Trading Update
The RBA reduced the official cash rate by 0.25% as expected this week, lowering it to 3.6%.
July’s employment numbers remained steady, with the economy adding 24,500 jobs for the month and the unemployment rate edging lower to 4.2%. This should give the RBA comfort that it is delivering on its mandate to keep inflation in check and unemployment at low levels.
As a consequence, the RBA is unlikely to consider lowering rates further until its November meeting, with the September meeting expected to see rates remain on hold.
The only data that may give the RBA room for thought at its September meeting will be the June quarter GDP, due to be released in early September. The March quarter came in at 0.2%, down from 0.6% in the December quarter, with a significant decline in public sector spending contributing to the drop.
While a negative print is unlikely, a figure lower than last quarter’s may give the RBA the impetus to deliver back-to-back rate cuts to prevent the economy from stalling.
The property market continues to be supported by lower rates, and the expectation of more to come, along with limited supply and continued population growth. We expect this theme to continue.
In light of the RBA’s decision to lower the official rate, our targeted distribution rates are currently under review.
If you are considering an investment our High Yield Fund is currently paying a targeted distribution rate of 7.50% 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 High Yield Fund
| 3 Months | 6 Months | 12 Months | 24 Months |
|---|---|---|---|
| 6.50% | 7.00% | 7.50% | 7.10% |
ASCF Select Income Fund
| 3 Months | 6 Months | 12 Months | 24 Months |
|---|---|---|---|
| 6.25% | 6.75% | 7.00% | 6.75% |
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% |
Managed Funds Under Management
as at 31st of July 2025
| July 2025 | |
|---|---|
| ASCF High Yield Fund | $171,212,899.93 |
| ASCF Select Income Fund | $51,298,536.22 |
| ASCF Premium Capital Fund | $28,418,390.82 |
| ASCF Private fund | $40,900,903.62 |
| Combined Funds under Management | $291,900,903.62 |
In July, loans and inquiry levels were steady, with $19,577,507.94 in 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 July.
Lending Activity Update
Quarterly Loan Settlements
as at 31st of July 2025
Current Loans by Fund Source
as at 31st of July 2025
| High Yield Fund | Select Income Fund | Premium Capital Fund | |
|---|---|---|---|
| 1st Mortgage Loans | 73.57% | 100% | 100% |
| 2nd Mortgage Loans | 17.98% | 0% | 0% |
| 1st & 2nd Mortgage Loans | 8.45% | 0% | 0% |
| Avg. Weighted LVR | 55.51% | 45.06% | 54.42% |
| Avg. Loan Size | $1,300,640.65 | $1,022,105.14 | $904,362.90 |
Current Loans Geography
as at 31st of July 2025
Why Invest with ASCF?
Why Do Borrowers Pay Higher Interest Rates? It’s Not What You Think
One of the most common questions we get from potential investors is:
“Why would a borrower choose to pay a higher interest rate when banks offer lower rates?”
The answer often comes down to two key factors: speed and certainty.
Traditional banks can take many weeks—sometimes even months—to process a loan application. In property and business transactions, delays can be costly. For some borrowers, paying a higher rate is a trade-off they’re willing to make to secure funds quickly and with certainty.
Here are some examples where speed can be critical:
- Avoiding a lost deposit: Settling on a property purchase quickly to avoid forfeiting a deposit.
- Paying urgent tax debts: Meeting an ATO payment deadline to enable a future refinance.
- Bridging finance: Settling a purchase before an existing property is sold.
- Time-sensitive opportunities: Acting on a business or investment opportunity before it expires.
These borrowers aren’t just seeking finance—they’re seeking confidence that the funds will be available when needed.
At ASCF, we provide short-term, property-backed loans to individuals and small to medium businesses who meet our lending criteria. Our process is designed to be efficient while maintaining thorough assessment standards.
By offering this type of finance, we create opportunities for wholesale investors to access a market segment that traditional banks may not service.
Have questions? Our team is here to help.
Want to learn more? Contact us to explore your investment options.
Important information: 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.
An Interesting Transaction
Problem:
A seasoned property investor and developer, and a valued returning client, had secured a contract to purchase a motel in regional Queensland with plans to redevelop the site.
As settlement neared, they required urgent funding for 90% of the contract price plus borrowing costs to complete the acquisition.
Solution:
As a valued repeat client with a proven track record and strong asset position, the borrower was well known to ASCF. Given our confidence in his financial standing, we secured the facility against his principal place of residence – a luxury South Brisbane apartment.
A first mortgage loan of $2,500,000 was approved on a 3-month term at an 8.75% p.a. interest rate. The facility was funded at an LVR of 20.83% with the borrower currently arranging refinance with a traditional lender prior to maturity.
What ASCF does differently
| ASCF regularly assists repeat clients who value our transparency, reliability and ability to deliver speed to settlement. |
Market Update
Australia’s housing market kept its winning streak alive in July, with values rising 0.6% — the sixth straight month of gains. Every capital city saw an uplift, led by Darwin’s standout +2.2% and Perth’s strong +0.9%.
Tight supply (19% below average) and resilient buyer demand are keeping competition fierce, pushing auction clearance rates above the decade average. Houses are still in the lead, up 1.9% for the quarter (about $16,700), while units rose 1.4% (~$9,700) — widening the record price gap to $223,000.
Highlights:
- 6 months of uninterrupted growth
- All capitals in positive territory
- Houses outpacing units in the current cycle
Property Values
as at 31st of July 2025
Median Dwelling Values
as at 31st of July 2025
Source: Cotality HVI, 1 August 2025
