Rismark International will house its shared equity mortgages in a new, geared fund that will be sold to retail and institutional investors. The Rismark Active Property Trust will target a long-term geared return of more than 20 per cent a year from a portfolio of equity mortgages.Rismark's head of capital markets, John Powell, said the fund was designed to capitalise on growing demand for residential property securities in superannuation funds."Many superannuation investors are selling residential property to fund pre-June 30 super contributions," Powell said. "They can't currently get access to residential property in their funds."Rismark last week launched a product called Equity Finance Mortgage. Adelaide Bank is the first lender to promote the mortgage, while some other lenders may follow soon. Borrowers will be able to use the equity loan, which is being sold by Adelaide Bank in conjunction with a standard home loan, to borrow up to 20 per cent of the value of the home for a term of 25 years. No repayments are made during the term and when the loan matures or is paid out the borrower must repay the principal plus 40 per cent of any capital gain on the property. If the value of the property falls Rismark reduces the amount of principal owing by 20 per cent.Powell said Rismark had already secured sufficient capital to fund Adelaide Bank's EFM requirements "for the foreseeable time"."Rismark is also in detailed discussions with a wide range of superannuation funds and asset consultants. The company has developed specific funds tailored to the super fund market."These funds will not typically have any leverage and will target long-term ungeared returns in the order of 15 to 16 per cent with very low risk."Since borrowers do not pay interest on their EFM loans, Powell said investors in securitised loan portfolios will receive a share of the gains and losses on the underlying portfolios.Rismark released the findings of a research report on shared equity mortgages by asset consultant Mercer Investment Consulting.Mercer had first evaluated the merits of investment in a pool of shared equity mortgages late last year in the context of an alternative (though as yet unavailable) loan under development by Greenway Capital.