A member-owned mutual friendly society has launched a new investment platform to provide financial advisers and wholesale investors access to specialist debt and equity investment strategies.
KeyInvest, which is regulated by the Australian Prudential Regulation Authority and provides tax-effective wealth management solutions, has launched the KeyInvest Managed Investments (KIMI) platform with plans to offer investment strategies that identify structural inefficiencies in markets and capture those opportunities.
The first strategy, the KeyInvest Senior Debt Income Fund, will invest in senior secured loans backed by first-ranking mortgages over real assets, including property and infrastructure, and target returns of the Reserve Bank of Australia Cash Rate plus 5 per cent a year, net of fees and costs, with regular monthly income distributions.
That fund is currently open to wholesale investors initially and will be joined in the near future by two more funds focused on Australian small company and global small company stocks.
KeyInvest chief executive Craig Brooke said: “Some of the most attractive opportunities exist in areas shaped by structural forces such as regulation, capital constraints and complexity, and that is precisely where KIMI is focused.”
Brooke added the fund’s model had been tested and since 2022 the KeyInvest Funeral Bond had deployed up to 20 per cent of its capital-guaranteed portfolio into the same underlying private credit strategy and generated strong returns.
“We spent three years investing our own members’ capital in this strategy before inviting others to participate,” he stated.
He pointed out the launch was a response to member demand and a significant market opportunity given Australian private credit funds under management grew from $130 billion at the end of 2021 to $225 billion by end 2025.
Asset consultant Atchison has been appointed as investment adviser to assist with manager research, portfolio construction and ongoing oversight.
Jason Spits
SENIOR JOURNALIST
Jason is a senior journalist with Benchmark Media and writes for the selfmanagedsuper website and magazine and smstrusteenews website. He has covered financial services since 1999 and has written about life insurance, superannuation, investment management and financial advice, in both a freelance and in-house capacity, and also did a brief stint as a media manager for an industry association. He has been the editor of trade titles Money Management and Financial Standard, and was most recently senior journalist with life insurance title Riskinfo.
Articles by Jason