Investor’s Update – October 2025

Australian financial markets are now reacting to a more cautious and patient stance from the RBA, following an unexpected uptick in underlying inflation.    The Reserve Bank of Australia (RBA) decided to leave the official cash rate unchanged at 3.60% at its November 2025 meeting. This decision halts the easing cycle seen earlier in the year, as the RBA assesses the persistence of inflation.    Disinflation has stalled and reversed course. The latest ABS data for the September 2025 quarter showed:  Headline CPI: Rose to 3.2% year-on-year, pushing back above the RBA’s 2–3% target band.  Trimmed Mean Inflation (RBA’s preferred measure), accelerated to 3.0% year-on-year (up from 2.7% in the June quarter), hitting the upper bound of the target.  The labour market remains resilient with the jobless rate falling to 4.3% in October down from the surprise rise in the unemployment rate to 4.5% in September. This will no doubt only encourage the RBA to hold rates steady over the coming months.   The property market’s positive response to the earlier easing cycle continues, despite the recent rate hold. Auction clearance rates across combined capitals remain strong but have moderated slightly from recent highs.    Housing prices continue to show solid growth nationally (up about 7.5% over the past year). Tight supply and strong population growth remain key supportive factors, intensifying competition in a low-listings environment.    So why choose ASCF?    ASCF continues to observe:   Robust demand for short-term, flexible funding solutions.  Borrowers seeking to capitalise on existing favourable financing conditions and moderate property appreciation.   Our disciplined credit selection and active portfolio management remain central to delivering consistent outcomes across our suite of funds.  Since inception in 2016, ASCF has honoured all investor interest payments and investor withdrawal requests on time and in full. Considering the RBA’s move to pause the easing cycle due to persistent core inflation, our targeted distribution rates are expected to remain stable.     Our High Yield Fund continues to perform strongly, offering a targeted distribution rate of 7.50% p.a. for a 12-month 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 October, loans and inquiry levels were up, with $19,054,678.06 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 October.

Lending Activity Update

Quarterly Loan Settlements
as at 31st of October 2025

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

Current Loans Geography
as at 31st of October 2025

Why Invest with ASCF?

ALess Than 0.14% Impairments on over $1.2 Billion Funded – A Proven Record of Capital Protection

At ASCF, our results speak for themselves. Since inception in 2016, we’ve funded more than $1.2 billion in loans across our four mortgage funds. During that time, the total principal impairments across all funds amount to just $1,652,296 — representing an exceptionally small fraction of total loans funded.

What’s more important, however, is what this means for our investors. Due to ASCF’s strong risk management framework, including utilising our Spread Protection and Investor Reserve Account, no investor has ever lost any of their capital and the unit price has remained at $1 per unit.

Alongside our fund management, the lending team are diligent in assessing the quality of each loan request, ensuring customers are able to honour their commitments and have a suitable exit strategy, ensuring the security of investor funds.

Whilst past performance is not indicative of future performance, this consistent record is a direct reflection of our disciplined lending approach, proven in our low impairment figures.

At ASCF, protecting our investors’ capital isn’t just a priority — it’s the foundation of what we do.

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.

Get in touch today!

An Interesting Transaction

Problem:

A Finsure aggregated Broker approached us seeking urgent funding in December last year to refinance an expiring commercial property loan with St George. They had not completed their financial statements, so needed a short term loan to complete these before refinancing through a traditional bank.

Solution:

ASCF provided a 12 month 1^st mortgage loan with interest capitalised for the term of the loan against the commercial property from where the customer operated their longstanding bakery business. The gross loan amount of $460,000 at an interest rate of 11.95% equated to a 51.11% LVR against our panel valuation and gave the customers the piece of mind to focus on their business. In the background, their accountant was completing their tax returns and their broker was engaging lenders to refinance our debt.

This month the customer repaid our loan in full almost two months prior to its expiry date. As a result the customer was able to bed down their commercial property debt over a longer term and received 1 month of interest rebated to them in their payout figure due to paying out early.

What ASCF does differently

ASCF provides tailored lending solutions based on what the customer actually needs.

Market Update

Housing values climb at fastest pace in two years

Australian housing values rose 1.1% in October, the strongest monthly gain since mid-2023, pushing annual growth to 6.1%.

All capital cities recorded increases, led by Perth (+1.9%) and Brisbane (+1.8%), with median dwelling values up about $10,000 in a month.

Growth has been strongest across lower and mid-priced homes, boosted by the expanded 5% deposit guarantee scheme and tight supply, with listings sitting 18% below average.

Regional markets also strengthened, particularly WA (+1.8%) and Queensland (+1.1%), reflecting ongoing demand and limited housing stock.

These conditions continue to support the strength and stability of the property assets underlying ASCF’s loan portfolios.

Property Values
as at 31st of October 2025