Labassa Capital Credit Fund Update March 2026

The Fund delivered a 10.43% p.a. net return of fees on a 12-month rolling basis in March, while maintaining a conservative portfolio LVR up to 51.38%.

The Reserve Bank of Australia has maintained the cash rate at 4.35% to support inflation returning to its 2-3% target range. Headline inflation has moderated to 3-4%, with markets pricing in potential rate cuts in the second half of 2026. Labassa's investment team remains disciplined on portfolio construction for the Fund, with a continued focus on LVR, presales and sponsor strength.

Geopolitical tensions in the Middle East, including developments involving Iran, have contributed to oil price volatility. While the direct impact on Australian property markets remains limited, sustained increases in energy costs may place upward pressure on inflation, construction costs and development feasibility, potentially delaying interest rate cuts and affecting transaction activity.

Domestic residential market conditions remain balanced, with auction clearance rates stabilising at 60–65% across Sydney and Melbourne. While new listings have increased and dwelling values remain broadly flat, forecast price growth remains modest. Labassa continues to focus on mid-market property transactions between $10m and $75m, supporting portfolio diversification and risk management.

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