June – ASL Market Update

RBA Cash Rate Outlook: July Cut Expected – What It Means for Investors

The Reserve Bank of Australia (RBA) is widely expected to lower the official cash rate in July, responding to softer economic data and global monetary easing. A cut from 3.85% to 3.60% appears likely, continuing the downward trajectory we’ve seen over recent months.

This shift is already reflected in traditional fixed-income returns — with 12-month term deposits now paying as little as 3.75% (interest paid at maturity).

What You Consider Now?

With yields on cash and term deposits falling, we believe now is the time to re-evaluate your strategy:

  • Consider Longer-Term Investment Horizons Investing over longer terms can help lock in stronger yields while smoothing out short-term market fluctuations.
  • Explore Diversified Asset Classes Asset-backed investments, including commercial property, offer the potential for both reliable income and capital growth, especially in a low-rate environment.
  • Look for Income Security and Strong Net Returns Our investment opportunities are secured by local Australian property, giving our members peace of mind while targeting net returns starting from 5.90% p.a.

How Your Investment is Managed and Protected with ASL

At Australian Securities Limited (ASL), every investment is backed by carefully selected Australian property — residential, commercial, industrial or development assets. We apply rigorous due diligence before approving any loan, including independent valuations, legal checks, and thorough risk assessments. Where possible, we secure a first mortgage over the asset, giving us — and by extension, our investors — priority rights in the event of any default. Our investment team actively monitors each project, ensuring your capital is managed with discipline and transparency at every stage.

Our approach prioritises capital preservation and consistent income, with investors currently receiving net returns from 5.90% p.a., paid monthly. We maintain conservative loan-to-value ratios and a strict lending framework, giving investors’ confidence their funds are both well-managed and well-protected. Whether you invest through an SMSF, trust, or individually, your wealth is secured by real assets and managed with the prudence and care ASL is known for.

Commercial Property: A Strategic Investment Choice

In a declining interest rate environment, commercial property presents a compelling opportunity for investors seeking stable income and potential capital growth.

Here’s why:

  • Attractive Yields: Commercial properties often offer higher rental yields compared to other asset classes, providing a steady income stream.
  • Capital Appreciation: With lower borrowing costs, property values may increase, enhancing the potential for capital gains.
  • Diversification: Adding commercial property to your investment portfolio can provide diversification, reducing overall risk.

At Australian Securities, we offer investment options secured by property, including commercial real estate, providing you with opportunities to invest in this asset class

Strong Returns in Commercial Property.

The Australian Securities Property Fund (ASPF) has achieved a strong result with the sale of 4/100 Station Street, Nunawading, delivering a 9.45% p.a. capital return and an average rental yield of 9.1% p.a.—a great outcome in a challenging market.

With signs of market stabilisation, we’re actively assessing new commercial property opportunities that could deliver strong medium to long-term returns. As value begins to emerge, now could be an opportune time to invest in industrial property before potential interest rate cuts impact capitalisation rates. We’re also closely monitoring key sector trends, particularly in undersupplied property segments, and will keep you updated. Stay tuned for more insights and opportunities!

Call us at 1300 275 275 to talk to one of our finance managers or lending executives. We prioritise direct communication and personalised support for our clients.

Understanding ‘As Is’ vs ‘As If Complete’ Property Valuations in Private Lending

One of the biggest challenges in private lending is the misunderstanding of ‘As Is’ versus ‘As If’ property valuations. Many investor losses occur when loans are extended based on an ‘As If Complete’ valuation, which estimates the property’s future value after development is completed.

Key Differences:

  • ‘As Is’ Valuation: Reflects the current market value of a property.
  • ‘As If Complete’ Valuation: Estimates the future value based on completed construction or improvements to be made to the property.

Example Scenario:

A block of land in Melbourne valued at $1 million ‘As Is’ could support a $600,000 loan with relatively low risk. Even if the market drops 20%, investor capital remains largely protected.

However, if a developer plans to build four townhouses on that land and a valuer estimates an ‘As If Complete’ valuation of $4 million, a lender might approve a $2 million loan. If the developer fails to complete the project, the actual property value may be far less than $4 million, putting investor capital at serious risk.

Market Risks & Due Diligence
Recent cases, such as the Public Hospitality Group in Sydney, have shown how ‘As If Complete’ valuations can fall short when it’s time to sell, leading to significant investor losses.

At ASL, we closely assess ‘as if complete’ valuations to ensure the proposed works are feasible. To protect all parties involved with the project, ASL holds the funds to complete the proposed works to achieve that ‘as if complete’ complete value.

Key questions to ask before investing:

✔ Does the valuer have adequate insurance?
✔ What is the lender’s valuation policy?
✔ Who controls the funds to complete the proposed works?

Final Thoughts

Higher returns often mean higher risk—especially when lending against future property values. If you’re unsure, research, ask questions, and understand the risks.

At ASL, we are always available to discuss how we price returns and manage investment risks. 
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Call Australian Securities on 1300 275 275 and talk to our investment team.

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Meet Susan Lawrence – Financial Controller

At Australian Securities, we believe our people are our greatest strength—and today, we’re shining the spotlight on Susan Lawrence, our Financial Controller. With a career that spans continents, funds, and finance teams, Susan brings both depth and warmth to her role. We caught up with her for a candid chat about her journey, what motivates her, and the lessons she’s picked up along the way.

Q&A with Susan Lawrence

What is your role and how long have you been at Australian Securities?

I’m the Financial Controller, and I’ve been with Australian Securities since October 2023—so just over 18 months now.

What do you like most about your job?

It’s a diverse role. Yes, there are core accounting tasks that repeat monthly—like interest collection and investor distributions—but each cycle brings its own challenges, and that keeps things interesting.

I also really enjoy being in the office every day with a great team. They’re smart, fun, and genuinely care about the work. Plus, there’s always something going on—it keeps me on my toes and gives me lots of opportunities to find ways to improve processes.

What’s one of the most important lessons you’ve learned in your career?

Slow down. It’s always better to pause and think than to act quickly and regret it.

Also, trust your instincts. If something feels off, don’t ignore that feeling—take the time to explore it. And use the team around you. I’ve learned a lot from working with people who bring different perspectives and experiences to the table.

Which of Australian Securities’ values do you resonate with most, and why?

Trustworthy, definitely. We’re constantly balancing the interests of both borrowers and investors, so it’s crucial that we act with transparency and integrity. Without trust, I wouldn’t want to be here—it’s that important.

I also connect with Curious—I think staying curious is the best way to keep life interesting, both professionally and personally.

How do you like to spend your time when you’re not working?

I’m usually either Netflix-and-chilling with the family (when I can get my young adult kids to stay home!), out for a run, or enjoying a meal and wine with friends.

Running is a big one for me—I’ve done three marathons. It clears my head, and I sometimes run with one of my sons, which is always a bonus.

What would you do if you weren’t working in finance?

I’d love to be an author—I’ve always been drawn to storytelling. Fiction is my favourite, especially stories that feel real and relevant, even when they’re rooted in science fiction or fantasy. I’d also happily take up acting if given the chance. Something creative and expressive!

What are you currently reading?

I’m reading Stone Yard Devotional—I’d give it a solid four stars. I track all my reads on the Goodreads app. I do love a good review!

Has anyone—or anything—inspired you in your career?

I’ve worked with some really great people over the years who’ve taught me valuable lessons: don’t accept things at face value, always understand the detail, and most importantly, treat people with kindness. You never know what someone might be going through.

Any advice for current or prospective clients?

If it sounds too good to be true, it probably is. Look at the track record and history of who you’re investing with. And don’t be afraid to pick up the phone—speak to your advisor or the investment firm directly. Communication is key, especially when it comes to financial decisions.

Stay tuned for more insights from our talented team. We can’t wait for you to get to know the people who make Australian Securities the trusted partner it is today!

Unlock Your Construction Potential with Our Flexible Lending Solutions

When it comes to funding your construction projects, securing the right loan is crucial to ensure both progress and profitability. Whether you’re a developer, investor, or homeowner looking to build or renovate, we offer tailored financial solutions designed to meet the unique needs of your project. Here’s why our lending options stand out from the rest:

  1. Lending up to 66% of the “On Completion” Value Net of GST
    Our loan structure allows you to borrow up to 66% of your project’s “on completion” value, net of GST. This means you can secure a larger loan based on your property’s anticipated value once construction is complete, providing you with a greater level of funding flexibility.

  2. Full Construction Contract Funding
    Unlike traditional lenders, we fund the entire construction contract amount, which includes GST, contingency, and open space allowances. This comprehensive funding approach ensures you have the full financial support needed to cover every aspect of your construction project without the stress of unexpected costs.

  3. Capitalise Interest or Pay Monthly
    We understand the importance of managing your cash flow during a construction project. That’s why we give you the option to either capitalise your interest within the loan amount or pay it monthly, provided you can demonstrate the required serviceability evidence. This flexibility allows you to choose the most suitable repayment method for your financial situation.

  4. Quicker Turnaround Time Than Major Banks
    Time is of the essence when it comes to construction projects, and delays can lead to costly setbacks. Unlike the major banks, we offer a faster turnaround time, ensuring that your loan application is processed quickly so you can get started on your project without unnecessary delays.

  5. Prompt Progress Payments
    We understand that timely progress payments are crucial to keeping your construction on track. That’s why we ensure that progress payments are made within 24 hours of receiving a quantity surveyor or valuer’s report. This speed ensures that contractors are paid on time, helping to maintain strong working relationships and keep your project moving forward.

  6. Pre-Sale Requirements Assessed on a Case-by-Case Basis
    Every project is unique, and we recognize that pre-sale conditions should not be one-size-fits-all. Our team assesses pre-sale requirements on a case-by-case basis, providing you with the flexibility you need based on your specific circumstances.

  7. Competitive Interest Rates Starting from 8.65% per Annum
    We offer highly competitive interest rates starting from 8.65% per annum, providing you with an affordable option to fund your construction needs. With our transparent pricing, you can plan your project’s finances with confidence.

Conclusion: Our construction lending solutions are designed to offer you the flexibility, speed, and financial security that traditional lenders often can’t provide. From higher loan-to-value ratios and full contract funding to competitive interest rates and rapid progress payments, we ensure that you have everything you need to bring your construction project to life.
Contact us today to discuss how we can support your construction goals with a loan that works for you!

Interest rate outlook & Australian Securities Term Fund

The recent rate cut of 0.25% gives borrowers a slight reprieve, however we don’t think RBA Governor Michelle Bullock will be fast to move rates down. We expect the RBA to cut again possibly in September 2025. This is of course assuming economic conditions remain constant. A recession, stockmarket crash, or unexpected inflation could all change this, up or down, among other unexpected events.

Investors can benefit by locking in fixed interest rates to safeguard their income against expected interest rate cuts during this period. It also helps with maintaining purchasing power against inflation. The Australian Securities Term Fund (ASTF) is a great alternative for cash compared to high interest-bearing bank accounts, given that typically around 50% of the fund is invested

Call us at 1300 275 275 to talk to one of our finance managers or lending executives. We prioritise direct communication and personalised support for our clients.

Celebrating 100 years of origins in Financial Services

With origins dating back to 1925, Australian Securities Limited will be celebrating 100 years of origins in financial services this year, a milestone that we are extremely proud of. We plan on marking this momentous achievement toward the end of 2025 and we look forward to including our stakeholders who have been part of making us into the company we are today.

Wars, depressions, recessions, stock market booms and crashes, industrial revolutions, financial meltdowns, disease, medical breakthroughs, even a man on the moon, the foundations of our funds has been through it all and we will be around to see what the next hundred years holds.

Prior to 1966, the funds were used for lending money out and investing money in, pounds, shillings and pence. The funds origins have helped so many borrowers with loans to assist them to achieve their financial goals whilst providing investment returns to our loyal investors, old and new, some of whom are now ASL fourth generation investors today.

Meet Gavin Thompson – Head of Investments at Australian Securities

At Australian Securities, we believe that the people behind the numbers make all the difference. So, we’re thrilled to introduce our new Head of Investment Gavin Thompson. He has been with us for just four months but has already made an impact with his sharp insights, client-focused approach, and (let’s be real) his love for all things office banter.

With two decades of financial planning experience under his belt, Gavin’s journey has taken him from banking’s high-flying world of investment advisory to running his own private financial planning practice for 10 years. He’s brought that deep experience and out-of-the-box thinking to ASL which we are super excited to see what that brings.

Q&A with Gavin Thompson

What’s your role at Australian Securities, and how long have you been with us?

I’ve been the Head of Investment for four months now—and it’s been a whirlwind! From strategic planning to managing client portfolios, every day is a fresh challenge, and I’m really loving it here.

What do you enjoy most about your job?

Hands down, it’s the people that make it all worthwhile. The team here is fantastic, and the client relationships I’ve built are incredibly rewarding. The daily intellectual challenges keep me on my toes, but what really ties it all together is the office banter. It’s what makes work feel like home! Bring it all together.

What’s the biggest lesson you’ve learned in your career?

Don’t take business personally. It’s much easier said than done, but learning to separate the two has helped me stay balanced and effective in my work.

Which of Australian Securities’ values resonates with you most?

I genuinely connect with all of our values, but if I had to pick one, it would be ‘caring.’ Being empathetic and understanding goes a long way, not just in business but in life. Caring about people’s wellbeing leads to stronger, more meaningful connections—both professionally and personally.

How do you like to unwind outside of work?

I’m big on family time. Whether we’re out and about or just hanging around the house, that’s where I recharge. I also hit the gym regularly, love watching sports, and when I get the chance, you’ll find me by the water fishing.

If you weren’t in this role, what would you be doing?

If I wasn’t in finance, I’d probably be a psychiatrist. I find the human mind and psyche absolutely fascinating, and I’ve always had a desire to help people navigate their challenges.

Who has influenced your life and career the most?

My late mum. She was an incredible woman who showed me what true resilience looks like. Despite her health battles, she always put others first and cared deeply for everyone around her. She’s been my biggest inspiration.

What’s your top piece of advice for clients?

We love working with our clients, and no question is ever too big or too small. Never hesitate to ask—we’re here to support you every step of the way.

Your biggest accomplishment personally.

Would have to be my kids. Two teenage boys who make me proud on so many levels. I am also a passionate ambassador for Beyond Blue, helping raise awareness about mental health.

Economic predictions for 2025?

Looking ahead to 2025, I predict there will be increased volatility in the lending and investment markets, which I see as an opportunity for ASL as a private lender. With ASL’s solid track record over many, many years in the finance landscape, I am confident the company is well-positioned to navigate and thrive through any challenges ahead.

Stay tuned for more insights from our talented team. We can’t wait for you to get to know the people who make Australian Securities the trusted partner it is today!

Mortgage Funds – High Risk or Misunderstood?

In the insurance world, when you hear the words “Mortgage Funds” they are typically accompanied with alarm bells. However Mortgage Funds come in many shapes and sizes, with the real test of pedigree being what comes out of the Fund Managers ‘broom closet’ upon further inspection. Numerisk’s Managing Director Richard Silberman along with CEO of Australian Securities Limited, Natalie Bode debunk the misconception that all Mortgage Funds are high risk in this insightful article.

It’s commonplace to see challenges for advice practices around specific classes of products when securing PII coverage. These challenges aren’t limited exclusively to financial planning firms working with retail investors; many wholesale and retail fund managers can face similar roadblocks when it comes to certain asset classes. For advice practices, the more traditional hot buttons like agri-scheme investments, Margin products or those that are highly geared or leveraged, and, more recently, cryptocurrency. For funds, it’s property, private capital opportunities, and alternatives to name but a few.

Of these products that have, and will likely continue to attract a high level of scrutiny are mortgage funds. Specifically, those backed by solicitors or private lenders whose borrowers are limited in the more traditional lending market. Developers or builders looking to finalise projects at various stages that are viewed as high risk, bridging finance when existing lenders may have LVR restrictions or other parameters that are too conservative for the borrower to overcome.

But are these difficulties always justified? Is there a way to decipher what determines which of these funds and managers constitute a good risk or are all of these products viewed as high-risk and something to avoid?

Numerisk spent some time more recently with Natalie Bode, CEO of Australian Securities Limited, a privately managed investment firm that specialises in mortgage funds that aren’t spruiking too-good-to-be-true returns and see value as a guiding principle to the way they approach investing.

“Not all mortgage funds & private credit providers are the same. Some providers spruik returns of 10% plus which is considered to be way above market for first mortgage investing particularly when bank loans are offering fixed 1 year lending rates from 5.74%. When considering mortgage funds, it is important investors and their advisers conduct due diligence on the provider. Due diligence should extend to a manager’s history, licensing, external auditing & compliance reporting requirements, insurance requirements, valuation policy, information on what security the investors are receiving in return for their investment, mortgage arrears and their default management process and the level of due diligence they undertake on a borrower.

Mortgage Fund investing should be considered as a fixed income alternative, whilst higher up the risk curve than a bank term deposit, if managed correctly can be considered as a relatively low risk alternative with attractive returns.

Borrower due diligence is key to success of a manager as it tells you about how they value your money. Many private credit providers spruik ‘no doc’ and ‘low doc’ products in the market. Often these products are on non-regulated loans and therefore fall outside the scope of regulators’ ‘responsible lending’ guidelines. However, as an experienced manager who is proactive in looking after the best interests of both borrower and investor –it is in everyone’s best interest to lend responsibly and obtain suitable information to ascertain the suitability of a loan for a borrower.”

A consideration for Mortgage Funds is the broader macro environment for residential and commercial Real Estate, recent coverage in the AFR in January spoke to a survey undertaken of economists that reflected a bearish sentiment with expectations of an average growth across Australia of 3.1%. In April, a mere 3 months later, expectations grew to more than 5%. Australia’s love for property and “bricks and mortar” seems to show a resilience that few can deny.

Shane Oliver, Chief Economist at AMP Investments, said in a post from Olivers Insights in early June; “Conditions in Perth, Brisbane and Adelaide continue to be very strong, helped by relatively lower levels of supply evident in total listings running more than 30% below their five-year averages, and strong interstate migration in the case of Brisbane and Perth. But this contrasts with far more constrained conditions elsewhere. Sydney has made it back to its record high but only just and the other capitals remain well below their record highs. Melbourne and Hobart are seeing total listings well above their five-year average”

So, it’s possible to achieve exposure to asset classes, often considered high-risk under the stewardship of high-quality managers for the right investors with the right strategies. How then can advisers ensure they don’t run into trouble with PII for their advice practice or AFSL?

“Making sure insurers have a strong understanding of the fund – its investment managers, the assets under management, and the mandate is a great start.” Richard Silberman, Managing Director of Numerisk, said, “We spend a lot of time working through APLs with products we know will attract attention like mortgage funds. There is an analogy that comes to mind, No dog is bad, they just have bad owners and the same can be said for investment products.

When the fund manager can speak to consistent, reasonable returns that are sustainable or volatility that aligns with more obvious macro factors, the underlying mechanics of the fund stack up, and we can positively say that there are no irregularities – then the shift turns away from the product conversation to the adviser and the advice. The first step, however, is ensuring that the fund is sound; then, we work through how the product is being sold, to whom, and on what basis. At the end of this process, we can explain this to insurers as well as the adviser or the manager, and this is how we consistently achieve the results we do in the market”.

In short, following a firm methodology that means spending the time to understand the risk at the product level as the first step and subsequently at the advice. When insurers have a full understanding it can mean that these products can be utilised and clients can see the benefits as they are incorporated into the advice strategy.

For more info, Call Australian Securities Limited on 1300 275 275 or email via our contact us page