The month's annualised performance was impacted negatively (~20bps) by a lower cash utilisation than the Manager had wished, due to delayed settlement of several loans approved for investment by Bedrock's investment committee.
Not unexpectedly we are seeing that the RBA’s rate trajectory has impacted new loan pricing and terms. We estimate that market interest rates for new loans have fallen by ~100bps since January ’25. The fund’s key diversity metrics remained strong in August, with the month end position being 28 loans to 21 borrowers, and a strong geographical spread across 8 discreet regions.
August saw execution of a planned “rebalancing” within the portfolio, with the sell-down of a previously over-weight position. The fund’s largest single loan and borrower exposures now represent 12% and 17% respectively. The fund’s bias toward the lower-risk loan types of residential / industrial land and civil construction loans remains at ~80% of the portfolio.
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