Realm Strategic Income Fund - 2018-1 Units

Absolute Return Credit Investing

The Realm Strategic Income Fund ARSN 624 861 589 (formerly Realm Capital Series Fund) (RSIF) and the newly launched Realm Strategic Income Fund Enduring Units provide high conviction investment opportunities in the Australasian credit markets for non-institutional investors. These investment opportunities exist due to certain market conditions which are driven by either regulatory change or market dislocation.

Please refer to our paper on Absolute Return Investing, written by Realm’s Head of Risk Committee, Ken Liow.

Learn more about the Realm Strategic Income Fund 2018-1 Units in the below interview with the Portfolio Managers Andrew Papageorgiou and Robert Camilleri.

The Opportunity

The Realm Strategic Income Fund 2018-1 Units was the first class of units to be issued in the Realm Strategic Income Fund (formerly the Realm Capital Series Fund) focused on structured credit opportunities, with the strategy taking advantage of a new regulatory environment driven by APRA’s Policy Statement 120. APRA’s new policy impacts the capital requirements around all forms of bank funded assets, in particular mortgages and loans. Realm Investment House (RIH) believe that APRA’s policy statement will increase general capital requirements for the non-bank sector and smaller credit unions. Banks are the current senior funders for mortgage and corporate debt facilities, with an estimated $3bn of new additional capital required for the mortgage market under the new regime.

The Investment Strategy

The Realm Strategic Income Fund’s investment strategy focuses on debt securities, secured loans, trusts, notes and bank facilities originated or issued by Banks, Building Societies & Credit Unions (ADI), Corporations and Non-Bank Financial Institutions. RIH will partner with banks and best of breed non-bank finance companies and corporates, to acquire exposures in these newly capitalised facilities. RIH’s assessment of the opportunities will generate good risk adjusted income returns, particularly when compared to the ‘public term out market’ for the same level of risk. Diversification within the fund will be achieved by diversity of banking partners, facility sponsors and the number of individual facilities. RIH’s risk management and assessment overlay are used in assessing eligible exposures. This process is described by researchers as superior to RIH’s competitors. RIH will actively manage & monitor the risk of each funding facility exposure during the term of the fund.

This strategy has been relaunched via a new class of units, called the Realm Strategic Income Fund Enduring Class.  Details can be found here.

For further information please refer to the Fund Update flyer, located above. Additional adviser information can be obtained by contacting Realm on clientservices@realminvestments.com.au or +613 9008 7290.

Unit Price

Class
Class
Date
Entry
Exit
Link
Realm Strategic Income Fund 2018-1
30/06/2020
1.0052
1.0052
CSV

Performance

Fund Performance

31 August 2020
FUND1 month3 month6 month1 year2 YearInception (PA)
Realm Strategic Income Fund 2018-1
0.46%1.50%2.73%6.09%7.29%7.28%
RBA Cash Rate0.97%1.01%

Past performance is not indicative of future performance. Returns are net of applicable fees, costs and taxes. Ordinary Units inception 22.6.2018.

Growth of $10,000 Invested

31 August 2020

▬▬ REALM STRATEGIC INCOME FUND 2018-1 FUND

▬▬ RBA CASH RATE

Past performance is not indicative of future performance. Returns are net of applicable fees, costs and taxes. Ordinary Units inception 22.6.2018.

Zenith Disclaimer: The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating (assigned April 2020) referred to in this document is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only.  This advice has been prepared without taking into account the objectives, financial situation or needs of any individual and is subject to change at any time without prior notice.  It is not a specific recommendation to purchase, sell or hold the relevant product(s).  Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs.  Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website.  Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments.  Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at http://www.zenithpartners. com.au/RegulatoryGuidelines 

 
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