Performance Report

May 2026

Fund: Coolabah Active Global Bond Fund - Assisted Investor Class

Strategy: Global Active Credit

Return (since Sep. 2024): 4.73% pa gross (3.88% pa net)

Net return volatility (since Sep. 2024): 3.79% pa

Objective: The Coolabah Active Global Bond Fund (CAGBF) targets returns in excess of the Bloomberg Global Aggregate Corporate Bond Index (hedged to AUD), after management costs, by 1.0% to 2.0% per annum over rolling 3 year periods.

Strategy: The Fund offers an active fixed-income strategy focused on mispricing in global government and corporate bonds with the aim of delivering superior risk-adjusted returns over the Bloomberg Global Aggregate Corporate Index (hedged to AUD). The Fund seeks to have broadly similar interest rate duration risk to the Index subject to any active decisions implemented by the Portfolio Manager to generate excess returns.
The Fund is permitted to invest in Australian and global bonds, such as government and semi-government bonds, bank and corporate bonds, hybrid and asset-backed securities, including residential-mortgage-backed securities, issued in G10 currencies hedged to Australian Dollars, as well as cash, cash equivalents and related derivatives. It can borrow, use derivatives and short-sell, meaning it may be geared (or leveraged). Leverage can amplify gains and also amplify losses.

Period Ending 2026-05-31	Gross Return	Net Return	Bloomberg Global Agg Corp Index (AUD Hedged)	Gross Excess Return^†	Net Excess Return^†
1 month	1.05%	0.96%	0.92%	0.13%	0.04%
3 months	-0.16%	-0.37%	-0.53%	0.37%	0.16%
6 months	1.39%	1.03%	0.81%	0.58%	0.22%
1 year	6.96%	6.11%	5.24%	1.72%	0.87%
Inception pa Sep. 2024	4.73%	3.88%	3.27%	1.46%	0.61%

^† The Excess Return column represents the gross and net return above the Bloomberg Global Aggregate Corporate Index (AUD hedged)

Disclaimer: Past performance does not assure future returns. Returns and yields are shown net of management fees and costs unless otherwise stated. All investments carry risks, including that the value of investments may vary, future returns may differ from past returns, and that your capital is not guaranteed. To understand Fund’s risks better, please refer to the Product Disclosure Statement available at Coolabah Capital Investments' website.

*Note: all portfolio statistics other than yields and duration are reported on gross asset value*
Av. Portfolio Credit Rating	A	Modified Interest Rate Duration	5.80 years
Portfolio MSCI ESG Rating	AA	Gearing Permitted?	Yes
No. Cash Accounts	22	Net Annual Volatility (since incep.)	3.79%

No. Notes and Bonds

226

Fund: Coolabah Active Global Bond Fund - Assisted Investor Class

Return/Risk: 4.73% pa gross/3.88% pa net (3.79% pa volatility)

The since inception gross (net) return of 4.73% pa gross (3.88% pa net) is the total annual return earned by the fund since Sep. 2024, including interest income and movements in the price of the bond portfolio after all fund fees (assuming net returns are calculated from the historic gross returns using the current fee structure as displayed in the Product Disclosure Statement). The net return quoted applies to the Coolabah Active Global Bond Fund - Assisted Investor Class, with quarterly distributions reinvested. Investment return will vary depending upon investment date and any additional investments and withdrawals made. The annualised volatility estimate of 3.79% pa is based on the standard deviation of net daily returns since inception, which are then annualised, attributable to the Coolabah Active Global Bond Fund - Assisted Investor Class.

Portfolio Managers

Christopher Joye, Ashley Kabel, Roger Douglas, Fionn O'Leary (Coolabah Capital Investments)

APIR Code	ETL2586AU	Fund Inception	23-Sep-24
ISIN	AU60ETL25862	Distributions	Quarterly
Benchmark	Bloomberg Global Agg Corp Index (AUD hedged)	Unit Pricing	Daily (earnings accrue daily)
Asset-Class	Global Credit	Mgt. & Admin Fee	0.65% pa
Target Return	1-2% pa above Benchmark after fees	Perf. Fee	20.5% of outperformance of benchmark after fees
Investment Manager	Coolabah Capital Investments (Retail)	Custodian	Citigroup

Fund: Coolabah Active Global Bond Fund - Assisted Investor Class

Return/Risk: 4.73% pa gross/3.88% pa net (3.79% pa volatility)

Portfolio commentary: In May, the long duration daily liquidity Coolabah Active Global Bond Fund (CAGBF) returned 1.05% gross (0.96% net), outperforming the Bloomberg Global Aggregate Corporate Index Hedged AUD (0.92%) by 0.13% (0.04% net). Over the previous 12 months, CAGBF returned 6.96% gross (6.11% net), outperforming the Bloomberg Global Aggregate Corporate Index Hedged AUD (5.24%) by 1.72% (0.87% net). CAGBF ended May with a running yield of 6.62% pa, a weighted-average credit rating of A, and a portfolio weighted average MSCI ESG rating of AA.

Since the inception of CAGBF in September 2024, it has returned 4.73% pa gross (3.88% pa net), outperforming the Bloomberg Global Aggregate Corporate Index Hedged AUD (3.27% pa) by 1.46% pa (0.61% pa net). While CAGBF's return volatility since inception has been low at around 3.79% pa (measured using daily returns), as a daily liquidity product with assets that are marked-to-market using executable prices, volatility does exist. This contrasts with illiquid credit (eg, loans and high yield bonds) wherein assets that have very high risk can appear to have remarkably low volatility, which is, in fact, just a mirage explained by the inability to properly value these assets using executable prices.

Strategy commentary: In May, investors increasingly looked through recurring geopolitical headline volatility, allowing rates and risk assets to rally.

As in the prior two months, the US-Iran conflict remained the dominant influence on markets. Despite a steady stream of conflicting headlines around a permanent ceasefire, hopes of a deal ultimately increased over the month, resulting in Brent crude falling 19.3% and WTI crude declining 16.9%. This eased the stagflation concerns that had weighed on sentiment and provided a broad tailwind for lower long-rate and appreciation in risk assets, while renewed enthusiasm around artificial intelligence added further support to equities and credit.

The rally in sovereign bonds over May masked significant intra-month volatility. Mid-month, the conflict deteriorated after Trump said the US did not need the Strait of Hormuz open "at all", reigniting concerns that a prolonged disruption to oil supply would place upward pressure on inflation and force central banks to remain more restrictive. Several sovereign bond yields consequently pushed to multi-year highs.

As the outlook improved into month-end, however, most benchmark 10-year yields finished lower: German Bund yields fell 10bps to 2.94%, UK Gilt yields declined 20bps to 4.81%, French OAT yields rallied 14bps to 3.55%, and Italian BTP yields fell 21bps to 3.65%.

US Treasuries and JGBs were exceptions, with 10-year yields rising 6bps to 4.44% and 14bps to 2.66% respectively.

Japan was a notable underperformer as stronger producer price inflation, the market's ongoing reaction to Prime Minister Takaichi's expansionary agenda, and supplementary-budget supply concerns reinforced the narrative that the Bank of Japan remains behind the curve.

Sovereign spreads also tightened, with the OAT/Bund spread narrowing 4.5bps to 61.1bps and the BTP/Bund spread tightening 10.8bps to 71.4bps.

Credit markets participated in the broader rally. US CDX IG tightened 3.9bps to 50bps, while CDX HY tightened 30bps to 300bps. In Europe, iTraxx Main tightened 6.5bps to 53bps, iTraxx Xover rallied 33.6bps to 259bps, and the senior financials index tightened 7.2bps to 55bps.

Cash credit also performed, with US investment-grade corporate spreads tightening 7bps to 71bps, euro aggregate corporate spreads tightening 3bps to 78bps, and sterling aggregate corporate spreads tightening 7bps to 85bps.

Global corporate bond benchmarks produced positive returns, with the Global Aggregate Corporate Index, hedged to US dollars, rising 0.87% in May, while the duration-hedged equivalent gained 0.84%.

Equities performed strongly on a total-return basis as markets increasingly looked through the geopolitical noise.

Fund: Coolabah Active Global Bond Fund - Assisted Investor Class

Return/Risk: 4.73% pa gross/3.88% pa net (3.79% pa volatility)

Strategy commentary cont'd: The S&P 500 set another record high and returned 5.3% over the month, while the Nasdaq 100 returned 10.6%, led by strength in semiconductor stocks.

Upbeat capex guidance from the hyperscalers and robust earnings from key semiconductor manufacturers fuelled optimism around the AI investment cycle, with the Philadelphia Semiconductor Index rising 22% in May. This helped drive South Korea's KOSPI 200 to a record high, returning 35% over the month.

Other global equity markets also advanced, with the Euro Stoxx 50 returning 3.9%, Euro Stoxx Banks returning 6.7%, the FTSE 100 returning 0.7%, and the Nikkei 225 returning 11.9%.

Currency and commodity markets reflected the same mix of easing energy concerns and resilient risk appetite. The euro declined 0.6% against the US dollar to 1.166, while the US dollar rose 1.7% against the yen to 159.27. Gold fell 1.7% to US$4,540/oz, while bitcoin declined 3.8% to US$73,582. Oil was the standout mover, with Brent crude declining 19.3% to US$92.05/bbl and WTI crude falling 16.9% to US$87.36/bbl as markets increasingly priced a lower probability of sustained disruption to global energy supply.

Primary credit markets remained active, consistent with May typically being a busy month of supply ahead of the seasonal summer slowdown. In the US, investment-grade supply totalled US$169bn, with Financials accounting for roughly half of issuance and year-to-date supply reaching approximately US$1tn, around 25% ahead of last year's pace.

Demand remained robust. Goldman Sachs issued US$9bn across four tranches on US$31bn of demand, with all tranches rallying around 2bps to 4bps on the break. ServiceNow, a relatively infrequent issuer despite its prominence in the technology sector, printed US$4bn across five tranches and attracted peak demand of US$38bn, leaving the transaction 9.5 times subscribed and the bonds around 4bps tighter on the break.

European primary markets also saw a pick-up in activity, with €114bn of investment-grade supply, including €44bn from Financials, a record for the month of May. Despite the heavy supply, financial deals averaged a 3.1x subscription rate, highlighting the depth of investor cash available. CBA issued an 11NC10 Tier 2 transaction, only the second of its kind in the euro market following Citi's 11NC10 Tier 2 last year, with the bonds rallying 4bps on the break.

Away from Financials, the hyperscalers continued to access capital markets, with Google issuing €9bn across six tranches, its largest ever euro-denominated transaction.

Australian credit markets also benefited from the constructive global backdrop. Australia saw approximately A$22.2bn of investment-grade primary supply in May, materially above the A$12.3bn issued in May 2025, taking year-to-date supply to A$81.1bn compared with A$68.9bn at the same point last year.

The Australian major banks resumed issuing after half-year results, with ANZ printing A$4.7bn of 3-year and 5-year senior FRNs, NAB issuing A$3.5bn across 5-year fixed, 5-year FRN senior and 15NC10 Tier 2 formats, and Westpac issuing A$3.0bn of 3-year senior FRNs.

ANZ also accessed securitisation markets via its Kingfisher RMBS programme, pricing the AAA-rated A1 tranche at BBSW plus 93bps.

Australian fixed income and credit markets rallied over the month. The 10-year Australian government bond yield fell 23bps to 4.83%, while 5-year major bank senior spreads tightened 2.7bps to 66.6bps. Major bank subordinated spreads widened modestly by 2.3bps to 124.2bps, while 5-year major bank hybrid spreads rallied 20.5bps to 185.4bps. The AUD iTraxx Index tightened 5.6bps to 72.3bps.

Domestic bond benchmarks were positive, with the AusBond Credit Index returning 1.36%, the AusBond Credit FRN Index returning 0.47%, and the AusBond Composite Index returning 1.62%.

The Australian dollar was broadly steady, declining 0.2% against the US dollar to 0.7185, while the ASX200 price index rose 0.8% and the ASX200 total return index gained 1.2%.

Fund: Coolabah Active Global Bond Fund - Assisted Investor Class

Return/Risk: 4.73% pa gross/3.88% pa net (3.79% pa volatility)

Strategy commentary cont'd: Other notable AUD issuers included Canadian pension plans OMERS and CDPQ, and European banks BPCE and Caixabank.

The OTC hybrid market was active, with issuance from local insurers Suncorp and QBE, as well as a NC6 hybrid from Barclays. The AOFM issued a new 5% June 2036 green bond via syndication, pricing just 0.5bps cheap to the non-green curve. In semi-governments, NSWTC, AUSCAP and QTC all issued syndicated deals, with strong demand reflected in average oversubscription of 3.8x.

New Zealand markets also firmed. The 10-year New Zealand government bond yield fell 23bps to 4.34%, while the New Zealand dollar rose 1.4% against the US dollar to 0.5988. Equities also performed well, with the NZX50 price index gaining 2.6% and the NZX50 total return index rising 2.6% over the month.

By month-end, the tone across risk assets was constructive. Headlines around the US-Iran conflict remained frequent, but the market's sensitivity to each new development appeared to diminish as investors became accustomed to the pattern of positive announcements being subsequently walked back. The improvement in risk sentiment was reinforced late in the month by reports that the US and Iran were working towards a memorandum of understanding, helping credit spreads, corporate bond benchmarks and equities close May on a firmer footing.

Fund: Coolabah Active Global Bond Fund - Assisted Investor Class

Return/Risk: 4.73% pa gross/3.88% pa net (3.79% pa volatility)

Strategy commentary cont'd:

Coolabah's strategies performed well in May, led by the long-duration Active Composite Bond Fund (ETF: FIXD), which returned 1.74% net versus 1.62% for the AusBond Composite Bond Index. The Active Global Bond Fund also performed strongly, returning 0.96% to 0.98% net, depending on share class, versus 0.92% for the Global Aggregate Corporate Index in AUD. Among the floating-rate strategies, the Long-Short Credit Fund returned 0.58% to 0.61% net, the Global Floating-Rate High Yield Fund (ETF: YLDX) returned 0.56% to 0.58% net, the recently launched Global Carbon Leaders Fund (ETF: CBNX) returned 0.55% to 0.57% net, the Long-Short Opportunities Fund returned 0.53% net, the Floating-Rate High Yield Fund returned 0.51% to 0.52% net, and the Short Term Income Fund returned 0.40% to 0.44% net. All of these floating-rate strategies outperformed the RBA overnight cash rate, which returned 0.34% for the month.

Over 12 months, the Long-Short Opportunities Fund returned 7.05% net, the Global Floating-Rate High Yield Fund returned 6.73% to 6.89% net, the Long-Short Credit Fund returned 6.52% to 6.75% net, the Floating-Rate High Yield Fund returned 6.33% to 6.55% net, and the Active Global Bond Fund returned 6.11% to 6.26% net compared with 5.24% for the Global Aggregate Corporate Index in AUD. The RBA overnight cash rate returned 3.78% over the same period.

The selected strategies also continue to offer attractive gross running yields relative to cash (see chart below).

Past performance is not a reliable indicator of future performance. Investors should read the relevant Product Disclosure Statement and Target Market Determination before making any investment decision and consider obtaining advice from an independent financial adviser to determine whether an investment is appropriate for their objectives, financial situation and needs.

Fund: Coolabah Active Global Bond Fund - Assisted Investor Class

Return/Risk: 4.73% pa gross/3.88% pa net (3.79% pa volatility)

Strategy commentary cont'd:

Fund: Coolabah Active Global Bond Fund - Assisted Investor Class

Return/Risk: 4.73% pa gross/3.88% pa net (3.79% pa volatility)

Strategy commentary cont'd:

Fund: Coolabah Active Global Bond Fund - Assisted Investor Class

Return/Risk: 4.73% pa gross/3.88% pa net (3.79% pa volatility)

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Performance Disclaimer:
Past performance does not assure future returns. All investments carry risks, including that the value of investments may vary, future returns may differ from past returns, and that your capital is not guaranteed. This information has been prepared by Coolabah Capital Investments (Retail) Pty Limited ACN 153 555 867. It is general information only and is not intended to provide you with financial advice. You should not rely on any information herein in making any investment decisions. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. The Product Disclosure Statement (PDS) and Target Market Determination (TMD) for the funds should be considered before deciding whether to acquire or hold units in it. A PDS and TMD for these products can be obtained by visiting www.coolabahcapital.com. Neither Coolabah Capital Investments (Retail) Pty Limited, Equity Trustees Limited nor their respective shareholders, directors and associated businesses assume any liability to investors in connection with any investment in the funds, or guarantees the performance of any obligations to investors, the performance of the funds or any particular rate of return. The repayment of capital is not guaranteed. Investments in the funds are not deposits or liabilities of any of the above-mentioned parties, nor of any Authorised Deposit-taking Institution. The funds are subject to investment risks, which could include delays in repayment and/or loss of income and capital invested. Past performance is not an indicator of nor assures any future returns or risks. Coolabah Capital Investments (Retail) Pty Limited (ACN 153 555 867) is an authorised representative (#000414337) of Coolabah Capital Institutional Investments Pty Ltd (AFSL 482238). Equity Trustees Ltd (AFSL 240975) is the Responsible Entity for these funds. Equity Trustees Ltd is a subsidiary of EQT Holdings Limited (ACN 607 797 615), a publicly listed company on the Australian Securities Exchange (ASX: EQT). A Target Market Determination (TMD) is a document which is required to be made available from 5 October 2021. It describes who this financial product is likely to be appropriate for (i.e. the target market), and any conditions around how the product can be distributed to investors. It also describes the events or circumstances where the Target Market Determination for this financial product may need to be reviewed. The Fund’s Target Market Determination is available here' website.

Ratings Disclaimer:
MSCI Disclaimer: Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. No further distribution or dissemination of the MSCI data is permitted without MSCI’s express written consent.