It is with pleasure we share that our friends at RM Funds have announced the launch of the VT RM Global Real Opportunities Fund (VT RMGRO). Founded in 2010, RM Funds is an alternative asset manager with offices in Edinburgh and London. The firm manages capital on behalf of institutional investors, multi-asset allocators, wealth managers and retail investors. Since inception the firm has transacted in excess of £50 billion of securities.
The VT RMGRO fund is focused on generating stable income and capital growth through investment in a diversified portfolio of high-quality real assets and related direct equities in developed markets which are supported by long term structural growth drivers:
- Industrial Digitisation (digital infrastructure, data centres and telecom towers)
- Sustainability (utilities, renewables and energy efficiency)
- Socio-Demographic Change (education, healthcare, social infrastructure)
Pietro Nicholls, Portfolio Manager of RM Funds said, “This has been an extraordinary year and we are all facing a ‘new normal’, not least investors who are navigating the minefield of asset price volatility, increasing geo-political risks, the deepest economic contraction for generations and a persistent low yield environment which is likely to continue late into the decade.”
The fund is actively managed and importantly has the ability to hedge market risk as part of its objective to provide a degree of protection by reducing market risk, market beta and volatility. The fund has a growth bias in addition to its income target and will look to pay a dividend distribution of between 3-4% per annum (distributed quarterly), with the potential for further future growth. The fund offers institutional and retail investors a single access point to a global listed real asset portfolio diversified by sector, jurisdiction, asset type, and investment theme with a focus on highly liquid public securities. To assist managed portfolio services and multi-asset allocators RM will restrict investment by geography, sector and asset class.
James Satterthwaite, Head of Distribution at RM Funds said, “VT RMGRO builds upon the team’s successful track record and investment approach taken in our existing VT RM Alternative Income Fund. The fund has resonated well with investors who want to maintain interests in growth orientated real assets such as real estate (for example data centres and large format logistics centres), and global infrastructure assets but require liquidity which is currently unavailable in the gated property funds that have been suspended since March. VT RMGRO meets these needs by investing in listed real assets which are liquid public securities with daily dealing.”
In addressing the concerns and tackling the issues of the next generation, RM will apply its comprehensive ESG policies and responsibilities as a signatory to the UN PRI to the investment strategy. RM will provide active stewardship on a range of investment issues including ESG matters through proactive engagement with Boards and Stakeholders and expects to report on such activities on a bi-annual basis. VT RMGRO will be low-cost with an annual management charge (AMC) of 0.65% and ongoing charges figure (OCF) capped at 0.75% for institutional investors. The minimum retail investment in the fund is £1. It rolled out across all major platforms on the 2nd of November, and is ISA and SIPP eligible with daily dealing.
Douglas Graham, Finance Director of NCM Fund Services said, “NCM were delighted to hear that our friends at RM Funds have launched their third fund VT RM Global Real Opportunities Fund. The VT RM Global Real Opportunities Fund aims to provide income and capital growth over the medium to longer term (3- 5 years). The Fund seeks to meet its objectives by investing primarily (70%+) in listed equities, whose primary activity or exposure is within core thematic areas including but not limited to ageing populations, urbanisation, digital commerce, infrastructure, decarbonisation, disruptive real estate and consumer staples. The investment focus is on an investment universe which benefits from structural or social-demographic tailwinds (such as ageing populations, the decarbonisation of energy generation and rapid growth of digital services). NCM co-locates with RM Funds and provides extensive financial and administrative support to them throughout the year. We wish them luck with their new venture.”