INVESTOR HUB
Premium Income Fund – Investor Education & Risk Disclosure
Important Information
This Investor Hub provides general information only and has been prepared to help investors understand how the Premium Income Fund operates. It does not constitute financial product advice, a recommendation, or an offer to invest. Investors should consider the Product Disclosure Statement (PDS) in full and seek professional advice before making any investment decision.
Capital
No Capital loss experienced.
Redemptions
All redemption requests fulfilled.
Distributions
All distributions have been paid.
Investment Risk & Past Performance:
When making an investment, a prudent investor balances risks and returns. All investments carry risk, and investing in commercial loans is no different. This investment is not a bank deposit. Whilst we endeavour to exercise due diligence and care in our conduct, we do not provide guarantees on any invested capital or the investment performance of the underlying managed fund. Past performance is not a reliable indication of future performance.
1. "Risk‑First" Investment Philosophy
Our Investment Approach to Risk Mitigation
Our Premium Income Fund focuses on secured, income-producing lending structures.
Every investment decision is assessed first on possible downside risk, security quality, and capital protection before considering potential income.
Key principles include:
Risk Mitigation
Capital protection prioritised before return generation.
Conservative
Strict structuring and legal documentation.
Asset-Backed
Lending secured by real property, not equity exposure.
Active Credit
Rigorous assessment and ongoing monitoring.
Income is generated as a result of disciplined credit management, not by taking additional risk to achieve higher returns.
2. Protecting Investors' Capital
Loan‑to‑Value (LVR) Discipline
Conservative Lending Ratios + Independent Valuations + “As is” market value
Loan‑to‑value ratio (LVR)
The percentage of a property's market value that a lender is willing to loan out.
We maintain conservative LVRs to buffer against potential market declines and protect investor capital.
“as is” market value
Evaluation of a project based on its current condition & market value, as opposed to "as if complete" value.
The Fund relies strictly on ‘as is’ valuations to avoid the risks of a project’s hypothetical future value.
LVRs are assessed by considering:
- Independent property valuations
- Asset type and location
- Borrower financial position
- Loan term and exit strategy
- Higher LVRs are only considered with extra risk mitigants in place.
- Lower LVRs serve as a structural risk tool rather than a way to boost returns.
3. Security Structures
Asset‑Backed Lending Framework
All loans funded by the Premium Income Fund are supported by defined security arrangements. These structures are designed to provide legal rights and recourse in the event of borrower default.
Registered Mortgages
- Every loan is secured by a registered first or second mortgage over Australian real property.
- Security is assessed on a loan-by-loan basis, documented prior to funding and monitored throughout the life of the loan.
4. Case Studies (De-Identified)
Real examples of our lending practice in real life.
Hotel Refinance
Regional Victoria
The Challenge
Borrowers purchased a hotel in cash but needed funds for renovations and a new kitchen. Traditional banks refused finance due to a lack of recent financials.
Our Solution
We provided sufficient funds to complete renovations, enabling business growth.
Loan Amount
$260,000
LVR
55%
Term
12 months
Security
1st Registered Mortgage
Exit Strategy
Refinance to bank after 12 months
Acreage Settlement
Townsville North QLD
The Challenge
Business owners needed urgent settlement funds after a vendor cancelled a vendor-finance contract just before the settlement date.
Our Solution
We assessed the security and granted an urgent loan, settling in under one week.
Loan Amount
$160,000
LVR
52%
Term
12 months
Security
1st Registered Mortgage
Exit Strategy
Refinance via traditional lender
5. Understanding Asset Class Characteristics
Evaluate how mortgage-backed investments offer a middle ground between the capital preservation of cash and the volatility of shares.
(Premium Income Fund)
Disclaimer: The above table is for illustrative and educational purposes only to explain general asset class characteristics. The Premium Income Fund is not a bank deposit, is not government guaranteed, and carries investment risk including the potential loss of principal. Target returns are not guaranteed. Please refer to the Product Disclosure Statement (PDS) for detailed risk disclosures regarding liquidity and mortgage default risks.
6. The Premium Income Fund
| Subclass Variant | Distribution Rate | Min. Investment | Minimum Term | Income Frequency | Distribution Reinvestment Plan |
|---|---|---|---|---|---|
| Retail Investors | |||||
| Standard - Variable | 7.95% p.a.* | $5,000 | 12 Months | Monthly | Yes |
| Standard - Fixed | 7.80% p.a.*^ | $5,000 | 12 Months | Monthly | Yes |
| Enhanced - Variable | 8.45% p.a.* | $100,000 | 12 Months | Monthly | Yes |
| Enhanced - Fixed | 8.30% p.a.*^ | $100,000 | 12 Months | Monthly | Yes |
| Wholesale Investors | |||||
| Wholesale - Variable | 8.95% p.a.*# | $250,000 | 12 Months | Monthly | Yes |
| Wholesale - Fixed | 8.90% p.a.*#^ | $250,000 | 12 Months | Monthly | Yes |
Past Distributions
This is the 12 month distribution history of the Premium Income Fund.
The Premium Income Fund has been paying distributions since 2022.
Contact us if you require the complete history of distributions.
| Month | Enhanced subclass | Standard subclass |
|---|---|---|
| May-25 | 8.70 | 8.20 |
| Jun-25 | 8.70 | 8.20 |
| Jul-25 | 8.70 | 8.20 |
| Aug-25 | 8.70 | 8.20 |
| Sep-25 | 8.35 | 7.85 |
| Oct-25 | 8.35 | 7.85 |
| Nov-25 | 8.35 | 7.85 |
| Dec-25 | 8.35 | 7.85 |
| Jan-26 | 8.35 | 7.85 |
| Feb-26 | 8.35 | 7.85 |
| Mar-26 | 8.35 | 7.85 |
| Apr-26 | 8.45 | 7.95 |
*Terms & conditions apply. Please note that past performance is not a reliable indicator of future performance. This investment is not a bank deposit and carries risk. Refer to the PDS available on our website for full details. All distribution rates quoted above are net of fees and are the prevailing rates as of 08 May 2026. Distribution rates are updated monthly, usually at the start of each month. Check our website for current distribution rates. We do not provide guarantees on any invested capital or the investment performance of the Premium Income Fund.
#The Wholesale subclasses are only available to qualifying wholesale investors, with a minimum investment of $250,000. Contact us for further details. Please refer to the Wholesale-Memorandum of Terms and Conditions (MOTC).
^Fixed for 12 months.
7. Strategy & Risk
Key Risks to Consider
While the Premium Income Fund utilises strict lending criteria, conservative Loan-to-Value Ratios (LVRs), and registered mortgage security to protect investors, all investments carry inherent risks.
Credit & Default Risk
If borrowers fail to repay their commercial loans, or if the property’s value is inadequate to cover the debt upon enforcement, investors may experience a loss of capital.
Liquidity Risk
This is an illiquid investment. There is no secondary market, and satisfying your withdrawal requests after the minimum 12-month term depends entirely on the fund having sufficient cash available.
Income Risk
Your monthly distributions rely entirely on the interest generated by the underlying loan portfolio and are never guaranteed.
Market Risk
Broader economic downturns and fluctuations in interest rates can negatively impact real estate values and a borrower’s capacity to repay.
Concentration Risk
The fund’s capital is concentrated into a single loan facility provided to our related lending arm, Rhodes Finance.
Important Notice
This investment is not a bank deposit and carries risk. Investors risk losing some or all of their money. Capital is not guaranteed, and past performance is not a reliable indicator of future performance. Please refer to the Product Disclosure Statement (PDS) for full detail.
8. Market Commentary
Know the market before investing.
Ongoing Market Insights (Jan 2026)
Australian mortgage funds and income-focused fixed income vehicles have seen heightened investor interest as participants seek stable yield over equities amid economic volatility and persistent inflation pressures.
Data from investment platforms shows mortgage and private credit funds among the dominant choices for yield-seeking investors through 2025.1
Lending & Credit Activity
Mortgage lending in Australia hit record levels in late 2025, exceeding $100 billion for the first time in a single quarter. This was driven primarily by larger loan sizes reflecting rising property values, as well as strong investor participation, which now accounts for a record ~39 % of the total mortgage market.2
Implications for Mortgage Funds
Broader growth in lending and record mortgage volumes can support the expansion of mortgage fund portfolios, improving deal flow and opportunities for secured lending.
However, this also requires disciplined credit screening as exposure increases in a higher-debt environment.
1Investment Markets | 2Australian Property Update | 3 Australian Property Update
Interest Rate Environment
RBA Policy & Cash Rate
- As of February 2026, the Reserve Bank of Australia (RBA) lifted the cash rate to 3.85 %, marking the first hike since late 2023 in response to persistent above-target inflation.1
Inflation & Rate Prospects
- Core inflation has remained elevated above the RBA’s 2–3 % target range, driving market expectations for possible further rate rises later in 2026 if inflationary pressures persist.2
- Banks in Australia have already passed through increases to fixed mortgage costs, with several major lenders lifting fixed-rate products beyond the RBA’s move, signalling continued tight funding conditions.3
Impact on Mortgage Funds
- A rising or sticky interest rate environment can support mortgage fund yield, as floating-rate lending and short maturities reprice higher. But it can also impact borrower serviceability, particularly among variable rate holders, increasing credit monitoring importance for fund managers.4
1 Forbes | 2 Reuters | 3 Daily Telegraph | 4 Forbes
Credit Market Conditions
Credit Growth & Leverage
- Household and mortgage debt in Australia is among the highest globally, and trends show ongoing growth in borrowing, particularly among investor segments.
Regulatory Response
- The Australian Prudential Regulation Authority (APRA) has introduced a 20 % cap on high debt-to-income mortgages effective February 2026, aiming to limit risk in highly leveraged lending.
Refinancing & Liquidity
- Significant refinancing activity is occurring as borrowers seek better rates or switch lenders amid competitive mortgage markets, offering both opportunities and monitoring challenges for funds involved in residential mortgage exposure.
1 Australian Property Investors Magazine |
2 Australian Finance Hub |
3 Australian Property Investors Magazine
Property Market Trends
Record Price Growth
- Australian property prices continue to surge to record levels, with recent data showing the national median dwelling price passing $1 million for the first time as of February 2026. Growth has been strongest in cities like Brisbane and regional markets.
Forecasts & Momentum
- Independent research suggests capital city price increases of 6–10 % this year, with Perth and Brisbane among the highest-growing markets into 2026.
Affordability & Supply
- Despite the growth, housing affordability remains under significant pressure — with affordability ratios still near multi-decade lows and supply constrained relative to population growth — which can amplify price sensitivity to economic shocks.
Rental Market Dynamics
- Rents continue to rise nationally, enhancing yields for investors and underpinning rental income streams that support mortgage fund collateral values.
1 News.com | 2 ABC | 3 KPMG | 4 Property Planning
Key Risk Considerations
Investors should remain aware of potential fluctuations in asset values and borrower creditworthiness.
Economic uncertainty, changes in interest rate policy, and liquidity constraints could influence income outcomes and loan performance.
The Fund will continue to provide updates as market conditions evolve, helping investors contextualise returns, risks, and strategic opportunities in the private credit space.
9. FAQs
Is my capital guaranteed?
No. The Premium Income Fund is not a bank deposit and does not provide capital guarantees. Investors may lose part or all of their invested capital.
How does the Fund generate income?
Income is generated from interest paid under the Loan Facility provided to Rhodes Finance, which in turn manages a portfolio of secured commercial loans.
How is risk managed?
Risk is managed through conservative LVRs, asset‑backed security, credit assessment, loan monitoring, and adherence to the Lending & Investment Policy.
Is the Fund liquid?
The Fund is not liquid. Withdrawals are subject to the terms outlined in the PDS and may be limited.
Who should consider investing?
The Fund may suit investors seeking income who understand and accept the risks outlined in the PDS and who have considered their personal circumstances.
Understand how the Premium Income Fund could benefit those seeking investments in a mortgage fund and whether it aligns with your investment objectives.
Learn More
Rhodes Asset Management Ltd
ABN 99 165 917 813 | AFSL No. 464772.
Rhodes is led by a seasoned team of industry professionals that brings a wealth of expertise in Funds Management, Financial Services, Law, Accounting, Property Development, Lending, and Venture Capital.
Contact Details
Phone: 1300 425 594
Email: enquiries@rhodesam.com.au
PO Box 1753, Capalaba QLD 4157 Australia
Or Visit Us @
‘The Hub’ Suite 1, 2 Loraine Street, Capalaba QLD 4157
Disclaimer
General
This website contains information about us at Rhodes Asset Management Ltd ABN 99 165 917 813, AFSL No. 464772 (Rhodes Asset Management, we, us and our) and the services and products we provide. Rhodes Asset Management is associated with the “Rhodes Financial Group” brand and is a related party to Rhodes Financing Solutions Pty Ltd (ABN 33 651 843 828).
No Advice
Information published on our website is general information only. It should not be construed as personal financial advice or a recommendation to invest or acquire any financial product. We have prepared the information without taking into account the personal objectives, financial situation or needs of any particular individual. We recommend you speak with a qualified financial advisor about the appropriateness of our financial products in light of your own financial objectives and personal circumstances.
Reliance on Product Disclosure Statement & Target Market Determination
Information about any of our financial products is contained in the respective product disclosure statement (PDS) and target market determination (TMD) accompanied by other disclosures we are required to make by law. You may obtain a copy of the PDS & TMD on our website or by emailing us at investors@rhodesam.com.au. You should not rely on any information that is not published by us.
Investment risk & Past Performance
There are risks associated with an investment in a managed fund. Whilst we endeavour to exercise due diligence and care in our conduct, we do not provide guarantees on any invested capital or the investment performance of the underlying managed fund. Past performance of any managed fund described on our website is not a reliable indication of future performance.
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