from their website :
"The Trust uses this pool to invest approximately 70% of funds directly into cash-style investments, like term deposits issued by the banks, and indirectly in cash products via a range of managed funds.
The remaining 30% of money within the pool is then invested into the Trilogy Monthly Income Trust. The Trilogy Monthly Income Trust is a mortgage trust that harnesses the benefit of an investment in loans secured by registered first mortgages. This blend of asset classes aims to provide added yield to investment portfolios."
I would not compare mortgage trusts to bank term deposits in safety.
In and after the GFC, numerous mortgage trusts went belly up and investors were frozen out of their funds
for years, and lost a lot. The most famous one being the Howard Mortgage Trust, that everyone thought was
"as safe as houses". The trouble is mortgage trusts are not a liquid investment, so when too many people want to get out, they freeze up and people cannot redeem their money. Illiquidity is a disaster in a crisis.
I am very wary of mortgage trusts for that reason. And there are enough people warning of a housing market major correction to keep me wary. They don't give high enough returns to justify the risk, in my view.
A safer option for enhanced cash, in my opinion, is Smarter Money active cash fund, also returning approx 4% per annum, but it uses cash plus Australian banks A rated floating rate notes ( FRNs ). and if interest rates go up
as most people are predicting, the returns from FRNs also go up, unlike fixed rate bonds.
