As we close the chapter on 2024 and prepare for the challenges and opportunities of 2025, we find ourselves in a landscape shaped by significant developments, opportunities, and challenges in the Australian credit market. Our focus remains steadfast on the critical factors that influence our investment strategy and portfolio management.
The persistently elevated RBA cash rate remains a central concern, directly impacting the health of household balance sheets. While these elevated rates introduce certain headwinds, they simultaneously offer opportunities for savers and investors seeking superior yields. The geopolitical landscape, marked by trade tensions, continues to demand our attention due to its potential to exert inflationary pressures and disrupt global supply chains. In parallel, while business trading conditions present challenges within specific sectors, there is cautious optimism due to encouraging signals from forward-looking economic indicators.
Throughout 2024, we have meticulously maintained the integrity and resilience of our portfolio. Key risk metrics within the Fund's holdings, such as arrears remain at sound levels, comfortably within the covenants designed to safeguard our capital across all transactions. We are also pleased to report that all our positions are performing robustly, reflecting our rigorous transaction analysis and high credit standards.
Despite the uncertainties that the market presents, our fund is well-prepared to adapt and thrive. We have strategically diversified our portfolio to minimise risks and seize emerging opportunities. Our investment approach is inherently flexible and adaptive, enabling us to respond effectively to market changes. We anticipate that a well-structured, diversified, and actively managed portfolio of fixed income assets will continue to outperform more volatile asset classes.
As we transition into the new year, our commitment to capital preservation and delivering consistent income to our investors remains unwavering. We are optimistic about our ability to navigate the evolving economic landscape and are excited about the opportunities that 2025 holds.
