• PCX offers investors access to a diversified portfolio of global private credit investments via a listed ASX vehicle.
• Approximately $69 million of new capital was raised in October 2025, enhancing the ability to deploy into high-quality opportunities and deepen portfolio diversification. Pengana intends to continue raising capital from time to time to support ongoing growth and investment activity.
• PCX rated “Recommended” by Lonsec in the latest review, which was published this month*.
• The portfolio is primarily allocated to directly originated loans with strong structural protections, supplemented by targeted exposures to structured and opportunistic credit strategies.
• Income generation is a key focus, supported by a disciplined, institutional-grade investment process and independent oversight by Mercer.
• Risk is actively managed through diversification across managers, strategies, borrowers and sectors, and by maintaining a focus on downside protection.
• The Trust has limited correlation to public markets and aims to offer greater stability through market cycles.

Capital Raising Successfully Completed

We were pleased to successfully complete a follow-on capital raising for PCX in October, securing approximately $69 million in additional subscriptions. We greatly appreciate the support we received from both existing and new unitholders. The additional capital allows us to further diversify the portfolio in line with our disciplined, multi-manager approach. Moving forward, we will continue to take opportunities to grow the size of the vehicle to further enhance its liquidity and unitholder diversity.

Market Update

Stability but with Fragile Foundations

Global markets remain in a state of measured optimism, but under the surface, risks are quietly reasserting themselves. Headline inflation has continued to ease across major economies, labour markets are softening without collapsing, and interest rate expectations are becoming more stable. US equity markets continue to trade near record highs, buoyed by hopes of a soft landing and a likely Fed pause. However, performance remains concentrated in large-cap technology stocks reflecting positive AI sentiment, while more cyclical and rate-sensitive sectors lag. Meanwhile, in fixed income markets, credit spreads remain tight across both investment-grade and high-yield sectors, suggesting market confidence in corporate fundamentals. However, many analysts believe the tight spreads reflect historically high yields rather than a positive view on fundamentals.

Despite the relatively benign surface, there are mounting signs of fragility. Equity markets have been unforgiving toward companies that miss earnings or lower guidance, and a small number of high‑profile defaults now working through bankruptcy processes have further unsettled sentiment. Together, these developments serve as a reminder that in a market priced for perfection, even modest disappointments can trigger disproportionate adverse reactions.

Much of the recent noise in US credit markets has stemmed from high-profile failures resulting from fraudulent corporate activity whose impact was confined principally to the syndicated loan market and bank warehouses. These were not direct lending failures in the institutional private credit space where PCX is focused. Syndicated public loans are widely distributed, and lack the bespoke protections, alignment, and ongoing oversight typical of the segment of private credit in which we invest. Bank warehouse structures lack independent verification and custodial oversight.

These are not failures of the asset class, but of structure, execution, and governance. They underscore a central truth of credit investing: outcomes are not determined by labels (e.g. public or private credit) but by discipline, i.e., how loans are structured, underwritten and monitored. While even the most robust frameworks cannot fully eliminate the risk of fraud, thoughtful structuring and active oversight can meaningfully mitigate its likelihood and impact.

And that distinction matters. In well-structured, actively managed private credit strategies, like those targeted by PCX, lenders underwrite and hold the loans to maturity, so they structure covenants, enforce information rights, and monitor performance continuously. These dynamics are fundamental to how PCX approaches investing, combining institutional quality manager selection with Mercer’s independent research and portfolio construction. That is not to suggest immunity from risk: no portfolio is perfect, and no manager can fully eliminate the possibility of unforeseen events. But our intentional focus on diversified exposures, institutional manager discipline, Mercer investment and operational due diligence, and alignment of interests materially reduces the probability and impact of issues that may arise.

Portfolio Update

The Trust’s underlying funds continue to perform well with no signs of credit deterioration.

The October cum-NAV per unit declined marginally from $2.02 to $2.01, primarily reflecting the September distribution and a limited number of underlying fund investor statements received during the month. The Trust declared a 1.3c dividend for October, in excess of our target minimum and in line with the recent trend.

In our previous update, we noted that an increased October distribution was anticipated in order to target an ex-distribution NAV per unit of approximately $2.00 and mitigate dilution for unitholders not taking up their full entitlement. This expectation was based on estimated reporting timetables from underlying funds. However, a number of these statements were received later than expected, in early November, and declaring a higher October distribution under those circumstances would have reduced the ex-distribution NAV below $2.00, disadvantaging new investors. This outcome reflects timing of reporting rather than any deterioration in underlying performance. Most of our Balanced and Total Return managers will report their September-quarter results through November and December, which has historically been a supportive period for the NAV.

The funds from the recent capital raising are expected to be fully deployed by the end of November, which should prevent any material dilution of Trust returns.

Portfolio Composition³

At 31 October, the Trust has maintained its target allocation mix, with capital diversified across fund types and managers as follows:

• Income: $94.2m invested across 8 managers
• Balanced: $34.7m invested across 5 managers
• Total Return: $31.3m invested across 11 managers

The portfolio remains within stated limits across geography, seniority and investment strategy. Diversification by vintage, style and manager continues to underpin downside protection and liquidity planning.

Our underlying fund managers focus on providing credit to corporates operating within defensive, non-cyclical industries such as Financials, Industrials, Information Technology, and Health Care. These 4 sectors account for 68% of the total Trust exposure. Exposure to the Real Estate sector accounts for less than 3% of the total Trust exposure.