At 10.15%, the return equates to the RBA OCR plus 6.55%, exceeding the Fund’s target of RBA OCR plus 5.0%. The fund’s diversity metrics improved again in December with new investments increasing the number of loan exposures to 40, with investments spread across 26 separate borrowers and 8 discreet geographies.
It is notable that the portfolio is presently skewed toward Adelaide (~50%) where government regulation and ‘red tape’ settings are arguably the best in the country, and where the economy and population is growing. Whilst these conditions persist, it is likely our bias will also.
As previously noted, market pricing has tightened, particularly on loan terms and conditions we consider acceptable. Like most, we await the market response to the yield curve’s short-end upward shift over the last month.
Notwithstanding, we continue undertaking rigorous due diligence, thus ensuring realistic project feasibilities, conduct critical examinations on external valuations, and ensure that loan terms allow for interest rises in line with RBA rate rises.
Related Articles
Cornerstone First Mortgage Fund: September 2026
October 22, 2026
0 Comments1 Minute
Cornerstone’s September return was 8.76% (annualised) against the fund’s target return of the RBA…
Summit High Yield Fund: September 2026
October 22, 2026
0 Comments1 Minute
The fund delivered an annualised distribution of 14.65% in the month, maintaining consistency with…
Bedrock Mortgage Fund: September 2026
October 1, 2026
0 Comments1 Minute
The Fund again delivered a strong annualised return, at 10.08% (RBA + 5.73%) in September, from a…
"*" indicates required fields


