The Fund delivered +1.13% in July, 15.06% over 12 months and 15.00% annualised since inception, continuing to deliver over 10% net return above the RBA cash rate.
Higher Yield Profile
July saw three lender drawdowns and the settlement of a complex transaction that progressed through multiple structuring phases over 342 days. This transaction alone increased the Fund’s running yield by approximately 1.06%, representing a material uplift in forward income and underscoring our ability to identify and execute specialist, high-barrier transactions that require sustained engagement and technical capability.
Strong Demand, Compressed Spreads
Credit spreads in the public securitisation market remain towards the tighter end of recent ranges, supported by consistent issuance and strong participation from credit funds, bank balance sheets and offshore investors. While liquidity is healthy, pricing in some segments does not fully account for underlying credit or structural risk. We continue to find better relative value in less intermediated transactions, where terms can be directly negotiated and structural protections are more robust.
Targeted Deployment
Our focus remains on transactions that are sourced through direct channels, require specialist structuring, and incorporate features that enhance resilience. These opportunities are not available in commoditised markets and are typically accessed through direct engagement with lenders, enabling us to underwrite multi-party transactions to a standard consistent with our risk and return objectives.
Discipline Over Volume
The pipeline remains robust and we expect to remain active over the coming months. Deployment will continue to be selective, with a clear emphasis on quality over quantity. Cash in the Fund remains very low, enhancing portfolio returns, and is a key reason we manage inflows on a highly selective basis. The Fund remains closed to new and existing investors, ensuring any new commitments are deployed into transactions that align with our mandate and return targets.
