Bedrock is very much able to be seen as a proxy for the greater Ark Capital investment universe, since it invests exclusively in Ark Wholesale Fund loans, and at the end of October was invested in 23 out of Ark Wholesale’s 28 loans.
The October month saw the Bedrock fund deliver a return at 0.96% (11.26% annualised), extending to 11 months the run of returns within the band 11.20% to 11.35%. The annualised year-to-date Bedrock return is a healthy 11.33%.
We understand that the diversity of the Fund’s investments is key for our unitholders, and we actively manage the fund to ensure we deliver that diversity. At the end of October the fund’s diversity is demonstrated by its 23 unique loans, 16 borrowers, and 8 separate regions in 6 states, and loans spanning the Industrial, Residential, Retail and Medical sectors. The portfolio’s largest single exposure is just 11% of the portfolio.
The Outlook for returns remains strong, noting that all Bedrock’s investments feature interest prepaid by the borrower, and an average loan term to expiry of 11 months.
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