The Fund delivered +1.09% in April, 14.50% over 12 months and 14.94% annualised since inception, continuing to deliver over 10% net return above the RBA cash rate.
In April, the Fund balanced steady drawdowns with concentrated work on a large-scale transaction that has been in structuring for the better part of nine months.
Six existing lenders drew funds during the month, reflecting the ongoing depth of activity across the portfolio. The majority of the team’s focus was directed toward progressing a significant transaction that is expected to settle in June or July. This opportunity has undergone extensive due diligence and structuring, and we anticipate it will become a material holding within the Fund and a meaningful contributor to income – consistent with our approach of scaling into high-conviction assets over time.
Impact from Widening Credit Spreads
As part of our commitment to robust governance, all Fund assets are independently valued at market by a specialist third-party valuation agent. In April, the Fund delivered a return of 1.09%. Modest credit spread widening during the month resulted in an unrealised mark-to-market adjustment, reducing the return by approximately 12 basis points (i.e. absent this movement, the return would have been 1.21%). This impact reflects broader market technicals rather than any change in underlying asset quality and underscores our disciplined and transparent approach to valuation.
We continue to manage a healthy pipeline of transactions. Our focus remains on methodical execution over rapid deployment, ensuring every investment aligns with our high standards for credit quality and risk-adjusted return.
