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.

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 (NET OF GST)


Enduring Units	0.99%

Unit PriceS

Class
Class	Date	Entry	Nav	Exit	Link
Enduring Units	31/07/2024	1.0605	1.0584	1.0584	CSV

Performance

Table

Enduring Units

Table

Fund Performance

30 June 2024

FUND	1 month	3 month	6 month	1 year	2 year (PA)	3 year (PA)	Inception (PA)
Realm Strategic Income Fund Enduring Units	0.80%	2.46%	5.30%	10.66%	9.56%	8.07%	7.35%
RBA Cash Rate	0.35%	1.07%	2.15%	4.27%	3.60%	2.44%	1.74%

Past performance is not indicative of future performance. Calculations are based on distributions being invested, net of applicable fees, costs and taxes. Realm Strategic Income Fund – Enduring Units inception: 21 February 2020.

Enduring Units

Growth of $10,000 Invested

30 June 2024

▬▬ REALM STRATEGIC INCOME FUND – Enduring Units

▬▬ RBA CASH RATE

Zenith Disclaimer: The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating (assigned June 2021 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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