Whilst we will naturally meet the market in terms of pricing, we hold the view that it is illogical to compromise on risk and lend on inflated LVR’s as we increasingly see happening. We operate on the view that it is better to reduce pricing to attract the right loans than to increase capital recovery risk. We estimate that market interest rates for new loans have fallen by ~100bps since January ’25.

The Manager at large, and Bedrock specifically continues to favour the lower-risk loan types, namely residential or industrial land and civil construction loans (~75% of the portfolio), the typically-simple industrial built-form loans (~6%)  and completed property loans (~17%). These biases exist as a reflection of Ark’s primary focus on capital protection in its pursuit of investor returns.