The Fund delivered +1.47% in May, 15.04% over 12 months and 15.05% annualised since inception, continuing to deliver over 10% net return above the RBA cash rate.
Performance in May was supported by three lender drawdowns and continued progress on a significant transaction that remains on track to settle in June. This large-scale opportunity, which has been in structuring stage for several months, reflects the depth of our due diligence and disciplined approach to deployment.
Following a period of volatility in April, credit markets stabilised in May. Public market spreads tightened materially, retracing much of the earlier widening and underscoring the resilience of demand for credit assets despite ongoing macroeconomic uncertainty. While sentiment improved, we continue to observe a clear divergence between price and fundamentals, particularly in more commoditised areas of the market, where spread compression has not been matched by an improvement in borrower quality or structural protections.
This environment continues to reinforce our focus on complexity and structure over scale and flow. We remain committed to sourcing and executing on transactions that are less trafficked, more nuanced, and often require specialised structuring capabilities. These exposures typically fall outside traditional bank or funding channels and are generally underwritten at wider margins due to their idiosyncratic features and reduced scalability. By targeting these less price efficient segments, we aim to consistently capture a market premium and deliver strong risk-adjusted returns.
