Squirrel digs into mortgage investment

Squirrel offers Kiwi investors a new opportunity to invest in the $ 320 billion New Zealand mortgage market.

Friday, November 26, 2021 6:43 AM

Matthew Martin

John Bolton.

John Bolton, CEO of Squirrel, launches the Squirrel Monthly Income Fund, which gives retail investors access to a diverse portfolio of loans for homeowners backed by real estate, the country’s favorite asset class. He says he is excited about it.

The new Portfolio Investment Entity (PIE) fund is issued and managed by Implemented Investment Solutions, and pre-tax tax returns are paid monthly from an annual rate of 4.75% (OCR + 4.00%).

Squirrel has also partnered with the retail investment platform InvestNow as the primary way for investors to access the fund.

Banks of New Zealand do not give individual investors the opportunity to invest directly in the mortgage market. According to Bolton, the new fund provides investors with the benefits of regular income, all incorporated into a tax-effective PIE structure.

“Housing assets remain the most important source of wealth for many kiwis,” he says.

“Commercial real estate funds have consistently been popular in New Zealand because members value both diversified investment and regular income.

“The squirrel fund will undoubtedly only open up opportunities for the larger and more accessible aspects of the real estate market for most kiwis. It’s an investment next door.”

One of the most interesting things about New Zealand’s financial markets is how big the mortgage debt pool is compared to other markets, and the inaccessibility of investors, said David Tyrer, Chief Operating Officer of Squirrel. Is called.

“Beyond $ 320 billion, we will individually reduce the market capitalization of NZX, government debt, corporate debt, agricultural debt, and Kiwi Saver.

“If you look offshore, mortgage-backed securities are the norm and are some of the deepest investment pools in the world,” says Tyler.

According to Bolton, the new fund will bring Lis’s residential real estate lending expertise into a convenient and tax-effective investment vehicle, with investors primarily a variety of high-quality loans secured for residential real estate. Profit from your portfolio.

“Lisfund investors are relieved to know that risk is managed by exposure to a variety of underlying loans, not just the expected normal monthly income, and if the borrower defaults. You can make a claim for real estate, “says Bolton.

“Squirrels have built a reputation as a credible brand with a clear focus on the needs of New Zealand investors. We are excited to democratize all Kiwi mortgage investments.”

tag: Implemented investment solution InvestNow John Bolton Pie fund squirrel

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Squirrel digs into mortgage investment

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