Since the establishment of Narrow Road Capital in 2012, client returns have substantially exceeded benchmarks and the vast majority of our peers. Whilst absolute returns are important, the returns have been achieved with minimal risk being taken. The track record since 2012 is simply a continuation of the performance achieved at other firms prior to the establishment of Narrow Road Capital.

We do not claim to have predicted the severity or timing of the credit crunch that began in 2007, but we do claim to have selected securities for our clients then that have been able to withstand the turbulent conditions in the years following its onset.

Of the 37 securities we managed for clients in April 2008, over 99% of all principal has been returned to investors with the remaining securities all materially stronger and safer investments than they were at their inception. None of these investments deviated materially from our expectations of their credit quality and none ever missed an interest or principal payment.

Whilst a portion of our securities did experience material volatility in their pricing as whole sectors were repriced together, over the medium term none of the securities lost money. Many of our peers suffered multiple defaults and substantial capital losses in their portfolios.

In addition, our record of identifying losers is also very strong. By understanding the key risks of each particular sector we are investing in, we have been able to identify and avoid the weakest securities. A surprisingly high percentage of these weakest links have defaulted.

We look forward to an opportunity to present to you our track record, our investment process and the many opportunities for exceptional returns that we see in Australian crossover credit.