News

As expected, the RBA reduced the cash rate last week by 0.25% to 3.85%. The market is now expecting at least two more rate reductions of 0.25% each prior to year end, which should see a cash rate of around 3.35%.

With inflation now within the RBA’s target the question remains as to how low the RBA is likely to reduce rates over the next 12 months.

While trade tariffs and their likely impact continue to dominate the US economy and equity markets, the risk is certainly to the downside, with a cash rate at or below 3% over the next 18 months more probable than not.

A lot will depend on how trade negotiations between China and the US play out and the likely impact this will have on our economy should Chinese growth stall or come in lower than expected.

This past weekend’s auction clearance rates received a boost from last weeks interest rate cut with an auction clearance rate of 71.3% across combined capital cities and with housing affordability improving as the RBA cuts we expect this will drive residential property prices higher.

We do however anticipate any increase from here to be constrained at around 3% – 5% growth for the remainder of 2025 due to the growth we have already seen since the market bottomed in early 2023.

ASCF Current Targeted Distribution Rates until 30th May 2025

ASCF Premium Capital Fund

6 Months	12 Months	18 Months	24 Months
6.10%	6.25%	6.75%	6.30%

ASCF Private Fund

3 Months	6 Months	12 Months	24 Months
8.19%	8.39%	8.59%	8.49%

In line with market conditions and recent monetary policy shifts, ASCF will be adjusting our targeted distribution rates across selected investment terms, effective 1 June 2025.

The following changes will be made: 

ASCF Premium Capital Fund
No changes.

3 Months: 6.10% → no change

6 Months: 6.25% → no change

12 Months: 6.75% → no change

24 Months: 6.30% → no change

ASCF Select Income Fund

3 Months: 6.25% → no change

6 Months: 6.75% → no change

12 Months: 7.25% → 7.00% (decrease of 0.25%)

24 Months: 6.75% → no change

ASCF High Yield Fund

3 Months: 6.50% → no change

6 Months: 7.25% → 7.00% (decrease of 0.25%)

12 Months: 7.75% → 7.50% (decrease of 0.25%)

24 Months: 7.30% → 7.10% (decrease of 0.20%)

You have until 4pm AEST, Friday 30 May 2025 to invest at the current targeted distribution rates, which will be honoured for the duration of your selected term. The updated target rates will apply to all new investments from 1 June. Existing investments will move to the new rates automatically when they roll over at maturity. 

In April, loans and inquiry levels were steady, with $22,962,500.00 in new loans settled.

The unit price across all three of our retail funds remains stable at $1.00 per unit.

All monthly distributions have been paid in full for the month of April.

Lending Activity Update

Quarterly Loan Settlements
as at 30th of April 2025

Current Loans by Fund Source
as at 30th of April 2025

Current Loans Geography
as at 30th of April 2025

Why Invest with ASCF?

Performance Backed by Discipline and Fundamentals

At ASCF, we’re proud of the investment outcomes we’ve delivered across our mortgage funds over the past eight years. We believe that sustained performance starts with getting the fundamentals right.

As a specialist in short-term mortgage lending, our focus is on generating income from loans backed by Australian real estate. Every loan is supported by a registered mortgage over residential, commercial, or vacant land assets—we don’t lend on construction, development, high-rise apartments, or unsecured loans. That measured approach helps us manage risk effectively and structure our portfolio for ongoing income generation.

A key part of our fund management strategy is liquidity. At any given time, we aim to hold between 5% and 10% of the fund’s value in liquid assets. This allows us to meet withdrawal requests, pay monthly distributions, and cover operational costs—without needing to sell down core loan positions.

Some of the benefits of this approach include:

• Unit Price Consistency – Since inception, our unit price has remained at $1.00 per unit.*
• Capital Risk Management – To date, all investor capital has been repaid in full.*
• Responsive Lending – Having liquidity available enables us to act on timely lending opportunities.
• Mitigated Disruption – Our loan book is structured to help manage the impact of market fluctuations.
• Withdrawal Flexibility – Investors can request redemptions subject to the terms of the fund.

Our approach is grounded in transparency, discipline, and a clear investment philosophy.

Want to learn more? Contact us to explore your investment options.

Important information: At ASCF, we’re here to help you invest on your terms. Since inception, all investors have received their targeted distribution rate monthly and all redemption requests have been paid on time and in full, however past performance is not indicative of future performance. Distributions are not guaranteed nor a forecast. Lower than expected returns may be achieved. Investment in the Funds is not a bank deposit and investors risk losing some or all of their capital. Withdrawal rights are subject to liquidity and may be delayed or suspended. Read the PDS and TMD, available from our website.

Get in touch today!

An Interesting Transaction

Problem:

A valued ASCF introducer presented two borrowers who were nearing settlement on an off-the-plan unit purchase in Rouse Hill, originally contracted in June 2018. Their $67,100 deposit was at risk if they failed to settle, and they also stood to miss out on a significant uplift in the unit’s value since the original contract date.

Solution:

The customers sought 100% of the purchase price and therefore provided ASCF with 2nd mortgages over their principal place of residence and their investment property, as well as 1^st mortgage over the property being purchased. Our valuations on all three properties resulted in a LVR of 55.43% after taking the existing 1^st mortgages into account.

ASCF settled a loan amount of $675,000 for a 6 month term at a blended rate of 12.95%. The customers exit is to sell the purchased unit within our funding term.

What ASCF does differently

ASCF continues to be go to lender for “off the plan purchases” where customers need to settle quickly to save their deposit and participate in value uplift in property that has been purchased off the plan.

Market Update

National home values rose for the third month in a row, with CoreLogic’s Home Value Index up 0.3% in April, adding roughly $2,720 to the median Australian dwelling. Growth was recorded across all capital cities, though the pace slowed slightly from March.

While mid-sized capitals and regional markets led the charge, Sydney and Melbourne remain below previous highs. Annual growth eased to 3.2%, reflecting last year’s broader slowdown despite a recent rebound since February’s rate cut.

Key Highlights:

Property Values
as at 30th of April 2025

This Saturday’s Federal election result is unlikely to have much of an impact on the RBA’s decision to lower interest rates when it meets on the 19th May.

With todays March quarter inflation data release coming in at 2.4% well within the RBA’s desired target band we are likely to see a 0.25% drop in the official rate to 3.85%. The RBA’s preferred measure of trimmed mean inflation also dropped from 3.3% to 2.9%.

Neither of the major parties have committed to inflationary policies by way of an increase in Government spending and on balance the LNP’s policies are likely to push inflation down further with their reduction in the government fuel excise levy.

On housing both major parties are committed to assisting first home buyers which should see an increase in activity in that sector of the market and provide considerable support for entry level residential housing.

Whilst neither party’s policies will solve the housing supply issue in the short term, the LNP’s infrastructure assistance policy would assist local councils and may expedite delivery of additional product over the medium term. 

On balance we believe residential property prices will remain buoyant throughout the remainder of the year with the RBA likely to drop the official rate to around 3.35% by year end.

Whilst the introduction of US tariffs may bring additional volatility to equity markets as it plays out we believe Australia remains well insulated with the expected slowing of the Chinese economy likely to have a nominal impact on the Australian economy with little or no impact on our housing market.

If you are seeking a capital stable investment our High Yield Fund continues to offer a competitive 7.75% per annum targeted distribution rate for a 12-month fixed-term investment, with monthly interest payments to investors.

ASCF Current Targeted Distribution Rates

ASCF Premium Capital Fund

6 Months	12 Months	18 Months	24 Months
6.10%	6.25%	6.75%	6.30%

ASCF Private Fund

3 Months	6 Months	12 Months	24 Months
8.19%	8.39%	8.59%	8.49%

In March, loans and inquiry levels were strong, with $37,388,815.00 in new loans settled.

The unit price across all three of our retail funds remains stable at $1.00 per unit.

All monthly distributions have been paid in full for the month of March.

Lending Activity Update

Quarterly Loan Settlements
as at 31st of March 2025

Current Loans by Fund Source
as at 31st of March 2025

Current Loans Geography
as at 31st of March 2025

Why Invest with ASCF?

Looking for an alternative to market volatility?

With ongoing headlines around inflation, tariffs, and global uncertainty, traditional markets have become increasingly unpredictable. It’s no surprise many investors are asking: Is there a more consistent option?

One such option is a Pooled Mortgage Fund.

Unlike shares, pooled mortgage funds are not subject to daily market fluctuations. These funds invest in loans secured by Australian real property and aim to deliver more stable income through regular interest distributions.

Why some investors consider mortgage funds:

• Lower Correlation to Equity Markets – Less exposure to market volatility.
• Regular Monthly Distributions – From interest collected on loans.
• Asset-Backed – Loans are secured by Australian property.
• Experienced Management – Lending professionals assess and monitor every loan.

While all investments carry risk — including the risk of capital loss and variability in income — pooled mortgage funds may suit investors seeking more consistency than equities currently offer.

Want to learn more? Contact us to explore your investment options.

Important information: At ASCF, we’re here to help you invest on your terms. Since inception, all investors have received their targeted distribution rate monthly and all redemption requests have been paid on time and in full, however past performance is not indicative of future performance. Distributions are not guaranteed nor a forecast. Lower than expected returns may be achieved. Investment in the Funds is not a bank deposit and investors risk losing some or all of their capital. Withdrawal rights are subject to liquidity and may be delayed or suspended. Read the PDS and TMD, available from our website.

Get in touch today!

An Interesting Transaction

Problem:

A borrower came to ASCF seeking urgent funding to assist with payment of legal fees and purchase a motor vehicle following finalisation of his divorce proceedings which included the sale of joint property owned with his wife.

Solution:

ASCF provided a $50,000 loan using the equity in another property owned solely by the borrower at Biggera Waters at 10.95% per annum for a 6 month term at an LVR of 13.89% with interest capitalised for the full 6 month term. The joint property subsequently settled the following month and the ASCF loan was repaid within 4 weeks with the excess interest for the remainder of the loan term refunded to the borrower. 

What ASCF does differently

ASCF understands that borrowers often only require loans for very short periods of time and whilst most lenders will not consider short dated loans, ASCF still approved and processed the loan without any penalty to the borrower for the early repayment.

Market Update

CoreLogic’s March 2025 Home Value Index signals renewed strength in the property market.

Australian home values have bounced back to record highs, rising 0.4% in March, marking the second month of growth after a brief three-month decline. The uplift was broad-based, with every capital city (except Hobart) and all regional areas posting gains. Darwin led the capitals with a 1.0% rise, while Hobart fell -0.4%.

The rebound is largely attributed to improved sentiment and borrowing conditions following the February rate cut. Sydney and Melbourne values, in particular, have turned a positive corner, though still sit slightly below previous peaks.

Property Values
as at 31st of March 2025

The Reserve Bank of Australia (RBA) will convene next week to determine whether interest rates should be cut further following on from February’s cut.

Most economists do not expect a further rate reduction of 0.25% until the May meeting however the lacklustre employment data which showed employment fell by 53,000 in February indicates a further rate cut could be possible.

Whilst the overall employment rate held steady at 4.1% mainly due to a fall in the participation rate, it will be the ABS February monthly CPI indicator due tomorrow which will likely determine if the April board meeting results in a further rate cut.

If the monthly inflation data comes in softer than expected, and signals that the March quarter CPI, due at the end of April, is likely to be below the RBA’s forecasts, the meeting may well become a live one, with a rate cut definitely a possibility.

With the US stance on further trade tariffs creating uncertainty for policy makers as to whether they may stimulate inflation, we believe their economic impact on Australia is likely to be limited and on balance the uncertainty should add to the case for a further rate reduction next week.

Residential property prices stabilised in February, with CoreLogic reporting a 0.3% national increase. Lower borrowing costs and improved sentiment are supporting renewed buyer confidence and we expect this to be the theme of 2025 as the RBA cuts rates further.

ASCF is currently offering some of the most competitive returns in the market for pooled mortgage funds. 

If you are considering an investment our High Yield Fund is currently paying a targeted distribution rate of 7.75% per annum with interest paid monthly on a 12-month fixed-term investment, meaning your targeted rate of return will not change during the investment term.

ASCF Current Targeted Distribution Rates

ASCF Premium Capital Fund

6 Months	12 Months	18 Months	24 Months
6.10%	6.25%	6.75%	6.30%

ASCF Private Fund

3 Months	6 Months	12 Months	24 Months
8.19%	8.39%	8.59%	8.49%

In February, loans and inquiry levels were strong, with $19,017,322.000 in new loans settled.

The unit price across all three of our retail funds remains stable at $1.00 per unit.

All monthly distributions have been paid in full for the month of February.

Lending Activity Update

Quarterly Loan Settlements
as at 28th of February 2025

Current Loans by Fund Source
as at 28th of February 2025

Current Loans Geography
as at 28th of February 2025

Why Invest with ASCF?

What are the benefits of using a Custodian for an investor 

When it comes to managing investor funds, ASCF takes investor security seriously and uses Certane CT Pty Ltd as the custodian of all investor assets. A custodian is a financial institution that safeguards investor funds, providing peace of mind by ensuring funds are managed securely and in compliance with regulations.

Here’s why using a custodian is a smart move:

1. Stronger Security – Custodians keep funds separate from investment managers, reducing the risk of fraud or mismanagement. This extra layer of protection ensures your investments remain safe.
2. Regulatory Compliance – Financial regulations are complex, but custodians help ensure investments meet legal standards, reducing the risk of penalties or compliance issues.
3. Lower Risk – Custodians help prevent unauthorised transactions and errors, creating a secure environment for your investments.
4. Faster Transactions – They streamline asset transfers and settlements, reducing delays and errors.

The bottom line
Using a custodian isn’t just about compliance—it’s about security, efficiency, and peace of mind.

Whether you’re an individual investor, company or trust, a custodian helps protect and manage your funds effectively.

Want to learn more? Contact us to explore your investment options.

Important information: At ASCF, we’re here to help you invest on your terms. Since inception, all investors have received their targeted distribution rate monthly and all redemption requests have been paid on time and in full, however past performance is not indicative of future performance. Distributions are not guaranteed nor a forecast. Lower than expected returns may be achieved. Investment in the Funds is not a bank deposit and investors risk losing some or all of their capital. Withdrawal rights are subject to liquidity and may be delayed or suspended. Read the PDS and TMD, available from our website.

Get in touch today!

An Interesting Transaction

Problem:

A transport operator was presented to us by a valued finance broker seeking funding to pay outstanding tax liabilities. The ATO is currently applying significant pressure on Australian businesses with outstanding tax liabilities and are commonly issuing winding up notices rather than offering payment plans.

Solution:

ASCF promptly ordered valuations to ensure there was sufficient equity in the customers three residential properties to allow for a 2^nd mortgage to meet the outstanding tax liabilities. Upon receipt, ASCF offered the customer a 2^nd mortgage loan of $560,000 for a term of 12 months at a rate of 18.96%pa. After confirming the value of the 1^st mortgages with ANZ (the 1^st mortgage lender), our valuations resulted in an LVR of 63.68%.

Monies were remitted directly to the tax office.

What ASCF does differently

ASCF assists clients in responding to ever changing market circumstances by creating products that cater to the needs of our customers.

Market Update

February marked a shift in Australia’s housing market, with national home values rising 0.3%, ending a three-month downturn. Gains were widespread, with Melbourne and Hobart leading at +0.4%, while regional markets continued to outperform, rising 0.4% for the month and 1.0% over the quarter.

This renewed momentum aligns with improving buyer sentiment, supported by tighter housing supply and a slowdown in new listings, which remain 4.7% lower year-on-year. Auction clearance rates have also strengthened, reflecting growing confidence in the market.

While affordability remains a challenge, supply constraints and positive sentiment could support continued price growth in the coming months. Investors monitoring market trends should note the shifting dynamics, particularly in premium housing markets, which have historically been the first to respond to changing economic conditions.

Property Values
as at 28th of February 2025

What rising property price trends are revealing

For investors, the modest drop in interest rates serves to signal market stability and clearer future direction in the near to medium term, helping to remove any destabilising fears of rapidly escalating interest rates.

Source: Australian Financial Review

Australians make a record median profit reselling their property

CoreLogic’s Head of Research Eliza Owen said: “Despite mixed market conditions, declining capital growth and lower clearance rates, Australian property continues to deliver strong profitability.”

Source: Corelogic

As expected, the RBA cut rates this month by 0.25% to 4.1%, with all the major banks passing on the rate cut in full.

Employment remains steady, with the jobless rate increasing slightly from 4% in December to 4.1% in January, while wage growth remained subdued, recording a modest 0.7% increase for the December quarter.

Core inflation is expected to ease further this quarter, from 3.2% in the December quarter to below 3%, leaving the burning question of how deep the RBA will cut rates in 2025.

With wage growth likely to return to historical averages of around 2.4% over the medium term, after peaking at 4.2% in 2023, this should provide the confidence the RBA needs to continue lowering rates.

Most economists expect the RBA to reduce rates by a further 0.25% by May, with the possibility of an earlier cut in April. Overall, rates are now expected to fall from their peak of 4.35% to 3.6% by year-end, a total decline of 0.75% from the peak.

Further rate cuts will be data-dependent, though some analysts are debating what the RBA’s neutral rate should be, particularly given pre-pandemic estimates placed it at around 2%.

Consumer confidence is likely to lift as interest rates come down, and residential property prices are expected to remain buoyant throughout 2025. Any downturn is likely to be shallow, with transaction volumes increasing.

While the RBA cash rate has dropped, our term investment rates remain unchanged, meaning investors considering one of our pooled fund investments may wish to act now to secure the targeted rates currently on offer.

Our ASCF High Yield Fund is currently paying a targeted distribution rate of 7.75% per annum on a 12-month fixed-term investment, meaning your targeted rate of return will not change during the investment term, with interest paid monthly.

ASCF Current Targeted Distribution Rates

ASCF Premium Capital Fund

6 Months	12 Months	18 Months	24 Months
6.10%	6.25%	6.75%	6.30%

ASCF Private Fund

3 Months	6 Months	12 Months	24 Months
8.19%	8.39%	8.59%	8.49%

In January, loans and inquiry levels were steady, with $10,572,500.00 in new loans settled.

The unit price across all three of our retail funds remains stable at $1.00 per unit.

All monthly distributions have been paid in full for the month of January.

Lending Activity Update

Quarterly Loan Settlements
as at 31st of January 2025

Current Loans by Fund Source
as at 31st of January 2025

Current Loans Geography
as at 31st of January 2025

Why Invest with ASCF?

Maximise your investment potential with mortgage funds in 2025

Why Consider a Set-Rate Pooled Mortgage Fund?

With the RBA having now cut rates, it’s worth considering how set-rate investments compare to variable-rate options in a changing market.

Mortgage funds can provide a structured investment approach, but choosing between a set-rate pooled mortgage fund and a variable-rate investment can affect financial outcomes.

A set-rate pooled mortgage fund provides a fixed rate for the agreed term, offering more consistency than variable-rate products, which may fluctuate with market conditions.

Key Features of a Set-Rate Pooled Mortgage Fund:

✔ Fixed rate for stability – Your rate is set for the agreed term, providing clarity on expected earnings.*
✔ Less exposure to rate changes – Variable-rate investments fluctuate with interest rates, while set-rate funds are designed for consistency during the term.
✔ Predictable cash flow – Can be beneficial for investors seeking more certainty over their investment timeframe.

ASCF’s set-rate investment options are available for 3, 6, 12, or 24-month terms, designed to provide stability over the agreed period, subject to fund performance. Like all investments, mortgage funds carry risks that should be considered alongside potential benefits.

Want to learn more? Contact us to explore your investment options.

Important information: At ASCF, we’re here to help you invest on your terms. Since inception, all investors have received their targeted distribution rate monthly and all redemption requests have been paid on time and in full, however past performance is not indicative of future performance. Distributions are not guaranteed nor a forecast. Lower than expected returns may be achieved. Investment in the Funds is not a bank deposit and investors risk losing some or all of their capital. Withdrawal rights are subject to liquidity and may be delayed or suspended. Read the PDS and TMD, available from our website.

Get in touch today!

An Interesting Transaction

Problem:

A valued AFG broker contacted ASCF seeking urgent funding for a client who needed to meet the settlement date for land purchased off the plan 12 months ago. The client believed he had finance approved, but his lender required several weeks to review the approval and finalise the transaction. With only seven days left to settle, the client risked losing his deposit and missing out on the valuation uplift of the land lot.

Solution:

The broker acted swiftly and provided ASCF with all the required documentation the very next day. ASCF issued a letter of offer that same day, which the borrower promptly executed, allowing us to order documents immediately. Given that the funds were for purchasing property under a company name and the borrower was experienced, ASCF agreed to waive legal advice.

The customer signed electronically via video link (acceptable in QLD, Victoria, and New South Wales) on the same day as settlement.

To facilitate the loan, the customer provided an existing unencumbered property in the company name. This allowed ASCF to rely on the contract price of the purchased land and a desktop valuation of the additional property, confirming an LVR of 48.55%.

ASCF provided a six-month loan of $385,000 at 10.26% p.a., enabling the customer to complete settlement on his property in Branyan instead of forfeiting his deposit and the valuation uplift.

What ASCF does differently

ASCF specialises in urgent funding for a wide range of purposes. We have developed systems, procedures, and a strong network of partners to facilitate short-term loans efficiently while safeguarding our investors’ interests.

Market Update

National home values remained steady in January, with capital cities dragging down the overall result. In contrast, regional markets hit new record highs, rising 0.4% – a key trend for investors looking at market resilience.

Melbourne (-0.6%), the ACT (-0.5%), and Sydney (-0.4%) led declines, while Brisbane and Perth maintained growth, though momentum is clearly slowing.

Adelaide continued its strong performance, leading capital city gains with 4.8% growth over the past six months. Perth, once the fastest-growing market, has cooled significantly, with growth slowing from 7.1% in mid-2024 to just 1.0% over the past three months.

Despite this, regional markets remain a bright spot, benefitting from migration trends, affordability, and evolving work patterns. While growth has softened, regional areas have consistently outperformed the capitals.

With the RBA’s recent rate cut, borrowing power may improve, but affordability constraints, slowing population growth, and housing supply shortages remain challenges. For investors, the outlook remains stable, with conditions pointing to measured market adjustments.

Property Values
as at 31st of January 2025

How the rate cut is shifting the market 

The latest rate cut is already reshaping buyer demand, unlocking new suburbs and boosting auction results. But how long will this momentum last?

Source: Australian Financial Review

What’s shaking up the housing market in 2025? Rate relief: RBA cuts the cash rate by 25 basis points

After the most aggressive rate hiking cycle on record, the RBA has reduced the cash rate from a thirteen-year high of 4.35% to 4.1%.

Source: Corelogic

As we step into 2025, it’s important to reflect on the recent market trends and how they may shape your investments with ASCF moving forward.

In Australia, the Reserve Bank has held interest rates steady to manage inflation, keeping lending conditions tight. 

Moving forward we expect the RBA to reduce rates by 0.25% in February followed by a further 0.25% by June lowering the cash rate to 3.85%. 

Any further reductions in late 2025 will remain data dependant but with the December 2024 quarter core inflation expected to be close to within the RBA range of 2% to 3% we believe employment data will determine whether further rate cuts eventuate.

At this stage ASCF’s internal view is that we are unlikely to see more than two rate cuts from the RBA in 2025 of 0.25% each however we consider this sufficient to cushion the property market from any sort of deterioration in pricing.

Whilst a weaker Australian dollar heading into 2025 will support exports, it will also drive investment into the county in particular into property from overseas investors.

Imports and the cost of construction materials may increase slightly but we expect wage growth to remain subdued which will bring stability to to construction prices.

Overall we are confident 2025 will be a positive year for the Australian economy driven by lower interest rates, steady employment and and stable inflation all of which will underpin residential property prices.

ASCF Current Targeted Distribution Rates

ASCF Premium Capital Fund

6 Months	12 Months	18 Months	24 Months
6.10%	6.25%	6.75%	6.30%

ASCF Private Fund

3 Months	6 Months	12 Months	24 Months
8.19%	8.39%	8.59%	8.49%

In December, loans and inquiry levels were steady, with $19,096,656.00 in new loan originations settled.

The unit price across all three of our retail funds remains stable at $1.00 per unit.

All monthly distributions have been paid in full for the month of December.

Lending Activity Update

Quarterly Loan Settlements
as at 31st of December 2024

Current Loans by Fund Source
as at 31st of December 2024

Current Loans Geography
as at 31st of December 2024

Why Invest with ASCF?

Maximise your investment potential with mortgage funds in 2025

Looking for a structured way to diversify your portfolio in 2025? Pooled mortgage funds provide access to property-backed investments without the responsibilities of managing property directly.

At ASCF, investor funds are combined and lent as secured property loans on residential and commercial properties. Investors receive regular income distributions from the interest and fees paid by borrowers.

Why choose ASCF mortgage funds?

• Consistent income potential: Designed to deliver regular monthly distributions.
• Diversified risk: Investments are spread across multiple secured loans.
• Expert management: Our experienced team carefully manages every loan.
• Simple property exposure: No large deposits or property management required.

ASCF’s pooled mortgage funds offer professionally managed access to property-backed investments designed to generate regular income distributions. 

Ready to learn more? Contact us today or visit our website to explore how ASCF can support your investment goals.

Disclaimer: At ASCF, we’re here to help you invest on your terms. Since inception, all investors have received their targeted distribution rate monthly and all redemption requests have been paid on time and in full, however past performance is not indicative of future performance. Distributions are not guaranteed nor a forecast. Lower than expected returns may be achieved. Investment in the Funds is not a bank deposit and investors risk losing some or all of their capital. Withdrawal rights are subject to liquidity and may be delayed or suspended. Read the PDS and TMD, available from our website.

Get in touch today!

An Interesting Transaction

Problem:

A broker approached ASCF after their original lender failed to meet the settlement deadline. The property was an off-the-plan purchase, and the developer refused to grant an extension.

Solution:

ASCF quickly provided an urgent 1st mortgage to secure the borrower’s new home, preventing the loss of both the deposit and the property.

The loan totalled $420,000 on a six-month term at 10.95% p.a. with a 70% LVR.

Although the term was six months, the borrower successfully refinanced within two months. ASCF conducted a full serviceability check during the application process to ensure refinancing would be straightforward.

What ASCF does differently

ASCF is able to provide urgent funding where other lenders have let the borrowers down. ASCF can meet very pressing time frames which can help to avoid borrowers losing deposits and the ability to settle on their home, or an investment property.

Market Update

CoreLogic’s Home Value Index (HVI) recorded a 0.1% decline in December, the first national drop in nearly two years. This slight downturn capped a robust growth period from February 2023 to October 2024, where property values showed remarkable resilience despite high interest rates, cost of living pressures, and reduced borrowing capacity.

The national decline was mirrored in the quarterly figures, with values also falling 0.1%, signalling a shift in momentum. Five of the eight capitals recorded declines between July and December, although Adelaide and Perth continued to perform strongly. Adelaide overtook Perth as the best-performing market in the December quarter, with values rising 2.1% compared to Perth’s 1.9% and Brisbane’s 1.3%.

In annual terms, Australian home values rose 4.9% in 2024, adding approximately $38,000 to the median home value. The mid-sized capitals led the charge, with Perth (+19.1%), Adelaide (+13.1%), and Brisbane (+11.2%) achieving double-digit growth. However, Melbourne, Hobart, and the ACT recorded declines over the year, with values falling -3.0%, -0.6%, and -0.4%, respectively.

Looking ahead, as highlighted in our market update above, anticipated rate cuts in 2025 should help stabilise the market, while a weaker Australian dollar may attract international investment, particularly in property. Regional markets, which outperformed the capitals with a 6.0% annual growth, are expected to remain a bright spot, driven by strong performances in WA, SA, and QLD.

Property Values
as at 31st of December 2024

Thinking of buying a bigger home in 2025? 

With house prices softening in Sydney and Melbourne, buyers looking to upgrade could find great opportunities this year. Experts predict that expected interest rate cuts in 2025 will bring renewed confidence to the market, though competition is currently lower, giving upgraders a chance to secure their dream home before demand picks up.

Source: Australian Financial Review

What’s shaking up the housing market in 2025?

Lower interest rates, easing inflation, and slowing overseas migration are set to shape Australia’s housing market this year, with potential for mild recovery following a shallow downturn. Explore how economic shifts and lending policies could impact values, demand, and construction.

Source: Corelogic

As we wrap up 2024, the Australian economy shows signs of progress but remains delicately balanced. Inflation is easing, growth is slowing, and the labour market remains steady – all key factors shaping the financial landscape as we head into 2025.

The RBA maintained the cash rate at 4.35% last week and while headline inflation has fallen sharply, underlying inflation remains elevated at 3.5%, indicating persistent price pressures. GDP growth continues to be slow, registering only 0.3% for the September quarter, and the December quarter is expected to be similar or even lower.

Economic growth remains subdued, with household spending recovering more slowly than expected. However, the labour market continues to show resilience, with unemployment steady at 3.9% and wage growth easing.

We expect the RBA is now likely to lower rates at its next meeting in February by 0.25%, with rates likely to fall by 0.5% to 0.75% by mid 2025. The inflation data for the December quarter, which is set to be released at the end of January, will be crucial in determining the pace of these reductions.

The housing market, which started the year strong, has slowed its pace. While national home values have risen 5.5% over the last 12 months, affordability challenges, cost-of-living pressures, and elevated interest rates are now cooling the momentum. With more properties hitting the market and demand softening, 2025 presents an interesting mix of possibilities. Easing inflation and potential rate cuts is however expected to rejuvenate buyer confidence.

In this evolving environment, ASCF remains committed to offering tailored opportunities to help you achieve your financial goals. For more insights, contact our team today.

As this is our final newsletter for 2024, we want to thank you for being part of our year and wish you a Merry Christmas and Happy New Year. 

ASCF Current Targeted Distribution Rates

ASCF Premium Capital Fund

6 Months	12 Months	18 Months	24 Months
6.10%	6.25%	6.75%	6.30%

ASCF Private Fund

3 Months	6 Months	12 Months	24 Months
8.19%	8.39%	8.59%	8.49%

In October, loans and inquiry levels were extremely strong, with $56,653,600.00 in new loan originations settled.

The unit price across all three of our retail funds remains stable at $1.00 per unit.

All monthly distributions have been paid in full for the month of November.

Lending Activity Update

Quarterly Loan Settlements
as at 30th of November 2024

Current Loans by Fund Source
as at 30th of November 2024

Current Loans Geography
as at 30th of November 2024

Why Invest with ASCF?

Why a pooled mortgage fund might be your perfect investment

Recently, I’ve noticed increased interest from property investors who are either disappointed with their net returns or seeking alternatives to the challenges associated with managing investment properties.

Investing in property can be a pathway to growing wealth, but it comes with significant demands. From large deposits to managing tenants, property ownership requires time, effort, and capital. A pooled mortgage fund offers a streamlined alternative. Here’s why:

Steady and predictable returns

Pooled mortgage funds are designed to deliver consistent returns. Unlike direct property investment, which is influenced by market fluctuations and vacancies, pooled funds diversify risk and aim for stability.

No property management hassles
Rental properties often come with the need to handle tenants, maintenance issues, and management costs. Pooled mortgage funds eliminate these responsibilities, letting you enjoy potential returns without the associated stress.

No large deposit required
Property purchases often require a significant deposit, making them less accessible for many investors. Pooled funds typically allow you to invest with a much lower upfront commitment, offering access to the property market without the need for substantial capital.

Diversified investment risk
Investing in a single property concentrates your risk in one asset. Pooled mortgage funds spread your investment across multiple loans secured by property, helping to reduce the impact of any market downturns.

Improved liquidity
Unlike property, which can take time to sell and may depend on market conditions, pooled mortgage funds often provide greater liquidity, enabling you to access your funds at the end of a specified term.

Professional fund management
ASCF pooled mortgage funds are managed by an experienced team that oversees loan assessments, approvals, and repayments. Their expertise ensures the portfolio is managed prudently, letting you focus on your financial goals.

Investing should be simple, transparent, and effective. Our pooled mortgage funds provide access to the benefits of property-related investments while addressing the challenges associated with direct ownership. If you’d like to learn more, feel free to contact us.

Disclaimer: At ASCF, we’re here to help you invest on your terms. Since inception, all investors have received their targeted distribution rate monthly and all redemption requests have been paid on time and in full, however past performance is not indicative of future performance. Distributions are not guaranteed nor a forecast. Lower than expected returns may be achieved. Investment in the Funds is not a bank deposit and investors risk losing some or all of their capital. Withdrawal rights are subject to liquidity and may be delayed or suspended. Read the PDS and TMD, available from our website.

Get in touch today!

An Interesting Transaction

Problem:

A couple from Burpengary, QLD, was struggling under the weight of the escalating cost-of-living crisis. Falling behind on mortgage payments, council rates, and water bills, they had turned to multiple consumer credit providers to supplement their income, which only exacerbated their financial difficulties.

Ultimately, they decided to list their home for sale, aiming to downsize to a more manageable mortgage and achieve a less stressful, sustainable lifestyle.

Solution:

ASCF provided a debt consolidation solution, along with additional funds, enabling the couple to prepare their property for sale and maximise its sale price. This proactive approach prevented their lender from foreclosing and auctioning the property under mortgagee-in-possession conditions. We offered a 5-month term at 11.95% p.a., giving the customer sufficient time to secure a sale and settle the contract. An external valuation confirmed the LVR at 64.10%.

By consolidating all debts, the customer satisfied their credit obligations and ended the harassment from multiple creditors, allowing them to focus on preparing the property for sale. Shortly after our drawdown, the customer secured a buyer, but had to wait 90 days for settlement to complete. This month, the sale settlement was finalised, and ASCF rebated the customer 2 months of retained interest at settlement.

What ASCF does differently

By taking the time to understand what is important to customers, ASCF can structure a financing solution that meets the customers goals and objectives even when that goal is alleviating mental anguish.

Market Update

November marked the 22^nd consecutive month of growth for CoreLogic’s national Home Value Index, increasing by just 0.1%. This was largely driven by the continued strong performance of Perth, Adelaide and Brisbane, increasing by 1.1%, 0.8% and 0.6% respectively. Darwin and Canberra were the only other capital cities to see growth for the month, increasing by 0.2% and 0.1% respectively, whilst Melbourne, Sydney and Hobart all experienced reductions in property values, of 0.4%, 0.2% and 0.1% respectively.

Whilst monthly data is suggesting that the property market is starting to cool, the annual data remains positive, with all capital cities except for Melbourne (-2.3%), Hobart (-1.0%) and Canberra (-0.1%) achieving growth over the previous 12 months. Perth recorded an astonishing 21% increase over the past 12 months, followed by Adelaide and Brisbane with 14% and 12.1% respectively, whilst Sydney and Darwin also saw growth of 3.3% and 0.9% respectively, resulting in a 5.4% increase across the combined capitals, and a 6.0% increase across the combined regions for the year.

With the RBA opting to once again keep the cash rate on hold, expectations of when the first rate cut may occur continues to drift out. This will likely result in continued weakening of the property market in Melbourne, Sydney and Hobart, whilst the undersupply in Brisbane, Adelaide and Perth may continue to prop up national averages in the early parts of 2025.

Property Values
as at 4th of Nov 2024

Housing market at a turning point

Australia’s housing market is reaching a turning point, with high borrowing costs and affordability challenges dampening demand. National house prices are expected to decline for the first time in two years, with previously strong markets like Brisbane, Perth, and Adelaide also slowing. Economists anticipate further softening through early 2025, presenting opportunities for buyers as affordability improves. 

Source: Australian Financial Review

2024: A year of waning demand, rising supply and waiting for interest rates to fall

In the face of elevated interest rates and global uncertainty, the Australian housing market demonstrated surprising resilience throughout 2024 with the number of home sales increasing 8% on the previous year, according to CoreLogic’s Best of the Best report for 2024.

Source: Corelogic