Australian Secure Capital Fund - Market Update Australian Secure Capital Fund January 2025 CoreLogic's Home Value Index (HVI) recorded a 0.1% decline in December, the first national drop in nearly two years. This slight downturn capped a robust growth period from February 2023 to October 2024, where property values showed remarkable resilience despite high interest rates, cost of living pressures, and reduced borrowing capacity. The national decline was mirrored in the quarterly figures, with values also falling 0.1%, signalling a shift in momentum. Five of the eight capitals recorded declines between July and December, although Adelaide and Perth continued to perform strongly. Adelaide overtook Perth as the best-performing market in the December quarter, with values rising 2.1% compared to Perth's 1.9% and Brisbane's 1.3%. In annual terms, Australian home values rose 4.9% in 2024, adding approximately $38,000 to the median home value. The mid-sized capitals led the charge, with Perth (+19.1%), Adelaide (+13.1%), and Brisbane (+11.2%) achieving double-digit growth. However, Melbourne, Hobart, and the ACT recorded declines over the year, with values falling -3.0%, -0.6%, and -0.4%, respectively. Looking ahead, as highlighted in our market update above, anticipated rate cuts in 2025 should help stabilise the market, while a weaker Australian dollar may attract international investment, particularly in property. Regional markets, which outperformed the capitals with a 6.0% annual growth, are expected to remain a bright spot, driven by strong performances in WA, SA, and QLD. Property Values as at 31st of December 2024 Quick Insights Thinking of buying a bigger home in 2025?  With house prices softening in Sydney and Melbourne, buyers looking to upgrade could find great opportunities this year. Experts predict that expected interest rate cuts in 2025 will bring renewed confidence to the market, though competition is currently lower, giving upgraders a chance to secure their dream home before demand picks up. Source: Australian Financial Review What's shaking up the housing market in 2025? Lower interest rates, easing inflation, and slowing overseas migration are set to shape Australia's housing market this year, with potential for mild recovery following a shallow downturn. Explore how economic shifts and lending policies could impact values, demand, and construction. Source: Corelogic Author: Filippo Sciacca, Director - Investor Relations, Asset Management and Compliance December Edition Funds operated by this manager: ASCF High Yield Fund, ASCF Premium Capital Fund, ASCF Select Income Fund

Understanding Bridging Loans: A Comprehensive Guide Australian Secure Capital Fund December 2024 In the world of finance, the term "bridging loan" often comes up in conversations about short-term funding solutions. Bridging finance may seem complex, but understanding its key features can help clarify its benefits and risks. In this article, we'll explore what a bridging loan is, how it works, its advantages and disadvantages, and when it might be the right choice for you. What is a Bridging Loan? A bridging loan is a type of short-term financing that is designed to "bridge" the gap between a financial need and a long-term financing solution. These loans are typically used when an individual or business needs to access funds quickly, often for a specific purpose, such as purchasing a new property before selling an existing one. Bridging loans are usually secured against an asset, often real estate, and can be arranged relatively quickly compared to traditional loans. Types of Bridging Loans There are two main types of bridging loans: 1. Open Bridging Loans: These loans do not have a fixed repayment date, meaning they can be paid back at any time. They are usually used in situations where the borrower has not yet sold their existing property or is unsure when they will be able to repay the loan. 2. Closed Bridging Loans: These loans have a specific repayment date, typically aligned with the sale of a property. They are ideal for borrowers who have already exchanged contracts on a property and have a clear timeline for repayment. How Does Bridging Finance Work? Bridging finance operates on a straightforward premise: it provides quick access to funds that can be used for various purposes. The process generally involves the following steps: 1. Application: The borrower submits an application for a bridging loan, providing necessary documentation such as proof of income, details of the property being used as security, and information about the intended use of the funds. 2. Valuation: The lender will conduct a valuation of the property to ensure it is worth the amount being borrowed. This step is crucial, as the property serves as collateral for the loan. 3. Approval and Funding: If the application is approved, the lender will issue the funds, usually within a matter of days. This quick turnaround is one of the main advantages of bridging finance. 4. Repayment: The borrower will repay the loan either upon the completion of the intended project (e.g., selling a property) or on the agreed-upon repayment date for closed loans. Advantages of Bridging Loans Bridging loans come with several benefits that make them an attractive option for many borrowers: 1. Speed: One of the most significant advantages of bridging loans is their speed. Traditional loans can take weeks or even months to process, while bridging finance can be arranged in a matter of days. 2. Flexibility: Bridging loans offer flexibility in terms of repayment options. They can be tailored to fit the borrower's specific needs, whether it's a short-term loan for a few weeks or a few months. 3. Access to Funds: Bridging finance can provide access to funds that might not be available through traditional lending routes, especially for borrowers with less-than-perfect credit histories. 4. No Early Repayment Penalties: Many bridging loan providers do not impose penalties for early repayment (depending on the terms), which can be a crucial factor for borrowers looking to reduce their overall interest costs. Disadvantages of Bridging Loans While bridging loans offer many benefits, they also come with some drawbacks that should not be overlooked: 1. Higher Interest Rates: Bridging loans typically have higher interest rates compared to traditional mortgages. This is due to their short-term nature and perceived risk associated with bridging loans. Borrowers should compare options to find a product that fits their circumstances. 2. Fees: Borrowers may encounter various fees associated with bridging loans, including arrangement fees, valuation fees, and legal fees, which can add to the overall cost. 3. Risk of Repossession: Since bridging loans are secured against an asset, failure to repay can result in the lender repossessing the property used as collateral. 4. Short-Term Solution: Bridging loans are not meant to be a long-term financing solution. Borrowers need to have a clear plan for repayment, as these loans usually need to be settled within a few months. When to Consider a Bridging Loan Bridging loans may be a suitable financial tool in specific situations, depending on your circumstances and the terms provided by the lender. Here are a few scenarios where bridging finance might make sense: 1. Property Transactions: If you are in the process of buying a new home but have not yet sold your current property, a bridging loan can provide the funds needed to make the purchase without the stress of timing the two transactions perfectly. 2. Investment Opportunities: Investors might use bridging loans to seize opportunities that require quick financing, such as auction purchases or real estate investments that need renovation before resale. 3. Business Funding: Businesses may need immediate capital for various reasons, such as purchasing new equipment or covering operational costs during a slow period. Bridging finance can provide that necessary cash flow. Bridging loans may offer a short-term financial solution for those who meet the lender's criteria and have a clear repayment strategy. While they come with higher interest rates and various fees, their speed and flexibility make them an attractive option for many borrowers. Whether you're looking to purchase a new home, invest in real estate, or fund a business need, understanding bridging finance can help you make informed decisions about your financial future. As with any financial product, it's essential to weigh the pros and cons carefully and consult with a financial advisor if needed. Bridging loans can be an excellent tool in your financial arsenal -- just ensure you know how to use them wisely. Author: Mikaela Gladden Funds operated by this manager: ASCF High Yield Fund, ASCF Premium Capital Fund, ASCF Select Income Fund The content on this page is intended solely for general informational and educational purposes and should not be interpreted as financial advice. Although we make every effort to ensure the accuracy and relevance of the information, it may not always reflect the latest legal or financial changes. We strongly recommend seeking guidance from a qualified financial advisor or professional before making any financial decisions. Use the information at your own discretion.

Australian Secure Capital Fund - Market Update Australian Secure Capital Fund November 2024 Australian residential property prices continued to rise for the 21st consecutive month with a 0.3% increase, but signs of easing continue with Darwin, Canberra, Melbourne and now Sydney all experiencing a decline in value according to CoreLogic's National Home Value Index, with losses of 1%, 0.3%, 0.2% and 0.1% respectively. Whilst this demonstrates that it is not all smooth sailing in the Australian property market, Brisbane, Hobart, Adelaide and especially Perth continued to perform strongly with further monthly increases of 0.7%, 0.8%, 1.1% and 1.4% respectively. Whilst the national capitals only saw a 0.2% increase for the month, the combined regionals are still performing strongly with a 0.6% monthly increase. This new monthly data with more capitals and regions beginning to see a reduction or easing in prices, has impacted quarterly data now showing that Darwin, Canberra, Melbourne and Hobart have experienced losses for the quarter (1.3%, 0.9%, 0.8% and 0.1% respectively) whilst Sydney has now only seen 0.1% quarterly growth. Brisbane, Adelaide and Perth have however continued to see significant growth for the quarter, with 2.4%, 3.7% and 4.1% respectively. As we head into the holiday season, and with the RBA remaining hesitant to reduce interest rates, it is expected to continue to see easing amongst the Sydney, Melbourne, Canberra, Hobart and Darwin markets, however the undersupply of property within Brisbane, Adelaide and Perth is likely going to see continued growth despite interest rate pressure. Property Values as at 4th of Nov 2024   Median Dwelling Values as at 31st of October 2024 Quick Insights Housing market on the cusp of another boom Australia's housing market shows signs of potential growth as experts anticipate that rate cuts in 2025 could drive higher demand, especially in Sydney, Brisbane, Adelaide, and Perth. Melbourne's market remains relatively affordable, but with possible rate changes, investor interest may increase across major cities. Keep a close watch -- 2025 could open up new opportunities in the property market. Source: Australian Financial Review One year on - cash rate holds at 4.35% The RBA has held the cash rate steady at 4.35% for another month, citing high underlying inflation as the reason for not yet reducing rates. Despite headline inflation falling within target, the RBA remains cautious, aiming to ensure inflation returns to the midpoint of the target range. While borrowers might be eager for a rate cut, experts suggest patience, with potential rate reductions anticipated in early 2025. Source: Broker Daily Author: Filippo Sciacca, Director - Investor Relations, Asset Management and Compliance Funds operated by this manager: ASCF High Yield Fund, ASCF Premium Capital Fund, ASCF Select Income Fund