Author: Viktoriya Kravets

We are delighted to announce that the Msquared Mortgage Income Fund (ARSN 682 099 350) has been upgraded to a Four-Star “Superior” rating by SQM Research. This recognises the Fund’s strong risk-adjusted returns, reflected in a Sharpe ratio well above the peer group.

The Fund maintains a diversified portfolio of first registered mortgages secured by real estate, with no exposure to land, construction, or second mortgages. The rating upgrade is a testament to our ongoing focus on capital protection and disciplined risk management.

For more information or to receive a copy of the SQM Research report, please contact us at [email protected].

We are pleased to announce that the Msquared Mortgage Income Fund and the Msquared High Yield Mortgage Income Fund are now available on the Mason Stevens platform.

This provides financial advisers with another way to access our funds and enable them to invest in products which can deliver regular monthly income to their clients.

Msquared Capital is delighted to confirm that Evergreen Consultants has reviewed both the Msquared Mortgage Income Fund and Msquared High Yield Mortgage Income Fund and rated them both as Investment Grade.  Watch the video to see Paul Miron, Msquared Capital Managing Director, discuss the funds with Evergreen Ratings’ Founder Angela Ashton. Please contact as at [email protected] if you would like a copy of the research report.

The information shared in this video is general in nature and does not consider your objectives, financial situation or needs. Before acting on the information shared, you should seek advice tailored to your needs.

This video exists for educational purposes and should not be relied upon to make an investment or financial decision.

As 2023 draws to a close, we are presented with an opportune moment to reflect on a year marked by economic resilience and a transformation of our economic environment that has not been seen for decades. We continue to push through the complex circumstances presented by the post-COVID recovery, remaining inflation, and the aggressive array of official interest rate increases during 2023.

The most recent inflation figures, both here and in the US, reinforce that inflation is here to stay, with US inflation having risen to 3.7% in August 2023 (up from 3.2% in July 2023), and Australian inflation remaining elevated at a rate of 5.2% in June 2023. At the same time, expectations of higher oil prices have been adding to inflationary pressures and dashed hopes that interest rates will be cut in early 2024. A structurally elevated cash rate is seen as a reality and has opened the door to further interest rate hikes.

As the outgoing Reserve Bank Governor, Philip Lowe, faced the House of Representatives Standing Committee on Economics last Friday, a sigh of relief was shared amongst mortgage holders that “the worst is over” regarding the fight against inflation. It only took 12 interest rate hikes to bring inflation at bay in the quickest contraction in monetary policy in Australia’s modern history. As many Australian mortgage holders are now tipping over the wretched mortgage cliff, we see signs within leading economic indicators such as retail sales, consumer business confidence and mortgage arrears, that there is much more pain to come.

Msquared Capital has announced a joint venture with EG Funds to further enhance Msquared’s offering to investors by utilising EG’s proprietary platforms, PRISMS, to assist the team in applying an equity and debt lens on each prospective loan. The platform’s unique data, collected over more than 20 years, will also ensure that risks and credit quality are thoroughly assessed to safeguard investor funds.

The joint venture also means that EG Funds will be able to offer investors the opportunity to diversify into the private debt market to service capital products for quality residential real estate and industrial sites across the eastern seaboard of Australia

Australia’s Debt Market

The debt market has historically been tightly held by major banks, but it is becoming increasingly prevalent for borrowers to access credit through non-bank lenders due to the traditional lenders placing strict criteria on capital products. These restrictions have become more rigorous during the volatile market, which leaves borrowers and mortgage brokers turning to alternative lenders for funds.

Paul Miron, Managing Director, Msquared Capital, said:

“The appetite for private debt has skyrocketed over the past few years with no signs of slowing. This joint venture with EG enables us to capitalise on this growing demand, working together to provide more opportunities for both borrowers and investors. Against a backdrop of market volatility, investors seek opportunities to diversify and secure strong returns, and private credit backed by property offers great appeal.”

Rodney Walt, Head of Private Wealth, EG, said:

“EG constantly explores new opportunities to uncover great returns for our investors within the real estate market during a variety of market conditions. After extensive consultation, we are confident that Msquared Capital is the right cultural fit for a joint venture due to our aligned core values that will help solidify a strong partnership that generates outstanding, consistent returns and a positive impact.

As lending from the major banks declines, we have recognised a funding gap within the market. That’s why private debt has been viewed as the ideal opportunity for our investors. The joint venture supports an underserved market, with capital secured by quality real estate in Australia to further enhance returns for our investors.”

About EG Funds

Founded in 2000, EG has $5.1 billion under management, servicing institutional investors and wholesale clients by generating outstanding returns with lasting social impact. With $3.9 billion in the development pipeline and 16.7% per annum in realised IRR for institutional funds, EG is committed to finding a better path to better returns.

About Msquared Capital

Msquared Capital is a private credit provider founded in 2017, offering investment opportunities backed by quality property along the eastern seaboard of Australia. Operating three funds; High Yield, Contributory, and the Conservative Fund, which has received an Evergreen rating, Msquared Capital offers strong risk-mitigated returns of up to 9 per cent. Msquared Capital offers these opportunities with the combined experience of the directors and leadership team, spanning a total of 100 years in banking, finance, property, and funds management.