Pallas High Yield Fund No.3

The Pallas High Yield Fund No.3 is an open-ended Australian unit trust that provides Wholesale Investors with exposure to an actively managed, diversified portfolio of high yielding commercial real estate debt and select preferential equity investments supported by qualifying property in Australia and New Zealand. The fund operates as a warehouse facility, investing substantially all of its assets in Qualifying Lenders, trusts or other vehicles managed and/or operated by Pallas, which in turn provide first and second mortgage loans and preferential equity investments to borrowers. Investors receive cash income distributions in two parts: a periodic coupon, paid monthly, at a fixed margin of 5.70% per annum above the Benchmark of 30 Day BBSW, and a top-up coupon distribution of 5.0% per annum within 30 days after the end of each financial year. Per the Information Memorandum (August 2024), these together gave an overall return in each financial year of 15.01% per annum, assuming no change in the Benchmark applying at that date. Returns are quoted net of fees and costs and before tax; the achievement of the stated investment returns by the fund is not guaranteed. As at its Information Memorandum (August 2024), the fund was the sixteenth diversified warehouse fund product that Pallas Capital had brought to market over the last nine years. Units are issued by Pallas Funds Pty. Limited (AFSL 473475) as trustee, with Pallas Capital Pty. Limited as fund manager, and the fund is open only to Wholesale Investors with a minimum investment of $100,000.