Dominion Income Trust 1 Raises $45.45M in Wholesale Placement at $101 Per Unit
Dominion Income Trust 1 (ASX – DN1) has announced a wholesale placement of 450,000 new units, aiming to raise $45.45 million at $101 each. The placement targets wholesale investors and supports monthly distributions with a competitive target return.
- Wholesale placement of 450,000 units at $101 each
- Target raise of $45.45 million for income support
- Target return of 1-month BBSW + 3.50% per annum
- New units participate in July 2025 distribution
- Managed by Dominion Investment Management with strong research ratings
Placement Overview
Dominion Income Trust 1 (ASX – DN1) has initiated a wholesale placement to raise approximately $45.45 million through the issuance of 450,000 new units priced at $101 each. This capital raising is targeted exclusively at wholesale clients and is designed to bolster the trust’s capacity to maintain its monthly income distributions.
The placement units will be eligible to participate in the July 2025 distribution, providing investors with immediate income benefits. The trust aims to deliver a target return of the 1-month Bank Bill Swap Rate (BBSW) plus 3.50% per annum, reflecting a competitive yield in the current fixed income environment.
Investment Strategy and Management
Dominion Income Trust 1 invests entirely in notes issued by Dominion Investment Trust, with Dominion Investment Management Pty Ltd acting as the investment manager. The trust’s portfolio is globally diversified across defensive credit exposures, including government bonds, corporate bonds, and structured credit instruments, with an average target credit rating of BBB.
The trust benefits from the expertise of Realm Pty Ltd, a highly credentialed investment manager with over a decade of experience in Australian credit and fixed income markets. Realm has been recognized with multiple industry awards, including Australian Fixed Income Manager of the Year at the Zenith Fund Awards in 2021 and 2024.
Placement Details and Timeline
The placement was announced alongside a trading halt on 4 June 2025, with the offer opening the same day and closing on 5 June 2025. Settlement of the new units is scheduled for 13 June 2025, with allotment and commencement of trading on 17 June 2025.
Management fees related to the placement are estimated at 0.90% plus GST of the placement proceeds, with additional distribution and management fees payable to brokers and joint lead managers. The placement is supported by Realm and co-investor equity, providing an estimated equity buffer post-raising.
Market Position and Investor Considerations
Dominion Income Trust 1 has demonstrated modest net performance since inception in February 2025, with a total return of 1.99% and a monthly return of 0.64% as of May 2025. The trust’s units trade close to their net tangible asset value, reflecting stable market confidence.
Investors should note that the target returns are indicative and not guaranteed. The trust’s product disclosure statement has not been updated since January 2025, and potential investors are advised to conduct independent due diligence and consider professional advice before participating in the placement.
Bottom Line?
As Dominion Income Trust 1 expands its capital base, investors will be watching closely to see if the trust can sustain its targeted income returns amid evolving market conditions.
Questions in the middle?
- Will the placement fully subscribe given current market appetite for fixed income products?
- How will the additional capital impact the trust’s risk profile and distribution sustainability?
- Are there plans for an updated product disclosure statement reflecting this capital raise?
