Dominion Income Trust 1 Achieves 7.47% Annual Total Return Since Launch with Consistent Monthly Distributions

Monthly Distribution Strategy and Income Objective for DN1 Investors

Dominion Income Trust 1 is structured to provide monthly income to unitholders by targeting distributions approximating 1-month BBSW plus a 3.50% annual margin, net of fees. Monthly payments support investors seeking consistent cash flow, differentiating the trust from traditional fixed income vehicles that typically distribute quarterly or annually. The trust’s structure is specifically designed to reliably meet these monthly distribution commitments.

The management fee is 0.50% per annum, deducted from gross returns. In June 2026, the trust paid a monthly distribution of 70.5621 cents per unit. The trust invests entirely in a note held by Dominion Investment Trust, providing investors with straightforward access to Realm’s diversified debt investment strategies. This approach enables the trust to deliver targeted income while maintaining exposure across various debt asset classes managed by Realm.

Performance Since March 2025 Inception and Total Return Results

Since listing on the ASX on 4 March 2025, Dominion Income Trust 1 has consistently met its objectives. From its inception date of 27 February 2025, the trust has achieved a total return of 7.47% per annum on an NTA basis. This outperforms the 1-month BBSW benchmark return of 3.83% per annum over the same period, after accounting for the 0.50% management fee and the 3.50% margin target. The one-year total return to 30 June 2026 was 7.32%, demonstrating steady performance aligned with distribution goals.

In June 2026 alone, the trust generated a total return of 0.60%, exceeding the 1-month BBSW return of 0.35%. Over the three months to 30 June 2026, the trust returned 1.72% compared to the 1.04% BBSW benchmark. The six-month total return to 30 June 2026 was 3.55%, outperforming the 1.97% BBSW return, underscoring the trust’s ability to consistently deliver returns above the base interest rate across various timeframes.

Equity Threshold Protection Mechanism for Investor Loss Mitigation

A key feature of Dominion Income Trust 1 is the embedded Equity Threshold, provided by Realm and co-investors, which acts as a loss absorption buffer protecting unitholders until the underlying note’s maturity. This subordinated capital layer absorbs portfolio losses before impacting unitholders, adding downside protection alongside the diversified debt portfolio.

Net income generated must first restore the Equity Threshold before distributions are made to unitholders, ensuring the buffer remains intact. This aligns Realm’s interests with investors, as Realm’s capital is at risk if portfolio performance declines. This mechanism supports consistent income payments while managing downside risk.

Diversified Debt Securities Portfolio and Investment Strategy

The trust invests wholly in a portfolio note holding a diversified mix of debt securities, loans, trusts, notes, and bank facilities. The strategy primarily involves investments in Realm-managed funds, with flexibility to hold direct securities when suitable. This diversified exposure spans public and private debt markets, multiple credit strategies, and fixed income sectors, aiming to generate consistent income across market cycles.

The underlying note has low correlation to equities, offering a complementary risk profile to growth-oriented equity portfolios. It is more aligned with credit market and fixed income performance. The trust benefits from Realm’s broad strategy suite, including the Realm High Income Fund, Realm Global High Income Fund AUD, Realm Short Term Income Fund, and Realm Strategic Income Fund, all of which have met or exceeded return targets since inception.

Investment Note Maturity and Margin Step-Up Feature

The trust’s underlying note matures in 6 years on 27 February 2031, with an optional call date after 5 years on 27 February 2030. Realm may redeem the note early if market or portfolio conditions warrant, providing flexibility to refinance or restructure for unitholder benefit.

If the note is not called at 5 years, a margin step-up increases the margin by 1% per annum for the final year until maturity. This compensates unitholders for extended duration risk and incentivizes early redemption if conditions are favorable, balancing manager flexibility with investor protection.

Realm Investment Management’s Proven 12-Year Track Record and $12 Billion AUM

Dominion Income Trust 1 is managed by Dominion Investment Management Pty Ltd, a corporate authorised representative of Realm Pty Ltd, a leading Australian credit and fixed income manager. Realm has a 12-year history managing over $12 billion in debt strategies, demonstrating consistent performance across market cycles.

The senior leadership includes Andrew Papageorgiou (Head of Bank Capital & Corporate Credit), Robert Camilleri (Head of Structured Credit), Ken Liow (Head of Strategy & Risk), and Broc McCauley (Head of Distribution), supported by a 44-member team across Melbourne, Sydney, Brisbane, and London. The investment heads average 27 years of market experience, supported by a deep, experienced team. Realm’s growth is driven by a fundamentally oriented, contrarian investment approach supported by extensive quantitative tools.

Realm’s Comprehensive Suite of Debt and Income Strategies

Beyond Dominion Income Trust 1, Realm offers a suite of complementary debt and income strategies, including the flagship Realm High Income Fund, Realm Global High Income Fund AUD, Realm Short Term Income Fund, and Realm Strategic Income Fund. All have met or exceeded their return targets since inception, reflecting consistent achievement of investment objectives.

Dominion Income Trust 1 benefits from exposure to these strategies and direct debt holdings, capturing diverse credit return sources such as bank capital securities, corporate credit, structured credit, and international debt. This multi-strategy approach enhances the portfolio’s ability to deliver steady monthly income across varying credit market environments.

Wide Platform Access for Australian Investors

The trust is available on numerous Australian investment platforms including BT Panorama, CFS Edge, DASH, HUB24, Macquarie Wrap, Mason Stevens, My North, Netwealth, and Praemium. This broad platform presence facilitates access for financial advisers and self-directed investors, simplifying integration and administration.

Alongside its ASX listing (ticker: DN1) since 4 March 2025, which provides a secondary market for trading units, the trust’s platform availability ensures flexible access for investors preferring either direct platform investment or exchange trading.

NTA and Market Pricing as of 30 June 2026

As at 30 June 2026, Dominion Income Trust 1’s net tangible asset per unit was $100.07, while the ASX closing price was $99.07, reflecting a modest discount of approximately $1.00 per unit. This narrow discount indicates investors value the units close to their underlying asset worth, suggesting reasonable market efficiency.

With 3,450,000 units issued, the trust’s total net asset value is approximately $345.24 million. This scale supports portfolio diversification and investment across the targeted debt securities. The transparency of NTA and market price assists investors in assessing unit value relative to the underlying portfolio.

Investment Philosophy and Fundamental Analysis Approach

Realm employs a fundamentally driven investment philosophy with a contrarian bias, focusing on detailed credit analysis to identify mispriced opportunities offering attractive risk-adjusted returns. The contrarian approach involves acquiring debt exposures when market pessimism is high and prices are depressed, aiming to capitalize on improving credit sentiment.

This methodology is reinforced by comprehensive quantitative tools that support portfolio decisions and risk management, blending human judgment with data-driven insights. This balanced framework underpins consistent performance across Realm’s strategies, including Dominion Income Trust 1, and aligns with institutional best practices in credit and fixed income management.