Real Income Fund
Provides investors with an enhanced income stream through Australian secured credit.
The goal of the Fund is to provide investors with a continuous and reliable monthly income stream with a target return of RBA cash rate + 4.0%, through exposure to Australian secured credit, targeting an average LVR of 65%. Capital protection is enhanced by a robust credit approval process and ongoing loan management. Comprehensive credit assessment processes and full independent valuations are in place to mitigate risk.
Attractive Income & Capital Stability
Reliable, regular monthly income with a target return of RBA cash rate + 4.0%.
End-to-End Ownership of Risk
Ensuring the quality of underlying assets, as evidenced by a consistent and proven track record.
Experienced Team
Significant experience in managing credit portfolios, mortgage portfolios and sourcing continuous high quality investment opportunities.
Exemplary Track Record
The unlisted credit fund has a 7-year track record with proven capital stability, meeting all distributions, no credit losses and strong arrears performance.
Diversification
Diversification on two levels – underlying portfolio and complementary nature of the asset class.
Institutional Asset Class
Opportunity to invest in institutional asset class, not generally available to individual investors.
Why Invest in Real Income Fund?
- Regular income paid monthly
- Australian secured credit
- Target portfolio average loan to value of 65%
- No development finance or unsecured finance
- Investment manager with 6+ years track record in credit, delivering 100% on investment objectives
- 0% losses within credit strategies and 0% drawdowns in NAV across all credit funds
- Well diversified underlying mortgage portfolio with historical low arrears and experienced team managing the assets
- Liquidity provided through access to a $2bn funding pool
The Fund intends to invest in ABS as described below. During times when the Fund is not fully invested, the Fund may invest in short-term government obligations, certificates of deposit, commercial paper and other money market instruments and cash.
Class A1
Class A1 intends to invest in notes issued by the trustee of one or more securitisation trusts, or securitisation warehouse trusts. Initially, all of the assets referable to Class A1 will be invested in ABS related to the Brighten Loan Program. The ABS issued by the RAM Credit Securities Trust are not expected to be rated by an external credit rating agency. To maintain consistent income returns over the long term, it is intended that these ABS be held until their maturity.
Each ABS is exposed to a portfolio of individual loans and the underlying credit risk is spread across many different borrowers. See the section titled 'The Brighten Loan Program' below for more details on how these loans are provided and managed.
The Brighten Loan Program
The program for the provision of Brighten Loans ('Brighten Loan Program') will be operated in the following manner:
- RAM has entered into a bare trust deed with the Brighten Lender, who will hold the funds of the Fund allocated for the provision of Brighten Loans as RAM’s bare trustee;
- the Brighten Manager is appointed under a Servicing Agreement, whereby the Brighten Manager agrees to originate and service Brighten Loans made under the Brighten Loan Program, in consideration for RAM providing the funding for the Brighten Loans through the Brighten Lender;
The Brighten Manager will provide its home loan lending services under an Australian Credit Licence. Under the Servicing Agreement, the Brighten Manager agrees to perform services in relation to the Brighten Loans, including for residential mortgages:
- assessing loan applications;
- preparing mortgage documents;
- assessing and processing loan discharges, variations or enforcements;
- maintenance of necessary licensing and accreditation; and
- AML/CTF reporting.
The Brighten Lender is a related body corporate of RAM.
Distribution rate net of management fees, which is a variable rate reviewed monthly. An investment in the Fund is not a bank deposit. The capital value and rates of return from the Fund are variable and not guaranteed and are determined by the future revenue of the Fund and may be lower than expected. Withdrawal rights are subject to liquidity and may be delayed or suspended. This document is for informational and illustrative purposes only and should not be construed as legal, tax, investment or other advice. This document does not constitute an offer to sell, or the solicitation of an offer to buy, any securities. 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. The distribution of this document does not constitute any regulated activities by any personnel in the relevant jurisdiction where such distribution would be unlawful until the requirements of the laws of such jurisdiction have been met. 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. GENERAL ADVICE WARNING: 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.
Scott has over 30 years of experience in Global Wealth Management and Asset Management, working for top tier financial institutions in Australia, and the United Kingdom.
Prior to joining Real Asset Management, Scott was a Managing Director and head of Investment Products and Services for UBS Wealth Management Australia. There he oversaw the entire product offering for Australia’s premier wealth manager with $24bn of assets under management.
Before joining UBS, Scott held the position of National Sales Director for Macquarie Private Wealth Australia.
Prior to this Scott co-founded Corzon Capital, a specialist wealth and asset management business based in Jersey UK.
Scott was also the Joint Head of Private clients at Kleinworth Benson, before stating his financial career with Mercury Asset Management in London.
Scott holds a B.A., Business Management from the University of Leeds and is a member of the Stockbrokers Association.
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.
Adam joined Real Asset Management in 2019 in the position of Director, Head of Funding and Securitisation, bringing over 12 years of debt funding experience to the role.
Prior to joining Real Asset Management, Adam was a member of the Treasury and Securitisation team at Resimac, responsible for funding Resimac’s residential mortgage portfolio. In this role Adam managed various warehouse relationships along with arranging RMBS transactions to meet the ongoing funding requirements of the business.
Adam holds a Bachelor of Business Administration (Finance) degree from Macquarie University and a Bachelor of European Business from the Ecole de Management de Normandie.
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.
Statutory Statement
The issuer of this product is identified at the top of this page. The PDS and target market determination for the product are available in the Documents section of this listing. Prospective investors should consider the PDS before deciding to acquire the product. An investment in the product is not a bank deposit and investors risk losing some or all of their money. 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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