On 3 November, the Australian Financial Review (AFR) reported that Anthropic had disclosed several brokerage firms and investment platforms involved in its Australian retail offering arrangements. Meanwhile, on 2 November, the company filed an amended prospectus with the SEC, providing updated information on its third-quarter revenue performance and future infrastructure spending commitments.

As the Australian distribution channels become clearer, further details of how local investors may participate in the IPO are beginning to emerge.

■ Australian IPO Distribution Channels Announced

According to the AFR’s 3 November report, Anthropic has identified several brokerage firms and investment platforms involved in its Australian IPO distribution arrangements. The offering is expected to provide Australian investors with an opportunity to participate in the IPO.

However, subscription and allocation arrangements may differ depending on investor classification and distribution channel. Specific eligibility requirements, subscription limits and final allocations will remain subject to the official offering documents and announcements from participating institutions.

Anthropic has indicated that it intends to lodge a prospectus with the Australian Securities and Investments Commission (ASIC) for local retail investors. Further details, including the subscription opening date, allocation arrangements and investor eligibility requirements, are expected to be confirmed at that stage.

Anthropic has also established an official Australian IPO information page where investors can follow future announcements:

https://ipo.anthropic.com/au/

For investors interested in learning more about potential participation opportunities and upcoming offering arrangements, please contact us.

Reuters — Anthropic plans Australian share offer in IPO, CommSec says

■ Latest Financial Results: Third-Quarter Revenue Approaches US$17 Billion

In addition to developments surrounding the Australian offering, Anthropic’s amended Form S-1 filing on 2 November provided updated financial information for the period ended 30 September 2026.

According to the latest disclosures:

• Q3 2026 revenue: Approximately US$17 billion, up 47% from the previous quarter and approximately 12 times the level recorded a year earlier.
• Revenue for the first nine months of 2026: Approximately US$33.2 billion, representing year-on-year growth of 1,206%.

These figures highlight the significant expansion in Anthropic’s revenue across different reporting periods.

Reuters noted on 2 November that third-quarter revenue growth of 47% quarter-on-quarter was below the 144% growth recorded in the second quarter. Fortune similarly highlighted that while revenue continued to increase, the pace of sequential growth had moderated.

Importantly, both reports refer to a slowdown in the rate of revenue growth, rather than a decline in revenue itself.

Anthropic primarily generates revenue from customers using its Claude models and related services.

According to the SEC filing, the number of customers generating at least US$100,000 in revenue for the company over the preceding 12 months exceeded 11,900 as of the end of September, compared with more than 950 a year earlier. This provides another indication of the company’s expanding customer base.

However, Anthropic also cautioned in its prospectus that the rapid growth driven by early market adoption and customer expansion may not be sustainable at the same pace. Future revenue performance will continue to depend on customer demand and other factors.

■ US$895.4 Billion in Compute Commitments: What Does This Actually Mean?

Artificial intelligence requires substantial computing power. Whether Claude is answering questions, generating code or helping Anthropic train its next generation of AI models, these activities rely on advanced AI chips, servers and data centres.

As a result, Anthropic must secure computing capacity from cloud providers and data centre operators well in advance to support its future operations.

According to its amended SEC filing dated 2 November, Anthropic has entered into approximately US$895.4 billion in long-term contractual commitments, the vast majority of which relate to computing capacity and infrastructure.

While the figure is substantial, it is important to understand what it represents.

The US$895.4 billion is not money Anthropic has already spent, nor is it a debt obligation that must be repaid immediately.

Rather, it represents contracted purchase and lease commitments expected to be fulfilled over multiple years. Some agreements also include conditions or early termination rights.

The expected payment schedule is broadly as follows:

• Next 12 months: Approximately US$69.8 billion.
• By the end of 2030: Approximately US$447.5 billion in cumulative commitments.
• 2031–2045: Most of the remaining commitments are expected to be fulfilled during this period.

The US$69.8 billion expected within the next 12 months is already included in the US$447.5 billion cumulative figure and should not be added separately.

IG Australia — Anthropic IPO Share Trading Promotion

Why would Anthropic commit to such a substantial amount in advance?

The primary reason is straightforward: to secure future computing capacity.

Demand for high-performance AI chips and data centre infrastructure remains significant across the AI industry. Without sufficient access to computing resources, Anthropic may struggle to meet customer demand or support the development of more advanced AI models, even if its products continue to gain adoption.

These commitments also highlight an important consideration for the company’s future development: growth will depend not only on increasing revenue, but also on maintaining access to sufficient capital and computing resources.

During the first nine months of 2026, Anthropic recognised approximately US$18.8 billion in computing and infrastructure expenses, equivalent to around 57% of its revenue over the same period.

The US$895.4 billion figure is therefore better understood as a long-term commitment to securing the computing capacity required for future AI expansion, rather than expenditure that has already occurred.

■ When Is the Anthropic IPO Expected to Take Place?

According to reports published on 3 November, U.S. media had previously indicated that Anthropic could launch its IPO as early as mid-November, with the aim of completing its Nasdaq listing before the U.S. Thanksgiving holiday in late November.

As of 3 November, Anthropic had applied to list on the Nasdaq Global Select Market under the proposed ticker symbol ANT.

The company has also confirmed that it does not intend to seek a listing on the Australian Securities Exchange (ASX).

At this stage, several key details remain unconfirmed, including the IPO price range, number of shares to be offered, final capital raising amount and official listing date.

Further Updates and Enquiries

Candour Capital will continue to monitor announcements from the SEC, Anthropic and reputable media sources, providing updates on the IPO’s offering terms, listing progress and participation arrangements for Australian investors.

If you would like to receive further updates or enquire about relevant investment services and potential participation arrangements, please contact Candour Capital.

The availability of any investment service or participation opportunity remains subject to applicable regulatory requirements, official offering documents and announcements from relevant institutions.

Sources and References

1. Australian Financial Review (2026). CommSec starts rustling up Aussies for Anthropic float, 3 November.
   https://www.afr.com/technology/anthropic-reveals-more-australian-details-as-ipo-approaches-20261103-p61as6
2. U.S. Securities and Exchange Commission (2026). Anthropic, PBC, Form S-1/A, filed 2 November.
   https://www.sec.gov/Archives/edgar/data/2130357/000162828026068676/anthropicpbc-sx1ax1.htm
3. Anthropic (2026). Official Australian IPO Information Page.
   https://ipo.anthropic.com/au/
4. Reuters (2026). Anthropic revenue growth slows, compute financing risks mount ahead of IPO, 2 November.
   https://www.reuters.com/business/anthropics-quarterly-loss-shrinks-revenue-jumps-ahead-blockbuster-ipo-2026-11-02/
5. Fortune (2026). Anthropic’s growth slowed and costs jumped in the third quarter, updated IPO filing shows, 2 November.
   https://fortune.com/2026/11/02/anthropics-growth-slowed-and-costs-jumped-in-the-third-quarter-updated-ipo-filing-shows/

This article summarises and references publicly available regulatory filings, company disclosures and media reports for general information purposes only. It does not constitute investment advice, an offer of securities or an invitation to subscribe for securities. Information may change as the IPO process progresses. All offering details remain subject to the final effective offering documents and official announcements.

Disclaimer

This material is intended solely for Wholesale Clients as defined under section 761G of the Corporations Act 2001 (Cth) and is not intended for retail investors.

The information provided is general in nature and does not take into account the investment objectives, financial circumstances or particular needs of any individual.

Certain financial information, valuations and IPO-related details contained in this material are based on publicly available third-party reports and may be subject to change.

Any target returns, potential IPO valuations or estimated investment timeframes are indicative only and are not guaranteed.

Pre-IPO and unlisted equity investments involve significant risks and limited liquidity. An IPO may be delayed, postponed indefinitely or may not proceed at all. Investors may lose some or all of their invested capital.

Before making any investment decision, investors should carefully review the relevant official investment documents and seek independent legal, tax, financial and accounting advice appropriate to their individual circumstances.

On 26 October 2026 (US time), Anthropic publicly filed its Form S-1 registration statement with the US Securities and Exchange Commission (SEC), seeking to list on the Nasdaq under the proposed ticker symbol ANT. The company had previously submitted a confidential IPO filing in June 2026.

The public filing provides greater visibility into Anthropic’s business operations, financial performance and long-term expenditure commitments. Meanwhile, the Australian Financial Review (AFR) has reported on potential arrangements for Australian investors to participate in the offering.

However, the final offer price, number of shares to be issued and official listing date have yet to be confirmed.

■ What Is Anthropic?

Founded in 2021 by former OpenAI members, including Dario Amodei and Daniela Amodei, Anthropic is the developer of the Claude family of artificial intelligence models and assistants.

Its product portfolio includes Claude for individual users, Claude Code for software development, and Claude Cowork for enterprise workflows. Businesses and developers can also access Anthropic’s models through APIs and cloud computing platforms.

The company primarily generates revenue through usage-based fees and subscription services, including Claude Pro and Max.

Amazon and Google are among Anthropic’s major investors, as well as important cloud infrastructure and distribution partners. These relationships extend across computing capacity, product distribution and commercial competition, highlighting the interconnected nature of the AI industry.

■ Financial Performance: Revenue Growth, Enterprise Customers and Investment Commitments

According to public filing data reported by Reuters, Anthropic has recorded substantial revenue growth in recent years.

Revenue generated during the first six months of 2026 alone exceeded the company’s full-year revenue in 2025.

The filing also provides insights into Anthropic’s expanding enterprise customer base.

Over the 12 months to 30 September 2026:

• More than 11,900 customers each generated at least US$100,000 in revenue for Anthropic.
• Approximately 250 customers each contributed at least US$10 million in revenue.
• Anthropic’s customer base included more than half of the Fortune Global 500 companies and over 30% of the Forbes Global 2000 companies.

Despite its rapid revenue expansion, Anthropic continues to face substantial costs associated with AI infrastructure and model development.

For the first half of 2026, the company reported an operating loss of approximately US$693 million and a net loss of approximately US$80.7 billion.

Importantly, the reported net loss included approximately US$72.4 billion in accounting impacts associated with changes in the fair value of convertible notes and other financing instruments. This means the reported net loss should not be interpreted as an equivalent amount of cash expenditure during the period.

Reuters also reported that Anthropic has entered into contractual spending commitments with approximately eight partners totalling more than US$600 billion over the next decade, primarily related to computing capacity and infrastructure.

These commitments represent obligations spanning multiple years rather than expenditure already incurred or paid.

■ IPO Valuation and Expected Timeline

While Anthropic has publicly filed its registration statement, details surrounding the potential IPO valuation, offering size and listing timetable remain largely based on media reports.

According to The Wall Street Journal, citing people familiar with the matter, Anthropic could list as early as November 2026, with a potential valuation ranging from US$1.5 trillion to US$2 trillion.

The offering could potentially raise US$100 billion or more, although these figures remain speculative.

Separately, Reuters reported that some investors had discussed a valuation of approximately US$1.5 trillion.

Forbes Australia also noted that Anthropic had achieved a private-market valuation of approximately US$965 billion during a funding round in May 2026.

It is important to distinguish between valuations reported in connection with a potential IPO and those established during previous private funding rounds.

None of these figures represents a confirmed IPO valuation or final offering terms.

The ultimate offering size, indicative price range and listing timetable will remain subject to the company’s official disclosures and subsequent announcements.

■ Will Australian Investors Have an Opportunity to Participate?

According to an AFR report published on 27 October 2026, Macquarie Capital is among the underwriters involved in Anthropic’s proposed IPO and is expected to participate in arrangements relating to the Australian market.

The report also indicated that Anthropic intends to lodge a separate prospectus with Australian regulators in connection with the proposed Australian offering.

However, these arrangements have yet to be confirmed through formal offering documentation.

For Australian investors, several important details remain outstanding, including:

• Investor eligibility: Which categories of Australian investors may qualify to participate.
• Access channels: Which financial institutions or intermediaries may facilitate participation.
• Offering terms: The final pricing, allocation structure and subscription requirements.
• Share allocations: How shares may be allocated to eligible Australian investors.

Further clarification will depend on the publication of official offering documents and announcements from the relevant institutions.

Candour Capital will continue to monitor developments surrounding Anthropic’s proposed IPO, including the final offering terms and potential participation arrangements for the Australian market.

We aim to provide investors with timely updates based on publicly available information as further details emerge.

For updates on the IPO or enquiries regarding relevant investment services and potential participation arrangements, please contact Candour Capital.

Any services or participation opportunities will remain subject to applicable eligibility requirements and the terms of the official offering documents.

Sources and References

US Securities and Exchange Commission (SEC)

Anthropic Form S-1 Registration Statement

Reuters — Business and Financial Disclosures

SEC Filing Reference

Reuters — Technology Partnerships

Exclusive: Anthropic IPO Prospectus Reveals Dependence on Major Technology Partners

Reuters — Financial Performance

Anthropic Opens Its Books on AI Growth and Substantial Costs

The Wall Street Journal

Anthropic Unveils Paperwork for Blockbuster IPO

Reuters — IPO Valuation Expectations

Investors Temper Anthropic IPO Valuation Expectations

Forbes Australia

Anthropic Files for IPO: Here’s What We Learned

ABC News

Anthropic IPO Filing — 27 October 2026

Australian Financial Review (AFR)

Australian Brokers Seek Access to Anthropic IPO for Local Investors

Information Note

This article summarises and reports on regulatory filings, company disclosures and media coverage available as at 28 October 2026.

It does not constitute investment advice, an offer of securities or an invitation to subscribe for securities. Information concerning reported valuations, anticipated offering arrangements and future developments remains subject to official announcements and formal offering documents.

Disclaimer

This article is intended solely for Wholesale Clients as defined under section 761G of the Corporations Act 2001 (Cth) and is not intended for retail investors.

The information contained in this article is general in nature and does not take into account the investment objectives, financial circumstances or particular needs of any individual.

Certain financial information, valuations and IPO-related details presented in this article are sourced from publicly available third-party reports and may be subject to change.

Any target returns, potential IPO valuations or anticipated investment timeframes should not be regarded as guaranteed.

Pre-IPO investments and investments in unlisted equities involve significant risks and generally have limited liquidity. An IPO may be delayed, postponed indefinitely or may not proceed at all. Investors may lose some or all of their invested capital.

Before making any investment decision, investors should carefully review the relevant formal investment documentation and seek independent legal, taxation, financial and accounting advice appropriate to their individual circumstances.

Where growth emerges and where investment returns ultimately accrue are not always the same thing. That distinction surfaced repeatedly throughout the two days we spent at the 2026 Citi Australia & New Zealand Investment Conference in Sydney.

Artificial intelligence offered perhaps the clearest illustration. As investment in computing capacity, semiconductors and supporting infrastructure accelerates, the conversation is moving beyond technological potential towards a more fundamental question: who will capture the economic value, and how sustainably?

This also reflects a broader challenge facing investors. As capital becomes increasingly concentrated around a few dominant growth narratives, the distinction between long-term opportunity and current valuation becomes particularly important.

Against a backdrop of evolving monetary policy, fiscal pressures and shifting credit conditions, the discussions reinforced the value of disciplined asset selection and diversification, with fixed income presenting opportunities that extend beyond its traditional defensive role.

Interestingly, the same emphasis on translating potential into tangible value carried through to conversations about the future of wealth management. As AI becomes more deeply integrated into financial advice and operational processes, the focus is shifting from technological capability alone to how effectively it can improve decision-making, strengthen governance and enhance client outcomes.

This becomes increasingly relevant as Australia’s retirement landscape evolves. Greater wealth complexity and the growing need for sustainable retirement income are placing new demands on financial advice, where technology can support efficiency and accessibility, but experience, professional judgment and an understanding of individual circumstances remain essential.

Perhaps the most valuable perspective from the conference was how closely these developments are connected. The same structural forces reshaping global capital allocation are also influencing how investment solutions are developed, how advice is delivered and what investors will expect from wealth management in the years ahead.

For us, these discussions are an opportunity to challenge established assumptions, broaden our perspectives and continually refine how we interpret markets and approach investment management.

Our thanks to Citi and the speakers for two days of thoughtful discussions and valuable industry insights.

General information only. It does not take into account your objectives, financial situation or needs and is not a recommendation. Investment opportunities through Candour Capital are for wholesale and professional investors only. Read the offer documents and seek professional advice before investing.

Candour Capital Pty Ltd ABN 46 624 618 971 | AFS Representative Number 001267726. Candour Capital Pty Ltd is an authorised representative of Candour Private Wealth Pty Ltd, AFSL 544396.

Investors participate by subscribing for units in the fund, which will hold the property interest and oversee financing, asset management and income distributions. This structure allows investors to access commercial property investment without directly purchasing or managing the shopping centre.

An Established Shopping Centre with an Existing Income Base

Located in Glen Waverley, south-east Melbourne, The Glen Shopping Centre comprises approximately 76,471 sqm of gross lettable area and around 3,300 car parking spaces. The centre offers a diverse mix of supermarkets, fashion retailers, dining establishments and lifestyle services.

The property has a reported occupancy rate of approximately 99% and attracts around 14.8 million customer visits annually. For the rolling 12 months to June 2026, total tenant sales reached approximately AUD 581 million. Major tenants include Coles, Woolworths, ALDI, David Jones and Target. Tenant sales provide an indication of the centre’s trading performance but are distinct from the rental income received by the fund.

The shopping centre underwent a major redevelopment costing approximately AUD 430 million in 2019–2020, enhancing its retail, dining and communal spaces. The investment opportunity is therefore supported by an established operating asset, while retaining potential for future leasing improvements and space optimisation.

Quarterly Cash Distributions and Long-Term Capital Growth

The investment’s principal target metrics are outlined below:

Cash distributions are expected to be funded primarily by the property’s operating cash flow, after servicing debt interest, paying fund expenses and allowing for capital expenditure and cash reserves. The 7.5% annual distribution rate represents an average target over the forecast period. Actual distributions may vary from year to year and should not be interpreted as fixed interest payments. IRR measures the annualised return across all investment cash flows, taking into account the timing of the initial investment, quarterly distributions and final exit proceeds.

Accordingly, the targeted IRR of 14%–15% already incorporates distributions received during the holding period. The 7.5% distribution rate should not be added separately to the IRR. For illustration, an investment of AUD 500,000 would generate an average annual cash distribution of approximately AUD 37,500, assuming the 7.5% target is achieved. If the projected total equity multiple of 1.86x is achieved, cumulative distributions and final exit proceeds would amount to approximately AUD 930,000, including the original invested capital.

These figures are illustrative calculations based on target assumptions. Actual distribution amounts and payment timing may differ.

Return Drivers: Existing Income, Operational Growth and Exit Valuation

Existing Property Income

The proposed acquisition reflects an existing net operating income yield, or passing yield, of approximately 7%. Passing yield represents the property’s current net operating income relative to its acquisition price, before accounting for fund-level financing and other expenses.

It is a property-level return metric and should not be confused with the cash distribution rate payable to investors.

Rental and Operational Growth

The management team intends to enhance net operating income (NOI) through lease adjustments, tenant repositioning and optimisation of the tenant mix.

Most specialty retail leases reportedly include annual rental increases of approximately 5%. However, these arrangements do not apply to all tenants and should not be interpreted as a guarantee that the shopping centre’s overall NOI will increase by 5% annually.

Final Exit Valuation

The base-case financial model assumes a sale after approximately five years, applying an exit capitalisation rate of 5.5%. All else being equal, higher NOI and a lower capitalisation rate would support a higher property valuation. The targeted IRR therefore depends on both operational growth and market pricing at the time of exit.

If the actual exit capitalisation rate is higher than assumed, investment returns may fall below the targeted level.

Existing Leases and Potential Space Optimisation

According to the project’s Information Memorandum (IM), Target’s lease expires in April 2032, while David Jones’ lease expires in July 2034. Both tenants have further lease extension options.

The management team will assess the long-term utilisation of these major tenant spaces, alongside opportunities to lease or repurpose approximately 4,899 sqm of vacant office space. Any potential improvements will depend on existing lease obligations, negotiations with tenants, leasing timeframes and refurbishment costs. These initiatives represent potential value-enhancement opportunities rather than confirmed additional income. The proposed acquisition price also represents a discount of approximately 16.1% to the historical peak book valuation recorded in December 2019 under the joint ownership structure.

This comparison is based on a historical peak valuation and does not represent a discount to the property’s current independent valuation.

Investment Horizon, Financing and Participation Structure

The fund intends to raise approximately AUD 193.2 million in equity capital, supplemented by bank debt, to finance the acquisition and associated transaction costs.

The initial acquisition loan-to-value ratio (LVR) is expected to be approximately 50%, with an initial debt term of around three years. The fund also intends to hedge 100% of the initial debt exposure against interest rate movements, with the model assuming that the hedging arrangements will cover at least the initial loan term. The fund has a target investment horizon of approximately five years, with potential exit opportunities expected to be assessed between years five and seven following settlement.

However, there is no fixed maturity or guaranteed exit date. Refinancing costs after the third year, future capital expenditure requirements and prevailing market conditions at the time of sale may all affect cash distributions and overall investment returns.

Tax Considerations and Fees

The project forecasts that cash distributions over the initial five-year period will be 100% tax-deferred.

Tax-deferred distributions do not necessarily constitute tax-free income. Such distributions may reduce the cost base of an investor’s fund units, potentially affecting future capital gains tax liabilities. The actual tax treatment will depend on the fund’s annual tax statements and each investor’s individual tax circumstances.

Investors should seek independent professional tax advice regarding their specific circumstances.

Enquire About the Investment Opportunity

For further information about the investment opportunity, fund management arrangements and current subscription requirements, please contact Candour Capital.

This material is provided for general information purposes only. All distribution rates, IRRs, equity multiples and exit timelines are projections or targets and are not guaranteed. Changes in property operating performance, leverage and market valuations may result in a partial or total loss of invested capital.

Disclaimer

This material is intended solely for wholesale clients as defined under section 761G of the Corporations Act 2001 (Cth) and is not intended for retail investors. The information contained in this material is general in nature and does not take into account the investment objectives, financial circumstances or particular needs of any individual. Certain company financial information, valuations and IPO-related information referred to in this material have been sourced from publicly available third-party reports and may be subject to change. Target returns, potential IPO valuations and anticipated investment horizons are not guaranteed. Pre-IPO investments and investments in unlisted equity involve significant risks and relatively low liquidity. An IPO may be delayed, postponed indefinitely or may not proceed at all, and investors may lose some or all of their invested capital. Before making any investment decision, investors should read the formal investment documents and seek independent legal, taxation, financial and accounting advice appropriate to their circumstances.

The sequence of events illustrates how investor attention can shift from the growth potential of the AI sector to a more fundamental question: at what price, and with how much exposure to growth that has yet to materialise, are investors prepared to participate?

6 October: Bookbuild Opens as Valuation Takes Centre Stage

According to Reuters and Forbes, Firmus launched its offering at AUD 11 per share, implying an equity valuation of approximately AUD 44 billion, significantly above the valuation established in its previous funding round. Materials released at the launch indicated that expressions of interest were sufficient to cover the offering size. However, indicative demand still needed to be converted into final subscription commitments.

The central point of disagreement in the market was how much future growth had already been priced into the valuation. Firmus presented an attractive expansion outlook, but a substantial proportion of its capacity remained under development. Revenue associated with that capacity would only be realised once the relevant infrastructure became operational.

Investors therefore needed to assess whether construction progress, capital expenditure requirements and actual cash flow generation could support the proposed valuation.

Before and After the Bookbuild: Changes to the CDC Partnership Attract Attention

Around the time of the bookbuild, reports emerged that Firmus and CDC would no longer proceed with their Southgate joint development project, which had originally involved the development of up to 1.6 gigawatts of AI infrastructure capacity.

Firmus told the media that both parties had mutually agreed earlier in the year to discontinue the collaboration. The company maintained that the decision would not affect its existing development plans, contracted customer capacity or significant international partnerships. CDC subsequently explained that the two businesses had gradually diverged in their strategic direction.

The development is therefore more accurately characterised as a change in joint development arrangements, rather than evidence of problems across all of Firmus’s customer contracts. Nevertheless, for a company whose valuation depends heavily on large-scale expansion, changes to a significant partnership can prompt investors to reassess construction plans, financing requirements and delivery expectations.

7–8 October: Subscription Pressure Mounts as Pricing Discussions Continue

As these developments received further attention, investors began reassessing the risks associated with participating in the offering. According to Reuters, some investors began withdrawing their indications of interest on 7 October. Lock-up arrangements for existing shareholders also attracted scrutiny. Certain shares could potentially become eligible for sale on the first day of trading, raising concerns about the initial supply of shares and their potential impact on market pricing.

As the bookbuild progressed, media reports indicated that the underwriting syndicate was considering a lower offer price and adjustments to the capital raising size. By 8 October, questions remained regarding the scale of debt, energy requirements, project delivery and the level of disclosure provided to investors. There was considerable uncertainty over whether the offering could proceed on its original terms.

From an investment perspective, a lower offer price may improve valuation attractiveness, but it does not automatically resolve all underlying risks. For capital-intensive AI infrastructure businesses, investors must still understand whether sufficient construction funding is available, whether financing costs are sustainable, when projects are expected to generate revenue, and how delays or cost overruns could affect returns.

In our view, the bookbuild reflected more than investors’ confidence in AI as a sector. It also tested their willingness to accept the specific pricing and risks associated with financing future growth.

9 October: Firmus Withdraws Its IPO

Firmus ultimately announced the withdrawal of its ASX listing application.

The company stated that, having considered recent market volatility and prevailing market conditions, its board believed the terms under which the offering could proceed did not adequately reflect the strength of the business and its long-term growth prospects. Firmus therefore decided to pursue private capital and other financing alternatives. The withdrawal demonstrated that a gap remained between the issuer’s valuation expectations and the price and risks investors were prepared to accept.

AI infrastructure may continue to offer significant growth opportunities. However, the sector’s investment potential must be supported by reasonable valuations, verifiable project progress and transparent financing arrangements before it can translate into an attractive investment proposition.

Monitoring Market Developments: Candour Decided to Withdraw Before Firmus Cancelled Its IPO

From the opening of the bookbuild, Candour closely monitored market developments, investor feedback and the progress of the offering. Risk assessment remained an integral part of the participation process.

As further information emerged regarding valuation concerns, changes to the CDC partnership and potential adjustments to the offering terms, we assessed the implications for project expansion, financing requirements and potential investment returns. We also closely followed subsequent formal communications from the issuer and the underwriting syndicate.

Our key considerations were whether the proposed valuation reasonably reflected growth that had yet to be realised, what changes to commercial partnerships meant for project execution, and whether future funding requirements and associated risks had been adequately disclosed. As uncertainty increased, the information available at the time was no longer sufficient to support continued participation. Following this ongoing assessment, Candour’s head office decided on the afternoon of 8 October not to proceed with the IPO. Based on the information then available, we concluded that continued participation no longer met Candour’s requirements for investment assessment and risk management. Accordingly, we cancelled all client subscription orders submitted through Candour and received confirmation of their withdrawal.

Our advisers subsequently contacted clients individually to explain the risk considerations and associated arrangements. Clients expressed their understanding and support for the decision.

On 9 October, we received formal notification that Firmus had discontinued the IPO.

We place significant importance on providing clients with access to a broader range of market opportunities and investment transactions. As a professional advisory team, we place equal emphasis on balancing potential returns against associated risks. When material terms change and risks become difficult to assess adequately, risk management must take priority. Continuously monitoring information, adjusting investment assessments in a timely manner and clearly communicating the reasons behind our decisions are fundamental aspects of our service.

The decision to withdraw client orders was a risk management measure based on the information and uncertainties prevailing at the time. It should not be interpreted as a definitive judgement on Firmus’s future operating performance. Firmus’s IPO plans may have been put on hold, but Candour’s commitment to protecting investors’ interests remains unchanged.

As market information, investment products and industry developments continue to evolve, we will maintain a disciplined approach to assessing opportunities and risks. Our priority remains to broaden clients’ access to investment opportunities while keeping risk management and investor interests at the centre of our decision-making, with the objective of safeguarding clients’ long-term interests.

Disclaimer

This material is intended solely for wholesale clients as defined under section 761G of the Corporations Act 2001 (Cth) and is not intended for retail investors. The information contained in this material is general in nature and does not take into account the investment objectives, financial circumstances or particular needs of any individual. Certain company financial information, valuations and IPO-related information referred to in this material have been sourced from publicly available third-party reports and may be subject to change. Target returns, potential IPO valuations and anticipated investment horizons are not guaranteed. Pre-IPO investments and investments in unlisted equity involve significant risks and relatively low liquidity. An IPO may be delayed, postponed indefinitely or may not proceed at all, and investors may lose some or all of their invested capital. Before making any investment decision, investors should read the formal investment documents and seek independent legal, taxation, financial and accounting advice appropriate to their circumstances.

HSBC has announced that it will cease providing wealth management services to high-net-worth investors and plans to stop acting as investment adviser for the relevant investment accounts from 16 November 2026.

Existing bonds will not be automatically sold as a result of this change, nor will the relevant accounts automatically close on that date. However, the investment advice, transaction support and account services previously provided through HSBC will change. Investors will therefore need to consider how their existing bond holdings will be managed, whether they wish to continue investing in new bonds, and who will provide the relevant services going forward.

■ What Changes Is HSBC Making?

On 31 July 2026, HSBC Australia announced the phased discontinuation of its Australian retail banking operations.

For clients using the HSBC Investment Service for Accredited Investors, HSBC’s wealth management service for high-net-worth investors, a more specific transition timetable applies.

From 31 July 2026, HSBC ceased charging the existing Investment Consultant Fee.

From 12 August 2026, the wealth management service formally ceased. Clients can no longer purchase new investment products through the existing service or continue receiving HSBC’s investment research, market views and general investment recommendations. During the transition period, HSBC will continue to provide certain support for existing investments, including assisting clients in accessing investment reports and facilitating the sale of existing investments before accounts formally transition to self-directed status.

On 16 November 2026, HSBC will cease acting as investment adviser for the relevant Netwealth accounts. Unless clients have appointed a new adviser before then, their accounts will transition to a self-directed arrangement, under which they will be responsible for their own investment decisions and account management.

HSBC has also stated that, once an account becomes self-directed, clients will no longer be able to purchase new bonds through that account.

■ Why is Netwealth involved?

Many of HSBC’s high-net-worth clients previously received wealth management and bond investment services through HSBC, while the associated investment accounts were supported by the Netwealth platform, which provided account administration and asset custody.

Under this arrangement, HSBC was primarily responsible for the client relationship, investment advice and related services. Netwealth, meanwhile, operated as the investment and custody platform, holding and recording client assets, administering investment accounts and processing transaction settlements.

When HSBC ceases acting as investment adviser, the existing advisory relationship will end. However, the relevant Netwealth accounts and bonds held within those accounts can remain in place.

Netwealth will continue to provide account administration, custody and execution of client instructions in accordance with the permissions applicable to each account. It will not, however, replace HSBC as the investment adviser or manage the client’s portfolio on the client’s behalf.

As a result, after 16 November, clients will need to decide whether to continue managing their accounts on a self-directed basis or appoint a new investment adviser.

■ What Are the Two Options After 16 November?

Before HSBC ceases acting as investment adviser for the relevant investment accounts on 16 November 2026, clients will need to decide how they wish to manage their investments going forward.

Broadly, there are two options: retain the existing account and manage investments on a self-directed basis, or appoint a new investment adviser and continue receiving investment advice and account management support.

The key differences relate to who is responsible for investment decisions and whether the client will continue to have access to professional investment advice and bond transaction support.

Option 1: Retain the Account and Manage Investments Independently

Clients who choose the self-directed option may retain their existing account, review their holdings, manage the account and take permitted actions through the platform.

Investment decisions will become the client’s responsibility. This includes deciding whether to continue holding existing bonds, when to sell them, how to manage proceeds when bonds mature, and whether the overall portfolio needs to be adjusted.

Clients will also need to monitor maturity dates, coupon payments, market prices and issuer developments themselves.

Importantly, HSBC has confirmed that self-directed clients will not be able to purchase new bonds through the existing account. Clients choosing this option may therefore continue managing their existing investments but will not be able to add new bond investments through the account in the same way as before.

If they wish to purchase bonds in the future, they will need to use another bond trading channel.

Option 2: Appoint a New Investment Adviser

Clients who wish to appoint a new investment adviser will need to make the relevant arrangements before 16 November.

A new adviser can continue to assist with portfolio reviews, investment recommendations, future investment planning and account management.

Clients should consider selecting an adviser familiar with fixed-income investments, particularly the Australian and international bond markets, bond maturity arrangements and transaction processes. The new adviser will also need to understand the client’s existing account structure and bond holdings to assist with the ongoing holding, sale, reinvestment and transition of those assets.

After appointing a new adviser, clients may continue to receive professional investment support. However, the scope of services and fee arrangements will be determined by the new adviser.

HSBC’s existing research, recommendations and advisory services will not automatically transfer to the new adviser. Clients will need to confirm the scope of services, investment authorities and future transaction arrangements with their newly appointed adviser.

■ What Should Clients Do With Their Existing Bonds?

HSBC has not indicated that existing bonds will be automatically sold on 16 November.

There is therefore no need for clients to sell their bonds simply because the existing advisory relationship is coming to an end. A more important first step is to understand what they currently hold, when each bond matures and whether they intend to continue allocating to bonds in the future.

For each existing bond, investors should consider confirming the issuer, maturity date, coupon, currency, current market price and the account in which it is held. Bonds approaching maturity within the next one to two years may warrant particular attention, as investors will need to determine how the proceeds will be managed or reinvested.

Clients considering selling a bond before maturity should also determine who will provide future market pricing and execute the transaction.

Unlike listed shares, many bonds are traded through brokers or other market intermediaries, with investors obtaining a quote before executing a purchase or sale. The future trading channel is therefore another important aspect of the transition that needs to be clarified.

■ What Can Clients Start Doing Now?

There is still time to prepare before 16 November.

Clients can begin by reviewing their existing accounts and bond investments and confirming which bonds they currently hold, when those bonds mature, and whether they expect to continue investing in bonds in the future.

It is also worth considering whether they are comfortable managing future investment decisions independently or would prefer to continue receiving professional investment advice and support.

The choice between these arrangements can affect how the account operates, the investment options available and how future transactions can be executed.

Clients who remain uncertain about their existing account, bond holdings or future options may wish to seek clarification from the relevant service providers as early as possible and, where appropriate, obtain confirmation in writing rather than leaving these arrangements until close to the transition date.

■ How Can Candour Assist?

Candour is continuing to monitor the account and bond arrangements arising from HSBC’s wealth management service changes and is confirming the operational details with the relevant service providers.

If you currently hold bonds through HSBC or are considering your arrangements after 16 November, we can assist you in reviewing your existing account and bond holdings, explaining the differences between self-directed investing and appointing a new adviser, and providing information regarding the relevant transaction, account and service arrangements.

For clients requiring further transition support, we can also discuss appropriate service arrangements based on their circumstances.

Certain matters — including whether former HSBC clients who transition to self-directed investing will be able to continue trading bonds through an independent broker, as well as the relevant broker eligibility requirements and settlement processes — remain subject to further confirmation from Netwealth. Candour is continuing to verify these operational details.

■ Key Takeaway

HSBC’s wealth management services are now in a transition period. For high-net-worth clients who previously invested in bonds through HSBC, their existing bonds and accounts can remain in place, but the existing advisory and service arrangements will change.

After 16 November, clients may either manage their investments on a self-directed basis or appoint a new investment adviser. The two arrangements differ in terms of investment support, access to bond transactions and the way accounts are managed.

The most practical step at this stage is to review existing bond holdings and account information, determine whether bond investing and professional advice will still be required in the future, and understand in advance the account and transaction arrangements associated with each option.

Sources, Information Date and General Information Disclaimer

This article has been prepared based on publicly available information published by HSBC Australia regarding the transition of its wealth management services for high-net-worth investors, together with relevant publicly available information from Netwealth. Information is current as at 11 September 2026.

This article is provided for general information and investor education purposes only and does not constitute personal financial, legal or tax advice. Account arrangements, investments, eligibility and service arrangements may vary between clients. Before taking any action, investors should consider their individual circumstances and confirm the latest arrangements with the relevant service providers and professional advisers.

Alphabet Inc., the parent company of Google, has completed its inaugural Australian dollar bond issuance, raising A$5.5 billion across six tranches and setting a new record for the largest Australian corporate bond issuance to date. The transaction attracted more than A$20 billion in orders, representing approximately 3.7 times the amount issued.

ANZ was the only Australian domestic bank appointed as a joint lead manager on the transaction. The bonds were priced on 19 August 2026 and received ratings of Aa2 from Moody’s and AA+ from S&P.

Alphabet’s A$5.5 billion senior unsecured bond issuance comprises six tranches:

• A$750 million 3-year fixed-rate bonds with a coupon of 5.20% p.a., maturing on 27 August 2029;
• A$750 million 3-year floating-rate bonds, priced at 3-month BBSW + 65 bps, maturing on 27 August 2029;
• A$750 million 5-year fixed-rate bonds with a coupon of 5.50% p.a., maturing on 27 August 2031;
• A$750 million 5-year floating-rate bonds, priced at 3-month BBSW + 90 bps, maturing on 27 August 2031;
• A$1.25 billion 10-year fixed-rate bonds with a coupon of 6.25% p.a., priced at 133 bps over the asset swap rate, maturing on 27 August 2036; and
• A$1.25 billion 20-year fixed-rate bonds with a coupon of 6.90% p.a., priced at 180 bps over the asset swap rate, maturing on 27 August 2046.

Meanwhile, ANZ completed a A$4.25 billion multi-tranche senior unsecured and Tier 2 capital issuance on 14 August 2026. The transaction comprised four tranches across senior unsecured and Tier 2 securities.

The order book exceeded A$9.82 billion, including approximately A$1.05 billion of joint lead manager interest, representing around 2.3 times the total amount issued.

The senior unsecured component comprised A$2.5 billion of 5-year floating-rate bonds, priced at 3-month BBSW + 66 bps, maturing on 21 August 2031.

The Tier 2 bonds were rated A3 by Moody’s, with indicative ratings of A− from both S&P and Fitch. ANZ’s issuer ratings were Aa2 / AA− / AA−.

The Tier 2 capital issuance was divided into three tranches:

• A$750 million 15-year floating-rate bonds, non-callable for 10 years, priced at 3-month BBSW + 157 bps. The first call date is 21 August 2036, with final maturity on 21 August 2041;
• A$2.5 billion 15-year fixed-to-floating-rate bonds, non-callable for 10 years, carrying an initial coupon of 6.451% p.a. and priced at 157 bps over the asset swap rate. Following the first call date, the bonds will convert to a floating rate of 3-month BBSW + 157 bps until maturity. The first call date is 21 August 2036, with final maturity on 21 August 2041; and
• A$750 million 20-year fixed-rate bonds, carrying a coupon of 6.749% p.a., priced at 165 bps over the asset swap rate, and maturing on 21 August 2046.

For further information on the subscription process or to obtain the full product disclosure materials, please contact Candour Capital.

Earlier this week, Australia made a significant global regulatory move by becoming the first country to establish a national artificial intelligence framework through legislation. The new framework is led by the Department of Home Affairs and applies to AI systems used in critical infrastructure.

The legislation introduces requirements including mandatory renewable energy supply, construction of dedicated power grids and water infrastructure, and measures to minimise environmental impacts. It also establishes copyright protections that prohibit companies from using Australian content to train AI models without consent.

The legislation signals that the Australian Government increasingly views AI infrastructure not merely as a technology investment, but as a form of critical national infrastructure subject to sovereign regulation.

Against this backdrop, CDC Data Centres Australia completed a A$700 million dual-tranche senior secured fixed-rate bond issuance this week.

CDC is a leading sovereign-connected data centre operator in Australia and is also the only data centre service provider capable of supporting government classified workloads.

CDC Data Centres Australia Pty Ltd completed the A$700 million dual-tranche transaction on 22 July 2026.

The first tranche comprises 6-year fixed-rate bonds carrying a coupon of 6.117% p.a., maturing on 29 July 2032. The bonds were priced at 145 basis points over the asset swap rate (ASW).

The second tranche comprises 10-year fixed-rate bonds carrying a coupon of 6.631% p.a., maturing on 29 July 2036. The bonds were priced at 175 basis points over ASW.

The transaction received strong demand from the market, with the combined order book exceeding A$4.8 billion, including approximately A$1.2 billion of joint lead manager interest.

Demand was particularly strong for the longer-dated tranche. The 6-year tranche attracted more than A$2.75 billion in orders, while the 10-year tranche attracted more than A$2.05 billion.

For further information on the subscription process or to obtain the full product disclosure materials, please contact Candour Capital.

The global technology landscape is undergoing a profound shift from the era of the “large model arms race” towards the practical deployment of Agentic AI. This paradigm shift is placing greater demands not only on computing power, but also on underlying storage architectures and memory bandwidth. As the global technology sector enters a new wave of AI infrastructure investment, South Korea — a global powerhouse in semiconductors and hardware — is entering a potentially significant phase.

Global financial markets are currently seeing increasingly pronounced supply-demand imbalances and pricing premiums across memory chips. On one hand, upgrades to traditional servers and the expansion of CPU nodes in AI servers are driving demand for DDR5 and LPDDR5. On the other, HBM (High Bandwidth Memory) production capacity has become increasingly constrained, causing advanced memory capacity to crowd out conventional memory production and further tightening the broader memory chip market.

Against this backdrop, the performance and capacity expansion of South Korea’s semiconductor and technology leaders have become an important indicator of the outlook for the global AI industry.

Industry Research: The AI Agent-Driven Memory Upcycle

According to UBS’s latest global research published in June 2026, the drivers of AI-related memory demand are broadening significantly. Demand is no longer concentrated solely in HBM. Agentic AI is also driving unprecedented demand across conventional servers, KV cache applications and multiple layers of storage infrastructure.

1. Contract Prices Are Rising Across the Board as Supply Shortages Persist

Supply constraints: Almost all incremental DRAM wafer capacity has been allocated to HBM, while there is virtually no new NAND capacity outside China. As a result, suppliers are struggling to keep pace with the rapid increase in demand.

Price outlook: Industry research indicates that contract prices for DDR and NAND flash memory, excluding long-term agreements (LTAs), are expected to rise by approximately 17% quarter-on-quarter in Q3 2026, followed by a further 12% quarter-on-quarter increase in Q4. UBS expects the blended average selling price (ASP) for DRAM to increase substantially in 2026.

2. HBM Pricing Remains Resilient, Reinforcing the Market Position of Industry Leaders

Pricing outlook: Market negotiations for 2027 HBM4E are approaching approximately US$3.50 per Gb, while HBM4 remains close to US$3.00 per Gb. Based on this outlook, UBS has revised its forecast for SK Hynix’s 2027 blended HBM average selling price growth to approximately 62% year-on-year.

Capital expenditure and valuation: Reflecting the strong pricing outlook, UBS raised its 12-month price target for SK Hynix from KRW 2,250,000 to KRW 3,000,000, while maintaining a “Buy” rating. Based on the broader analysis from Nomura and UBS, the strong profitability and cash-flow generation of leading Korean technology companies continue to underpin market pricing.

The Investment Case for Korea’s Technology Leaders

Against the strong momentum in the Korean market, we have summarised several key considerations underpinning the investment case:

• Scarcity and competitive barriers of core assets: Samsung Electronics and SK Hynix are two of South Korea’s leading semiconductor companies and account for a significant share of the global advanced memory and HBM markets. As AI applications become increasingly bandwidth-intensive, these companies maintain significant market influence and technological advantages.
• A combination of structural technology growth and cyclical recovery: South Korea’s technology sector is benefiting not only from the long-term structural expansion of AI, but also from an upcycle in memory-chip pricing and corporate inventory replenishment. In addition, telecommunications and technology groups such as SK Telecom are positioning themselves across AI infrastructure and domestic services while maintaining established cash-flow-generating businesses.
• Potential valuation recovery with structural earnings growth: While relevant equities have already recorded gains, the latest brokerage earnings forecasts suggest that improvements in structural ROE may not yet be fully reflected in current P/B valuations. Structured products may provide an alternative means of gaining exposure to the sector while incorporating a predefined downside buffer.

Selected Investment Opportunity: AUD 3-Month 33.17% p.a. Fixed Coupon Note (FCN)

Addressing access barriers through a structured solution: South Korea maintains relatively stringent regulatory requirements for foreign investors, which can make direct investment in Korean domestic equities operationally complex. A carefully structured product may provide an alternative way for eligible investors to obtain exposure to selected Korean technology leaders without directly purchasing the underlying shares.

The key terms of the FCN are:

• Underlyings: SK Telecom, SK Hynix and Samsung Electronics
• Product: Fixed Coupon Note (FCN)
• Currency: AUD
• Tenor: 3 months
• Strike Level: 60%
• Potential Annualised Coupon: 33.17% p.a.

Key Features of the Strategy

This product provides exposure to three leading Korean technology and semiconductor companies.

With a 60% strike level, the structure incorporates a 40% downside buffer relative to the initial reference level. At the same time, the elevated implied volatility and market pricing of Korean equities support a potential annualised coupon of 33.17% p.a. in AUD.

The structure is designed to convert elevated market volatility into a predefined coupon opportunity. However, the coupon should not be interpreted as a guaranteed total investment return, and investors remain exposed to the performance of the underlying shares and the terms of the note.

Further Information

As the AI investment cycle continues to develop, structured products may provide eligible investors with an alternative way to obtain exposure to selected themes while incorporating predefined investment terms.

If you would like further information regarding the product mechanics, underlying equities, key risks or subscription process, please contact your Candour Capital adviser for the relevant product materials and further details.

■ Alternative Asset Opportunities Within the Long-Term AI Theme

Artificial intelligence remains one of the most closely watched long-term investment themes across global capital markets. From generative AI and foundation models to computing infrastructure, robotics, autonomous driving and applications across a wide range of industries, AI is increasingly becoming an important technological force driving productivity improvements, industrial transformation and the creation of new markets.

At the same time, many leading AI and AI-related companies remain privately held, with significant value creation taking place before they enter public markets. For ordinary investors, direct participation in these private-market opportunities often involves relatively high barriers to entry, with investment thresholds commonly reaching millions of dollars. Against this backdrop, gaining exposure to the private AI market has become an increasingly relevant consideration for investors seeking broader participation in the long-term development of AI.

The AI Private Opportunities Trust (ASX: AIX) has been introduced in this market environment, providing Australian sub-wholesale investors with a pathway to participate in global private-market AI opportunities through an ASX-listed structure.

■ What Is AIX?

AIX is a listed investment trust focused on private-market opportunities in artificial intelligence. Pengana Investment Management Limited acts as the Responsible Entity, Pengana Capital Limited acts as the investment manager, and global alternative asset manager GCM Grosvenor L.P. serves as the investment adviser.

AIX seeks long-term capital growth by investing in private companies that are developing, advancing or benefiting from artificial intelligence and related technologies.

In other words, AIX is not simply investing in technology companies that are already publicly listed. Instead, it seeks to participate in value creation during the growth stages of AI businesses before they enter public markets.

■ Initial Portfolio Highlights: Exposure to a Range of Leading AI Companies

Based on the initial portfolio arrangements disclosed by AIX, relevant companies include ByteDance, Handshake, Anthropic and OpenAI.

ByteDance and Handshake have already been committed investments, while Anthropic and OpenAI have been identified as early target investments. Together, these companies provide exposure across areas including AI platforms, professional networks, foundation models and the broader application ecosystem.

■ From Foundation Models to Robotics: How Does AIX Cover the AI Ecosystem?

AIX’s investment scope covers multiple critical areas across the AI ecosystem, including foundation models, AI infrastructure and “Picks and Shovels”, as well as Physical AI.

This means the fund is not concentrated in a single AI subsector. Instead, it seeks exposure across different layers of AI technology development and commercialisation.

The proposed portfolio allocation is structured as follows:

The structure is intended to provide exposure across multiple segments of the AI value chain, including underlying technologies, infrastructure, real-world applications and industry-specific use cases.

The portfolio is expected to comprise 12 to 20 companies. Following the IPO, approximately 40% to 50% of capital is expected to be allocated to core holdings shortly after listing, with the remainder expected to be deployed over the first 12 months.

■ Accessing Private-Market Opportunities Through an ASX-Listed Structure

AIX uses an ASX-listed investment trust structure, with an intended issue price of A$10 per unit and an expected commencement of trading on the ASX on 2 July 2026.

The structure is designed to combine the day-to-day tradability of a listed product with access to the longer-term value creation potential of traditional private equity investments.

AIX’s underlying investments are predominantly in unlisted companies, while the listed structure provides investors with a secondary-market trading channel.

Investors should note, however, that the market price of AIX units may differ from the underlying net asset value (NAV).

■ Investment Manager Background

AIX’s investment adviser, GCM Grosvenor, is a global alternative asset management firm with extensive experience in private markets.

According to the product materials, GCM Grosvenor manages more than US$91 billion in assets, employs more than 550 people, including approximately 185 investment professionals, and has been investing in private markets since 1999. The firm also maintains relationships with more than 550 private equity managers.

For an investment strategy focused on private AI markets, the manager’s private-market experience, investment team resources and network of manager relationships are relevant considerations when assessing the implementation of the strategy.

■ Lonsec “Recommended” Rating

AIX has also received a “Recommended” rating from Lonsec.

Lonsec noted GCM Grosvenor’s established private-market capabilities, experienced investment team and disciplined investment process. AIX provides investors with differentiated exposure to the private AI market while using a listed structure to provide a day-to-day trading mechanism for what is otherwise a relatively illiquid asset class.

However, Lonsec also notes that the strategy has characteristics more closely associated with long-term private equity or growth investing. Investors need to be able to tolerate potentially significant movements in unit prices, as well as differences that may arise between the traded unit price and the underlying NAV.

Accordingly, AIX should not be regarded as a traditional fixed-income, cash-equivalent or defensive investment product.

■ Key Risks to Consider Before Investing

It is important to emphasise that AIX is not a traditional fixed-income or defensive product. It represents exposure to a higher-risk, higher-volatility alternative asset strategy focused on long-term capital growth.

Key risks include:

• Private company valuation risk
• Liquidity risk of the underlying assets
• AI technology and market disruption risk
• Portfolio concentration risk
• Uncertainty regarding exits from underlying investments
• Risk that the listed unit price may trade below the underlying NAV

Because AIX primarily invests in private companies, the realisation of investment value will generally depend on events such as IPOs, secondary-market sales, acquisitions or other exit opportunities.

Investors therefore need to adopt a relatively long investment horizon and be comfortable with interim valuation volatility and uncertainty regarding the timing of exits.

Before investing, investors should read the Product Disclosure Statement (PDS) and Target Market Determination (TMD) in full and consider whether the product is appropriate for their investment objectives, financial circumstances and risk tolerance.

■ Conclusion

Overall, AIX provides Australian sub-wholesale investors with a pathway to access global private-market AI opportunities through an ASX-listed structure.

Under the long-term AI growth theme, significant value creation may occur not only in public markets, but also during the growth stages of companies before they become publicly listed. For investors seeking exposure beyond traditional listed technology equities and looking to further explore opportunities across the early and growth stages of the AI ecosystem, AIX represents an alternative asset allocation option that may warrant further consideration.

At the same time, investors should clearly understand that AIX’s return characteristics are more closely aligned with long-term private equity or growth investing and should not be considered a traditional fixed-income or defensive investment.

For further information regarding AIX’s current trading price, remaining availability or complete product documentation, please contact the Candour Capital team.