Securcorp | Providing Consistent Returns to Investors

You should refer to the Combined FSG & PDS for full and complete information regarding the offer to invest in the Fund.

Q1. Who is Securcorp?

Q2. What is a mortgage investment?

Q3. How do you invest in the fund?

Q4. Why should I sign a general authority?

Q5. What if I don't like the loan?

Q6. What is the term of the investment?

Q7. What does "LVR" or "loan to value ratio" mean?

Q8. Who provides the valuations?

Q9. What type of loans do you approve?

Q10. Do you lend on second mortgage?

Q11. How can you offer such a high return?

Q12. Why would the borrower pay such high interest rates?

WHO IS SECURCORP?

Securcorp Limited (ACN 088 919 377) is an unlisted public company which holds an Australian Financial Services License (No. 244437) which allows it to be the fund manager of the fund known as The Securcorp Mortgage Income Scheme ("The Fund").

WHAT IS A MORTGAGE INVESTMENT?

You invest your money into the Fund which then lends that money to various borrowers.

The returns you receive come from the interest the borrower pays on the loan.

You receive an investment for a fixed term at a fixed distribution rate. Your investment is secured by a registered mortgage over real estate.

HOW DO YOU INVEST IN THE FUND?

Investment is a two part process:

1. You need to read the PDS. We encourage you to discuss this with your financial or other professional adviser. If you want to invest, you must then complete the Application Form attached to the PDS to join the Fund.

2. Once you join, your monies can be invested in a specific mortgage investment.

You can either:

Choose these investments yourself - we will provide you with an Investment Proposal for you to consider; or
Sign the General Authority in the PDS to allow Securcorp to make investment choices on your behalf.

WHY SHOULD I SIGN A GENERAL AUTHORITY?

1. There is less administrative time and cost involved. Accordingly, investors who sign General Authority may receive a slightly higher return than investors who make their own investment choices; and

2. It reduces delays incurred in reinvesting your monies.

By signing the General Authority form you give us the discretion to make investment choices on your behalf. When we invest monies under General Authority, we will always send you an Investment Proposal providing full details of the loan in which your funds have been invested.

WHAT IF I DON'T LIKE THE LOAN?

If you are not happy with the investment choice made (either by you or by us) you have 14 days from the date we provide confirmation of your investment to notify us in writing that you do not want to proceed with the investment.

WHAT IS THE TERM OF THE INVESTMENT?

Usually between 6 months to 2 years. However, Borrowers do have the right to repay the loan early.

If this occurs, they usually must pay at least 3 months interest and give at least one month's notice of the early repayment. This will allow us time to locate a replacement investment for your money.

WHAT DOES "LVR" OR "LOAN TO VALUE RATIO" MEAN?

We generally lend between 65% - 70% of the value of the real estate. This percentage is described as the Loan to Value Ratio.

The lower the percentage the more allowance for any fluctuation in the property value and the more "equity" available in the event the property needs to be sold if the borrower defaults.

WHO PROVIDES THE VALUATIONS?

Valuations are obtained from properly qualified panel valuers who hold appropriate Professional Indemnity Insurance.

WHAT TYPE OF LOANS DO YOU APPROVE?

We only approve loans for a business or investment purpose.

There is a large diversity in the types of property given as security - from individual house and land properties to large estate developments and commercial and industrial properties.

Details of the current portfolio of loans are set out in Part 5 of our PDS.

DO YOU LEND ON SECOND MORTGAGE?

Sometimes we may offer the opportunity to invest in a mortgage which is secured only by a second mortgage. However, these offers will be made to certified wholesale investors via a separate information memorandum and not pursuant to the PDS.

HOW CAN YOU OFFER SUCH A HIGH RETURN?

Because we keep our management fees to a minimum than those offered by larger funds and institutions we are able to pay you higher interest rates.

WHY WOULD THE BORROWER PAY SUCH HIGH INTEREST RATES?

Our interest rates are actually quite competitive with institutional finance for investment or business purposes which is always a higher rate than for residential loans.

Also, we are able to provide a high standard of service to borrowers which sets us apart from the big banks and makes us more attractive to borrowers.

Many of our borrowers are return borrowers. At least 50% of current borrowers have had previous facilities with Securcorp - that confirms that they are happy with the service and product that we can provide them.

Securcorp Limited ACN 088 919 377, AFSL No. 244437 is the issuer of the Securcorp Mortgage Income Scheme (ARSN 090 045 382) Product Disclosure Statement (‘PDS’) dated 31 May, 2006. Persons considering investing should consider the PDS before deciding whether to invest or to remain invested. To obtain a copy of the PDS please contact Securcorp Limited on 1800 064 556.