October 2022 Monthly Report
CAPSPACE PRIVATE DEBT FUND
Capspace Private Debt Fund invests in short to medium-term loans to viable growing Australian businesses backed by real property security.
FUND PERFORMANCE OCTOBER 2022 |
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Investor Return: 8% |
Since Inception: 8% |
Unit Net Asset Value |
CAPITAL PROTECTION |
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LVR This Month: 58% |
LVR Last Month: 59% |
% 1st Mortgages |
INVESTMENT PORTFOLIO |
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No. Loans: 35 |
No. in Arrears: 0 |
No. of Defaults: 0 |
STRONG RELATIVE RETURNS MAINTAINED
Australian interest rates have risen quickly over the last 6 months as the RBA lifted the official cash rate from 0.10% to 2.60% in a bid to dampen inflation.
The current average 12-month Term Deposit rate of the four major banks is 2.375%.
Capspace has maintained its high relative return of 8% per annum paid monthly, which is still over 3 times the average return of a bank's term deposit.
Our return remains stable because of the low-risk characteristics of the fund, including low LVR, all loans performing with no arrears or defaults, and our loan security being predominately made up of 1st mortgages.
We have reviewed the market and deem our 8% yield to be an above-market return up until this time and remains a premium return compared to other similar investments with this risk profile.
