Deliver a tax effective yield at a premium to cash with moderate levels of capital volatility

RAM Australian Diversified Fixed Interest & Credit SMA

Overview

Diversified portfolio blending a range of security types and structures ranging from government bonds through to complex hybrid subordinated securities.

Strategy Information

RAM Australian Diversified FI & Credit Strategy Performance

DIVERSIFIED FI & CREDIT STRATEGY PERFORMANCE 1 YEAR 2 YEAR P.A. 3 YEAR P.A. 5 YEAR P.A. SINCE INCEPTION P.A. (RAM – DEC 2016) 7 YEAR P.A. SINCE STRATEGY INCEPTION P.A. (MAY 2014)
CASH RETURN 0.76% 4.59% 2.26% 2.93% 2.96% 3.05% 3.27%
IMPUTATION CREDITS 0.47% 0.52% 0.56% 0.61% 0.61% 0.57% 0.56%
GROSS RETURN 1.23% 5.11% 2.82% 3.54% 3.58% 3.63% 3.83%
BANK BILLS INDEX 0.04% 0.08% 0.46% 1.02% 1.06% 1.33% 1.47%
RELATIVE RETURN 1.19% 5.03% 2.36% 2.51% 2.52% 2.30% 2.36%
CASH RETURN
1 YEAR 0.76%
2 YEAR P.A. 4.59%
3 YEAR P.A. 2.26%
5 YEAR P.A. 2.93%
SINCE INCEPTION P.A. (RAM – 31/12/2016) 2.96%
7 YEAR P.A. 3.05%
SINCE STRATEGY INCEPTION P.A. (31/5/2014) 3.27%
IMPUTATION CREDITS
1 YEAR 0.47%
2 YEAR P.A. 0.52%
3 YEAR P.A. 0.56%
5 YEAR P.A. 0.61%
SINCE INCEPTION P.A. (RAM – 31/12/2016) 0.61%
7 YEAR P.A. 0.57%
SINCE STRATEGY INCEPTION P.A. (31/5/2014) 0.56%
GROSS RETURN
1 YEAR 1.23%
2 YEAR P.A. 5.11%
3 YEAR P.A. 2.82%
5 YEAR P.A. 3.54%
SINCE INCEPTION P.A. (RAM – 31/12/2016) 3.58%
7 YEAR P.A. 3.63%
SINCE STRATEGY INCEPTION P.A. (31/5/2014) 3.83%

 

BANK BILLS INDEX
1 YEAR 0.04%
2 YEAR P.A. 0.08%
3 YEAR P.A. 0.46%
5 YEAR P.A. 1.02%
SINCE INCEPTION P.A. (RAM – 31/12/2016) 1.06%
7 YEAR P.A. 1.33%
SINCE STRATEGY INCEPTION P.A. (31/5/2014) 1.47%
RELATIVE RETURN
1 YEAR 1.19%
2 YEAR P.A. 5.03%
3 YEAR P.A. 2.36%
5 YEAR P.A. 2.51%
SINCE INCEPTION P.A. (RAM – 31/12/2016) 2.52%
7 YEAR P.A. 2.30%
SINCE STRATEGY INCEPTION P.A. (31/5/2014) 2.36%

Returns as at 31 March 2022.

Download fact sheet Monthly Strategy Review

Industry Recognition

For 4 years running RAM has won the IMAP (Institute of Managed Account Professionals) Award for Australian Fixed Interest managed accounts. The judging panel is comprised of independent consultants and industry executives who commended RAM on the quality of our investment offering and risk adjusted approach to portfolio construction.

Australian Fixed Interest Winner

2021 IMAP Managed Account Awards

Australian Fixed Interest Winner

2020 IMAP Managed Account Awards

Australian Fixed Interest Winner

2019 IMAP Managed Account Awards

Other Asset Classes Winner

2018 IMAP Managed Account Awards

Certified Responsible Investment

The RAM Diversified Fixed Income & Credit SMA has been certified by the Responsible Investment Association Australasia according to strict disclosure practices required under the Responsible Investment Certification Program.

RIAA’s RI Certification Symbol signifies that a product or service offers an investment style that takes into account environmental, social, governance or ethical considerations. The Symbol also signifies that the RAM Diversified Fixed Income & Credit SMA adheres to the strict operational and disclosure practices required under the Responsible Investment Certification Program for the category of Product. The Certification Symbol is a Registered Trademark of the Responsible Investment Association Australasia (RIAA). Detailed information about RIAA, the Symbol and RAM Diversified Fixed Income & Credit SMA’s methodology, performance and stock holdings can be found at www.responsiblereturns.com.au, together with details about other responsible investment products certified by RIAA.*

Negative Screens – Sector Exclusions

The RAM Diversified Fixed Interest & Credit Strategy specifically has a formal universe exclusion to companies which operate within the following industry groups. This sector exclusion acts as a hard universe restriction and companies within these sectors are not eligible for portfolio inclusion.

Gaming

Pornography

Tobacco

Armaments

Security Specific Research

The RAM Diversified Fixed Interest & Credit Strategy and RAM Interest Rate Securities strategy scores issuers on a range of metrics with a number being specifically related to ESG factors including:

Management

Governance

Environmental Risks

Social Risks

Reputational Risks

Disclosure

Off Balance Sheet Risks

Diversity

We recognise the importance of strong risk management in organisations we invest in and specifically focus on Environmental, Social and Governance risks and disclosure as part of our investment process. Like all investment risks, there is significant risk from poor behaviour or limited reporting which can have significant costs to investors. For example, reputational risks can impact sentiment, and risk premiums as well as the ability of the company to access suitable business funding. There can be direct significant costs/fines or loss of customers, which impacts profitability and balance sheets from illegal or unethical activities.

There have been many academic studies highlighting the linkage between ESG factors and investments risk and returns. Governance plays a key role given it is management that are responsible for honouring the terms of issue and making the promised payments and the agreed times for debt securities.

We consider ASX listed companies annual reporting and disclosure for compliance with regard to these factors and ASX listing ESG disclosure requirements, as well as direct meetings with management where further research is required. As a direct outcome of our research we can exclude specific companies and securities from investment, based on our view of risks and expected returns.

We supplement our internal research with consideration of Bloomberg ESG scoring as part of the research process.

Investment Philosophy

Active Management

We believe markets and securities trading prices can move away from intrinsic value, we aim to avoid the short term noise, focusing on long term growth.

Risk Management

Primary focus is the preservation of capital, with a strong focus on risk management. Investing is an exercise in taking risk, therefore a firm grasp on risk management is essential.

Institutional in Approach

Disciplined investment process with experienced investment personal. Our goal is to bring institutional investment and risk management to the private client world.

Diversification

We believe blending a range of security types and maturities can reduce portfolio volatility whilst achieving the strategic objective.

Simplicity & Transparency

Our clients can understand how their wealth is being managed and be confident it will meet their expectations. All investments are directly held by the client in their own portfolio via the Discretionary Managed Account.

Tax Aware

We focus on the expected after taxation returns clients receives, which can include a bias to imputation credits. Taxes and transaction costs can erode returns if portfolio activity is not carefully managed.

Investment Framework

Actively Managed, Risk Adjusted (Quality and Value) bias to Portfolio construction

Active Managment

We actively manage the liquidity, quality, income stream and duration, as well as the instrument type, industry exposure and specific credit exposures within the portfolio, to deliver on the strategy objective

We take a risk adjusted approach to portfolio construction on an ongoing basis.

Quality (risk adjusted) & Value Bias

RAM has a portfolio bias to quality, in particular the quality of the issuers credit rating, the companies management, balance sheet and earnings, as well as the quality of the terms of issue on the specific instrument.

We compare securities within the universe on the expected after taxation internal rate of return.

Long Term Approach

We take a benchmark unaware approach to portfolio construction.

We position the portfolio in line with our medium term views. Fixed income and credit securities in particular, can be mean reverting over the medium term. Our turnover is expected to be low-moderate.

In the Media

“Our Investment Philosophy is built around keeping the investment process simple and transparent and ensuring our clients are at the centre of everything we do.”

Scott Wehl
Founder & Group CEO