RAM Income Capital Unveils Monthly Income Notes Secured by Australian Residential Mortgages and Securitised Assets

Real Asset Management's Credit Origination and Brighten Financial Integration

Real Asset Management Pty Ltd, the investment manager for RAMHA, operates as an Australian alternative asset manager with a pan-Asia footprint spanning seven offices including Sydney, Melbourne, Brisbane, Auckland, Manila, Shanghai, and Hong Kong. Founded in 2010, the firm offers over 25 investment strategies supported by a team of more than 250 finance professionals. RAM's direct loan origination is conducted through Brighten Financial Pty Ltd, a wholly owned subsidiary focused on non-bank residential lending across Australia.

Brighten Financial benefits from warehouse funding provided by eight Australian and global investment banks. The originator has completed ten public residential mortgage-backed securities transactions, raising $6.4 billion from leading Australian banks and top-tier international financial institutions. Every loan originated by Brighten undergoes rigorous credit evaluation including independent property valuations and comprehensive borrower assessments. This integration of origination, servicing, and portfolio management ensures comprehensive credit risk oversight within the RAMHA note structure.

Portfolio Composition and Geographic Diversification Across Australia

The RAMHA notes are backed by a portfolio of 7,271 residential mortgage loans averaging $582,883 per loan. The portfolio allocation consists of 58.41% in direct loan investments (residential mortgages originated and serviced by Brighten) and 41.46% in securitised investments via the RAM Credit Securities Trust Class A1 Notes, with 0.13% held in cash. All assets are 100% floating rate first registered mortgages, providing senior secured protection for noteholders.

Geographically, the portfolio spans all Australian states: Victoria (29.0%), New South Wales (28.2%), Queensland (25.9%), Western Australia (8.3%), South Australia (5.7%), and the Australian Capital Territory, Tasmania, and Northern Territory combined (2.8%). Property types include detached houses (66.7%), apartments and units (17.0%), townhouses (4.8%), semi-detached houses (5.1%), commercial properties (4.3%), and other types (2.1%). Borrower profiles show 58.4% self-employed and 41.6% PAYG employees.

Credit Quality and Loan-to-Value Risk Management

The RAMHA portfolio exhibits strong credit quality metrics supporting the senior secured status of noteholders. The weighted average loan-to-value ratio is 67.00%, reflecting substantial equity cushions. Arrears exceeding 90 days stand at a low 0.58%, which the company notes is historically favorable compared to banking and non-bank sectors. The portfolio is unleveraged with 0.0% gearing applied to the underlying assets.

Secured asset backing per note was $103.50 as of 30 June 2026, calculated by valuing secured assets plus accrued interest on the portfolio minus accrued interest on RAMHA notes, dividend provisions, corporate tax, and other expenses, divided by the number of outstanding notes. This figure is calculated before accrued fees, with investors entitled at maturity to the $100.00 face value plus accrued interest. A Private Risk Assessment Report from March 2026 provided credit rating implications but is not a formal credit rating nor an investment recommendation.

Interest Payment Structure and Floating Rate Mechanism

Interest on the notes is paid monthly on the 12th, at a rate of 1M BBSW plus a 3.00% annual margin. As of 12 July 2026, the net yield after fees is 7.30% per annum. The notes include a step-up feature increasing the margin by 0.25% on 10 April 2031, enhancing yield in the final year before maturity. Interest payments began after the issue date of 10 October 2025 and will continue until maturity on 10 April 2032.

Monthly interest payments in 2025 and 2026 have fluctuated with changes in the 1M BBSW rate. The initial payment in October 2025 was $0.5895 per note (0.5895%). Payments in 2026 ranged from $0.5216 in April to $0.6196 in July, reflecting the floating rate nature. The company cautions that both ASX trading prices and base interest rates are variable and there are no guarantees the issuer will meet investment objectives or that forecasts will materialize.

Brighten Financial’s Extensive Broker Network and Market Reach

Brighten Financial, responsible for loan origination and servicing of the RAMHA portfolio, maintains a wide distribution network across Australia. It partners with over 19,000 brokers nationwide, including major loan aggregators. This extensive network supports the origination of residential mortgages forming the RAMHA portfolio. The monthly loan origination settlement target exceeds $300 million, illustrating the platform’s lending scale.

This broad distribution ensures diverse borrower sourcing across regions and employment types, enhancing portfolio diversification. Collaborations with major aggregators provide access to a wide borrower base seeking residential mortgages, underpinning the 7,271 loans in the RAMHA portfolio spread across all Australian states and territories.

Senior Secured Capital Structure and Trustee Oversight

RAMHA notes hold senior secured status within RAM Income Capital Limited’s capital structure. The Trust Company (Australia) Limited acts as both Note and Security Trustee, safeguarding noteholder interests. BDO Audit Pty Ltd serves as auditor, providing independent financial verification. MUFG Corporate Markets (AU) Limited manages note registry functions including payments and record-keeping.

The senior secured ranking grants noteholders priority claims on portfolio assets ahead of other creditors. This, combined with secured asset backing of $103.50 per note and a diversified pool of first registered mortgages, aims to support capital preservation and consistent income distribution throughout the note term. Governance and independent verification by established service providers enhance security for investors.

Robust Risk Management via Credit Assessment and Portfolio Discipline

RAM’s investment approach prioritizes credit quality and risk management through disciplined portfolio construction. The firm states its credit process favors high-quality, reliable income streams with low credit loss probability. Each loan in the RAMHA portfolio is originated by Brighten with independent property valuations and thorough borrower assessments prior to inclusion.

Portfolio construction limits investments to Australian secured credit originated by Brighten, backed by first registered mortgages. This focused origination source ensures consistent credit standards and underwriting discipline. The company highlights that strict portfolio rules and diversification strategies contribute to risk mitigation. The 0.58% arrears rate over 90 days, favorable relative to banking and non-bank sectors, indicates effective credit selection.

Investor Access to Alternative Credit with Monthly Income Stability

RAMHA notes offer investors entry to Australian secured credit markets typically accessible only to institutional participants. The structure delivers monthly income with a fixed maturity date and face value, catering to demand for income investments with defined repayment profiles. Monthly distributions on the 12th provide predictable cash flow throughout the term.

The combination of monthly payments, maturity on 10 April 2032, and secured asset backing addresses growing private investor demand for regular income solutions. The institutional-quality investment philosophy extends alternative credit market access beyond institutions to eligible retail investors. The $100.00 face value per note allows accessible investment sizing, with secured asset backing of $103.50 per note as of 30 June 2026 providing a cushion above nominal value.

RAM Group’s Scale in Alternative Asset Management and Market Context

RAM operates within Australia’s alternative asset management sector, offering credit, real estate, and private equity investment solutions to institutions and high-net-worth families globally. The firm manages over 25 strategies across its platform. While total assets under management were not disclosed in the RAMHA announcement, Brighten Financial has raised $6.4 billion via ten public residential mortgage-backed securities transactions, demonstrating significant credit origination and capital markets capability.

The RAMHA notes represent an extension of RAM’s credit platform into a structured monthly income product. The portfolio of 7,271 loans reflects Brighten’s origination capacity and RAM’s portfolio management rigor. This launch addresses investor demand for regular income products backed by transparent, diversified credit portfolios with institutional-grade risk management. The product fits within the broader growth of Australia’s alternative credit market, where non-bank lending platforms have significantly expanded residential mortgage origination in recent years.