RM Infrastructure Income PLC GBP · LSE:RMII
RM Infrastructure Income PLC GBP — RM Funds — DCF Webinar September 2025
17 slides from RM Infrastructure Income PLC GBP's conference presentation, September 2025
Slide 1: SVS RM Defensive Capital Fund Webinar
RM Defensive Capital Fund SVS RM Defensive Capital Fund Webinar September 2025 Institutional Investors Only
Slide 2: Disclaimer
Disclaimer Disclaimer All information and opinions contained in this document has been provided by RM Capital Markets Limited ("Company"), which is authorised and regulated by the Financial Conduct Authority, and have not been independently verified as to their accuracy by either the Company or any
Slide 3: Agenda
Agenda • Fund overview • Performance • Low risk yield • Inexpensive tail-risk hedging • Macro and outlook 3
Slide 4: SVS RM Defensive Capital Fund Objectives
SVS RM Defensive Capital Fund Objectives The Defensive Capital Fund strategy was launched in 2010 and was acquired by RM Funds in 2024 ▪ Diversified Alternative Assets Fund ▪ Low-Cost Management Fee: Investment Objectives: Fund Information 0.55% ▪ Preserve capital ▪ Daily Dealing ▪ IA Sector: Absolu
Slide 5: 2025 YTD performance
2025YTD performance ▪ Best year ever year-to-date ▪ After a tricky January and February ▪ Real Assets, Discounted Assets and Other (gold miners) all big contributors ▪ Convertibles weak, but mostly from FX and so offset by FX hedging ▪ Structured Credit a small allocation, but +19% Source: Bloomberg
Slide 6: Strategy Performance (Longer Term)
Strategy Performance (Longer Term) Defensive Capital Fund Strategy vs Asset Classes Defensive Capital Fund Strategy vs Peer Group 320 240 300 280 220 260 200 240 220 180 200 160 180 140 160 140 120 120 100 100 80 80 SVS RM Defensive Capital Fund Class C Acc Iboxx Sterling Non-Gilts Overall Total Ret
Slide 7: Performance Contribution: Last 12 Months Cumulative
Performance Contribution: Last 12 Months Cumulative Fund Capital Preservation & Income 16.0% 8.0% Performance 14.0% 7.0% ▪ +12.7% 12-month performance (to 30th August 2025) 12.0% 6.0% ▪ Similar contributions from Capital Preservation & Income 10.0% 5.0% and Capital Growth; positive contribution from
Slide 8: Low risk yields
Low risk yields • Many convertible bonds nearing maturity and now with very low chance of conversion – so basically just plain debt instruments – And consequently, ignored by many convertibles funds? • Some interesting yield pick-ups. If you know where to look… 8
Slide 9: AMS 0% 03/2025
AMS 0% 03/2025 • Semiconductor and lighting manufacturer for automotive, industrial and iPhone facial recognition • Still recovering from disastrous 2019 acquisition of Osram • And end markets were weak • Added in early January at 10% yield (in euros!) • Despite the company holding 3x more cash than
Slide 10: Avation 8.25% 10/2026
Avation 8.25% 10/2026 • Aviation leasing company with mostly narrow-body and regional jets leased to Asian airlines • “Near-death” experience after COVID led to bonds being restructured, and are consequently still rated CCC+ (since 2022!) • BUT! Now out of the woods and buying back the bonds. $400m
Slide 11: SGL Carbon 5.75% 2027
SGL Carbon 5.75% 2027 • High-tech producer of graphite, carbon-fibre and composite products • End markets of wind turbines, automotive and chemicals industries were all weak at the start of 2025 • Bond was pricing like CCC-rating • But: low leverage (net debt/EBITDA 0.7x) and free cash flow positive
Slide 12: Tail risk hedging: equity index put options
Tail risk hedging: equity index put options • We’ve held in the past to hedge equity downside and reduce volatility. • effective e.g. during covid, • But: – generally more buyers than sellers so they are expensive – high “cost of carry”. a 1-year put will lose 100% of its value over 1 year if the in
Slide 13: Tail risk hedging: Long Gamma
Tail risk hedging: Long Gamma • “Long Gamma” strategy: downside protection but with a much reduced cost of carry – buys protection via 1 year out-of-the-money puts on the S&P500 – hedges the market risk (delta), so the overall market exposure is close to zero – Two benefits: • 1) the strategy should
Slide 14: Macro
Macro UK GILTS & Treasury Yield Curves (%) GDP Forecast 5.50% Macro vs Fundamentals 6 • Rate cuts still coming, but priced in 5.00% 5 • Economic growth, although moderating, 4.50% 4 remains solid 4.00% 3 • Many valuation extremes remain. The market doesn’t seem to worry, until it does 3.50% 2 (China
Slide 15: Market and Portfolio Outlook
Market and Portfolio Outlook ▪ Outlook ▪ #1 Monetary Policy & Inflation: Much lower oil price esp in GBP should put downward pressure on UK CPI ▪ #2 Rate cuts: UK likely to cut more due to above. US mixed signals: job market weakening, but tariffs likely to impact September/October? ▪ #3 Investment
Slide 16: Q&A
Q&A Investment Management Distribution James Robson: James.Robson@rm-funds.co.uk James Satterthwaite: James.Satterthwaite@rm-funds.co.uk Niall O’Connor: Niall.OConnor@rm-funds.co.uk David Watts: David.Watts@rm-funds.co.uk 16
Slide 17: Registered in Scotland No SC380707 Registered Office: 7 Castle Street, Edinburgh, EH2 3AH RM
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)