A highly defensive alternatives fund has been launched by RM Funds.
The VT RM Alternative Income fund (RMAI) is an actively managed open-ended fund investing in defensive, income producing alternative assets.
The Ucits V fund, which targets 5 per cent annual income distribution, has a portfolio that invests in securities across specialist real estate, alternative lending and infrastructure.
Pietro Nicholls, principal and investment manager of RM Funds, said: "The fund is designed to be a single investment that offers investors and asset allocators exposure to an actively managed diverse portfolio of alternative income-producing assets, which traditionally have been seen as defensive, less volatile and uncorrelated with the wider equity.
"VT RMAI will offer investors stable income, with reliable returns and downside risk protection from low yields, the rising interest rate environment, increasing economic uncertainty and Brexit."
The fund is available on most investment platforms and has charges capped at 0.85 per cent.
Kusal Ariyawansa, a financial planner with Appleton Gerrard, said: "The fund has a good proposition in this climate. Given many have similar offerings, we usually wait for three years performance prior to commencing due diligence."
aamina.zafar@ft.com
