Equating to the RBA rate plus 6.50%, January’s return continues to comfortably exceed the fund’s RBA + 5.0% target, and is highly competitive with the fund’s peers. At ~64% the fund’s weighted average LVR remains at a satisfactory level.
The fund’s diversity metrics improved again in January with now 41 individual loan exposures with 27 separate borrowers and 8 discreet geographies. The largest individual loan and borrower exposures are 10% and 14.5% respectively.
As noted in previous months we recognise the portfolio’s over-weighting toward Adelaide at ~46%.
Our Leadership team re-examined the loan settings and weightings during January and specifically addressed Adelaide, estimating that its strength will persist for some time and that no change to settings was warranted.
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