What type of investment is BMI / Fund?

The Fund is a Managed Investment Scheme (MIS) regulated by the Australian Securities and Investments Commission (ASIC). The Fund is comprised of the pooled contributions of all investors in the Fund and those contributions are either provided as loan to borrowers or otherwise invested with the custodian of the Fund. The contributions are used for loan arrangements with borrowers. Any loans provided to borrowers are secured by registered first (only) mortgages over the freehold property of the borrowers.

Who does the Fund lend to?

Loans are made to approved borrowers. Borrowers are approved on the basis of BMI’s assessment of the borrower, which includes a valuation of freehold property offered as security for the loan by the borrower. The financial capacity of potential borrowers is also assessed as part of a loan approval process. Borrowers are assessed on a case-by-case basis.

How is security valued?

Security is valued on the basis of either registered valuers or government valuations. The valuation methodology adopted with depend on the circumstances of any given assessment.

What restrictions apply to loans?

BMI only lends from the Fund on limited ratios of value, which are capped at a maximum of 70% of the value of the security. Other criteria may also apply (for example, lower ratios are used for freehold property which is farming land or vacant land.

When are distributions made?

BMI calculates the return to investors at the end of each quarter, and seeks to make payment as soon as able after its determination.