Finance company Liberty Financial is hoping to tap a new source of funding with the launch yesterday of a product disclosure statement for a mortgage and asset-backed retail fixed interest fund.The Liberty Term Investment Fund is offering investors yields ranging from 8.5 per cent for 12 months to 8.9 per cent for five years, with returns drawn from a mixed portfolio of residential and commercial property loans, motor vehicle and equipment loans and trade receivables.Liberty has seeded the fund with a $10 million investment. Liberty's general manager finance and treasury, Peter Riedel, said 38 per cent of the $10 million portfolio was vehicle finance, 20 per cent was commercial property and the balance was residential property."The composition of the portfolio will vary depending on the volume of funds being invested at any given time and the assets available," Said Riedel.The fund does not have a credit rating, nor does it have ratings from managed funds' industry research groups. This will make it hard to get the fund onto the recommended product lists of financial planners.Riedel said Liberty was in discussion with ratings agencies and research groups.The fund will charge a 1.25 per cent investment management fee and 0.5 per for fund expenses. The advertised yields are net of fees.Liberty will take any excess over the advertised yield, although there is a buffering mechanism to transfer the excess to investors if the fund falls short of its target yield in any month.The product disclosure statement does not provide any information on Liberty's arrears or loan losses. Riedel said the group's existing wholesale securitised trusts were singleasset portfolios and their performance was not relevant to the retail fund's blended portfolio."On our securitised products we have single basis point losses," said Riedel.A contentious issue in the finance company debenture market has been the Australian Securities & Investment Commission's view on security.  ASIC has not allowed debenture issuers to promote their products as "secured" in cases where the security is held by a related party.The Liberty Term Investment Fund PDS said: "It should be noted that the security provided over the assets is not an asset of the fund. However, the cashflows which the fund has acquired indirectly obtains the benefit of the security.""The cashflows are equitably assigned from the lender to the trust. The outcome is that the security is transferred," said Riedel