Bedrock Mortgage Fund – March 2024

March 2024 Fund Commentary

The March ‘24 Bedrock fund performance again delivered on Ark’s goal of offering investors a pooled fund product to complement our contributory style Ark Wholesale fund, delivering strong, contributory-fund like returns from multiple investments in mortgage-secured loans. At the end of March approximately half the Fund’s $20.6m in unitholder FUM is from existing Ark investors who recognise the advantages of investment diversity whilst still investing in trusted, mortgage-secured, Ark Wholesale loans.

The March ’24 return was 0.95% and contributed to a year to date 11.31% annualised return, and follows similar results in each of the previous 3 months. This result was delivered through dynamic investment and cash management, with cash deployment during the month running at close to 100%. The Fund ended March with $20.6m in FUM and investments in 9 mortgage facilities with 8 different borrowers, and a further $1.7m in applications for unit issue in April 2024.

During the month the fund made just one new investment, a significant $10m+ position in a new Ark Wholesale 1st mortgage loan, to a high-quality borrower developing a marina in Newport on Sydney’s Northern Beaches. This investment represents approximately 50% of the portfolio at the end of March. In the coming months it is the fund manager’s intention to allow the concentration to naturally reduce as the fund grows and new investments are made.

During the month Ark Bedrock received its inaugural fund rating by Research agency SQM, achieving an investment grade rating. This rating will enable a broader number of Financial Advisors to recommend Ark Bedrock to its clients, helping the fund grow and deliver better opportunities and risk weighted outcomes for its investors.