This article originally appeared in Adviser Voice.
Real Asset Management (RAM) Australia Has announced that its Credit Fund has received a ‘Superior’ four-star rating by SQM Research, making it suitable for inclusion on most Approved Product Lists (APLs).
SQM Research highlighted that the RAM Australia Credit Fund (“RACF”) has materially outperformed SQM Research’s selected reference index in all periods, and has materially lower volatility compared to its peers in all periods.
RAM Australia CEO, Scott Kelly, said SQM Research’s rating was pleasing given the RACF’s proven track record in providing investors with stable income through periods of economic uncertainty.
“We are pleased to see that SQM Research recognised RACF’s potential to outperform over the medium to long term as well as its strong historical performance. It is a testament to the high level of expertise of our investment personnel and our robust systems and management processes for managing loans throughout their lifecycle.”
Mr Kelly said RACF aims to provide wholesale investors with stable income through investment predominantly in Australian property credit secured by first-registered mortgages and has a lower risk profile than comprable funds.
“RACF’s portfolio is dominated by prime and near-prime borrowers with low LVR, limited concentration risks, low levels of arrears, and ongoing risk management processes to ensure the portfolio remains invested true to label at all times. Every loan originated is intended to meet RACF’s high standards and maintain appropriate diversification required to meet the warehouse requirements and needs of RMBS investors.”
RACF offers eight investment classes with varying liquidity profiles and target returns. It also has two currency classes being AUD and USD.
“A key factor in generating superior risk-adjusted returns for investors is due to the constant flow of low LVR and highly regulated NCCP mortgages. Our goal is to provide investors with stable and reliable returns no matter the market cycle, and we know that we’re in a strong place to continue to do exactly that.” Said Mr Kelly.