PSYF is a new Australian managed investment scheme investing in a basket of NASDAQ-listed preferred securities — anchored by a core preferred security position and complemented by selectively weighted exposures across the broader preferred market.
If you do not meet these criteria, this product is unlikely to be suitable for you.
So let's look at the risk first — a more detailed analysis is within the PDS — and then the portfolio construction and targeted return.
Most investors lead with the rate. They see 6.25% and compare it to other income generating options. They think about what their quarterly income distribution will be. The quarterly distributions from PSYF are expected to be a Return of Capital and or income and may be treated differently for tax purposes. You will need to speak with your professional adviser who will explain the difference to you based on your personal circumstances.
Note that quarterly distributions are not guaranteed.
Professional investors start with the downside. They ask: What is the worst realistic outcome? What is the probability of losing capital? What specific risks does this structure carry?
Only once they have a clear-eyed view of the risks do they consider whether the return justifies taking them. We designed PSYF to be understood in this order.
PSYF is not a single-security fund. The investment approach centres on a NASDAQ-listed preferred securities basket — with STRC (Strategy Inc. Variable Rate Series A Perpetual Stretch Preferred Stock) as the primary anchor position and the remainder of the portfolio allocated across selectively chosen exposures in the broader preferred market.
All portfolio positions — including complementary allocations — are NASDAQ-listed preferred securities, maintaining the fund's exchange-traded structure and associated transparency.
Complementary positions are actively selected — not index-weighted. The investment manager evaluates yield sustainability, issuer financials, preferred structure terms, and liquidity before including any position.
Positions are sized and selected to support the fund's 6.25% net distribution target. All allocations are assessed for their contribution to the overall portfolio's distribution capacity.
Allocations across the basket may shift over time as market conditions, relative value, and risk-return assessments evolve. The PDS contains details on permitted investments and constraints.
. Actual portfolio weights at any time will depend on market conditions, available securities, and investment manager assessment. Refer to the PDS for permitted investment parameters and constraints. Portfolio composition is not guaranteed and may change without notice. Target distribution is not guaranteed. Monthly redemptions may be suspended in some circumstances.
PSYF's STRC allocation means fund distributions depend partly on Strategy's financial health, which is heavily exposed to Bitcoin. If Bitcoin prices fall sharply, Strategy's ability to pay STRC dividends may be impaired, affecting PSYF distributions.
While PSYF holds a basket of preferred securities, STRC remains a core and material position. The portfolio is not broadly diversified across unrelated asset classes and retains meaningful exposure to a small number of issuers and sectors.
Preferred dividends across all fund holdings are discretionary — issuers have no legal obligation to pay even if historically paid. Suspension of dividends by one or more major holdings could materially reduce or eliminate PSYF distributions.
Rising interest rates may reduce the market value of preferred securities across the portfolio. Some Preferred Securities Variable rate mechanisms may reduce but do not eliminate this risk. NAV stability is not guaranteed.
All PSYF assets are USD-denominated. AUD/USD movements directly affect your returns and capital value in Australian dollar terms. Currency is currently not hedged.
While assets are exchange-traded, market dislocations could temporarily reduce liquidity. Redemptions require 10 business days' written notice before month-end and may be delayed in extreme circumstances.
NAV fluctuates with market conditions, credit spreads, and sentiment. Strategy's significant leverage amplifies volatility in STRC beyond what the preferred structure alone would imply. Other basket holdings carry their own market risks.
PSYF is a new, unproven fund with no performance history. There is no guarantee the fund will raise minimum subscriptions, achieve its target return, or that any historical preferred security distributions are indicative of future performance.
Changes to Australian or US regulation, AMIT tax status, or cryptocurrency-related laws could adversely affect the Fund's structure, distributions, or tax treatment for investors.
Before investing, you must read the full Product Disclosure Statement (PDS). Begin the structured application process → which walks you through the PDS, TMD, and application form in sequence. Seek independent financial and tax advice appropriate to your circumstances. PSYF is not suitable for investors who cannot afford to lose some or all of their capital.
For investors who have read the risks — who understand that PSYF is a new-fund investment with a core STRC position and indirect Bitcoin exposure, alongside a basket of broader preferred securities — the targeted return is 6.25% net per annum, paid quarterly and expected to be classified as a return of capital and or income.
This is not a bank term deposit. It is not a government bond. It is not a broadly diversified fund. Distributions are expected to be classified as return of capital and or income. It is a strategy for investors who understand what they are buying and have made a considered decision to allocate as a minor or satellite position.
No entry fees. No exit fees. No buy/sell spread. Your full capital is deployed as per the timeline below.
Read the PDS, begin the structured application — complete the TMD check, and submit your application form. Minimum $10,000 AUD for retail investors.
Applications are processed monthly. Completed documents and cleared funds must reach NAV Fund Services (Australia) Pty Ltd by 5:00pm AEST/AEDT on the 22nd of the prior month (or the last business day before, if the 22nd falls on a weekend or public holiday). Applications received after this date will be processed in the following monthly cycle. Acceptance remains at the Responsible Entity's discretion.
Units held continuously from the 1st to the end of the month are distribution-eligible.
Distributions paid quarterly around the 21st of the following month after each quarter ends.
Key rules from the PDS: Distributions are quarterly, paid on or before the 21st day following each quarter end and are not guaranteed. Applications are monthly. Redemptions require at least 10 business days' written notice before the end of the relevant month and are processed at the first dealing day of the following month at NAV. Minimum investment $10,000 AUD; minimum additional contributions $5,000 AUD. The Fund must raise a minimum subscription of $250,000 before any investment is made.
PSYF is a new fund pursuing preferred securities yield through a core preferred security anchor and a broader basket of NASDAQ-listed preferred securities. It carries real risk — risk we have laid out before you. For investors who have read, understood, and accepted those risks, the potential return may justify the journey. If that describes you, begin the structured application process below.
The licensed responsible entity and issuer of units in PSYF. Holds AFSL 224107 authorising it to operate the registered managed investment scheme.
noncorrelatedgroup.com.au →Responsible for day-to-day investment decisions, portfolio management, and distribution of PSYF.
Independent fund administrator responsible for unit registry, application processing, NAV calculation, and investor reporting.
navfundservices.com.au →Independent custodian holding fund assets on behalf of investors. PSYF assets are held separately from the Investment Manager's own assets.
interactivebrokers.com.au →Risk: PSYF is a Very High Risk investment (Standard Risk Measure Band 7 of 7). Distributions are not guaranteed and may be zero. You may lose some or all of your investment. Past performance is not indicative of future performance.
Return of Capital and or income (ROC): PSYF distributions are expected to be classified as Return of Capital and or income under Australian tax law. ROC distributions are not assessable income in the year received but reduce the cost base of your units in PSYF. A lower cost base will result in a larger capital gain (or smaller capital loss) when you sell your units. Once your cost base reaches zero, further ROC distributions may be immediately taxable as a capital gain. Strategy has confirmed that 100% of distributions on its preferred instruments (including STRC) paid in 2025 were classified as ROC and expects this to continue for the foreseeable future. The tax treatment of distributions within PSYF as an AMIT may differ and depends on the Fund's own Australian tax position. This is general information only — not tax advice. Unitholders will receive an annual AMMA Statement. Seek independent tax advice.
Cooling Off Right (Retail Investors)
If you are a retail investor, you have a 14-day cooling off period from the date you receive confirmation of your investment, during which you may request a return of your money. If you exercise this right, you will be entitled to a refund based on the unit price at the end of the month following your request, less any market movement and applicable transaction costs. Contact the Responsible Entity at investorrelations@noncorrelatedgroup.com or T: 1300 034 093 to exercise this right.
Fund Structure
Responsible Entity & Issuer: Primary Securities Ltd ABN 96 089 812 635, AFSL 224107 · T: 1300 034 093 · E: investorrelations@noncorrelatedgroup.com
Investment Manager & Distributor: 21M Pty Ltd ABN 18 694 723 941 (CAR 1320491) · T: 1300 000 21M · E: investorservices@21m.net.au
Administrator: NAV Fund Services (Australia) Pty Ltd ACN 652 217 822 · E: Preferredsec@navfundservices.com
Custodian: Interactive Brokers Australia Pty Ltd ABN 98 166 929 568 · Auditor: Dry Kirkness Ltd, T: 08 6001 6909
PDS Issue #1, May 2026 · ARSN 696 258 250