NTA Securities Highlights for July 2014

Highlights for July 2014

All available funds as per NTA Securities liquidity mandate were fully deployed to Australian SMEs with no cash drag on the business.

There has been no change in the underlying approved corporate client base and there has been no breach of loan covenants. NTA Securities have received all interest payments within the prescribed loan document time frames. The corporate loan book is currently defined as stable.

The risk profile of the loan portfolio is defined as strong, reinforced by the loan to value ratio at less than 35%.

RBA keeps rates at historical low – 2.5%

The low RBA cash rate continues to work in favour of the net borrowers at the expense of deposits. With no change expected in the cash rate in the near term (many economists have the view that there is a 50% chance that the cash rate may fall in the near term), the coupon, paid quarterly, offered by NTA Securities and backed with a first ranking security over the loan applicants’ company assets at a loan to value ratio of not greater than 65%, continues to offer an attractive alternative to eligible investors.

Outlook

NTA Securities continues to receive requests for loan finance from corporate clients. Many of the businesses requesting loans are excellently managed and have substantial security which meets NTA’s security requirements.

Loan application demand continues to exceed NTA Securities’ capital.

We expect that this demand for loan finance from Australian corporate clients will continue in the medium to long term. The cash rate has been at 2.5%, a historical low, since August last year and the Reserve Bank’s July minutes show no sign of changing course in the near term.

The Reserve Bank reiterated “the most prudent course is likely to be a period of stability for interest rates”.

Investment Performance

                                         May 14     Jun 14      Jul 14
Coupon Series 1               0.79          0.76            0.79
Coupon Payment                                                2.34%
Benchmark*                                                         0.21%

*S&P/ASX Australian Fixed Interest 1-5 Year Index quarterly return as at 31 July 2014

NTA is a Australian public company (unlisted) and is in the business of providing loan finance to approved corporate applicants.

Auditor: BDO Sydney
Trustee: Lowell Capital, Melbourne

Security

Security is registered under the Personal Property Securities Act 2009 (Cth).

Once a registration is correctly lodged electronically it is said to be perfected. Only on completion of this process will the funds be forwarded to the successful applicant.

A Note From Our Directors

NTA Securities is 100% committed to creating unique finance solutions to SMEs and fixed income investment solutions for Wholesale, SMSF, Family Office and Institutional investors. We want to hear from loyal customers like you. Follow us on Twitter at @ntasecurities and let us know what you think about our lending products and fixed income investments. Your feedback makes us better.

Thanks in advance,

— Lindsay, Stephen and Anthony.

Contact us now for more information on our next capital raise.
[email protected]