Investors in more than five thousand debenture
securities listed on the National Stock Exchange
benefit from reliable fixed interest returns paid
by Angas Securities. There are several ways in
which the Angas Securities structure stands
apart in the fixed interest market place. The
legal structure is based on the Trust Deed for
First Ranking Debenture Stock to which further
reference is made below. The Trust Deed
regulates the roles and responsibilities of the six
stakeholders who have a part to play in respect
of every dollar invested in Angas Securities
debenture stock. How this legal structure
benefits investors is driven by the operational
capacity of Angas Securities and the relationship
The Angas Financial Report for FY12 has been prepared and was lodged at ASIC on 28th September 2012. The Financial Report comprises the report of the directors, the independent report of Deloitte Touche Tohmatsu as auditor, the directors’ declaration, Statement of Financial Position and multiple other statements dealing with income, cash flow and equity.
This comprises ordinary shares, preference shares, retail securities and retained earnings. Angas Securities has the ability to raise funds from the public by the issue of debt securities. These funds are applied towards short term commercial property loans secured by registered first mortgage with some equipment finance and direct property investments. The balance is held in cash or equivalents. The first ranking securities are secured by a charge granted to the trustee over mortgages and all other assets of Angas Securities. The first ranking charge provides security to the trustee for repayment. All loans have real property secured by registered first mortgages. The property is valued by independent valuers. Angas Securities has never defaulted on the payment of capital or fixed interest to its investors.
In February 2012, Angas Securities set a new monthly investments record of $11,161,000. That record was not entirely unexpected in the circumstances. Angas Securities had advised the market that, after holding investment interest rates unchanged for over two years, rates would fall as from 1st March 2012. The result saw a high level of new investments made prior to the rate reduction taking effect. Whilst this led to a new record being set in February, it did distort inflow levels for the months that followed. The interest rate change had a pull forward effect on investments. Whilst rates are again under review, no decision to change rates has been made. Angas Securities will give the market advance notice of any proposed interest rate change.
Angas Securities has continued to trade soundly in 2012 despite challenging economic conditions. The business model is essentially defensive – debenture funds invested in fully secured first mortgages – conservative loan to valuation ratios – high levels of liquidity – no debt. Success has come from the ability of Angas Securities to effectively execute upon this model. That performance has meant that Angas Securities has delivered consistent returns to investors. The debenture fund has grown once again this financial year (see chart below). Angas Securities has never missed or delayed a payment of principal or interest. Payments have always been made to investors when due. High levels of liquidity continue to be maintained.
At its meeting held on 1st May 2012, the Reserve Bank Board lowered the cash rate by 50 basis points to 3.75 per cent. This decision was based on weaker prevailing economic conditions and a moderation in the inflation outlook. The Reserve Bank chose to reduce the cost of borrowing in order to stimulate the economy. The interest rates paid by Angas Securities are set independently of the Reserve Bank as is illustrated in the graph below. In August 2005, the Reserve Bank rate was 5.5 per cent and the Angas Securities rate was 7.5%. In May 2012, the Reserve Bank rate of 3.75% is precisely half of the Angas Securities rate.