Realm High Income Fund – new unit class now available on mFund (ASX: RLM03)
Invest in the actively managed fixed income fund
Realm Investment House (Realm) is a Melbourne based, independent boutique fund manager, established in 2011. The Realm Portfolio Management Team (Team) combine their 60 years of investment experience and disciplined investment approach to manage assets in a contrarian, benchmark unaware style.
A new unit class under mFund code: RLM03 is now available to all mFund participants at an MER of 0.77bps. The new Class will invest in the same underlying strategy but will have a lower management fee than the previous RLM01 mFund code.
The Realm High Income Fund (Fund) seeks to target a return of 3% (net of fees and after franking) over the RBA cash rate through the market cycle while seeking to preserve capital. To achieve this the Fund invests in domestic credit, including corporate and asset backed securities, whilst actively managing the credit exposures to mitigate risk.
The Fund is a diversified, actively managed fixed income portfolio that invests in cash and domestically issued fixed interest securities. These securities include debt issued by banks and corporations, mortgage and asset backed securities, government and semi-government bonds.
The team will evaluate and alter the level of credit risk according to their appraisal of the domestic corporate debt market over the market cycle.
The Fund’s strategy affords the Team flexibility to invest across a wide range of asset classes, based on their fundamental approach which combines the evaluation of corporate risk, international and domestic market outlook and the direction of interest rates.
Combining the risk first approach to investing along with the Fund’s flexible investment mandate and the use of proprietary models, the Team utilise their experience to allocate tactically and strategically to minimise volatility of returns.
Who should invest in this Fund?
Investors seeking a stable monthly income distribution with a focus on capital preservation. The Fund also appeals to those investors who require diversification within their defensive allocation and are seeking access to securities not generally available to direct retail investors, which are managed by a highly experienced team.