Fund Structure
Investment Philosophy
Allied seeks to derive stable returns with predictable monthly income from a diversified selection of real estate mortgages.
Our philosophy of maintaining high quality credit processes and lending criteria allows us to actively manage risk and return of a market which is under-serviced by mainstream financiers.
At Allied, we believe the combination of a robust loan selection criteria, conservative lending limits, disciplined underwriting process and rigorous recoveries on nonperforming loans should result in higher returns with controlled risk for investors.
Investment Process
Allied’s mortgage investment selection process comprises five distinct stages:
1. Macro-economic assessment
- Back-tested factors
- Liquidity conditions
- Monetary environment
- Housing market
2. Quantitative screening
- Application Process
- Valuation
- Quality of real property
- Serviceability
3. Credit/risk assessment
- Credit rating
- Related entity search
- Review of loan purpose
4. Investment committee approval
- App re-assessment
- Unanimous approval
- Terms & Conditions
- Letter of offer
5. Portfolio construction
- Formal approval
- Loan documentation
- Settlement
- On-going monitoring
Rigid valuation and assessment process
- Member valuation panel includes major bank panel valuers
- Genworth property postcode security assessment rating;
- Proprietary servicing calculator; and
- Strict compliance with NCCP legislation.
| Security Type | Maximum LVR |
|---|---|
| Residential | Class A - 75% |
| Class B - 65% | |
| Class C - 60% | |
| Commercial | Class A - 70% |
| Class B - 60% | |
| Class C - 55% | |
| Industrial | Class A - 65% |
| Class B - 55% | |
| Class C - 50% |