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Generate Monthly Income with an Investment in Childcare
"Childcare is within a social sector predominantly financed by federal government funds but delivered through the private sector" - Alan Kohler
Fund Overview
The Finexia Childcare Income Fund, launched in October 2022, a social impacting investment opportunity designed to support the growth of the childcare sector. This unique fund specialises in providing transitional funding to experienced childcare operators during the critical ramp-up period of newly opened or reopened centres. With a strategic focus on helping these centres reach a sustainable operational capacity — typically around 80% within the first year — the fund plays a crucial role in facilitating subsequent bank financing.
Offering an impressive annualised monthly return of 10% as of March 22, 2024, the Finexia Childcare Income Fund presents an attractive risk-return profile for investors. Our loans, primarily issued for a 12-month term, are meticulously managed to ensure the highest quality and contribute to the robust performance of the fund.
Beyond financial returns, the fund serves as a vital non-bank lending source in the childcare segment, benefiting from strong market dynamics and resilient business models that are largely unaffected by economic cycles. This distinct approach not only underscores our commitment to fostering growth in this essential sector but also positions the fund as an excellent tool for diversification within a portfolio.
Endorsed with a "VERY STRONG" rating, the fund demonstrates a high level of confidence in delivering risk-adjusted returns, aligned with Finexia's investment objectives. This confidence is backed by our experienced and well-resourced management team, dedicated to supporting the evolving landscape of non-bank lending in Australia.
Why Invest In the Childcare Income Fund
With government backing and robust demand laying the groundwork, investing in Australia's childcare centers through the Finexia Childcare Income Fund offers a stable, investor-first opportunity.
Childcare Income Fund Performance
10%pa
PAID MONTHLY
NET OF FEES
PAID MONTHLY
NET OF FEES
5.65%
ABOVE RBA CASH RATE
OF 4.35%
ABOVE RBA CASH RATE
OF 4.35%
Notes:
It's important to note that past results don't guarantee future outcomes. The income generated is contingent on the success of the investments, and the responsible entity has the discretion to determine these payments.
The returns from the fund are presented net of all fees and are denominated in AUD. The calculations are derived from exit prices, factoring in ongoing fees and costs. It's assumed that distributions are not reinvested through the Distribution Reinvestment Plan (DRP). Taxes haven't been considered in these calculations.
The RBA Cash Rate stands at 435 basis points per annum.
Who is the Childcare Income fund for?
Finexia Childcare Income Fund may be suitable for investors looking for an investment that seeks to provide:
Social Impact "ESG"
Investors who are keen on contributing to societal benefits, such as supporting childcare services, may be drawn to this fund.
Diversification
Individuals looking to diversify their investment portfolios with a sector that shows resilience to economic fluctuations and has a segmented market share might consider this fund.
Fee-conscious Investors
The absence of investor fees and the transparency offered by external fund administration and custodianship make this fund attractive to investors mindful of costs and governance.
10% pa Stable and Predictable Returns paid monthly
With its focus on the childcare sector, which benefits from government support and consistent demand, this fund is suited for those seeking investments that offer steady income.
Long-term Growth Potential
Investors interested in capitalising on sectors classified as "Blue Chip" with strong growth prospects above GDP growth would find this fund appealing.
Low Volatility Investment
Designed for investors seeking to mitigate risk by avoiding the high volatility of equity markets, this fund offers a refuge. It appeals to those looking for steady returns, focusing on income-generating investments rather than the unpredictable swings of the stock market. This approach provides a more consistent and less volatile investment experience.
This content is provided for general informational purposes only. It does not consider your specific goals, financial status, or requirements. For advice tailored to your individual situation, please consult with a licensed or authorised financial advisor.
Childcare Income Fund Ratings:
The Finexia Childcare Income Fund has been rated by Foresight Analytics & Ratings, a third-party and external ratings house. Report Here
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Childcare Income Fund Research Reports:
Below are some research reports that specifically relate to Childcare and the Childcare Income Fund.
How to Invest
Learn More
SPEAK TO OUR INVESTMENT MANAGER
To invest in the Finexia Childcare Incomefund it starts with a call with our investment manager. He will answer any question you still might have and give you insights into how the investment works. Click below to book a call
Online Application
PDS & TMD TO YOUR INBOX
Investing in the childcare Income fund is an easy process. With our online application, you could be invested in under 10-15 mins. Click below to get started. Remember our investment manager is here to help.
Childcare Investment Newsletter
JOIN OUR MAIL LIST
We have an investor specific monthly childcare e-newsletter. This e-newsletter covers, childcare investments, childcare sales, Childcare Fund updates, relevant childcare industry updates, childcare development opportunities and more
Prior to applying for units within the Fund, it's essential to review the Product Disclosure Statement (PDS), the Additional Information Booklet, and the Target Market Determination (TMD).
Childcare Income Fund Documents:
Below are some documents that specifically relate to the Finexia and the Childcare Income Fund.
Childcare Income Fund Forms:
Finexia - Financial Reports:
As a company listed on the Australian Stock Exchange (ASX), Finexia is committed to transparency and compliance with regulatory requirements, including the obligation to report quarterly. This ensures our investors have timely access to essential financial and operational information, aligning with our dedication to maintaining high standards of corporate governance and market integrity.
Additional Information:
CLICK TO EXPAND
Other Information:
CLICK TO EXPAND
 "7 Reasons Why Alternative Investment Partners are Your Portfolio's New Best Friend: A Guide to Diversifying Your Investments")
 "Navigating Regulatory Turbulence: The Childcare Sector's Adaptation in Australia")
 "Goodstart Early Learning Faces a Significant Loss in FY2023")
