LoginAbout the
Fund Manager
The Manager is Resimac Limited AFSL 247283, ACN 002 997 935, a wholly owned subsidiary of the ASX listed Resimac Group Limited ACN 095 034 003 (Resimac Group), a leading non-bank financial institution with an extensive history in originating, servicing, and securitising mortgage assets.
Resimac Group is a pioneer of residential mortgage-backed securities in Australia and since 1987 has issued to institutional investors more than $40 billion in structured debt securities in domestic and global capital markets similar in nature to the ones the Fund will invest in. All the securities Resimac Group has issued to date have met their principal and interest payments when due.
Resimac Group currently has over 50,000 customers in Australia and New Zealand through its broad suite of competitive, award-winning residential mortgage and asset finance products that cater to diverse customer types and needs. Currently Resimac Group has a loan book of $16 billion and new business originations of more than $5 billion per annum.
Objectives and benchmark
The Fund’s investment objectives are to provide investors with:
The objectives are not intended to be a forecast. It is an indication of what the Fund is seeking to achieve over the medium term. Returns are not guaranteed. The Fund may not achieve its investment objectives.
The Fund is suitable for those investors who are seeking to generate returns through investing in fixed income assets over a period of three to five years.
- A regular income stream through the payment of quarterly distributions.
- Exposure to structured debt securities which are only available to institutional investors; and
- A return that exceeds the benchmark Bloomberg Ausbond Bank Bill Index by 4% per annum over rolling three-year periods
The objectives are not intended to be a forecast. It is an indication of what the Fund is seeking to achieve over the medium term. Returns are not guaranteed. The Fund may not achieve its investment objectives.
The Fund is suitable for those investors who are seeking to generate returns through investing in fixed income assets over a period of three to five years.
Why invest?
Benefits of Investing in the RMC Enhanced Income Fund:
- Access to a specialist high conviction fund. The Manager will use their extensive knowledge of structured debt securities to structure and manage the Fund’s investments to maximise returns while managing risks;
- Access to a reliable pipeline of assets from Resimac Group which is a well-resourced issuer with a proven long term track record in originating and servicing Australian mortgage collateral;
- Provides investors with the opportunity to broaden their fixed income exposure across a diversified portfolio of structured debt securities generally only available to institutional investors; and
- Aims to consistently make quarterly income payments to investors.
Strategy
The Fund will invest in interest bearing debt securities with a preference for floating rate debt. Its primary focus will be on publicly-issued structured debt securities such as residential mortgage-backed securities (RMBS) and privately-issued mortgage-backed instruments such as credit risk retention and warehouse notes.
Notwithstanding the primary focus, the Fund may also invest in other fixed interest securities such as asset backed securities (ABS) and corporate floating rate notes (FRNs).
The Fund can also hold short-term money market investments, including (but not limited to) cash in a bank account, cash in an 11am call account, bank bills, negotiable certificates of deposit and term deposits.
Initially the Fund’s investments will be securities originated by a member of the Resimac Group. Despite these securities being sourced from a related party of the Manager, investment decisions will be subject to the same analytical rigour as would be applied to those from an external issuer.
Analysis will be undertaken to determine:
Investment by the Fund into any securities issued by Resimac Group or a member of Resimac Group will be made at an arm’s length basis.
The securities which are originated by a member of the Resimac Group and acquired by the Fund provide inbuilt diversification as each security is collateralised by individual loans. The loans used for collateral are first registered mortgages secured by real property under Australian law. The underlying pool of loans is diversified across many different borrowers, geographies and property types. However, all the loans in a portfolio relate to a single sector (e.g., all loans in a RMBS transaction are backed by residential mortgages) and will therefore be subject to the risks associated with that sector.
As the Fund gains scale, the potential investment universe may expand to include securities from other issuers.
To maintain consistent income returns over the long term, the Manager intends to hold securities, where prudent, until maturity. The Fund will have the capacity to trade securities if it is assessed to be in the best interests of unitholders.
Notwithstanding the primary focus, the Fund may also invest in other fixed interest securities such as asset backed securities (ABS) and corporate floating rate notes (FRNs).
The Fund can also hold short-term money market investments, including (but not limited to) cash in a bank account, cash in an 11am call account, bank bills, negotiable certificates of deposit and term deposits.
Initially the Fund’s investments will be securities originated by a member of the Resimac Group. Despite these securities being sourced from a related party of the Manager, investment decisions will be subject to the same analytical rigour as would be applied to those from an external issuer.
Analysis will be undertaken to determine:
- whether the proposed investment is a suitable opportunity for the Fund;
- at the proposed acquisition price, will the investment provide appropriate returns; and
- if an investment is made, will the Fund still be within risk tolerances.
Investment by the Fund into any securities issued by Resimac Group or a member of Resimac Group will be made at an arm’s length basis.
The securities which are originated by a member of the Resimac Group and acquired by the Fund provide inbuilt diversification as each security is collateralised by individual loans. The loans used for collateral are first registered mortgages secured by real property under Australian law. The underlying pool of loans is diversified across many different borrowers, geographies and property types. However, all the loans in a portfolio relate to a single sector (e.g., all loans in a RMBS transaction are backed by residential mortgages) and will therefore be subject to the risks associated with that sector.
As the Fund gains scale, the potential investment universe may expand to include securities from other issuers.
To maintain consistent income returns over the long term, the Manager intends to hold securities, where prudent, until maturity. The Fund will have the capacity to trade securities if it is assessed to be in the best interests of unitholders.
Fund key features
summary
Investor Eligibility
Investors in the Fund need to satisfy the wholesale, Sophisticated or Professional Investor requirements of section 761G of the Corporations Act.
Minimum Investment
$100,000, unless otherwise determined by Trustee or Manager.
Minimum Additional Investment
The minimum one-off additional investment amount is $10,000 unless otherwise determined by Trustee or Manager.
Management Fee
0.45% of the Net Asset Value of the Fund.
Fund Expenses
Capped at 0.15% of the Net Asset Value of the Fund during the Fund’s start-up period.
Buy/Sell Spread
The Buy/Sell Spread is 0.10% upon entry and 0.10% on exit.
Applications
Monthly – completed application and cleared funds to be received by the Administrator two Business Days prior to month end.
Redemptions
Monthly – redemption request to be received by the Administrator five Business Days prior to month end.
Maximum Monthly Redemptions
The maximum aggregate amount redeemable in a calendar month is 10% of the Fund’s Net Asset Value.
Unit Pricing
Monthly
Distributions
Quarterly, usually within 15 Business Days of the end of the quarter.
Minimum Balance
$100,000, unless otherwise determined by the Trustee or the Manager.
Fund performance
information
| As at 29 February 2024 | 1 Month % | 3 Month % | 6 Month % | 1 Year % | Inception % p.a. * |
|---|---|---|---|---|---|
| RMC Enhanced Income Fund | 1.56% | 3.27% | 5.79% | 11.00% | 8.53% |
| Growth Return | 1.56% | 0.83% | 1.55% | 2.18% | 1.18% |
| Distribution Return | 0.00% | 2.44% | 4.24% | 8.82% | 7.35% |
| Bloomberg Ausbond Bank Bill Index | 0.34% | 1.09% | 2.12% | 4.10% | 3.05% |
| Target Return | 0.68% | 2.09% | 4.12% | 8.10% | 7.05% |
| Excess Return | 0.88% | 1.18% | 1.67% | 2.90% | 1.48% |
Past performance is not an indicator of future performance. Returns are net of fees and assume the reinvestment of income. No allowance for taxation has been made. * Inception 31 March 2022.
Growth Return is the change in ex-distribution unit prices.
Distribution Return is the difference between the growth return and total return.
Target Return is the Index Return plus 4% p.a. over rolling three year periods.
Excess Return is the difference between the Fund’s net return and the target return.
Return data greater than one year is annualised.
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