The Kremnizer Mortgage Fund ARSN 101 518 067 is a managed investment scheme registered under the Corporations Act 2001. Baccus Investment Limited ABN 87 095 832 072 holds an Australian Financial Services Licence number 220647 permitting us to act as the Responsible Entity of the Kremnizer Mortgage Fund and is subject to the regulatory requirements of that licence. Baccus Investment Limited also holds professional indemnity insurance cover of $5 million

Baccus Investments Limited must operate within the approved and prudent guidelines in terms of investment selection (credit assessment), the valuation of security and the management of the investment. These guidelines, and the method in which Baccus Investments Limited operates, are detailed in one or more of the following documents:

  • The current Product Disclosure Statement and the latest Benchmark Report for ASIC Regulatory Guide 45;
  • The relevant Syndicate Supplemental Product Disclosure Statement (“SSPDS”), which will contain matters such as the details of the borrower, the credit assessment, the amount of the loan, the repayments terms, the duration of the loan, the security and the Loan to Value Ratio;
  • The Constitution;
  • The Compliance Plan that has been lodged with the Australian Securities and Investments Commission (“ASIC”).

It also has an independent compliance committee that includes two external expert compliance members. The purpose of these guidelines is firstly to ensure the Fund provides Members/Investors with Mortgage Investments that conform to the Manager's approved lending criteria and secondly to ensure the investment has acceptable levels of credit risk and appropriate security.

Investors are offered the opportunity to invest in a range of mortgages under various Syndicate SPDSs. Each Mortgage Investment is secured against commercial and industrial property or in limited instances against residential property or more than one property of the same type or a combination of different types of property. The relevant security property or properties for any particular Mortgage Investment is detailed in the relevant Syndicate SPDS.

Application for membership of a Syndicate, that is, in a particular Mortgage Investment, is made in accordance with the application form that accompanies the relevant Syndicate SPDS. A Member of a Syndicate (or its nominee) holds, with other Members of that Syndicate, a registered mortgage over the mortgaged property with the investor/s on title and, generally, there is minimal capital risk to the Member of a Syndicate.

ASIC requires that we appoint a panel of valuers and all valuations must be under instructions given by Baccus Investments Limited. We do not accept valuations prepared under the instructions of the borrowers.

ASIC also requires that valuers, where possible, are registered under a State or Territory valuer registration scheme and include a statement in their valuation report on whether the valuation complies with all relevant industry standards and codes. We also require valuers to hold the appropriate professional indemnity insurance or if they don't, that the investors provide prior written approval for us to use that valuer for that Syndicate.

The legal work in respect of mortgage matters is handled by our in-house legal team of solicitors.

Keeping You Informed

Baccus Investments Limited is committed to full disclosure and provides you with the information on the following items: