Provic

group inc

annual report2013

List of members
Anglesey Secured Investments Ltd.

Vicstate Savings & Loans Limited.

Address: 44 Tempar Street,

Forbes NSW 2871
P.O. Box 337 Forbes NSW 2871
DX
Ph:
(02) 6851 2221
Fax:
(02) 6851 2223
E-Mail:
asi@asicapital.com.au
Website:
www.anglesey.com.au
Manager:
Jeff Herdegen
Member since: February 2007

Address: 105 Lydiard St. Nth.,

Ballarat 3350
P.O. Box 122, Ballarat 3353
DX
35045
Ph:
(03) 5332 4388
Fax:
(03) 5331 7489
E-mail:
jdarke@vicstatesavings.com.au
Website:
www.vicstatesavings.com.au
Manager:
John Darke
Member since: December, 1977

Central Victorian Investments Ltd.

Webster Dolilta Finance Ltd.

Address: 41 Lydiard Street Sth, Ballarat

P.O. Box 150, Ballarat 3353
DX
35013
Ph:
(03) 5329 2499
Fax:
(03) 5334 4021
E-Mail:
brendan@cvi.net.au
Website:
www.cvi.net.au
Manager:
Brendan Gillett
Member since: February, 1992

Address: 44 Armstrong St Sth,

Ballarat 3350
P.O. Box 31, Ballarat 3353
DX
35042
Ph:
5337 0088
Fax:
5332 1559
E-mail:
admin@wdfinance.com.au
Website:
www.wdfinance.com.au
Manager:
Phil Cunningham
Member since: December, 1977

Hargraves Secured Investments Ltd.

WIN Securities Ltd.

Address: 18 Orr Street, Yarrawonga 3730

P.O. Box 189, Yarrawonga 3730
DX
37201 Yarrawonga
Ph:
(03) 5743 2666
Fax:
(03) 5744 3938
E-mail:
mdenny@hargrave.com.au
Website:
www.hargravesinvest.com.au
Manager:
Matthew Denny
Member since: August, 1999

Address: 37 Reid Street, Wangaratta 3677

P.O. Box 1221, Wangaratta 3676
DX
67716
Ph:
(03) 5721 5200
Fax:
(03) 5721 4200
E-mail:
ajr@winsec.com.au
Website:
www.winsec.com.au
Manager:
Tony Ruvolo
Member since: November, 1989

Sewells Finance Ltd.

Address: 119 Murray Street, Colac 3250
P.O. Box 3, Colac 3250
DX
25004
Ph:
(03) 5231 9400
Fax:
(03) 5231 3616
E-mail:
mmahony@slmlaw.com.au
Website:
www.sewellsfinance.com.au
Manager:
Michael Mahony
Member since: February, 1995

Table of

Contents
1. Profile
2
2. Membership Requirements
3
3. Member Profiles
4-11
4. Policies
12

Profile
Who Are We?
The Provincial Finance Group (Provic) is the industry body representing a group of debenture issuing companies based in
regional centres across Victoria and southern New South Wales. The activities of the Provic member companies extend
into all areas of Australia. Provic members hold Australian Financial Services Licences and report to their appointed
Trustee. The Provic member companies presently hold almost $360 million of investors funds - and in excess of $280
million lent on the security of mortgage over freehold property and the balance predominantly in liquid funds.
Issued October 2013.

Why Do We Exist?
Provic originated in country towns and provincial cities in Victoria over 40 years ago in response to a demand from local
communities for lending that was not being met by the city-centric mainstream finance institutions. An investment in
a Provic company was also seen as an opportunity to use local funds to grow and develop the communities themselves,
through investment in local projects and businesses which in turn would add to the wealth of the region.
These reasons for existence still hold true today, for despite the proliferation of both bank and non-bank financial
institutions over the years, few can claim their ownership and control is so locally based and their investment and
lending so locally focused.

What makes us different?

Provic members have a strong affinity with their
investors and borrowers because of their local
presence and local knowledge. The closeness
of the relationship allows a level of trust and
understanding to develop. Our members welcome
clients spending time in their offices rather than
directing them to ATMs or the telephone.
The same staff-member opening a new clients account
will often be the one theyll see when they come to make
an investment or wit rawal, or wish to talk about
their loan or even the weather.

What can we do for you?

If youre an investor, Provic members provide a range of
investment options from traditional daily access accounts
through to term investments for terms up to 3 years.
Interest rates are competitive with the market. On the lending
side, the emphasis is on flexibility with loans secured by
registered mortgage over freehold property. Options such as
interest only and re-draw are available.

Membership
Requirements
Strength, Reliability & Accountability

Integrity
A Provic company is an unlisted public company which issues
debentures to investors and lends those funds on the basis of
a registered mortgage and a valuation. Investors interests are
governed via a number of external bodies. Each member operates
under the terms of its Trust Deed. The Trustee holds a first ranking
charge over each company on behalf of debenture holders and
requires regular reporting as to the compliance to the deed of its
lending and investing activities.
All members are licensed under the Corporations Law and hold
an Australian Financial Services Licence and an Australian Credit
Licence. As a requirement to this members are required to join an
external complaints scheme allowing for an impartial determination
of any issues that may arise between the member company and its
investors. Each member is required to display these licences and the
scheme to which they belong.
PROVIC is a self-regulating body that imposes on its members the
requirement to adhere to Codes of Practice. These Codes are over
and above the requirements imposed on members by ASIC and
the Trustees. The Codes cover matters such as Capital Adequacy,
Permitted Investments, Advertising, Liquidity and regular reporting.

All Provic members operate in accordance with a Trust Deed and

issue a Prospectus annually. The Trust Deeds provides us with the
framework which determines our capacity to lend on mortgages over
interests in land and also prescribe capital and liquidity
ratios. Provic self regulates its members under a code of conduct
which in some cases is more stringent than the Trust Deeds.
Members are required to report quarterly to ASIC, the Trustees and
the Provic Regulatory Committee.

The designated Trustees covering Provic members are:

Sandhurst Trustees Ltd.

Prospectus
Each company has entered into a Trust Deed necessitating the
appointment of a Trustee for Debenture Holders under a Prospectus
lodged with ASIC in accordance with the provisions of the
Corporations Act.

Register of Debenture Holders

Under section 1047 of the Corporations Act, the Company must
maintain a register of Debenture Holders containing names and
addresses and the respective amounts of debentures held by them.

Reporting and Returns

Why would you turn to us?
Provic companies are investment institutions who take a personal
interest in their investors and borrowers.
They provide a unique opportunity for people to invest in their region
and in regional people with flexibility and at attractive returns.
Many people who work in the business also live in the community
with their investors and borrowers.

Borrow with confidence

Provic companies have a loan product refined over time - you
submit a loan application for approval, well assess the loan and, if
successful, provide a loan with all the flexibility you need. A Provic
mortgage loan may be for any worthwhile purpose including;
Residential
Commercial
Industrial
Farm
Development/Construction
Investment

Under the Trust Deed the company is required to prepare and submit
to the Trustee, the following returns and reports Audited annual accounts and balance sheet as at 30th of June by
the 28th September annually;
Audited half yearly accounts and balance sheet as at 31st of
December by 16th March annually;
Auditors Reports as at 30th June by 31st October annually and as
at 31st of December by 30th April annually;

Directors Certificates as at as at end of March by the 30th April annually and

as at end of June by 31st July annually and
as at end of September by 31st October annually and
as at end of December by 31st January annually;

Insurance Certificate Annually

upon renewal;
It should be noted that the Corporations Law overrides any due dates
for lodgements or returns contained in the Trust Deed.
Under the Corporations Law section 1058(4) the Company must
notify the Trustee of certain particulars of any charge which it
creates and, under section 1058(5), half year and full year financial
statements, including Profit & Loss accounts and Balance Sheets
must be prepared and lodged with the ASIC and the Trustee and, under
section 1058(1) the Company must comply with the half year and
full year reporting requirements containing the matters specified in
section 1058(2) and which are contained in the Directors Certificates
required to be submitted to the Trustee, and a copy of which should
also be lodged with the ASIC in satisfaction of the requirements
under this section.

PROVIC GROUP INC.

Provic

M E M B E R S

ANGLESEY SECURED INVESTMENTS LTD.

Anglesey Secured Investments Ltd, ACN 111607606 trading as ASI
Capital (reg. Business number 9844 7455) is a regionally owned and
operated public company and holds an Australian Financial Services
Licence No 292528 .
The Companys principal activity is to accept money on 1 - 36 months
fixed terms, by issuing Secured Notes, and to lend those funds to
approved borrowers on security of first mortgages over real estate
in Australia.
The success of the company depends on its impeccable track record
in investment and mortgage lending experience.

Accommodating client needs by providing flexible

and personalised investments and loans.

secured investments ltd

Jeff Herdegen Manager, Anglesey Secured Investments Ltd

The Directors of the Company are closely involved

in the loan approval process and the management
of the company, which aims to offer competitive
investment and lending interest rates, while
providing a personalised service to clients.
The company has traded profitably for the financial
year to June 2013, where on average borrowers
are only advanced around 50% of the value of their
security property.

44 Templar Street, Forbes NSW 2871

PO Box 337, Forbes NSW 2871
DX:
Phone:
Fax:
Email:
Web:
Manager:
Member Since:

02 6851 2221
02 6851 2223
asi@asiccapital.com.au
www.asicapital.com.au
Jeff Herdegen
February 2007

PROVIC GROUP INC

CENTRAL VICTORIAN INVESTMENTS LTD.

BUILDING A BETTER REGIONAL VICTORIA

41 Lydiard Street South, Ballarat VIC 3350

PO Box 150, Ballarat VIC 3350

CVI commenced trading in 1993, with its main

activities being the issuing of Secured Notes and
lending on the security of registered mortgages
over real estate.

DX:
Phone:

Fax:
Email:
Web:
General Manager:
Member Since:

Through prudent management and conservative

lending policies the Company has offered efficient
service to borrowers and secured note holders
and holds an Australian Financial Services License
(number 229697).
CVI are active in their local community, supporting
many causes and clubs to ensure a strong
connection with investors.

35013
1300 CVI 123
03 5329 2499
03 5334 4021
brendan@cvi.net.au
www.cvi.net.au
Brendan Gillett
February 1992

victorian investments ltd

Brendan Gillett General Manager, Central Victorian Investments Ltd

LOANS BY LVR PERCENTAGE AS AT 30 SEPTEMBER, 2013

COMPANY GROWTH
LVR 70%
LVR 65%
70,000,000

LVR 60%
60,000,000

LVR 55%

($)

50,000,000

LVR 50%
LVR 45%

40,000,000

LVR 40%

30,000,000

LVR 35%
20,000,000

LVR 30%
10,000,000

LVR 25%
LVR 20%
2002

2003

2004

2005

Secured Notes Issued as at

Mortgage loan balances current as at

2006

2007

2008

1/1/12 $76,628,180
1/1/12 $60,089,083

2009

2010

2011

2012

Residential
38.10

Rural
31.13

Commercial
50.73

Subdivisional
Land
66.31

Construction
Development
56.33

Industrial
48.06

Specialised
Accommodation
44.13

Total
Loans
41.97

HARGRAVES SECURED INVESTMENTS LTD.

Hargraves Secured Investments Limited (ABN 74
089 001 267) was incorporated as a public company
on 17th August, 1999. The company issued its first
Prospectus on the 7th December, 1999 with its main
activities being the accepting of deposit of monies
and lending the funds invested on the security
of registered mortgages over real estate within
Australia. The company issues a Prospectus under
the Corporations Act 2001 to enhance the Companys
prospects of obtaining investments from the wider
community, while continuing to operate within the
Companys prudential guidelines.

18 Orr Street, Yarrawonga VIC 3730

PO Box 189 Yarrawonga VIC 3730
DX:
Phone:
Fax:
Email:
Web:
Managing Director:
Member Since:

37201 Yarrawonga
03 5743 2666
03 5744 3938
jgorman@hargrave.com.au
www.hargravesinvest.com.au
John Gorman
August 1989

The Company holds an Australian Financial Services

Licence No 241230 which authorises the Company to
deal in debentures of the Company.

secured investments ltd

John Gorman - Managing Director, Hargraves Secured Investments Ltd

Our dedicated Directors and staff will

continue to meet the challenges of keeping
abreast of new developments, keeping up to
date with training and regulatory change
but maintaining its focus of providing
the comfort of conservative and prudent
management policies.

PROVIC GROUP INC

SEWELLS FINANCE LTD.

SUPPORTING LOCAL COMMUNITIES WITH
LENDING AND INVESTMENTS IN RURAL
LOCATIONS.
We accept investments - refer to our
latest prospectus.
We lend money. *Conditions apply.
Your business is important to us.

At Sewells Finance Limited

we look after you.

Stuart Holbery - Director, Sewells Finance Ltd

HEAD OFFICE

119 Murray Street Colac VIC 3250

PO Box 3 Colac VIC 3250
DX:

Phone:
Fax:
Email:
Web:
Manager:
Member Since:

25004
03 5231 9400
03 5231 3616
gmannington@slmlaw.com.au
www.sewellsfinance.com.au
Gary Mannington
February 1995

financeLTD
APOLLO BAY
(every Tuesday and Thursday by appointment)
Shop 4/22 Pascoe Street, Apollo Bay Vic 3233
Phone: 03 5237 6176
Fax: 03 5237 6176
CAMPERDOWN
17 Pike Street, Camperdown Vic 3260
Phone: 03 5593 1366
Fax: 03 5595 1957
COBDEN
19B Curdie Street, Cobden Vic 3266
Phone: 03 5595 1476
Fax: 03 3395 1957

WEBSTER DOLILTA FINANCE LTD (W&D FINANCE)

The Company commenced business in 1966 with its main
activities being accepting investments of money and lending on
the security of registered mortgages over freehold land. It is a
locally owned company with all Directors and staff residing in the
Ballarat area.

Were not a bank

Were your financial partner

Phil Cunningham Managing Director, W&D Finance

GROWTH
LOANSAS
ASAT
AT 30
30 JUNE
GROWTH
IN IN
LOANS
JUNE2013
2013

GROWTH IN SECURED NOTES AS AT 30 JUNE 2013

Millions
120

Millions

100

100

90

90

80

80

($)

($)

110

70

70

60

60

50

50

40

40

30

30

20

20

10

10
0

0
2006

2007

2008

2009

2010

2011

2012

2006

2013

2007

2008

2009

2010

2011

2012

2013

Year

Year

44 Armstrong Street South, Ballarat VIC 3350 PO Box 31, Ballarat VIC 3353DX: 35042
Phone

Email
Manager:

1300 928881
03 5337 0088
philc@wdfinance.com.au
Phil Cunningham

Fax:

03 5332 1559

Web: www.wdfinance.com.au
Member Since: December 1977
PROVIC GROUP INC

VICSTATE SAVINGS AND LOANS LTD.

Vicstate Savings & Loans Limited commenced
operations in 1968.
It is Ballarat owned, with all Directors and staff
residing in Ballarat.
The principal activity of the Company is to accept
investment funds to lend on the security of
registered mortgages over the titles to freehold
land in Australia and invest in local real estate.
Since 1968, the Company with the benefit of
prudent management, has enjoyed sound
profitability and steady growth.

101 Lydiard Street Ballarat VIC 3350

PO Box 122 Ballarat VIC 3353
DX:
Phone:
Fax:
Email:
Web:
Managing Director:
Member Since:

35045
03 5332 4388
03 5331 7489
arobson@vicstatesavings.com.au
www.vicstatesavings.com.au
Andrew Robson
December 1977

savings and loans ltd

Andrew Robson - Managing Director, Vicstate Savings & Loans Ltd

The Company has, since 1968, offered competitive

interest rates on its secured Notes and will
continue to do so whilst lending conservatively.
It also prides itself in providing its clients with
personal service for their individual needs.
The Directors are experienced in mortgage lending,
investing in real estate, and are actively involved
in the day-to-day running of THE company.

WIN SECURITIES LTD.

ALWAYS RIGHT ON THE MONEY
23 years and still going strong
Wide range of competitive investment and
loan products

37 Reid Street Wangaratta VIC 3677

PO Box 1221 Wangaratta VIC 3676

Efficient, friendly service

Win Securities Limited (Winsec) marks 23 years since
it first opened its doors for business in Wangaratta.
Having gone from strength to strength over the years, the
company continues to broaden its horizons and develop its
range of investment and lending products.
The secret to Winsecs success is that it combines prudent
money management with good old-fashioned service.
Winsecs client base is over 1,100 individuals, businesses
and organisations.

Phone:
Fax:
Email:
Web:
Managing Director:
Member Since:
ASFL Licence No:
ACL Licence No:

03 5721 5200
03 5721 4200
ajr@winsec.com.au
www.winsec.com.au
Tony Ruvolo
November 1989
240901
240901

Winsec offers a large variety of investment products,

all with competitive rates and an excellent return on deposits. Winsec is also a genuine alternative for finance, funding
commercial loans, rural and residential loans. Winsec also has the ability to act as your Broker to source home loans, as well
as chattel mortgages and leasing, with our access to over 39 Lenders.
Winsec also proudly give back to the local community through sponsorship. The Wangaratta Football Club, The Great Alpine
Golf Tournament, Wangaratta Squash and Racquetball Club, Wangaratta Bowls Club, Wangaratta Turf Club, Relay for Life,
Wangaratta Jazz Festival and Wangaratta Golf Club are just some of those to have benefited from Winsecs generosity.
It is important for Winsec to be part of community events and help bolster the regional area.
For more information about Winsec, visit www.winsec.com.au or call (03) 5721 5200, or drop in to 37 Reid Street to pick up a
copy of our Prospectus.

Mandy Allan, Tracey Crole, Tony Ruvolo, Pip Wright

win

securitiesLTD

Our clients are faces and names to us, not just account numbers.
It doesnt matter to us if you are investing $500 or $100,000, you
get the same rate and the same quality service.
PROVIC GROUP INC

11

Policies
INVESTMENT OF RESERVES
Associations Recommended Position
Percentage level of liquidity
The current minimum level of liquid reserves, which is set by the
Provic Association, is as detailed in Code of Practice Rule 7. Some
Trust Deeds do not have a restrictive covenant and the individual
companies where this applies will need to follow Provic Code of
Practice number 7. It is generally considered and recommended
by the Provic Association that a companys level of liquid reserve
should be 10% above the prescribed limit.
Should the liquidity ratio rise in excess of 30 percent then
lending should be increased which would enhance the companys
profitability. However, lending for the sake of lending is not
recommended. Quality of lending should not be sacrificed to
reduce this ratio!
Should liquid reserves fall below that set by the Provic Association,
as detailed in Code of Practice Rule 7, then lending must be stopped
until the ratio is restored. The percentage level should also take into
account the members known loan repayments and loans approved
but not yet advanced. Those Provic members with restrictive
covenants must advise their Trustee. Any member whose liquidity
ratio falls below that set by the Provic Association for the amount of
Debentures then issued by the Member must contact the Secretary
of the Provic Regulatory Committee.

Placement
It is recommended that a solid portfolio of Provic member reserves
be placed with banks. The placement can be in any form of at
call, 11am call, and 7-day call deposit account. In terms of the
Trustee Companies Act 1984 section 41(2)(f) any deposit (or term
deposit) up to 200 days is considered to be in liquid funds. Provic
recommends that the majority of members investments be invested
for no longer than 90 days. Members are to ensure the maturity
dates of their investments are spread to cover their
day-to-day requirements.
Investment in Government and semi-Government securities, if short
term and easily sold, is also recommended. However, most semiGovernment and Government securities are long term investments
and therefore are not an attractive investment for members as
they generally do not provide a good rate of return and can attract
a capital loss if sold. Other investments will show a greater return
and these should be considered providing the investment is in an
approved investment as laid down in the companys Trust Deed.

Membership
Any company wishing to become a member of the Association must
lodge an application with the secretary which is referred to
the Committee.
The Committee shall either approve or reject on application. On
approval and payment of appropriate subscription the applicant is
admitted as a provisional member until the next Annual Meeting
of the Association.
Provisional members may attend the quarterly and Annual Meeting
of the Association but are not entitled to vote.

Corporate Directory
Current Office Bearers
PRESIDENT:
SECRETARY:
TREASURER:

Mr P hil Cunningham
Mr Tony Ruvolo
Mr Brendan Gillett

Executive Members:
Mr Phil Cunningham
Mr Tony Ruvolo
Mr. Brendan Gillett

(President)
(Secretary)
(Treasurer)

Sub-Committees & Members

Policy and Procedural Manual
Michael Mahoney
Statistical and Members Information
Matt Denny
Future Directions
Jeff Herdegen,
Phil Cunningham
& Tony Ruvolo
Rendition of Returns
Bill Bahr
Website
Tony Ruvolo