasonably believes the change
will not adversely affect Investors rights.
Trilogy Funds must convene a meeting of Investors

in the Trust if requisitioned by the lesser of at least
100 Investors or Investors who hold at least 5% of the
units on issue in the Trust.
Accounts, audit and compliance

Trilogy Funds must keep accounts of the Trust and
report to Investors concerning Trust affairs according
to the Australian equivalent of the International
Financial Reporting Standards and the provisions of
the Corporations Act.
45
The responsibilities of the Custodian include acquiring

and disposing of assets of the Trust and dispensing
money on behalf of Trilogy Funds. The liability of
the Custodian is limited. The Custodian acts on
instruction from Trilogy Funds. The deed may be
terminated by either party giving not less than 90
days written notice to the other.
8.3
Additional applications
Please note that as material information may be

placed on our website www.trilogyfunds.com.au
you should also check this site regularly and
before making an additional investment.
8.4 The Custodian and the Custodians

disclaimer
Warning statement for New Zealand Investors

This section contains information that is required
under the New Zealand Securities (Mutual
Recognition of Securities Offerings Australia)
Regulations 2008.
a. This offer to New Zealand Investors is a
regulated offer made under Australian and
New Zealand law. In Australia, this is Chapter
8 of the Corporations Act and Regulations. In
New Zealand, this is Part 5 of the Securities Act
1978 and the Securities (Mutual Recognition of
Securities Offerings Australia) Regulations 2008.
b. This offer and the content of the offer document
are principally governed by Australian rather than
New Zealand law. In the main, the Corporations
Act and Regulations (Australia) set out how the
offer must be made.
The Trust Company (Australia) Limited ACN 000 000 993

is the Custodian for the Trust. The role of the Custodian
is to hold the assets of the Trust and title documents as
agent for Trilogy Funds in relation to the conduct of the
Trust. It is not the role of the Custodian to protect the
rights and interests of the Investors. The Trust Company
(Australia) Limited has given and has not withdrawn its
consent to be named in this PDS as the Custodian to the
Trust in the form and context in which it is named. It has
not authorised or caused the issue of this PDS and takes
no responsibility for any part of the PDS other than the
references to its name. The Custodian has relied upon
Trilogy Funds and its advisers for the truth and accuracy
of the contents, and is not to be taken to have authorised
or caused the issue of this PDS. The Custodian does not
guarantee the return of any investment, any tax deduction
availability or the performance of the Trust.
c. There are differences in how securities are

regulated under Australian law. For example,
the disclosure of fees for collective investment
schemes is different under the Australian regime.
The Custodian has no interest in relation to the Trust other

than the remuneration it is entitled to receive under the
custody deed by way of custodian fees.
f. The taxation treatment of Australian securities is

not the same as for New Zealand securities.
8.5
New Zealand Investors
If you are a New Zealand Investor:

you must read the Warning Statement for New

Zealand Investors. All minimum and additional
investments must be made in Australian dollars, not
New Zealand dollars;
all distributions and withdrawal payments will be made

to you in Australian dollars, not New Zealand dollars;
any fees and charges that you (as distinct from the
Trust) may be required to pay such as transfer fees
will be payable in Australian dollars, not New Zealand
dollars; and
all exchange risks and fees and charges for or relating

to the conversion of one currency to another are
payable by you.
New Zealand Investors should contact us on the following

phone numbers:
Free call +800 5510 1230 or phone +617 3039 2828
Fax +617 3039 2829
All references to time are to Australian Eastern
Standard Time (AEST).
46
a.
d. The rights, remedies, and compensation

arrangements available to New Zealand Investors
in Australian securities may differ from the rights,
remedies, and compensation arrangements for
New Zealand securities.
e. Both the Australian and New Zealand securities
regulators have enforcement responsibilities
in relation to this offer. If you need to make a
complaint about this offer, please contact the
Financial Markets Authority, Wellington, New
Zealand. The Australian and New Zealand
regulators will work together to settle
your complaint.
g. If you are uncertain about whether this investment

is appropriate for you, you should seek the advice
of an appropriately qualified financial adviser.
h. The offer may involve a currency exchange risk.
The currency for the securities is not New Zealand
dollars. The value of the securities will go up or
down according to changes in the exchange rate
between that currency and New Zealand dollars.
These changes may be significant.
i. If you expect the securities to pay any amounts
in a currency that is not New Zealand dollars,
you may incur significant fees in having the
funds credited to a bank account in New
Zealand dollars.
j. The dispute resolution process described in this
offer document is only available in Australia and
is not available in New Zealand.
b. Taxation
Australian tax considerations
The trustee of the Trust is required to deduct
withholding tax from any taxable component of
distributions made by the Trust to its investors
in New Zealand. The rate of withholding tax is
dependent on the character of the distribution.
The withholding tax is deducted from distributions
paid or credited to New Zealand Investors. If the
nature of the distribution is regarded as interest,
the withholding tax rate will be 10%. If the Trust is a
Managed Investment Trust and the distribution is a
fund payment the withholding tax rate will be 15%.
adjusted (using a prescribed formula) for

any interests bought and sold within that
income year. A variation on FDR applies
to certain managed funds and unit
valuing funds.
The withholding tax on fund payments is a final tax

imposed on distributions to foreign residents from
Australian managed investment trusts.
Payments that are subject to withholding tax are
non-assessable non-exempt income for Australian
income tax purposes in the hands of the
non-residents. However, if the Trust does not
qualify as a Managed Investment Trust, then to
the extent that the distribution is not interest or
dividends, then a non-final tax at a rate of 30% will
be deducted from the distribution to the extent it
is from Australian sourced assessable income.
Stamp duty or GST will not apply to any transfer

of units. However, GST is payable on all fees set
out in the PDS.
New Zealand tax considerations
The following comments are general in nature
and are based on current New Zealand tax law.
Tax law changes frequently and its application is
fact specific, so Investors should not rely on these
general comments but seek tax advice specific
to their circumstances. The comments apply to
Investors who are a tax resident in New Zealand
and who are portfolio investors (in effect, they
hold less than 10% in the Trust) and hold their
interest on capital account. The comments apply
to direct Investors only; indirect Investors will
need to consider the nature of the intermediary
through which they invest. Investors will need to
account for their interest in the Trust under either
the foreign investment fund (FIF) rules or the
dividend rules.
The same FIF method must be used for all

FIFs of the same class (unless a method is
not available for a FIF). Dividends are not
taxed separately under FDR and FDR does
not give rise to any FIF losses.
Investors should seek advice on
the application of the FIF rules. No
determination has been sought as to the
applicable method to apply to units in
the Trust.
If the Investor is not subject to tax under
the FIF rules, the Investor will be liable to
tax on a dividends basis (which includes
reinvested distributions, and any deemed
dividend amounts arising on for example a
redemption or repurchase of units in certain
circumstances). In general terms, Investors
will need to include the distributions
(including any Australian withholding tax
deducted) in their New Zealand income tax
return and will be taxed at their marginal
tax rate. Where Australian withholding
tax has been deducted from the total
distribution received a tax credit generally
may be claimed up to the amount of the
New Zealand tax payable on the distribution
(net of any expenses). Investors should
seek professional advice, having regard to
their particular circumstances, and satisfy
themselves as to the tax implications, both
in Australia and New Zealand, of investing in
the Trust.
The Investor would need to account for their

units as an attributing interest in a FIF, unless
an exemption applied. The Australian unit trust
exemption may be relevant - this requires there
to be a RWT proxy in place and for the Trust
to meet a minimum turnover test or a minimum
distribution test. If that exemption does not apply,
then the Investor will need to calculate the FIF
income from the units unless: (a) the Investor is
either a natural person and not acting as a trustee,
or, is the trustee of a very limited range of trusts;
and (b) the total cost of all of that Investors
attributing FIF interests (including the units) does
not exceed NZ$50,000.
If the Investor is required to calculate FIF income,
they will be liable to tax on attributed income
calculated pursuant to a prescribed method.
Generally:

The fair dividend rate method (FDR) will

apply, although FDR cannot be used for
certain non-ordinary shares i.e.
guaranteed return type investments for
which the comparative value method
must be used (or the deemed rate of
return method if the comparative value
method is not available).
A variation on FDR is permitted to natural

persons (and some family trusts) where
the total return i.e. realised and unrealised
return (on all FDR interests) is less than the
amount calculated under FDR the total
return, being the FIF income, is calculated
using a comparative value approach. In
simple terms, under the comparative value
method, the FIF income or loss is (closing
value + gains) (opening value + costs). If a
total loss arises under the comparative value
method from all the Investors FIF interests,
the loss is limited to zero.
c.
Service in New Zealand

The address for service in New Zealand is Trilogy
Funds Management Limited, C/O DLA Piper New
Zealand, 50-64 Customhouse Quay, Wellington
6140, New Zealand.
FDR calculates FIF income as: 5% multiplied

by the opening market value of all FDR
interests held at the start of the income year,
47
8.6 Glossary
Allocated cash means cash held in the Trust that is
derived from interest earned on the bank accounts
(other than in respect of Investment Monies), Borrower
repayments, interest paid by Borrowers (where interest is
not capitalised) and any fees that have been waived by the
Responsible Entity. Allocated cash is used for investment
in the pool of Mortgage Investments, distributions,
withdrawals and fees and costs.
Allocated unit means a unit of an Investor in the Trust
which Trilogy Funds has ceased to be designated as a
Cash unit upon the Investment Monies being applied to
the pool of Mortgage investments.
Application Form means each application form,
attached to or accompanying the PDS, to be used by
persons wishing to apply to and be accepted as a
member of the Trust.
Responsible Entity means the party responsible for

the management of a trust in accordance with the
Corporations Act and in this case is Trilogy Funds
Management Limited.
STIA or Short Term Investment Account means an
account or term deposit held in an Australian authorised
deposit-taking institution (ADI) established by the
Custodian (which must be an audited trust account for
the purposes of the Corporations Act) in respect of the
Trust for the depositing of any Investment Monies held by
the Custodian on behalf of Investors in the Trust.
Trilogy Funds or Responsible Entity or we or us
means Trilogy Funds Management Limited
ACN 080 383 679.
ASIC means the Australian Securities and

Investments Commission.
Trust means the Trilogy Monthly Income Trust

ARSN 121 846 722.
Borrower means a person to whom the Trust makes

a Loan.
Unallocated cash means cash held in the Trust that

is derived from Investment Monies (once applications
for units are accepted), interest on the STIA and any
reinvested distributions paid with respect to Allocated
units (in accordance with a reinvestment direction from
the Investor). This cash is used for investment in the pool
of Mortgage Investments (when converted into Allocated
cash), distributions and withdrawals.
Cash unit means a unit of an Investor in the Trust in

respect of the Investment Monies of that Investor in the
Trusts STIA.
Compliance Committee means the compliance
committee established by Trilogy Funds Management
Limited under the Compliance Plan.
Compliance Plan means the compliance plan for
the Trust.
Constitution means the constitution of the Trilogy
First Mortgage Income Trust dated 1 September 2006
as amended from time to time.
Corporations Act means the Corporations Act 2001.
Custodian means The Trust Company (Australia) Limited
ACN 000 000 993.
Investment Monies means the application monies paid
by an Investor pursuant to the PDS or monies arising from
distributions and held by the Custodian in the STIA for the
Trust pending utilisation, for the acquisition of a Mortgage
Investment or withdrawal by or refund to the Investor.
Investor or you means an Investor or a proposed
Investor in the Trust.
Loan means the loan facility made available to a
person by the Trust from the Investment Monies provided
by Investors.
Mortgage Investment means the loan facility secured by
a registered first mortgage and may include cash retained
for prepayment of interest, construction funding or
repayment (in full or in part) of the loan facility.
48
PDS means this product disclosure statement.
Withdrawal form means a form that will be made

available to an Investor on request which must be
completed and signed by an Investor to withdraw any
monies from the Trust.
SECT
ION 9
Guide
t
the a o complet
pplica
i
tion f ng
orms
9.1
Guide to the Application Forms
Please read the PDS before completing the Application

Forms that accompany this PDS. If you need help
completing your Application Form, please call Investor
Relations on 1800 230 099 between 8:30am and 5:00pm
weekdays AEST.
Step 1: Complete your Application Form
Complete the Application Form that applies to you as
an Investor:
Form 1 For individual or joint applications
Form 2 For trusts/superannuation funds
Form 3 For companies
Form 4 Additional investment
Form 5 Existing Trilogy Funds investors
Step 2: Attach all relevant documentation
If you are using non-electronic identification in order to
provide documentation under Australian anti-money
laundering and counter-terrorism financing legislation
(AML/CTF).
Step 3: Send your Application Form and funds
Any changes you make to the Application Form in the
PDS will render the form invalid.
9.2
Completing the Application Form
Part 1: Investor details

Only legal entities are allowed to hold units in the Trust.
Investments must be in the name(s) of natural person(s),
companies or other legal entities acceptable to
Trilogy Funds.
Individual and joint applicants
At least one full given name and the surname are required
for each natural person. Up to two joint applicants may
register. For joint Investors, please allocate a primary
contact for the account and make this person Applicant
1. Please provide the telephone number and area code, fax
number and area code and email address of the primary
contact in case we need to make contact in relation to
the application. Natural person applicants must provide
their date of birth and must be at least 18 years of age. The
name of the beneficiary or any other non-registrable name
may be included by way of an account designation if
completed exactly as described in Table 1 Correct forms
of registrable names.
The usual residential address is required for EACH Investor.
This address cannot be your financial advisers address
or a PO Box. You may, however, nominate your financial
advisers address and/or PO Box as your mailing address.
All posted Investor communication will be sent to the
mailing address.
Please provide your Tax File Number (TFN) or exemption
category. Collection of TFNs is authorised by taxation
laws. You do not have to advise us of your TFN or
exemption but if you do not, tax must be deducted
from distributions at the highest marginal rate plus the
Medicare levy and the deficit levy.
Please note that Parts 3 7 apply only to Application

Forms for new investments.
49
Company applicants
Please provide the full name of the company. We also
require the address of both the registered office and the
principal place of business of the company. For Pty Ltd
companies, please provide the names of all directors.
Please provide your ACN, ABN and TFN or exemption
category. Collection of TFNs is authorised by taxation
laws. You do not have to advise us of your ABN or TFN
or exemption but if you do not, tax must be deducted
from distributions at the highest marginal rate plus the
Medicare levy.
Trust/superannuation fund applicants
Please provide the full name of the trust or superannuation
fund (as registered with ASIC or other regulatory
authority) as well as the type of trust. We require the
name, address and date of birth of all individual trustees.
We also require the names of all beneficiaries to the trust.
Please provide your ABN and TFN or exemption category.
Collection of TFNs is authorised by taxation laws. You do
not have to advise us of your ABN or TFN or exemption
but if you do not, tax must be deducted from distributions
at the highest marginal rate plus the Medicare levy and the
deficit levy.
Table 1: Correct forms of registrable names
Individuals - Use given
name(s), not initials.
John Alfred Smith not

J A Smith.
Companies - Use company

name, not abbreviations.
ABC Pty Ltd not

ABC P/L or ABC Co.
Trust - Use trustee(s)

personal name(s), not the
name of the trust.
Sue Smith (Sue Smith

Family A/c) not Sue
Smith Family Trust.
Deceased estates - Use

executor(s) personal
name(s), not the name of
the deceased.
John Smith (Estate Jane

Smith A/c) not Estate of
the Late Jane Smith.
Clubs/unincorporated
bodies/business names
- Use office bearer(s)
name(s), not the name
of club.
Michael Smith (ABC

Tennis Association)
or if a business name,
Michael Smith (T/A ABC
Tennis) not ABC Tennis
Association or
ABC Tennis.
Superannuation funds - Use

name of trustee of fund,
not the name of the fund.
Jane Smith Pty Ltd (Jane

Smith Super Fund A/c)
not Jane Smith Pty Ltd
Superannuation Fund.
Any changes in contact details should be provided

to Trilogy Funds in writing and signed by the
registered Investor(s).
Politically exposed persons (PEPs)
To comply with AML/CTF Law we require you to disclose
whether you are or have an association with a politically
exposed person (PEP). A PEP is an individual who holds
a prominent public position or function in a Government
body or an international organisation in Australia or
overseas, such as a Head of State, or Head of a Country
or Government, or a Government Minister, or equivalent
senior politician. A PEP can also be an immediate family
50
member of a person referred to above, including spouse,

de facto partner, child and a childs spouse or a parent. A
close associate of a PEP, i.e. any individual who is known to
have joint beneficial ownership of a legal arrangement or
entity is also considered to be a PEP. Where you identify
as, or have an association with a PEP, we may request
additional information from you.
Beneficial owner
To comply with AML/CTF Law we require you to disclose
beneficial owners. Beneficial owner means an individual
who ultimately owns or controls, directly or indirectly,
the Investor. Control includes control as a result of,
or by means of, a trust, agreements, arrangements,
understandings and practices, whether or not having
legal or equitable force and whether or not based on
legal or equitable rights, and includes exercising and
control through the capacity to determine decisions about
financial and operating policies. Owns means ownership,
either directly or indirectly, of 25% or more of the Investor.
Source of funds
As part of our obligations to know our customer and
to assess money laundering and terrorism financing
risk under our AML/CTF program, the AML/CTF Law
now requires us to ask about the Investors (and of
their beneficial owners) income and assets available for
investment and the sources of funds, including their origin.
Part 2: Investment details
You may elect to pay your application monies by cheque,
direct deposit or BPAY. You must select ONE option by
printing an X in the appropriate box.
Part 3: Bank account details and distribution
preferences
Please provide full account details of your preferred
financial institution for the income distributions. These
details should include the financial institution name,
account name, BSB and account number. If you do not
complete this part, your income distributions will be
reinvested into units.
Part 4: Operating authority
Please indicate how you wish your account to be
operated. In the case of joint accounts, you may request
joint signatures or allow either signatory to sign. Please
select your operating instructions by printing an X in the
appropriate box.
Part 5: Communication preferences
In an effort to improve Investor communication, reduce
costs and assist with our commitment to the environment,
Trilogy Funds gives its Investors the option to receive
annual reports and Investor communication via email,
instead of mail.
Please indicate whether you wish to receive annual reports
and Investor communication by mail or email.
Should you wish to receive correspondence via email,
please ensure your email address is provided in Part 1.
You may change your preference for receiving
correspondence at any time by notifying us. If you take
no action, you will continue to receive printed Investor
communications via mail and the annual reports will be
accessible on the website www.trilogyfunds.com.au.
Part 6: Adviser details and certifications

This section is to be completed by licensed
financial advisers. The Trust has been allocated an APIR
Product Information Code: TGY0003AU.
Part 7: Declarations and acknowledgements
Each applicant must make the declarations and give the
acknowledgements in this Part. (Please note that this is
Part 3 on the Application Form for Additional investment).
Part 8: Applicant signatures
All applicants must sign the Application Form declaring
that he/she/they hold all the necessary approvals required
to sign this Application Form, to make an investment and
to hold units in the Trust.
In the case of a company, the Application Form must be
signed either under seal or by two directors or a director
and the company secretary on behalf of the company
by authority of the directors; or the sole director (if
applicable). If the companys constitution specifies
otherwise, please attach a certified copy of the relevant
section of the constitution (this does not apply to
sole directors).
If you are signing under power of attorney please attach
a certified copy of the power of attorney and specimen
signature(s) of the attorney(s).
Part 9: ID requirements checklist
If you are not investing through a financial adviser or
the financial adviser has not completed Part 6, then you
should complete this part, after you have followed the
instructions in Part 1 and in Section 9.3 below.
9.3
to verify your name and residential address or date of

birth. These sources may include but are not limited to:

State and Territory Departments that regulate

drivers licences;
Australian Electoral Rolls;
Sensis White Pages;
ASIC Personal Name Database;
Dun & Bradstreet Credit Header Check; and
Australian Passport Office*.
*Australian Passports are accessed through the Department of

Foreign Affairs and Trade (DFAT) Passports Online in a third party
capacity. DFAT is not engaged in identity verification, does not
guarantee verification results, and is not liable for how passport
verification results are used.
By signing the Application Form, and including your

drivers licence or passport details, you authorise
Trilogy Funds to access one or more of these sources
to verify your identity.
2. Provide hard copy, properly certified identification as
listed overleaf.
If you are an individual Investor, you will need to
provide us with certified copies of one document from
column 1 OR one document from each of columns 2
AND 3.
Identification required from Investors
Under Australian AML/CTF legislation, certain due

diligence must be conducted on any prospective Investor
before units in the Trust may be issued to that Investor.
The due diligence includes obtaining and verifying a
prospective Investors identity and that of any beneficial
owner. Applications made without providing this
information cannot be processed until all the necessary
information has been provided. The AML/CTF program
adopted by Trilogy Funds also includes ongoing customer
due diligence which may require the Responsible Entity to
collect further information.
Requirements for individuals and beneficial owners
A prospective Investor may choose one of two methods
of providing identification under AML/CTF legislation.
1.
For electronic verification for identification purposes,

provide your drivers licence number along with
its expiry date and card number for NSW only or
Australian passport number along with the expiry
date, family name at birth, place of birth and country
of birth on the Application Form under Part 9. By
providing these numbers and other details, Trilogy
Funds or a service provider engaged by Trilogy Funds,
will search government or non-government sources
51
Reliable and acceptable documentation

DO NOT SEND ORIGINALS. CERTIFIED COPIES ONLY
COLUMN 1
Primary Photographic
(one proof required)
COLUMN 2
Primary Non-Photographic
COLUMN 3
Secondary Identification
Australian Drivers licence

(Copy of both front and
back required. Please
ensure certification of
both sides)
Australian birth
certificate
Commonwealth, State and Territory

financial benefits notice (less than
12 months old) which contains
the individuals name and
residential address
Valid Australian passport

(See Note 1)
Commonwealth
citizenship certificate
Tax notice (less than 12 months

old) which contains the individuals
name and residential address
State or Territory proof of

age card
Pension card issued by

Centrelink
Local utilities provider notice (less

than three months old) which
contains the individuals name and
residential address
OR
Foreign passport
AND
Health card issued by
Centrelink
Acceptable Foreign
ID Documents
National ID Card issued
by a foreign government
containing a photograph
and signature (See Note 2)
Foreign Drivers licence
with photograph and date
of birth (See Note 2)
WHO MAY CERTIFY YOUR DOCUMENTS AS BEING A TRUE AND CORRECT COPY OF THE ORIGINAL (NOTE 4)
Judge
Finance company officer
Lawyer
Full-time employee of a bank

(See Note 3)
Notary Public
Magistrate
Justice of the Peace
Police Officer
A Registrar or Deputy
Registrar of a court
52
A member of the Institute

of Chartered Accountants in
Australia, CPA or NIA membership
(See Note 3)
Full-time employee of a post office

(See Note 3)
Authorised representative of a
holder of an Australian Financial
Services Licence (See Note 3)
Australian Consular Officer or
Diplomatic Officer
Note 1: A passport that expired within the two years

before submitting the Application Form will also
be accepted.
Note 2: Documents that are written in a language that
is not English must be accompanied by an English
translation prepared by an accredited translator.
Note 3: Required to have two or more years of continuous
service or membership.
Note 4: Please visit the Trilogy Funds website
www.trilogyfunds.com.au for a complete list of those
individuals who may certify your documents. The eligible
certifier must include the following information:

their full name and address;

telephone number;
the date of certifying;
capacity in which they are eligible to certify; and
an official stamp/seal if applicable.
The certified copy must include the statement I certify

this is a true copy of the original document.
By signing the Application Form, and providing certified
documentation, you authorise Trilogy Funds to access
one or more of the sources noted in Section 9.3 to
electronically verify your identity.
Requirements for New Zealand Investors

As indicated previously, we must undertake customer
identification procedures for all Investors under the
Australian AML/CTF legislation. In addition to the
information provided here, you should check our website
for our identification requirements. We will generally
accept documents certified as correct by New Zealand
equivalents to the persons listed on the previous pages.
Requirements for non-individual Investors
Different identification and verification requirements
apply to prospective Investors who are not individuals,
such as companies, other bodies corporate, and
trusts/superannuation funds.
Australian companies
Please provide either the companys ABN or ACN.
Foreign companies
Please contact the Responsible Entity for verification
information required.
Trusts and trustees
For registered managed investment schemes, regulated
trusts or government superannuation funds please provide
the trusts ABN.
Other trust type
Any one of the following documents: a certified copy or
extract of the trust deed showing the name of the trust, or
letter from a solicitor or qualified accountant that confirms
the name of the trust, or a notice issued by the Australian
Taxation Office within the last 12 months (e.g. notice
of assessment).

Individual trustee See ID requirements for individuals

(all trustees).
Australian company trustee See ID requirements

for Australian companies.
Foreign company trustee Please contact

the Responsible Entity for verification
information required.
53
Corporate directory
Responsible Entity
ACN 080 383 679
AFSL 261425
Telephone (07) 3039 2828
Free call number 1800 230 099
Fax (07) 3039 2829
Brisbane office and registered office
Level 23
10 Eagle Street
Brisbane QLD 4000
Telephone (07) 3039 2828
Fax (07) 3039 2829
Sydney office
Level 13
Royal Exchange Building
56 Pitt Street
Sydney NSW 2000
Telephone (02) 8028 2828
Fax (02) 8028 2829
Melbourne office
454 Collins Street
Melbourne VIC 3000
Phone 1800 230 099
Investor Relations
Free call (within Australia) 1800 230 099
Free call (within New Zealand) +800 5510 1230
Between 8:30am and 5:00pm weekdays
(Australian Eastern Standard Time)
Directors of Trilogy Funds
Robert Willcocks (Chairman)
Rodger Ingle Bacon
Philip Ashley Ryan
John Collis Barry
Rohan Butcher
Peter Arnold
54
Auditor of the Trust

BDO Audit Pty Ltd
Level 10
12 Creek Street
Brisbane QLD 4000
Auditor of the Compliance Plan
BDO Audit Pty Ltd
Level 10
12 Creek Street
Brisbane QLD 4000
Taxation Agent of the Trust
PricewaterhouseCoopers
123 Eagle Street
Brisbane QLD 4000
Custodian for the Trust
The Trust Company (Australia) Limited
Level 13
123 Pitt Street
Sydney NSW 2000
Lawyers for the Responsible Entity
Wily Legal and Consulting Pty Limited
Level 6
Suite 60
109 Pitt Street
Sydney NSW 2000
DLA Piper New Zealand
50-64 Customhouse Quay
Wellington New Zealand 6140
Complaints Resolution Scheme
Financial Ombudsman Service
GPO Box 3
Melbourne VIC 3001
Free call 1300 78 08 08
Fax (03) 9613 6399
Email info@fos.org.au
55
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Trilogy Monthly Income Trust

PRODUCT DISCLOSURE STATEMENT / 22 JULY 2015

Triligy Monthly Income Trust ARSN 121 846 722

Trilogy Monthly Income Trust

Obtaining further information before making a decision

TRILOGY MONTHLY INCOME TRUST | PDS

TRILOGY MONTHLY INCOME TRUST | PDS

TRILOGY MONTHLY INCOME TRUST | PDS

9.1 Guide to the Application Forms.................................................................49

TRILOGY MONTHLY INCOME TRUST | PDS

TRILOGY MONTHLY INCOME TRUST | PDS

Section 1 Investment overview

Some of the reasons why borrowers choose the Trust

The Trusts Loans

units, townhouses and land subdivisions for

loans up to $5,000,000; and

loan terms from 6 months up to 24 months.

TRILOGY MONTHLY INCOME TRUST | PDS

The investment process

Upon investment, funds are placed

Cash units become designated

Cash units earn distributions at

Allocated units earn distributions

calculated DAILY and

Check our monthly

The withdrawal process

TRILOGY MONTHLY INCOME TRUST | PDS

The Trust has a withdrawal process tailored to

Step 3 Send your Application Form

Step 1 Read this document, and

You have two options for sending your application:

You should read this PDS in full before deciding

Step 2 Complete the relevant

Free post your application to:

Trilogy Funds Management Limited

Reply Paid 1648

Brisbane QLD 4001

The application confirmation process

The minimum application amount is $10,000, and

Your surname, or, if you are an

Free call within Australia 1800 230 099 or

You can BPAY your investment funds:

Discuss your potential investment

TRILOGY MONTHLY INCOME TRUST | PDS

TRILOGY MONTHLY INCOME TRUST | PDS

Section 2 Key features of the Trust

Trilogy Monthly Income Trust

Australian Registered Scheme Number

121 846 722

APIR Product Information Code

Manager and Responsible Entity

Trilogy Funds Management Limited

The Trust Company (Australia) Limited, an independent specialist

The investment strategy of the Trust is to source Loans for development,

Minimum additional investment

Distributions are paid monthly in arrears at a variable rate. Investors can

The Trilogy Monthly Income Trust has a withdrawal process tailored to

TRILOGY MONTHLY INCOME TRUST | PDS

No entry or exit fees.

inclusive of GST, less any applicable RITCs

Investors receive the following correspondence regarding their

Access to current information

receipt of funds notification;

You can obtain up to date information in relation to the Trusts