The Fund delivered +0.71% in September, 9.22% over 12 months and 9.39% annualised over three years continuing to deliver over 5% net return above the RBA cash rate.
The Breadth of Credit Markets
The discussion around “private credit” continues to grow, but the label now captures a remarkably wide set of strategies from institutional asset-backed finance to property development lending, mezzanine construction loans and leveraged non-investment-grade corporate debt. These sectors differ not only in borrower type and collateral quality but also in structure, liquidity, and performance through the cycle.
The Manning Monthly Income Fund operates exclusively within asset-backed finance, where each exposure is supported by enforceable collateral, eligibility criteria and loan-level data. Returns are generated from cashflow, not revaluation, and structures are designed to withstand stress scenarios, not rely on benign conditions. This is a fundamental distinction within the broader “private credit” conversation - one that continues to be overlooked in aggregate industry media reporting.
What Regulators are Highlighting
ASIC’s Report 814 has drawn attention to inconsistencies across the market - particularly in valuation practices, disclosure of non-cash distributions, and the use of terms such as “senior,” “secured,” and “investment grade” without a consistent or externally verified basis. The report distinguishes between income-producing credit, where interest is paid in cash, and construction or development lending, where interest is often capitalised or paid from loan drawdowns. This is more than semantics. If the underlying loans don’t generate cash interest, the fund’s distributions are being funded from investor capital or new investor inflows, not portfolio income. Similarly, LVRs based on “as if complete” assumptions or unverified valuations can obscure true exposure. We welcome regulatory focus in this area - it supports the evolution toward better investor understanding and aligns with the transparency standards we have maintained for years including independent valuations, third-party credit ratings and detailed portfolio composition reporting
Structure Drives Outcome
In an environment where capital continues to chase yield, we remain focused on sustainability - the quality of income and the repeatability of outcomes. Our philosophy remains that structure determines outcome: facilities typically include multiple layers of protection – conservative eligibility tests, cashflow-based covenants, and early-amortisation mechanisms that can redirect cash when performance metrics tighten.
Our approach prioritises alignment and control over theoretical ranking in the capital stack. As the Fund nears its 10-year track record, our experience has shown that well-engineered structures and active monitoring, rather than tactical positioning, are what deliver consistent outcomes through market cycles. As capital continues to flow into the sector and new entrants emerge, we see growing value in the disciplines that have underpinned our approach - deep transparency, conservative structuring, and active monitoring of every underlying loan pool. In an environment where definitions vary and oversight is tightening, doing the fundamentals well remains the most reliable source of performance.
As the Fund approaches its 10th anniversary, it continues to experience record levels of investor demand reflecting confidence in its consistency and approach. We remain highly selective in deploying new capital and maintain strict capacity limits to preserve performance integrity. In recent months, applications have been temporarily closed once capacity was reached. Applications are processed on a first-come, first-served basis, so we encourage investors to apply earlier in the month when the application portal is open. While this can sometimes be disappointing for investors in the final days of the month, managing capacity carefully is ultimately in the best interests of existing unitholders and ensures that growing investor demand is deployed with discipline and selectivity.
