Bedrock Mortgage Fund – January 2024

January 2024 Fund Commentary

The fund launched in December 23 with investments in six 1st mortgage and one 2nd mortgage loans, closing that month with $7.4m in FUM and generating a return of 0.96% (annualised 11.26%). A further $0.5m FUM was received, and units issued on 1 January 24, which was invested in one of the existing 1st mortgage loans, and the fund’s return for January 24 was 0.95% (annualised 11.24%). $1m in new FUM was received (and invested) on 1 February 24 and applications for $5m in new units have been received for 1 March 24 unit issue, which will bring FUM to $13.9m in just 4 months.

Investments to date have been made across the Residential, Industrial and Commercial property sectors, and included loans for each of land, civil construction and built-form construction. The loans made were for projects in a range of locations, including Melbourne, Sydney, Adelaide and regional QLD.

It is an exciting time for Ark with the launch of the Bedrock Fund, which was launched in response to significant investor demand, and pleasingly the first 2 months’ returns are in line with our model portfolio projections. Meaningful FUM was received with which to launch the fund, and with subsequent subscriptions and current applications taking the fund to ~$14m, we expect ongoing growth in FUM and further diversification over the next year.

Research coverage and a rating by SQM Research has been commissioned and is expected to be published in March-April 2024.