Dominion Income Trust 1 (ASX:DN1) said Realm Group, as managers of the Dominion Investment Trust, and Equitee Trustees, consider that the risk related to Market Financial Solutions (MFS) to DN1's shareholders is not material, according to a Tuesday Australian bourse filing.

Realm's portfolios did not invest directly into MFS, but invested in a bankruptcy-remote special purpose vehicle (warehouse), which is a mezzanine finance facility secured against mortgages originated by MFS.

Dominion Investment Trust, which issued notes held by the company, has a 1.2% exposure to the MFS warehouse, held indirectly via its investment in the Realm Strategic Income Fund.

The company added that, as of Feb. 27, the equity buffer of the company represented 5.5% of the gross asset value, which is above the minimum threshold level of 4% described in its product disclosure statement.