Investment Grade Credit Fund Launches
Remara launches Investment Grade Credit Fund for income and preservation-focused investors and advisors
Sydney-based Remara continues to expand its suite of credit investment opportunities with the launch of the Remara Investment Grade Credit Fund.
The alternative asset management firm has designed the Fund for investors seeking a low-risk credit portfolio with a preference for income and capital preservation. The Fund has a mandate of investment grade rated credit, building a strong foundation for investor portfolios. The Fund has a benchmark return of RBA + 2.85%.
Managing Director of Remara, Andrew McVeigh, says the newly launched Remara Investment Grade Credit Fund completed the firm’s suite of credit funds, allowing investors or advisors to select a credit fund that meets their specific risk, return and liquidity needs.
“The Remara Investment Grade Credit Fund opens access to a diversified pool of investment grade rated credit investments not commonly available to investors; secure credit assets with an attractive risk-adjusted return and because of this structure may suit investors seeking an alternative to hybrids or pooled mortgage funds.”
McVeigh further comments on the Fund’s ability to step into the position that Bank Hybrids have traditionally held within an investor’s portfolio: “Bank Hybrids have been used for a long period by investors and advisors as an investment grade credit asset that can provide a stable return and access to liquidity, with the phasing out of these from 2027, we believe the Remara Investment Grade Credit Fund can step into that position in investors’ portfolios”.
The Fund offers two different unit classes, with direct investors having access to monthly liquidity windows with no buy/sell spread, allowing investors the ability to actively adjust their portfolio, while the IDPS daily liquid unit class is specifically designed for advisors and managed portfolios with a need for high liquidity, available only via investment platforms, the IDPS daily unit class will allow strong security, attractive returns and access to daily liquidity.
As with all other Remara Funds, this Fund is investor centric. McVeigh adds, “It’s one low management fee of 0.65% on the monthly liquid unit class, no performance fees, no establishment, withdrawal or switching costs – we know our investors want stability and transparency, returns that are not eaten away by hidden fees, and also the option to withdraw. These key elements were important to us when establishing this Fund because we know they’re important to our investors”.
McVeigh adds that the ethos of the Fund is built around relying on the strength of a diversified pool of investment grade rated credit assets and less on market trends and that provides exposures to a lower risk profile and can help reduce the overall risk across an investor’s portfolio.
“Remara’s credit strategy is built on diversification with a large pool of loans, reducing the reliance on a small group of large obligors and turning the outcome into a highly measurable statistical outcome.
The Remara Investment Grade Credit Fund is available to retail and wholesale investors and can now be accessed through the Remara mobile app for iOS and Android. The Remara app is an industry-first in terms of enabling investors to apply for and manage credit investments in the same way they can with shares, EFTs, and bank accounts. The Fund is currently being added to Netwealth, Praemium and Hub24.
The Group currently has over AUD$1.7bn under management across their Credit, Tactical Opportunities and Real Estate strategies.
