Realm Strategic Income Fund - Enduring Units

Absolute Return Credit Investing

The Realm Strategic Income Fund ARSN: 624 861 589 (formerly known as the Realm Capital Series Fund) provides 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.

The Opportunity

Realm Strategic Income Fund Enduring Units, follows on from the first class via the Realm Strategic Income Fund 2018-1, which 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 Banks, Building Societies & Credit Unions (ADI), Corporations and Non-Bank Financial Institutions. Banks are the current senior funders for mortgage and corporate debt facilities, and an estimated additional $3bn of new capital is required for the secured asset backed funding markets.

The enhanced features of the Enduring Units include an open ended structure, monthly applications, with the manager expecting to provide monthly limited liquidity windows.

INVESTMENT OBJECTIVE

The Realm Strategic Income Fund (Fund) targets an after fees total return of 4.75% over the RBA Cash rate through the market cycle, while seeking to preserve capital.

The Investment Strategy

The Realm Strategic Income Fund’s investment strategy focuses on Australian and New Zealand originated debt securities, loans, trusts, notes and bank facilities, providing new capital for lenders to advance in respect of residential mortgages and asset-backed loans. RIH will partner with banks and best of breed non-bank 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 launched.

Portfolio Characteristics

Fund ARSN
624 861 589
Distributions
Quarterly
Buy/Sell Spread
0.2%/0%
Cash Range
0-100%
Target Return
4.75% over the RBA Overnight Cash Rate per annum.

Minimum Investment

Initial Investment
$5,000
Additional Investment
$1,000

APIR Codes

Enduring Units
OMF5868AU

Management Fees (inc. GST)

Enduring Units
0.99%

Unit PriceS

Class
Class
Date
Entry
Exit
Link
Ordinary Units
31/03/2020
1.0071
1.0051
CSV

Performance

Fund Performance

31 March 2020
FUND1 month3 month6 month1 year3 year (PA)5 year (PA)Inception (PA)
Realm High Income Fund – Ordinary Units-1.19%-0.54%0.17%3.36%2.94%3.51%4.69%
Realm High Income Fund – Wholesale Units-1.16%-0.44%0.39%3.79%3.38%3.97%4.56%
Realm High Income Fund – Adviser Units-1.16%-0.44%0.38%3.79%3.38%3.71%
Realm High Income Fund – mFund Units-1.16%-0.43%0.38%3.77%3.87%
RBA Cash Rate0.04%0.16%0.35%0.96%1.32%1.52%

Past performance is not indicative of future performance. Calculations are based on distributions being invested, net of applicable fees, costs and taxes.  Realm High Income Fund – Ordinary units inception: 26 September 2012. Realm High Income Fund – Wholesale units inception: 2 October 2013. Not all unit classes are represented in this table and chart.  

Growth of $10,000 Invested

31 March 2020

▬▬ REALM HIGH INCOME FUND – Ordinary Units

▬▬ RBA CASH RATE

Past performance is not indicative of future performance. Calculations are based on distributions being invested, net of applicable fees, costs and taxes.  Realm High Income Fund – Ordinary units inception: 26 September 2012. Not all unit classes are represented in this table and chart.  

Growth of $10,000 Invested

31 March 2020

▬▬ REALM HIGH INCOME FUND – Wholesale Units

▬▬ RBA CASH RATE

Past performance is not indicative of future performance. Calculations are based on distributions being invested, net of applicable fees, costs and taxes.  Realm High Income Fund – Wholesale units inception: 2 October 2013. Not all unit classes are represented in this table and chart.  

Growth of $10,000 Invested

31 March 2020

▬▬ REALM HIGH INCOME FUND – Adviser Units

▬▬ RBA CASH RATE

Past performance is not indicative of future performance. Calculations are based on distributions being invested, net of applicable fees, costs and taxes.  Realm High Income Fund – Adviser units inception: 9 September 2016. Not all unit classes are represented in this table and chart.  

Growth of $10,000 Invested

31 March 2020

▬▬ REALM HIGH INCOME FUND – mFund Units

▬▬ RBA CASH RATE

Past performance is not indicative of future performance. Calculations are based on distributions being invested, net of applicable fees, costs and taxes.  Realm High Income Fund – mFunds units inception: 21 February 2019. Not all unit classes are represented in this table and chart.  

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Platform Availability

  • BT Wrap
  • BT Panorama
  • Credit Suisse
  • Crestone
  • First Wrap
  • Hub24
  • Macquarie Wrap
  • Managed Accounts – IAS
  • MLC Wrap
  • MLC Navigator
  • Netwealth
  • Powerwrap
  • Praemium
  • uXchange
  • mFund Settlement Service – mFund code: RLM03