The Manning Credit Opportunities Fund delivered +1.09% in May and 13.13% over the past 12 months. Since inception, the Fund has delivered an annualised return of 14.56%, continuing to exceed its objective of net returns of over 10% above the RBA cash rate.
Pipeline Progression
Transaction activity continued to build during the month, with several opportunities progressing meaningfully through the investment process. A number of transactions have now advanced beyond due diligence, with commercial terms agreed and documentation underway. The current pipeline includes a number of new lending relationships, together with a number of opportunities that fall uniquely within the Credit Opportunities Fund's mandate.
This marks a noticeable change from earlier in the year. Transaction volumes have increased, and as funding markets have become more selective, experienced long-term funding providers are increasingly negotiating from a stronger position. Beyond pricing, we are seeing improved commercial outcomes across a range of transaction terms, reflecting the value borrowers continue to place on certainty of execution and committed long-term funding relationships.
Portfolio Activity
Four existing lenders drew additional funds under their facilities during the month, reflecting continued growth across established portfolio relationships.
Beyond capital deployment, we continued working closely with several counterparties as their businesses evolved. This included supporting new lending products, extending long-term funding arrangements and working collaboratively on initiatives designed to strengthen funding capacity and support future growth. This remains an important, but often less visible, aspect of the strategy. Our objective is to become a long-term funding partner to a select group of high-quality lenders rather than simply providing capital for individual transactions. As relationships mature, opportunities frequently arise to support future growth initiatives, expand funding arrangements and continue improving the overall quality of the portfolio.
Looking Ahead
While the recent increase in activity is encouraging, the Fund's growth will continue to be measured. Many of the transactions within the strategy are bespoke, require extensive structuring and involve multiple counterparties. It is common for opportunities to remain under assessment for many months and, despite significant time and resources being invested, not every transaction ultimately proceeds.
For that reason, the Fund will continue to grow in line with completed deployment opportunities rather than investor demand alone. We believe this disciplined approach has been an important contributor to the Fund's long-term performance and remains fundamental to how the strategy is managed.
The portfolio continues to perform in line with expectations and the Fund remains closed to new and existing investors.
