RM Infrastructure Income PLC GBP · LSE:RMII
RM Infrastructure Income PLC GBP — RM Infrastructure Bond Fund — Debt Investor Presentation (March 2024)
17 slides from RM Infrastructure Income PLC GBP's debt investor presentation, Mar 20, 2024
Slide 1: RM Infrastructure Bond Fund Q1 2024 Presentation
RM Infrastructure Bond Fund RM Infrastructure Bond Fund Q1 2024 Presentation Institutional Investors Only
Slide 2: Disclaimer
Disclaimer This presentation (“Presentation”) is an advertisement and not a prospectus for the purposes of EU Directive 2003/71/EC or Part VI of the Financial Services and Markets Act 2000 ("FSMA"). Investors should not subscribe for shares referred to in this Presentation except on the basis of inf
Slide 3: SVS RM Infrastructure Bond Investment Objectives
SVS RM Infrastructure Bond Investment Objectives ▪ Objectives: ▪ Investment objective to target an income return greater than SONIA ▪ Low management fee, 0.45% F Class ▪ Target Sectors ▪ F Class capped OCF 0.50% ▪ Regulated Infrastructure – Focus on Power ▪ Zero synthetic costs ▪ Social Infrastructu
Slide 4: Portfolio Overview
Appendix 1 Portfolio Overview ▪ Market overview ▪ Allocations process ▪ Model portfolio ▪ Simulated fund performance ▪ Market & portfolio outlook 4
Slide 5: Macro-Economic Conditions
Macro-Economic Conditions UK GILTS & US Treasury Yield Curves (%) Credit Spread Indices (bps) 5.50% 800 200 5.30% 180 700 5.10% 160 Yield curve shape 600 4.90% 140 ▪ Inverted – cause for concern as this usually 500 predicates a recession 4.70% 120 Itrax Main Itrax XO ▪ Indicates tighter credit condi
Slide 6: Allocation Process
Allocation Process ▪ Defined and structured approach to risk taking Investment Guidelines: ▪ Issuer Limit 10% ▪ No Illiquid Holdings/Securities ▪ Clear risk profile grading system for investor communication ▪ <5% crossover in portfolio ▪ Issue Limit 5% holdings with RMAI ▪ >70% portfolio issuers IG
Slide 7: Dynamic Changes in the Portfolio: A 9-month Overview
Dynamic Changes in the Portfolio: A 9-month Overview Q3 2023 Q4 2023 Q1 2024 Positioning Positioning Positioning October +0.39% NAV monthly ret. January -0.28% NAV monthly ret. July +0.92% NAV monthly ret. • Further yield curve steeping as long end • Went into January with a large cash balance to •
Slide 8: Current Portfolio Positioning
Current Portfolio Positioning Portfolio Statistics ▪ Running Yield: 5.50% ▪ Economic Infrastructure: 23.3% ▪ Top #10 Exposure: c.47.5% ▪ Distribution Yield*: 5.99% ▪ Regulated Infrastructure: 44.9% ▪ # of Holdings: 25 ▪ Option Adjusted Duration: 3.88 years ▪ Social Infrastructure: 9.1% ▪ YTW: 5.50%
Slide 9: Actual Fund Performance (15th June 2023 – 21st March 2024)
Actual Fund Performance (15th June 2023 – 21st March 2024) RM Infrastructure Bond Fund 109.00 Performance since Inception 108.00 107.00 106.00 105.00 104.00 103.00 102.00 101.00 100.00 99.00 98.00 RM Infrastructure Bond Fund (F-Class Acc) IA Sterling Strategic Bond p p p 9
Slide 10: Actual Fund Performance vs Peer group
Actual Fund Performance vs Peer group • Since inception: • Volatility: 3.11% • Correlation with SLXX: 0.56 • 38.86% of the RM IBF corporate bond universe overlaps with the iShares GBP Corp Bond UCITS ETF • Lower volatility combined with the defensive nature of the sector significantly dampens drawdo
Slide 11: Volatility Tracker
Volatility Tracker Monthly volatility vs IA Sterling Strategic Peers1 Peers are selected from those IA 10.00% Sterling Strategic Bond Funds within a 9.00% performance band 1% higher or lower of RM Infrastructure Bond Fund on a 8.00% last 6-months basis. volatility 30-day avereage 7.00% Source: RM Fu
Slide 12: Sharpe Ratio vs IA Sterling Strategic Bond Peers
Sharpe Ratio vs IA Sterling Strategic Bond Peers Sharpe Ratios vs Peers (Last 6-Months) Jupiter Monthly Income Bond I Acc GBP TwentyFour Dynamic Bond I Net Acc GBP SVS RM Infrastructure Bond Fund Schroder Strategic Bond Z Acc abrdn Strategic Bond I Acc Rathbone Strategic Bond Fund I Acc GBP Pimco GI
Slide 13: Market & Portfolio Outlook
Market & Portfolio Outlook ▪ 2024 H1 Outlook ▪ Overall economic conditions will slow due to tighter financial conditions seen over 2023. ▪ Expect government bond yields to be lower over the 2024 year and credit spreads wider. ▪ UK Gilt Curve will steepen. ▪ Fund Positioning: ▪ Volatility in rates an
Slide 14: Summary
Summary RM Funds designed the SVS RM Infrastructure Bond Fund to generate income linked to SONIA and modest capital growth. ✓ Defensive sector focus - the only fund in IA Sterling Strategic Bond sector dedicated to thematic infrastructure investing. ✓ Bond investments seek to reduce volatility whils
Slide 15: Fund Information
Fund Information Key Term Details Distributions: Quarterly in arrears Share Classes: Income & Accumulation available Currency: GBP £5m Founder / Top-up £25 Min Investment: £10,000 Institutional / Top-up £25 Valuation / Trading: Daily Institutional: 0.55% Annual Management Charges “AMC” Founder Class
Slide 16: Contact Information
Contact Information Investment Management Distribution James Robson James.robson@rm-funds.co.uk James Satterthwaite: james.satterthwaite@rm-funds.co.uk Pietro Nicholls Pietro.nicholls@rm-funds.co.uk David Watts: David.watts@rm-funds.co.uk Head Office: 4th Floor, 7 Castle Street, Edinburgh, EH2 3AH L
Slide 17: Registered in Scotland No SC380707
Registered in Scotland No SC380707 Registered Office: 7 Castle Street, Edinburgh, EH2 3AH RM Capital Markets Limited is authorised and regulated by the Financial Conduct Authority (Number 562209)
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