RAM Australian Diversified Fixed Income Fund
The Fund invests in capital securities issued by major Australian Banks, and Australian Bonds, providing clients with attractive and regular income distributions whilst providing low capital volatility. (Wholesale investors only)
The Investment Objective is to deliver a regular income stream at a premium to the official Australian Cash Rate with low levels of capital volatility.
Over the medium to long term the strategy aims to outperform the Bloomberg Ausbond Bank Bill index by 1% per annum, net of fees, prior to taxation.
In delivering on this Investment Objective, the RAM Diversified FI & Credit Portfolio aims to provide clients with attractive and regular income distributions, whilst providing low capital volatility.
Features include:
- Portfolio of senior, subordinated and capital securities issued by major Australian Banks, financial institutions and Companies listed on the ASX.
- SIV Compliant – fund is managed inline with SIV Complying investment balancing investments guidelines.
- Income stream benefits from any increase in base rates
- Liquid – traded on Australian Stock Exchange (T + 3) or OTC markets
- Diversified Portfolio – Maximum 15% Issuer
- Concentration Risk Major Banks, 10% other issuers.
- Tax Aware Style - majority withholding tax exempt income
- Minimum BBB- Issuer Credit Rating
- Minimum $500k $/AUD Investment, 3-5 year recommended investment horizon
- Sector Exclusions to: Armaments, Gaming, Tobacco*, Retailing, Nicotine Production, Pornography
*Revenue Maximum 10%; Maximum 0% production including Nicotine Alternatives
To learn more about the RAM Diversified Fixed Income Fund, click here.
Portfolio of senior, subordinated, and capital securities issued by major Australian Banks, financial institutions and companies listed on the ASX.
Income stream benefits from any increase in base rates
Liquid – SMA strategy is traded on Australian Stock Exchange (T + 2) or OTC markets
Diversified Portfolio – Maximum 15% Issuer Concentration Risk Major Banks, 10% other issuers.
Tax Aware Style – majority of portfolio has fully franked distributions which can be attractive to Australian tax paying investors, or offshore investors via offsetting withholding tax
Minimum BBB- Issuer Credit Rating
Active Management
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.
Quality (risk adjusted) & Value Bias
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 compare securities within the universe on the expected after taxation internal rate of return.
Long Term Approach
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.
For 4 years running 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.
The RAM Australian Diversified Fixed Income Fund has been certified by the Responsible Investment Association Australasia according to strict disclosure practices required under the Responsible Investment Certification Program.
RIAA’s 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 adheres 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 Fund’s 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.
*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. The information contained herein does not have any regard to the specific investment objectives, financial situation or the particular needs of any person. No representation or warranty, expressed or implied, is given by Real Asset Management Group or its affiliated companies or its respective directors, officers, representatives and/or employees (the “Parties”) as to the accuracy or completeness of the material, information or opinions contained in this presentation and the Parties shall have, and accept, no liability for any statements, opinions, information or matters (expressed or implied) arising out of, contained in or derived from this presentation or any omissions from this presentation, or any other written or oral communication transmitted or made available to any other party for distribution to the general public but for intended recipients only and may not be published, circulated, reproduced or distributed in whole or part to any other person without the written consent of Real Asset Management Group or its affiliated companies.
Real Asset Management (‘RAM’) is an Australian alternative asset manager, providing investment solutions in Credit, Real Estate, and Private Equity markets, for institutions and wealthy families globally.
RAM was founded in 2010 and has a pan-Asia presence of 5 offices in Sydney, Melbourne, Brisbane, Shanghai and Hong Kong. RAM provides more than 15 investment strategies and has a team of over 100 finance professionals managing in excess of A$4.3bn in assets.
We provide a global set of investment solutions through our group companies licensed by the Australian Securities and Investment Commission of Australia (AFSL 484263), and the Securities & Futures Commission of Hong Kong (CE BGL803).
All numbers as of 31st December 2023, unless otherwise indicated
Michael has over 24 years of experience in Global Wealth Management and Asset Management, working for leading financial institutions in Australia.
Prior to joining Real Asset Management, Michael was a Senior Portfolio Manager for Macquarie Bank in the Discretionary Managed Accounts business. He has over 12 years’ experience as Portfolio Manager, working as a senior member of the investment team managing in excess of $1 bn in clients discretionary funds and was directly responsible for over $440m in clients fixed interest and credit investments, as well as previous experience managing Equities and A-REITs, Strategic Asset Allocation and Tactical Asset Allocation.
His previous experience within Macquarie Bank includes trading, derivatives, client advisory and money market activities. Michael’s first role with Macquarie was as a Stock Exchange operator where he developed a keen passion and knowledge of listed investments, and was a SEATS Governor for the ASX. Michael also worked at Westpac Bank as a securities officer prior to his role with Macquarie.
Michael holds degrees in Commerce and Finance from Adelaide University (B Com & B Fin), has completed a Post Graduate Diploma in Applied Finance and Investment, is a CFA Charterholder, and Fellow of the Financial Services Institute of Australia (F Fin).
Relevant Documents
You should read the PDS, TMD (if applicable) or any Investment Memorandum (or other offer documents) related to this product before making an investment decision. These documents (if available) can be found at https://ramgroup.com/, or if this is a "wholesale investor only" investment, can be viewed by contacting the Product Issuer identified on the aforementioned website.
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This offer of scheme interests is available to wholesale clients only. This product listing was vetted by and approved by the product issuer identified above before publishing. Investment Markets (Aust) Pty Ltd AFSL 527875 (IM) is not the issuer of the product.
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