Realm Strategic Income Fund Enduring Units

About this Fund

Fund Detail

PDS https://informedinvestor.com.au/view/pds/106805-2024-04-19-02:38.pdf
FUND MANAGER Realm Investment Management
ASX Code

The Fund is an Australian domiciled registered managed investment scheme which pools the money of individual investors.

When you invest in the Fund you are issued with units in a particular class. The only class
of Units on issue is the Enduring Units. 


The Investment Manager seeks to produce a return (net of fees) in respect of the Class that exceeds the total return of the RBA Overnight Cash Rate by 4.75% per annum.

BENCHMARK 4.75% over the RBA Overnight Cash Rate per annum
FUND SIZE 4.75% over the RBA Overnight Cash Rate per annum
FEES 0.99% pa for management fees plus expenses estimated at no more than 0.10% plus interposed costs estimated at no more than 0.01%



Fund Structure and Endearing Units

The Responsible Entity may issue units in the Fund in different classes provided the Responsible Entity
establishes a separate sub-account for that particular class (Sleeve) which includes the following
• separate Sleeves must be established for each class of units, and no more than one Sleeve may be
referable to a particular class of units;
• Assets, liabilities, expenses, income and distributable amounts of the Fund referable to a particular class
of units must be allocated to the appropriate Sleeve in a manner that is reasonable and is consistent with
the Constitution;
• Application money referable to a particular class of units must be accounted for in the Sleeve referable to
that class of units;
• Sleeves may be established pending the issue of units in a class, or the acquisition of assets for that class;
• any reallocation of assets and/or liabilities between Sleeves must be done on a fair and reasonable basis
for holders of the class of units referable to those Sleeves.
A scheme is only liquid if “liquid assets” account for 80% or more of the value of the scheme property. Assets
are liquid if the Responsible Entity reasonably expects them to be able to be realised for market value within
the time provided in the Constitution for satisfying withdrawal requests while the scheme is liquid. The
Investment Manager has advised the Responsible Entity that the assets of the Fund will not satisfy this test
and so Enduring Units will be illiquid.

RISK LEVEL Medium to high

This product is likely to be appropriate for a consumer seeking Capital Preservation and Income Distributions to be used as a Satellite or small allocation within a portfolio where the consumer has a Medium investment timeframe, Medium risk/return profile and needs Monthly access to capital.



Key Features

One Manged Fund Investments: The responsible entity of the Fund is One Managed Investment Funds Limited (ACN 117 400 987) (AFSL 297042). One Managed Investment Funds Limited is part of the One Investment Group, an independent funds management business specialising in providing responsible entity, trustee, custody and administration
services. As at the date of this PDS, One Investment Group is responsible for in excess of 200 funds and $25bn in a wide range of underlying asset classes including infrastructure, real estate, equities, fixed income, private equity and fund of funds. One Investment Group is not a fund manager and has appointed the
Investment Manager for this purpose


ESG Compliance: 

As part of the investment process the Realm investment team considers environmental, social and governance (ESG) issues where they add value to the Fund or Class assets. If improperly managed or identified, Realm considers that ESG considerations present a risk to investment returns.

No formal guidelines are used, nor is any formal weighting given to the ESG issues in portfolio construction.
Rather a broad, implicit approach is taken when carrying out this subjective assessment.
The types of ESG issues that may be taken into account include:
• Environmental: weather, pollution and environmental disruption, sustainability and associated
reputational and brand risks.
• Social: political stability, human rights issues, privacy and cyber-security, impact on local communities,
health and safety and associated reputational and brand risks.
• Governance: board composition, risk management track-record, legal and compliance track-record,
history of prosecutions, management remuneration, and distribution of equity and associated
reputational and brand risks.


How we invest your money: 

The Investment Manager’s approach embraces the philosophy that best practice management combines a
complete top down assessment of key macro and regulatory drivers supported by a bottom up process which
provides a ground level market view of issuers and their markets.
The Investment Manager will cause the Fund to acquire, via a variety of assets, exposure to corporates, banks
and non-bank financial issuers who have demonstrated strong financial performance and underwriting as
assessed by Realm’s proprietary distance-to-default methodology, and derivatives. The Class will seek to
deliver its objective through asset selection. The Class will seek to target the liquidity premium within various
markets that have been adversely impacted by regulation, and other idiosyncratic factors.

Investors will be exposed primarily to securities, secured loans, trusts, notes and bank facilities originated or
issued by:

• Banks, Building Societies & Credit Unions (ADI);
• Corporations; and
• Non-Bank financial Institutions,
representing the following asset classes:
• Deposits, short term securities & cash trusts;
• Corporate loans;
• Residential mortgages; and
• Asset-backed receivables.
The Investment Manager uses derivatives including swaps and futures as a risk management tool and also to
achieve the investment objectives of the Fund. 


The most commonly used derivatives are government bond futures to manage interest rate risk and currency
swaps to manage foreign exchange risk. The Investment Manager may also use swaps to manage credit
risk including by creating the economic effect of covered short sales. Derivatives can also be used to gain
exposure to a particular market as an alternative to purchasing physical assets. The Investment Manager only
does this when the use of derivatives offers a more cost effective way of gaining exposure to the market than
purchasing the physical asset.
Derivatives are not utilised to create overall portfolio exposures whose general characteristics could not be
obtained from an unlevered investment in allowable physical bonds.
There may be periods when part or all of the Class assets are invested in another Realm product, and if this is
the case, the Investment Manager will waive the portion of the Management Fee relevant to that investment.


The Class assets will primarily be valued using hold to maturity accounting. This is because the assets will
generally not be tradeable. Where assets are tradeable, they will be valued on a mark to market basis (i.e. fair
value). The NAV of the Class is expected to be calculated monthly and will be made available on the Fund’s
website. The Investment Manager will be providing regular portfolio commentary and performance reporting.


Asset Allocation: 


Cash: 0 - 100%