investors update

As 2025 comes to a close, the Australian economy continues to show signs of continued upward momentum, with GDP growing by 0.4% in the September quarter and 2.1% on an annualised basis, compared to 0.8% a year ago.   Residential property prices have increased by 11.3% nationally over the last 12 months, driven by ongoing sustained levels of migration, lower interest rates, and both State and Federal government assistance packages to first home buyers.   The jobless rate held steady in November at 4.3%, and with underlying inflation coming in at 3.3% in the year to October, slightly above the RBA’s target range of 2%–3%, the RBA held rates steady at its December meeting last week.   So what does this all mean for interest rates and property prices heading into 2026?   At this stage, it appears that rate cuts are off the table until at least mid next year, and possibly later, with the possibility of rate increases now back on the agenda.   However, any move will be data dependent, so the most likely scenario would be that rates now remain on hold for an extended period.   Whilst higher interest rates would impact affordability should the RBA raise rates next year, we expect that residential property prices will remain stable, with a much slower pace of growth when compared to the previous 12 months.   The country is still not delivering the housing it needs, and whilst governments continue to stoke demand through incentives, they continue to fail in addressing the supply issue, which is impacted by rising electricity costs, lack of labour, and environmental and bureaucratic red tape.   As a consequence, we believe any rate rises which may occur next year will only result in a slowing of price growth, but not stall the growth momentum we have seen over the last 18 months.   As this is our final newsletter for 2025, we would like to wish you and all your families a very Merry Christmas and a happy, healthy and prosperous New Year. To learn more, see our Investor FAQs.

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 November, loans and inquiry levels were up, with $15,110,604.67 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 November.

Quarterly Loan Settlements
as at 30th of November 2025

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

Current Loans Geography
as at 30th of November 2025

To learn more, see our Borrower FAQs.

Why Invest with ASCF?

Make This the Year You Finally Start Investing: Why a Pooled Mortgage Fund Could Be a Great First Step

Every year, many people set the same financial resolution: “This is the year I start investing.”

But life gets busy (work, family, everything in between) and before you know it, another year has passed without taking action.

If this sounds familiar, a pooled mortgage fund may be a simple, low-maintenance way to begin exploring investment opportunities.

A Consistent, Structured Investment Approach

When you’re new to investing, confidence matters. Pooled mortgage funds aim to provide stable, regular returns by spreading your investment across a portfolio of property-secured loans. It’s a way to access a diversified pool of loans without relying on the performance of a single property or asset.

No Property Management, No Stress

If the idea of tenants, maintenance, or managing a property has held you back, a pooled mortgage fund offers exposure to property-backed investments without the responsibilities of being a landlord.

Start With a Smaller Upfront Commitment

A major reason many people hesitate to start investing is the size of a typical property deposit. Pooled mortgage funds allow investors to participate in the property lending market with a smaller initial amount, making it a more accessible entry point.

Diversification to Help Manage Risk

Investing all your money into a single property can concentrate your risk. A pooled mortgage fund spreads your investment across multiple loans, each secured by property, helping reduce exposure to any single borrower or market.

More Flexibility Than Direct Property Ownership

Unlike owning a property — which can take time to sell — pooled mortgage funds generally offer clearer terms around withdrawals at the end of your investment period. This may provide more flexibility as your financial goals evolve.

Professionally Managed

ASCF’s pooled mortgage funds are managed by an experienced team who oversee loan assessments, approvals, and repayments. They handle the operational side so you can get started without needing to be an expert.

If you’ve been putting off investing, this could be the year to take the first step.
A pooled mortgage fund offers an accessible, professionally managed way to begin your investment journey — without many of the barriers that traditionally stop first-time investors.

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 broker came to ASCF with a self-employed client who had taken on a number of unsecured business loans to assist with cashflow and growth. The repayments on these loans had become unsustainable for his business and had in fact, impacted his cashflow and his ability to meet his other liabilities. The broker was unable to find a bank willing to consolidate the number and type of debts that the borrower had accumulated.

Solution:

ASCF was able to consolidate all seven unsecured business loans into a 2^nd mortgage. The 2^nd mortgage meant that the borrower only had one monthly repayment to make, simplifying their loan repayment arrangement as the business loans had repayment structures ranging from daily to weekly to monthly repayments. These were very time consuming and nearly impossible for the borrower to track.

Most importantly, ASCF’s loan saved the borrower over $15,000 in monthly interest.

The LVR on the security property was 57% with ASCF relying on a panel valuer’s full valuation report.

ASCF provided a total loan of $442,000 over 12-months with an annual rate of 16.95%.

Although ASCF provided a 12-month term, the monthly savings provided by the loan meant that the borrower was in a position to refinance and exit our loan within four months to a traditional bank.

What ASCF does differently

ASCF was able to see that our facility would provide a material benefit to the borrower, their business and their state of mind. The monthly cash flow benefit helped the borrower to grow and focus on their business rather than costly and complicated repayment structures.

Market Update

Home values rose another 1.0% in November, marking three straight months of solid gains, but momentum is shifting. Mid-sized capitals are doing the heavy lifting – Perth surged 2.4% – while Sydney and Melbourne continue to cool under affordability pressure.

Record-high value-to-income ratios and rising serviceability hurdles are starting to reshape buyer behaviour, with demand flowing toward lower-priced segments. Inflation has also ticked higher, and with rate cuts now off the table for the foreseeable future, borrowing power and sentiment may soften heading into 2026.

For investors, the key theme remains clear: tight supply and population growth continue to support prices, but affordability constraints are now playing a bigger role in where the growth is occurring.

Property Values
as at 30th of November 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

The Reserve Bank of Australia (RBA) has once again shown a steady hand, holding the official cash rate at 3.60% at its September meeting. This decision signals a period of strategic observation, allowing the market to fully absorb the impact of the three prior rate cuts this year and assess forthcoming economic releases. This cautious approach is supported by a mix of encouraging and nuanced economic data. Inflation remains well-behaved, with the latest figures sitting comfortably within the RBA’s 2-3% target band. The Australian economy demonstrated greater-than-expected resilience in the June quarter, with a strong 0.6% expansion. However, the RBA is closely monitoring the labour market, which, despite a stable unemployment rate, is showing signs of moderating job creation evidenced by the recent unemployment data, which showed a jump in the unemployment rate to 4.5% for September in seasonally adjusted terms which is up from 4.3% in August.  Most economists continue to forecast a 25-basis-point rate cut by May next year, taking the cash rate to 3.35%. Westpac remains the only major bank expecting an earlier cut next month, followed by two additional 0.25% reductions by mid next year. The positive momentum in the property market continues, driven by improved borrowing conditions. Auction clearance rates across major capital cities are robust, reflecting renewed buyer confidence and healthy market dynamics. This environment, characterised by strong demand and tight supply, creates a favourable landscape for our short-term, flexible lending solutions. Our High Yield Fund continues to perform strongly, offering a targeted distribution rate of 7.50% p.a. on a 12-month investment term. We maintain our disciplined approach to credit selection and active portfolio management, which remains central to delivering consistent and reliable outcomes for our 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 September, loans and inquiry levels were steady, with $9,555,284.47 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 September.

Lending Activity Update

Quarterly Loan Settlements
as at 30th of September 2025

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

Current Loans Geography
as at 30th of September 2025

Why Invest with ASCF?

As Cash Rates Fall, Short-Term Mortgage Funds Gain Attention

With the cash rate reductions so far in 2025, investors may be wondering where the real opportunities lie. While borrowers will enjoy cheaper mortgages, the outlook for investors in short-term mortgage funds is increasingly relevant.

Why Short-Term Mortgages Benefit

Lower cash rates stimulate property activity — more buyers, more refinancing, more bridging finance. These situations often require short-term lending solutions, typically ranging from 6 to 24 months. As demand for these loans rises, mortgage funds that specialise in short-term lending may be able to deploy capital more frequently.

The Investor Advantage

For investors, ASCF short-term mortgage funds offer:

• Regular turnover of capital – shorter loan terms mean funds can recycle capital faster.
• Target distribution rates – which may be higher than some traditional income-focused options, depending on market conditions.
• Agreed rates for the chosen term – distributions are based on the target rate set at the start of the investment term.
• Loans secured by property – providing exposure to real-estate-backed lending.

Bottom Line

As the cash rate falls, demand for flexible, short-term borrowing is expected to rise. For income-focused investors, short-term pooled mortgage funds can provide diversification and exposure to increased loan activity in a low-rate environment.

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 broker came to ASCF with a client who needed to settle the purchase of an investment property within a week. They had lodged an application with another bridging loan specialist prior to coming to ASCF, but that lender could not meet the deadline.

The borrower had a very strong assets and liabilities position, experience as a property investor, and sufficient income to support the exit strategy of refinance.

Solution:

ASCF was able to refinance one of the borrower’s existing investment properties and provide a first mortgage on the property being purchased. This provided sufficient funds to complete settlement and also fund renovations on the property being purchased.

The LVR across the two properties was 59.67%, with ASCF holding a first mortgage on both. Desktop valuations, supported by a local real estate agent’s appraisal of both properties, were used to confirm reliable valuation figures.

ASCF provided a total loan of $1,225,000 over a three-month term with an annual rate of 8.75%.

The urgent settlement date was met, and ASCF proved once again that it can meet deadlines that other lenders cannot.

What ASCF does differently

ASCF recognised that this was a straightforward transaction for a strong borrower with a solid exit strategy. ASCF acted quickly to ensure the borrower did not miss settlement or lose their deposit. The practical valuation policy avoided lengthy delays, and loan documents were issued within two days of receiving a completed application form.

Market Update

Australia’s housing market strengthened in September, with national dwelling values rising 0.8% — the fastest pace since October 2023.

Record-low listings are driving competition, with stock levels 53% below average in Darwin, 45% in Perth, and 31% in Brisbane, while auction clearance rates hold near 70%.

The Cotality Home Value Index climbed 2.2% over the quarter, adding about $18,000 to the median dwelling value. Growth was led by Perth, Brisbane, and Darwin, particularly in the unit market where supply remains tight.

With demand outpacing supply, prices continue to rise heading into spring, keeping momentum strong across all major markets.

Property Values
as at 30th of September 2025

Australian financial markets remain buoyed by the Reserve Bank of Australia’s (RBA) third consecutive rate cut this year, reducing the official cash rate by 25 basis points to 3.60% at its August meeting. This decision was underpinned by continued disinflation, with headline CPI easing to 2.1% and the trimmed mean falling to 2.7% in the June quarter—both comfortably within the RBA’s 2–3% target band. Labour market conditions remain resilient, with unemployment holding at 4.2% despite signs of moderation in job creation. The RBA’s cautious optimism is reflected in its forward guidance, with most economists now forecasting a terminal rate of 3.35% by November.

The Australian economy expanded by 0.6% in the three months to June above expectations with GDP rising to 1.8% on an annual rate but still beneath the long term average of 2.7%. While consumer spending has rebounded more strongly than anticipated, driven in part by easing mortgage burdens, the RBA has signalled a data-dependent approach to further easing. The September meeting is expected to hold rates steady, with the November meeting presenting the next viable window for policy adjustment, contingent on Q3 GDP and wage growth data.

The property market continues to respond positively to the easing cycle. Auction clearance rates across combined capitals reached 74.3% last week, marking a new high for 2025 and reflecting renewed buyer confidence amid improving borrowing conditions. Despite persistent affordability constraints, tight supply and population growth remain supportive of price stability and moderate appreciation.

ASCF continues to observe robust demand for short-term, flexible lending solutions, particularly from borrowers seeking to capitalise on the favourable property market dynamics. Our disciplined credit selection and active portfolio management remain central to delivering consistent outcomes across our suite of funds. 

In light of the RBA’s decision to lower the official rate, our targeted distribution rates are currently under review. Our High Yield Fund continues to offer a targeted distribution rate of 7.50% p.a. on a 12-month investment term with interest paid monthly and the targeted rate fixed for the duration of the 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 August, loans and inquiry levels were steady, with $5,153,316.82 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 August.

Lending Activity Update

Quarterly Loan Settlements
as at 31st of August 2025

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

Current Loans Geography
as at 31st of August 2025

Why Invest with ASCF?

Why Pooled Mortgage Funds May Appeal When the Cash Rate is Dropping

When the RBA reduces the official cash rate, it often creates a ripple effect across the investment landscape. For income-focused investors, this can be challenging.

That’s where pooled mortgage funds may provide an alternative to consider.

Targeted Distribution Rates

Unlike other investments which adjust with the cash rate, ASCF pooled mortgage funds offer targeted distribution rates available across defined investment terms (3, 6, 12, or 24 months). These targeted rates remain the same for the chosen term which can give investors greater visibility when planning for income needs.

Diversification Across Borrowers

These funds pool investor capital across a portfolio of loans secured by real property. By spreading exposure across multiple borrowers, the reliance on any one loan is reduced, which can help manage portfolio risk.

Loans Secured by Property

Loans within ASCF’s pooled mortgage funds are secured by registered mortgages over Australian property. This provides an asset-backing component that differs from many unsecured alternatives

Relative Income Appeal

In a lower interest rate environment, the margin between cash-based investments and targeted distribution rates offered by mortgage funds may widen. For some investors, this can make them a relatively appealing option to explore.

Recent Rate Adjustments

While many variable rate investments have fallen by up to 0.75% since January, ASCF has adjusted certain distribution rates only once (by 0.25%), with current targeted rates otherwise remaining steady.

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 self-employed trucking company operator was facing ongoing issues with the trucks in his fleet. The maintenance problems affected his cash flow, causing his ATO debt to accrue to a sizeable amount. This debt prevented him from being approved for a refinance by both his current lender and the major banks.

The guarantor and his wife owned two residential properties west of Brisbane, which provided more than sufficient security for ASCF to consider the deal.

Solution:

ASCF provided a 2nd mortgage loan for $430,000 at 16.95% p.a. to clear the tax debt. This prevented any action from being taken by the ATO and allowed the operator to focus on getting his fleet back to full capacity.

The LVR across the two properties was 53.80%, including the existing first mortgages, confirmed by two independent valuations for each security.

What ASCF does differently

While the major lenders look for a perfect financial history, ASCF worked with the borrower to secure funding that avoided ATO action, supported the business to get back on track, and positioned the borrower to refinance within the 12-month term.

Market Update

Australia’s housing market extended its run in August, with values up 0.7%. This is strongest monthly gain since May 2024. Annual growth now sits at 4.1%.

Tight supply (listings 20% below average) and strong buyer demand pushed auction clearance rates to 70%. This is the highest since early 2024. Vendors are entering spring in a strong position, with low competition and broad-based price growth across the capitals.

Highlights:

• Strongest monthly gain in over a year
• Auction clearance rates at 70%
• Brisbane, Perth, Adelaide & Darwin leading growth

Property Values
as at 31st of August 2025

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 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 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

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.

Get in touch today!

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

The release of Australia’s inflation data for the June quarter yesterday has now provided the RBA with the confirmation it required to lower rates at its next meeting on August 12.

The headline inflation number fell from 2.4% to 2.1% between March and June its lowest point since March 2021 while the “trimmed mean” which is the Reserve Bank’s preferred measure of underlying inflation fell from 2.9% to 2.7%.

The question now is how much further will the RBA cut rates from here. With the unemployment holding steady at 4.1% and inflation now tamed market consensus is for the RBA to continue to cut rates further over the course of the year to 3.1% implying a further two cuts of 0.25% later this year which should assist in further boosting consumer confidence which is showing early signs of recovery.

Property market activity has also picked up pace, with capital city auction volumes and clearance rates both rising to their highest levels this year. While affordability challenges persist, tight supply and consistent demand are helping to underpin prices in many markets. With borrowing conditions easing, buyer sentiment is improving and we expect this to continue to improve as the RBA continues to cut rates.

In response, ASCF continues to see a strong pipeline of lending opportunities — particularly from borrowers seeking fast and flexible short term funding solutions. Our focus remains on disciplined loan selection and active risk management to help deliver consistent outcomes for our investors across all our funds.

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 June, loans and inquiry levels were steady, with $14,679,225.48 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 June.

Lending Activity Update

Quarterly Loan Settlements
as at 30th of June 2025

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

Current Loans Geography
as at 31st of June 2025

Why Invest with ASCF?

Why Sitting on Cash Could Be Costing You

When inflation rises, your savings may not go as far—because even if your balance stays the same, its buying power can shrink. If inflation is 5% and your money isn’t growing at a similar pace, you’re effectively losing value. That’s why many investors are exploring alternatives.

While no investment is without risk, certain options aim to deliver income above the inflation rate—helping preserve (and potentially grow) your wealth in real terms. The key is understanding your financial goals, risk appetite, and time horizon.

An Option to Consider: The ASCF High Yield Fund

Our High Yield Fund is currently targeting:

• 7.50% p.a. for a 12-month investment term, or
• 7.10% p.a. for a 24-month investment term
• With monthly income distributions

Target distribution rates apply for the full investment term you select. Minimum investment from $5,000. Terms from 3 to 24 months. Loans are backed by registered mortgages over real property.

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.

Get in touch today!

An Interesting Transaction

Problem:

A husband and wife running a cabinet-making business in Victoria faced cash flow challenges after a key client’s liquidation, resulting in missed home loan payments. With new contracts secured, they urgently needed capital to purchase materials and fulfil these commitments.

Solution:

ASCF delivered a tailored 2nd mortgage solution, enabling the business to address mortgage arrears and secure the inventory required for new contracts. Through a $256,000 loan, fully capitalised over 12 months at 16.95% p.a., we provided the certainty needed for the owners to resume growth with a view to refinancing. The facility was structured at a 63.92% loan-to-value ratio, validated by a panel valuation after consideration of ANZ’s primary mortgage.

What ASCF does differently

ASCF understands that sometimes plans are impacted by unexpected events. But with the necessary timely financial support, businesses can again thrive and grow.

Market Update

Australian housing values rose 0.6% in June, marking five straight months of growth. The June quarter saw a 1.4% national increase, with gains across most capital cities – driven by falling interest rates and low advertised stock.

Key highlights:

• Brisbane (+2.0%), Perth (+2.1%) and Darwin (+4.9%) led quarterly capital city growth
• National dwelling values are up 3.4% year-on-year
• Buyer demand remains steady, while advertised supply is 5.8% lower than last year
• Consumer sentiment is improving alongside expectations of further rate cuts in 2025

Despite affordability constraints and economic uncertainty, tight supply and easing rates continue to support modest value growth across Australian markets.

Property Values
as at 30th of June 2025