Eighteen Reasons to Sell

Since October 2022, there has been a headline almost every month telling investors to wait.

SVB failing. Credit Suisse rescued. The fixed rate mortgage cliff. Country Garden defaulting. US regional banks blowing up on commercial property. Tokyo and Frankfurt lenders writing down US office. A yen carry unwind with the VIX above 60. Tariffs repriced, twice. The Strait of Hormuz closed. And a cash rate that climbed to 4.35%, fell to 3.60%, then went straight back to 4.35% with inflation still above target.

Through all of it, the Ekam Real Estate Credit Fund returned over 9.0% p.a. net. The chart is not a claim about our forecasting. We did not predict any of those events and we do not try to. It is a claim about structure: first mortgage security, disciplined loan to value ratios, short duration, and more than 400 active loans across residential, commercial, and mixed use projects around Australia. Income that arrives whether or not the headlines cooperate.

Cash did its job, slowly. Australian fixed interest spent much of 2023 below where it started.

We would rather be unremarkable across a full cycle than brilliant for one quarter.