Benefits Of Trust Deed Investments

You will not find a single fund manager who is not a true believer in diversification. The most common way to diversify is to divide your portfolio between equities (stocks) and fixed income investments (bonds), two asset classes that generally move in opposite directions.

Educated investors seek additional diversification through the addition of managed futures including currencies, commodities and debt securities along with investments in real property.This is where trust deeds and mortgage pools come into play. Treasury bonds and municipal bonds are considered fixed income vehicles; however the prices at which they trade are very volatile. Long-term yield bonds trade with similar or even greater price fluctuation as do the yields of T-Bills. Bonds do provide a semi-annual coupon interest payment, but due to the changing prices of these bonds, they are not a true “fixed income” investment. However, trust deed investing is; as these trust deeds are not individually traded on an open market. If a trust deed has an annual coupon rate of 11%, then that note yields 11% annually regardless of any fundamental influences from the macro economic environment. Our parent company Pacific Investment Management Group Inc. has the resources and tools necessary to help any accredited investor hedge against risks or gaps in their equity portfolio though investment vehicles in real estate, FOREX and managed futures.

Here are some of the benefits a Mortgage Fund offers:

No Load fees
Excellent return (T-bill + 4%)
Growth or cash-flow options
Pension Fund & IRA-qualified
Well secured and well underwritten
Low minimum investment ($50,000)
Uncomplicated and predictable