Highly defensive alternatives fund launches

by | Jun 5, 2018

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A highly defensive alternatives fund, which focuses on attractive and stable income returns, and is said to the first of its kind, has been launched.

The VT RM Alternative Income Fund (RMAI), an actively managed open-ended fund investing in defensive, income producing alternative assets, is managed by RM Funds, a specialist alternative investment manager.

The UCITS V fund targets a 5% annual income distribution. RM Funds told IFA Magazine that it offers investors a single route to a diversified, highly selected and defensive portfolio of alternative, predominantly listed, income producing assets. The highly diversified portfolio will invest in securities across specialist real estate, alternative lending and infrastructure.

RM Funds said: “With a focus on capital preservation and income generation, the fund offers investors interest rate and inflation protection in a low yield and rising interest rate environment. The fund will select investments with low correlation to the wider equity and fixed income markets. Investments are underpinned by contracted cash flows and tangible assets.”

Pietro Nicholls, Principal – Investment Manager of RM Funds, said: “The fund is designed to be a single investment that offers investors and asset allocators exposure to an actively managed diverse portfolio of alternative income-producing assets which traditionally have been seen as defensive, less volatile and uncorrelated with the wider equity and fixed income markets to generate reliable and stable income well insulated from increases in market volatility and macro-economic conditions. VT RM Alternative Income will offer investors stable income, with reliable returns and downside risk protection from low yields, the rising interest rate environment, increasing economic uncertainty and Brexit.

“Our award winning investment team have spent years at the coal face of the alternatives sector, with in-depth knowledge of the portfolio investments. We are confident in our firm’s ability to construct and manage a portfolio of investments that will produce consistent returns in challenging market conditions.”

 

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