RM Funds launches new Global Real Asset Opportunities Fund
RM Funds, a specialist asset manager focusing on alternative investments, has launched the VT RM Global Real Opportunities Fund (VT RMGRO).
The fund is focused on generating stable income and capital growth through investment in a diversified portfolio of high-quality real assets and related direct equities in developed markets which are supported by long term structural growth drivers:
• Industrial Digitisation (digital infrastructure, data centres and telecom towers); and
• Sustainability (utilities, renewables and energy efficiency);
• Socio-Demographic Change (education, healthcare, social infrastructure)
The Fund is actively managed and importantly with an ability to hedge market risk as part of its objective to provide a degree of protection by reducing market risk, market beta and volatility.
The Fund has a growth bias in addition to its income target and will look to pay a dividend distribution of between 3-4 per cent per annum (distributed quarterly), with the potential for further future growth.
The Fund offers institutional and retail investors a single access point to a global listed real asset portfolio diversified by sector, jurisdiction, asset type, and investment theme with a focus on highly liquid public securities. To assist managed portfolio services and multi-asset allocators the Investment Manager will restrict investment by geography, sector and asset class.
In addressing the concerns and tackling the issues of the next generation, the Investment Manager will apply its comprehensive ESG policies and responsibilities as a signatory to the UN PRI to the investment strategy. The Investment Manager will provide active stewardship on a range of investment issues including ESG matters through proactive engagement with Boards and Stakeholders and expects to report on such activities on a bi-annual basis.
VT RMGRO will be low-cost with an annual management charge (AMC) of 0.65 per cent and ongoing charges figure (OCF) capped at 0.75 per cent for institutional investors.
The minimum retail investment in the fund is GBP1 and will be rolling out across all major platforms from 2 November, and is ISA and SIPP eligible with daily dealing.
Pietro Nicholls, Portfolio Manager, RM Funds, says: “This has been an extraordinary year and we are all facing a ‘new normal’, not least investors who are navigating the minefield of asset price volatility, increasing geo-political risks, the deepest economic contraction for generations and a persistent low yield environment which is likely to continue late into the decade.”
“The VT RM Global Real Opportunities Fund’s purpose is to provide both a stable income for investors by investing in high quality real assets that perform strongly despite this deeply uncertain context and to capture the growth in real assets. The portfolio will be carefully constructed in order to allow retail and institutional investors to access a highly diversified, liquid portfolio centred on three key generational growth drivers: unprecedented socio-demographic changes, specifically a growing and ageing population, the acceleration of industrial digitisation and the growing impact of climate change, natural disasters and abnormal weather patterns. Our tactical hedging strategy will provide further downside protection, reducing market exposure during these volatile times, with a portfolio aimed at delivering a steady and reliable performance to investors while providing capital gains over the medium term.”
James Satterthwaite, Head of Distribution, RM Funds, says: “VT RM GRO builds upon the team’s successful track record and investment approach taken in our existing VT RM Alternative Income fund.
“The fund has resonated well with investors who want to maintain interests in growth orientated real assets such as real estate (for example data centres and large format logistics centres), and global infrastructure assets but require liquidity which is currently unavailable in the gated property funds that have been suspended since March. VT RM Global Real Opportunities meets these needs by investing in listed real assets which are liquid public securities with daily dealing.”