Number One Portfolio Trust is a series of five funds that offer investors different risk and return options. They range from the low-risk Cash Deposit fund through to the High Yield Fund.
Like First Step the funds are all Australian domiciled unit trusts. This structure, where the return is paid to investors through the issue of tax-free bonus units, helps enhance returns.
The targeted tax paid base returns range from 4% through to 8%.
St Laurence managing director Kevin Podmore says each fund pays a base return and investors have the potential for additional returns if the fund betters its target.
One of the ironies of the move is that key players in St Laurence Group used to run property investments for Doug Somers-Edgar’s Money Managers – until they had a major falling out.
Podmore happily says Number One is a copy of First Step.
He says First Step, which has raised about $450 million in three years, has been successful. However, it is only available to Money Managers advisers.
First Step has attracted a significant amount of criticism over the years mainly due to its fee structure and suspicion that money raised was used to fund other projects related to Money Managers or associated parties.
Podmore says St Laurence has noted these issues and taken them on board in the design of Number One.
“(This is) a much improved version of Doug’s First Step,” he says.
He says making sure the funds were transparent has been an important element.
He says there are strict guidelines about where each fund can invest, particularly with respect to St Laurence offerings.
“This is not a St Laurence piggy bank” he says.
Number One invests in a range of securities from bank deposits and cash management funds through to property backed securities, secured mezzanine debt and first mortgage loans.
While the scope of investments would seem that St Laurence broadens its fund management skills, Podmore says the company already operates in all these areas.
Another key feature is that the manager is only entitled to a management fee after the targeted base return has been achieved. Also the manager is responsible for paying all issue expenses.
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