Deliver a tax effective yield at a premium to cash with moderate levels of capital volatility
Diversified portfolio blending a range of security types and structures ranging from government bonds through to complex hybrid subordinated securities.
Directly held, actively managed income portfolio providing a regular yield at a premium to cash.
Predominantly floating rate, with regular distributions.
Actively Managed, Risk Adjusted (Quality and Value) bias to Portfolio construction.
Strong focus on risk management at the portfolio and security specific level.
Strong track record with attractive risk adjusted returns in a range of market conditions due to defensive style.
ESG Exclusions – the following sector exclusions based on company revenue: Gambling (0.0%), Tobacco Retailing (10%), Tobacco Manufacturing (0.0%), Pornography (0.0%), Armaments (0.0%), Coal Mining (0.0%).
| CURRENCY | AUD |
|---|---|
| DISTRIBUTIONS | Quarterly, Variable |
| INVESTMENT AMOUNT | Minimum SMA $25k, MDA $500k |
| ISSUER | SMA: Platform, MDA: RAM |
| INVESTMENT MANAGER | Real Asset Management Pty Ltd |
| PLATFORM | CFS Edge, Macquarie, AMP North, RAM |
| PORTFOLIO GROSS YIELD TO MATURITY | 5.91% |
|---|---|
| PORTFOLIO GROSS YIELD | 6.36% |
| RBA CASH RATE | 4.35% |
| FLOATING RATE EXPOSURE | 80.50% |
| MINIMUM ISSUER CREDIT RATING* | Investment Grade |
| DIVERSIFIED FI & CREDIT STRATEGY PERFORMANCE | 1 MONTH | 3 MONTHS | 6 MONTHS | 1 YEAR | 2 YEAR P.A. | 3 YEAR P.A. | 5 YEAR P.A. | SINCE INCEPTION P.A. |
|---|---|---|---|---|---|---|---|---|
| CASH RETURN | 0.30% | 2.08% | 3.07% | 6.10% | 5.07% | 2.99% | 2.66% | 3.30% |
| IMPUTATION CREDITS | 0.04% | 0.30% | 0.62% | 1.26% | 1.09% | 0.88% | 0.75% | 0.72% |
| GROSS RETURN | 0.33% | 2.38% | 3.70% | 7.36% | 6.16% | 3.87% | 3.41% | 4.03% |
Returns as of 31st July 2024
Data as of 31 July 2024. Past performance is not an indicator of future performance. Returns are before management fees, platform fees, and expenses.
*Securities are subordinated to the senior rating and generally do not have credit ratings.
Since Inception Data shows the composite time series since inception of strategy reflecting a continuous time series (Same PM/Universe/Style/Objective). Imputation credits may add to returns for Australian tax payers eligible for rebate. The above chart shows the performance of the model portfolio prior to fees. The fund strategy is based on the above strategy but has an additional SIV compliance constraint.
Source: Macquarie, Real Asset Management (RAM), Bloomberg, E&P, Lonsec. RAM Strategy Gross return is inclusive of imputation credits for a 0% tax payer, prior to fees. Past Performance is not a reliable indicator of future performance. It is open only to investors who are “wholesale clients” as defined in section 761G or 761GA of the Corporations Act 2001 (Cth) of Australia. All investments involve the potential for a loss of capital. Prospective investors should seek separate, independent financial and professional advice if required prior to making an investment to assess the suitability, lawfulness and risks involved. The information contained herein does not have any regard to the specific investment objectives, financial situation or the particular needs of any person.
Redemptions are only possible if fund is liquid.
For four years running Real Asset Management (RAM) has won the IMAP (Institute of Managed Account Professionals) Award for Australian Fixed Interest managed accounts. The judging panel is comprised of independent consultants and industry executives who commended RAM on the quality of our investment offering and risk adjusted approach to portfolio construction.
Australian Fixed Interest Finalist 2024 IMAP Managed Account Awards
Australian Fixed Interest Finalist 2023 IMAP Managed Account Awards
Australian Fixed Interest Winner 2021 IMAP Managed Account Awards
Australian Fixed Interest Winner 2020 IMAP Managed Account Awards
Australian Fixed Interest Winner 2019 IMAP Managed Account Awards
Other Asset Classes Winner 2018 IMAP Managed Account Awards
The RAM Australian Diversified Fixed Income Fund and RAM Diversified Fixed Income & Credit SMA have been certified by the Responsible Investment Association Australasia according to strict disclosure practices required under the Responsible Investment Certification Program.
RIAAʼs RI Certification Symbol signifies that a product or service offers an investment style that takes into account environmental, social, governance or ethical considerations. The Symbol also signifies that the RAM Australian Diversified Fixed Income Fund and the RAM Diversified Fixed Income & Credit SMA adhere to the strict operational and disclosure practices required under the Responsible Investment Certification Program for the category of Product. The Certification Symbol is a Registered Trademark of the Responsible Investment Association Australasia (RIAA). Detailed information about RIAA, the Symbol and RAM Australian Diversified Fixed Income Fundʼs and RAM Diversified Fixed Income & Credit SMAʼs methodology, performance and stock holdings can be found at www.responsiblereturns.com.au, together with details about other responsible investment products certified by RIAA.*
*The Responsible Investment Certification Program does not constitute financial product advice. Neither the Certification Symbol nor RIAA recommends to any person that any financial product is a suitable investment or that returns are guaranteed. Appropriate professional advice should be sought prior to making an investment decision. RIAA does not hold an Australian Financial Services Licence.
The RAM Diversified Fixed Interest & Credit Strategy specifically has a formal universe exclusion to companies which operate within the following industry groups. This sector exclusion acts as a hard universe restriction and companies within these sectors are not eligible for portfolio inclusion.
*Revenue maximum 10%. Maximum 0% production including Nicotine Alternatives.
The RAM Diversified Fixed Interest & Credit Strategy and RAM Interest Rate Securities strategy scores issuers on a range of metrics with a number being specifically related to ESG factors including:
We recognise the importance of strong risk management in organisations we invest in and specifically focus on Environmental, Social and Governance risks and disclosure as part of our investment process. Like all investment risks, there is significant risk from poor behaviour or limited reporting which can have significant costs to investors. For example, reputational risks can impact sentiment, and risk premiums as well as the ability of the company to access suitable business funding. There can be direct significant costs/fines or loss of customers, which impacts profitability and balance sheets from illegal or unethical activities.
There have been many academic studies highlighting the linkage between ESG factors and investments risk and returns. Governance plays a key role given it is management that are responsible for honouring the terms of issue and making the promised payments and the agreed times for debt securities.
We consider ASX listed companies annual reporting and disclosure for compliance with regard to these factors and ASX listing ESG disclosure requirements, as well as direct meetings with management where further research is required. As a direct outcome of our research we can exclude specific companies and securities from investment, based on our view of risks and expected returns.
We supplement our internal research with consideration of Bloomberg ESG scoring as part of the research process.
We believe markets and securities trading prices can move away from intrinsic value, we aim to avoid the short term noise, focusing on long term growth.
Primary focus is the preservation of capital, with a strong focus on risk management. Investing is an exercise in taking risk, therefore a firm grasp on risk management is essential.
Disciplined investment process with experienced investment personal. Our goal is to bring institutional investment and risk management to the private client world.
We believe blending a range of security types and maturities can reduce portfolio volatility whilst achieving the strategic objective.
Our clients can understand how their wealth is being managed and be confident it will meet their expectations. All investments are directly held by the client in their own portfolio via the Discretionary Managed Account.
We focus on the expected after taxation returns clients receives, which can include a bias to imputation credits. Taxes and transaction costs can erode returns if portfolio activity is not carefully managed.
Actively Managed, Risk Adjusted (Quality and Value) bias to Portfolio construction
We actively manage the liquidity, quality, income stream and duration, as well as the instrument type, industry exposure and specific credit exposures within the portfolio, to deliver on the strategy objective We take a risk adjusted approach to portfolio construction on an ongoing basis.
RAM has a portfolio bias to quality, in particular the quality of the issuers credit rating, the companies management, balance sheet and earnings, as well as the quality of the terms of issue on the specific instrument.
We take a benchmark unaware approach to portfolio construction. We position the portfolio in line with our medium term views. Fixed income and credit securities in particular, can be mean reverting over the medium term. Our turnover is expected to be low-moderate.
Real Asset Management Pty Limited ACN 162 123 408 AFSL 484263
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