Diversified Credit Fund Performance Report – March 2026
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Demand for our Bowery Diversified Credit Fund (the Fund) continues in the market. This is all great news and validates the benefit the portfolio has for those wanting a more diversified secured investment option.
In March, the Fund performed well even with the headwinds in the economy. The Fund continues to deploy funding to a diverse mixture of loan investments and, for the month of March, exceeded the RBA Cash Rate by 4.92%, even with a cash rate increase by the RBA during their March meeting. We noted that the Fund slightly underperformed against its benchmark (RBA Cash Rate + 5%) for the first time since inception and believe this stemmed from a timing difference rather than any underlying performance concerns.
While interest rates had risen, it takes several weeks for these increases to flow through to the borrower rates on settled loans. We also had a small level (c.2%) of cash reserves held at the end of the months as delays in loan settlements impacted the timing of deployed funds. All cash reserves were subsequently fully deployed at the start of April, and we continue to monitor the deployment of funds on a daily basis.
As we continue to actively manage our loan settlements at Bowery, we are pleased to announce that all loan facility exposures held within the Fund, performed as expected for the month with no instances of non-loan repayments occurring in its loan exposures.
Performance Summary as at 31 March 2026:
- Investment Distributions of 0.7517% for the month (i.e 9.02% annualised)
- Exceeded the RBA Cash Rate by 4.92% p.a. (i.e -0.08% below our benchmark of RBA Cash Rate +5.0%)
- Conservative weighted average LVR Exposure of 56.86%
- Exposed to 21 different loan facilities
- Diversified mix of underlying properties constituting security for loans including residential, commercial, mixed use and vacant land
- For April 2026, the monthly Target Distribution Rate for the Fund will be kept at RBA Cash Rate + 5.0% p.a. and any change in this benchmark will be communicated to investors in future updates.
For more details on the monthly performance, please download the monthly performance report by clicking on the below images:
