FIXED INCOME NEWS AUSTRALIA
Specialist Australian private credit investment manager, Zagga, has accelerated its regional expansion with the launch of a new real estate private credit fund tailored to meet growing demand among Southeast Asian investors.
FEAR AND GREED
Sean Aylmer speaks with Tom Cranfield, Executive Director at Zagga, about the rise of real estate private credit as a defensive asset. Tom explains how tighter bank lending has opened opportunities for alternative lenders, offering stable returns and low correlation to public markets. They also look at the growing role of private credit in portfolio diversification, particularly in the face of volatility on equity markets.
Traditionally, multi-asset portfolios have relied on the negative correlation between bonds and equities for diversification. Yet, increasingly, we are seeing a positive correlation in public markets. 2022 was an extreme example, where we saw significant correlated dips in both bonds and equities. With current heightened volatility in global markets, investors need true diversification and downside protection via uncorrelated asset classes.
INVESTOR DAILY
Despite global uncertainty, Australia’s private credit market is predicted to see strong growth in 2025, fuelled by business lending and attractive returns, as the Reserve Bank’s cautious rate cuts support continued demand.
Looking for higher returns and diversification? Dive into alternative real estate investments in Australia – discover new opportunities & explore how Zagga can help you build a stronger portfolio.
SELFMANAGEDSUPER
Zagga has achieved an increased global presence with the registration of its CRED fund as a foreign investment trust in Japan. The development means the Fund will now be available for Japanese investors seeking exposure to the Australian real estate private credit sector and the benefit of its characteristics, such as providing increased diversification, delivering a strong source of income and enhancing the defensive component of a portfolio.
In what could turn out to be an unwelcome tension in the economy, the weak economy continues to underpin a lift in the unemployment rate, while the pace at which the rate of inflation is falling is slower than the RBA would like.
Explore the Zagga Feeder Fund, a pooled fund offering risk-adjusted returns through investment exposure to mortgage-secured commercial real estate debt. Learn about our Feeder Fund, the target return, and the benefits of investing with Zagga.
As we step into the second quarter of 2024, it’s imperative to reflect on the economic landscape that shaped the preceding months. In Australia, the first quarter of 2024 was marked by a blend of optimism and caution, as various sectors navigated through both challenges and opportunities. Among the focal points of discussion was the state of commercial real estate debt (CRED), a critical component influencing the overall economic outlook.
SQM RESEARCH
The Zagga Investments Lending Trust rated 4-star, SUPERIOR rating for fourth year running.
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We would like to acknowledge the Traditional Custodians of the lands, seas, and communities in which we provide our services. We would also like to pay our respects to the Elders past, present and emerging, and the continuing cultural influence they have on Australia.
Zagga Market Pty Limited (Australian Credit Licence 490904) ACN 611 662 401 acts as the Servicer of loans acting on behalf of the credit provider, Zagga Investments Pty Limited (AFSL 492354) ACN 615 154 786, trustee of the Zagga Investments Lending Trust
All portfolio numbers quoted correct as at 31 December 2025.
*Average investor return across the active portfolio as at 31 December 2025.
**Target return is after expenses and any applicable management fees for the year ended 30 June 2026. OCR = Australian Reserve Bank Official Cash Rate.
Past performance is not a reliable indicator of future performance, and should not be taken as an indication or guarantee of future results. Investments involve risk, fees and costs, and returns are not guaranteed. No representation or warranty is made regarding future performance, and economic conditions may change.
Prospective investors wishing to invest in a Zagga direct investment or a Zagga Fund should fully consider the Information Memorandum, ZFF Fact Sheet and/or ZWF Brochure, available from Zagga, before applying to invest. Investments are subject to risks.
Articles (including white papers and audio or video content) and FAQs on this website have been prepared by Zagga Investments Pty Limited (AFSL 492354) ACN 615 154 786 (Zagga) for general information only. They do not take into account your objectives, financial situation or needs, and are not a substitute for accounting, tax or other professional advice. Nothing in these articles or FAQs is an offer or solicitation to buy or sell a financial product, nor a recommendation to enter into or refrain from any transaction.
Any analysis provided in the articles (including white papers and audio or video content) or FAQs on this website is based on information believed to be reliable, however Zagga does not represent or warrant that it is accurate, complete or up to date. Zagga is not obliged to update the information or opinions contained in any article it. Opinions are those of the author and may change without notice. Readers should exercise their own judgment when relying on information contained in the articles or FAQs. To the maximum extent permitted by law, no member of Zagga accepts liability for any loss arising from the use of such information.
Media coverage featured reflects the independent opinions of the authors and does not necessarily represent the official views of Zagga.
