RM Infrastructure Income PLC GBP · LSE:RMII
RM Infrastructure Income PLC GBP — RM Funds — Investor Presentation (July 2024)
29 slides from RM Infrastructure Income PLC GBP's investor presentation, July 2024
Slide 1: VT RM Alternative Income (RMAI) Institutional Investors Presentation
VT RM Alternative Income (“RMAI”) RM Funds VT RM Alternative Income Presentation – Institutional Investors Only July 2024
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: In this presentation
In this presentation About RM Funds 5 About RM Funds 6 Senior Leadership Market Conditions 8 Macro Overview 9 Why Alternatives? 10 Fund Overview Listed Real Assets 12 Infrastructure & Sustainable Assets 13 Social Impact Real Estate 14 Digital Infrastructure & Disruptive Real Estate Fund Performance
Slide 4: About RM Funds
VT RM Alternative Income Fund About RM Funds ▪ About RM Funds ▪ Senior Leadership 4
Slide 5: About RM Funds
About RM Funds RM Funds is a specialist in alternative investment management ▪ Award winning – Alternative Credit Fund Manager of the Year 2017 and 2018. Runner-up 2019. ▪ RM was founded in 2010. ▪ RM currently manages: – Private Credit strategy: RM Infrastructure Income PLC AUM c.£100m – Listed Rea
Slide 6: RM Funds – Senior Leadership
RM Funds – Senior Leadership Fund Management Leadership Pietro Nicholls Investment Team Experience Lead Portfolio Manager, Investment Committee Member ▪ Investment Team focused on Liquid and Illiquid alternative securities/assets ▪ Expertise in structuring and managing alternative assets including ▪
Slide 7: Market Conditions
VT RM Alternative Income Fund Market Conditions ▪ Macro Overview ▪ Why Alternatives? ▪ Fund Summary 7
Slide 8: Asset Class Overview: Macro vs Fundamentals
Asset Class Overview UK GILTS & US Treasury Yield Curves (%) US Implied Overnight Rate and Number of Hikes/Cuts Macro vs Fundamentals 5.80% 0.0 ▪ Yields considerably lower LTM, albeit Number of Hikes/Cuts 5.2 -1.0 5.30% 5 with some curve steepening at the long- Sovereign curves 5-110bps -2.0 shift 4
Slide 9: What are Alternative Income Assets, and why invest?
What are Alternative Income Assets, and why invest? Alternative Income assets, put simply, are investments in ▪ Global health pandemic Troubled macro assets beyond traditional equities, bonds and cash. economic outlook ▪ Inflation & interest rate outlook They include assets in specialist real estate
Slide 10: VT RM Alternative Income Overview
VT RM Alternative Income Overview The VT RM Alternative Income Fund (the “Fund”) launched in June 11th June 2018. FUND LAUNCHED 2018 ▪ An actively managed global-developed mandate, with a strategy designed to deliver consistent income returns to investors. EXPERIENCED Pietro Nicholls, ▪ Aims to offe
Slide 11: What are Alternative Income Assets?
VT RM Alternative Income Fund What are Alternative Income Assets? ▪ Infrastructure & Sustainable Assets: Hospitals, schools, ports and renewables ▪ Social Impact Real Estate: Nurseries, dentists, GP surgeries, student accommodation and aged care ▪ Digital Infrastructure: Data centres, logistics ware
Slide 12: Infrastructure & Sustainable Assets
Infrastructure & Sustainable Assets Infrastructure assets provide essential services to the economy SUMMARY STATISTICS and society. $2.5 trillion Government policy (social, health and environmental), supported by long-term structural drivers, underpins an asset class characterized by non-cyclical ca
Slide 13: Real Estate & Ageing Populations
Real Estate & Ageing Populations The global population is growing and ageing. By 2030 the SUMMARY STATISTICS population is expected to be over 8.5bn, and the total number of people over the age of 60 is predicted to grow from c.962M in $200bn per annum Expected growth in G7 Countries ex US 2017 to c
Slide 14: Industrial Disruption
Industrial Disruption The global health crisis immediately disrupted consumer SUMMARY STATISTICS behaviour and accelerated the structural decline of traditional physical-based businesses and services. +9.1% per annum growth in internet usage1 Working from home, E-commerce and cloud-based application
Slide 15: Fund Overview
VT RM Alternative Income Fund Fund Overview ▪ Portfolio ▪ Performance ▪ Contribution ▪ Outlook 15
Slide 16: Dynamic Portfolio Allocation
Dynamic Portfolio Allocation Allocation Split1, June 2022 Allocation Split1, June 2023 Allocation Split1, June 2024 Specialist Real Estate Specialist Real Estate Specialist Real Estate Secured Secured Secured Real Assets - 0.5% 0.9% Real Assets Real Assets 21% 23% 21% 28% 4.8% 0.7% 2.9% 3.45% 0.8% 4
Slide 17: Relative Performance vs Asset Classes
Relative Performance vs Asset Classes VT RM Alternative Income Fund – Relative Performance Since Inception RMAI - UK Generic GILTs Yield Correlation 145 140 Correlation Intervals 5Y 3Y 2Y 1Y YTD 135 6.00 0.80 130 5.00 0.60 125 120 4.00 0.40 Yield (%) 115 3.00 0.20 Correlation 110 2.00 0.00 105 1.00
Slide 18: Performance Contribution – 2024 To Date
Performance Contribution – 2024 To Date Secured Real Assets Performance Infrastructure Performance Contribution 2024 YTD Contribution 2024 YTD Performance 1.10% 0.50% ▪ 2024 To Date Total Return of (1.50%) 0.90% -0.50% ▪ Average total return contribution per holding was (1.28bps) -1.50% 0.70% -2.50%
Slide 19: Market & Portfolio Outlook
Market & Portfolio Outlook ▪ 2024 Q3 Outlook ▪ #1 Monetary Policy & Inflation: CPI softening, Unemployment rising, but conflicting with claims, consumer spending and wages > creates a mixed backdrop but central bankers turning dovish, but narrative remains balanced whilst indicators remain mixed ▪ #
Slide 20: Investment Process
VT RM Alternative Income Fund Investment Process ▪ RM Funds Edge ▪ Investment Process ▪ Summary ▪ Contact Information 20
Slide 21: Summary Investment Process
Summary Investment Process Rigorous investment process, with a focus on both top-down Macro and bottom-up analysis to Analysis support investment decisions. Inflation / Rates / Policy ESG FACTORS • Ethical, Social and Corporate Governance Investment ESG Factor • Active engagement with Boards Screen
Slide 22: Macro Analysis & Review
Macro Analysis & Review Investment Team Time: up to 10% Key Metrics: ▪ GDP ▪ Payrolls ▪ Housing Sales/Starts etc ▪ PMIs ▪ Interest Rate Expectations ▪ Inflation Expectations ▪ Cyclical macro factors Why? ▪ Macro-economic information is an important consideration when considering domestic (fund base
Slide 23: ESG Review
ESG Review Investment Team Time: c.5% Key Metrics: ▪ C.100 metrics ▪ UN Sustainable Development Goals ▪ Specific areas include: suitability management, environmental impact, labour practices, health & safety, diversity & inclusion, supply chain management, leadership & governance and business ethics
Slide 24: Fundamental Analysis
Fundamental Analysis Investment Team Time: Up to c.50% Management Experience, Alignment, Three Key Factors: Transparency ▪ Management: Board, Governance, Transparency and Alignment ▪ Financial Statements: Cash Generation, Revenue Recognition, etc ▪ Assets: Counterparties, Valuation Policy, Capital S
Slide 25: Liquidity, Technical Factors & Portfolio Construction
Liquidity, Technical Factors & Portfolio Construction Investment Team Time: c.5-10% Key Priorities ▪ Liquidity Tree and Ladder ▪ Portfolio and stock metrics (volatility, correlation, beta et al) ▪ Position sizing/weighting Why? ▪ A key focus is ensuring we only invest in liquid public securities, wi
Slide 26: Post-Investment Monitoring
Post-Investment Monitoring Investment Team Time: 20-50% Key Metrics: ▪ Various metrics, driven by sector specific considerations, for example: Renewables: power prices, resource generation, discount rates, OpEx costs, tax, asset life. For Real Estate: psf price, rent free periods, occupancy rates, c
Slide 27: Summary
Summary VT RM Alternative Income is a diversified investment strategy, designed to deliver stable income returns for investors. ▪ Focus on capital preservation and stable income generation – minimal exposure to traditional listed equities and corporate bonds. ▪ Potential for protection against a ris
Slide 28: Contact Information
Contact Information Investment Management Distribution Pietro Nicholls: 0203 697 1768 / pietro.nicholls@rm-funds.co.uk James Satterthwaite: 0131 603 7068 / james.satterthwaite@rm-funds.co.uk David Watts: +44 7402 810068 / david.watts@rm-funds.co.uk Head Office: 4th Floor, 7 Castle Street, Edinburgh,
Slide 29: Registered in Scotland No SC380707
Registered in Scotland No SC380707 Registered Office: 4th Floor, 7 Castle Street, Edinburgh, EH2 3AH RM Capital Markets Limited is authorised and regulated by the Financial Conduct Authority (Number 562209) 29