Scott Kelly

Real Asset Management (RAM) is proud to announce it has been ranked second among Australian-headquartered firms in the APAC Fund Manager Guide.

This recognition follows RAM’s successful raising of $796 million in private markets over the last five years, highlighting its strength and resilience in a competitive sector.

PERE’s APAC Fund Manager Guide ranks and profiles the top 50 real estate fund managers in the Asia-Pacific region and acts as a trusted benchmark for analysing performance and investment excellence. RAM also secured the 38th spot overall.

Reflecting on this achievement, Scott Kelly, Group CEO of RAM, commented on the firm’s journey and continued success: “We are honoured to be recognised as one of the Australia’s leading investment firms. Since 2010, RAM has been investing in real asset projects across the Asia-Pacific region, delivering value for our clients. This recognition is a testament to our team’s dedication and the trust our investors place in us,”

RAM Executive Director and Head of Real Estate Matthew Strotton remarked on the Australian economic and demographic trends emphasised in the Guide, which he says supports RAM’s strategic focus areas, particularly healthcare property.

“As the Guide has highlighted, Australia’s favourable demographics — especially its aging population — presents unique opportunities in the healthcare sector. Over the next 12-18 months, healthcare will remain an attractive investment area due to broader themes, including the institutionalisation of the asset class.”

“RAM’s strategic focus and proven track record in healthcare properties enable us to continue capturing value in an evolving real estate landscape, driving sustainable returns for our investors,” Mr Strotton concluded.

The post RAM ranks second among Australian Firms in APAC Fund Manager Guide appeared first on AdviserVoice.

Scott Kelly

RAM Australia Healthcare Opportunity Fund (HOF) has achieved a “Recommended” rating from Core Property Research, in recognition of its potential to deliver above-average risk-adjusted returns.

HOF is an open-ended unlisted property fund targeting healthcare development opportunities. Through asset repositioning and development, the fund aims to build a portfolio of high-quality healthcare assets with strong tenant covenants and long leases in major urban and suburban locations across Australia. The fund is currently open to new and existing investors through a $50 million capital raise, targeting a 3-year IRR of 16–18% per annum.

“The RAM Australia Healthcare Opportunity Strategy offers investors rare access to the scarce and defensive healthcare real estate asset class. We are delighted that Core Property Research has recognised HOF’s strengths, including its high-calibre management, governance, asset quality, and RAM’s ability to deliver above-average risk-adjusted returns,” said Mr. Scott Kelly, RAM Group CEO.

The RAM Real Estate team has over 160 years of combined experience and a proven track record in the healthcare real estate sector which has been built up over the last decade in complimentary strategies. Kelly noted RAM envisions the potential to deploy in excess of $1 billion in this sector in the near term, leveraging its expertise and established relationships with operating partners to secure superior outcomes for investors.

Core Property’s report highlighted Australia’s expanding and aging population, driving increased demand for healthcare services. The rise in non-communicable and chronic diseases is also shifting the focus towards preventative treatment and disease management, boosting demand for both primary and secondary healthcare facilities.

Peter Folkes, RAM’s Director and Head of Distribution, emphasised that healthcare remains a sought-after sector by institutions both domestically and globally. He mentioned the joint venture with a large Sovereign Wealth Fund, which was also highlighted in the Core Property report, as evidence of strong interest and a testament to RAM’s capability.

“The healthcare property sector has proven to be defensive through economic turbulence over the last four years, underpinned by strong demand fundamentals, delivering portfolio diversification and returns uncorrelated to the general economic cycle. Core Property Research’s favorable rating positions HOF as a top choice for investors and advisers seeking strong risk-adjusted returns,” Folkes concluded.

The post RAM fund achieves “Recommended” rating from Core Property Research as healthcare real estate demand set to surge appeared first on AdviserVoice.

Scott kelly

Following the Federal Reserve’s interest rate pivot last year, the S&P/ASX 200 Industrials Index has surged over 20% over the past four months, ending February 2024 with a 12-month forward PE of around 19 times, well above the long-term average, notes DNR Capital, a leading Australian equities investment manager.

In a recent update, Scott Kelly, Portfolio Manager for DNR Capital’s Australian Equities Income Strategy, says “However investors seeking income from ASX listed companies should look closely at a few factors.

“Investor optimism for the ‘Goldilocks’ scenario of soft landing and low interest rates has seen defensives lag over that market rally. Traditional defensive stocks like Amcor (ASX: AMC), Endeavor (ASX: EDV), The Lottery Corporation (ASX: TLC) and Telstra (TLS) have underperformed in our portfolio over this period despite no real fundamental change in operating performance or investment thesis.”

Additionally, Kelly highlights the outperformance of banks, which has been a headwind for the strategy’s double-digit underweight position.

“Despite concerns such as falling net interest margins and rising mortgage delinquencies, banks have traded at all-time high over CBA’s 22 times 12-month forward PE. We remain comfortable with our underweight position in the big four banks and that really represents our non-holding in CBA which is due to valuation. Our preferred bank remains NAB.”

Kelly notes the impact of falling bond yields, which has favored long-duration and growth stocks, sectors the strategy is underweight in. “The current market pricing reflects a Goldilocks scenario, leaving us cautious due to the narrow path of outcomes being priced in,” he says. “We believe market multiples are stretched and vulnerable to compression, especially given the uncertainties in the global landscape.”

“We are concerned that equity markets have become overly optimistic, leaving market multiples stretched and vulnerable to compression, especially in a year where we think investors need compensation for these risks.

“We continue to add resilient quality companies that have underperformed the market despite delivering operationally good results and presenting good value as we believe in risk reward metrics.

“Companies like Auckland Airport (ASX: AIA), Qube Logistics (ASX: QUB), Scentre Group (ASX: SCG) and The Lottery Corporation are a few examples of resilient quality companies that we expect will deliver regardless of the economic environment overall.

“We remain comfortable with a defensive tilt, particularly given market expectations and the overlay of the macro and geopolitical environment. We are also conscious that income seeking investors are typically retirees and vulnerable to sequencing risk at this point in the market cycle.

“In terms of the dividend outlook for 2024, we think balance sheets of companies remain under geared relative to history and with the market seemingly more confident that the interest rate cycle has peaked, we think the market will start to see more capital management initiatives.

“Payout ratios are also still well below pre pandemic levels, which should allow the corporates to gain greater confidence to return cash to shareholders.

“The DNR Capital Income Strategy is well positioned to deliver a gross dividend yield for calendar year 2024 of over 5%,” says Kelly.

The post Dividends to make a stronger comeback appeared first on AdviserVoice.

Scott Kelly

RAM is pleased to announce that its RAM Private Credit Income Fund (the “Fund”) has achieved a “Superior” rating from SQM Research, making it suitable for inclusion on most Approved Product Lists (APLs).

SQM Research highlighted the Fund as a High Investment Grade product with appreciable potential to outperform over the medium-to-long term, noting its high-calibre management and robust risk management processes.

In managing the Fund, RAM employs a rigorous borrower analysis process and maintains a comprehensive end-to-end ownership of risk approach. This ensures the quality of the underlying assets, as demonstrated by a consistent and proven track record.

Mr Scott Kelly, RAM Group CEO, said, ‘We’re pleased to see that SQM Research recognised the RAM Private Credit Income Fund’s unique strengths. This Fund satisfies the increasing demand from investors for reliable income solutions while offering enhanced liquidity. SQM’s “Superior” rating will mean that the Fund will be top of mind for these investors and their advisers,’

‘RAM has invested over $2 billion in Australian credit markets, with an exemplary track record of over 6 years in managing credit portfolios and 0% losses within our credit strategies. We are well-positioned to continue offering investors stable and reliable returns, regardless of market conditions.’ Kelly added.

The RAM Private Credit Income Fund, a registered PDS wholesale fund, aims to provide investors with stable income through exposure to Australian secured credit, targeting an average LVR of 65%. The Fund offers a target return of the RBA Cash Rate + 4% per annum, net of fees, with income distributed monthly. It is a monthly dealing fund, providing liquidity through access to a $2 billion funding pool. Finally, it offers a chance to invest alongside some of the world’s largest institutional investors who invest in the same pool of assets.

The post RAM Private Credit Income Fund achieves “Superior” rating from SQM Research appeared first on AdviserVoice.

Scott kelly

SMSFs and retails investors with low and marginal tax rates to be most impacted

The government’s Treasury Laws Amendment Bill related to franked dividends being funded by capital raisings proposes two key changes estimated to save the budget $600 million over the next four years. The first change relates to the tax treatment of off-market share buybacks.

The second proposed change is the schedule five that the Economics Legislation Committee suggested that clarification was required. This relates to franked dividends being funded by capital raisings.

This Legislation effectively aligns the tax treatment of off-market share buybacks with on-market share buybacks, says Scott Kelly, Portfolio Manager for the DNR Capital Australian Equities Income Strategy.

“There’s been very little industry pushback to the proposed reform and it’s likely to proceed in its current form.

“Historically large companies have often raised capital from shareholders through fully underwritten capital raisings and then paid out all that money raised as a franked dividend.

“But the government wants to clamp down on this move so that a company will not be able to pay out franked dividends that are directly or indirectly funded by capital raising. And whilst, at face value that may not seem unreasonable, a number of concerns about unintended consequences have been noted by industry.

“The first problem is that the proposed test to determine whether companies can pay out fully franked dividends observes an established practice of paying dividends over time and this potentially puts startups at a disadvantage given they tend not to pay out dividends in the first few years of operations.

“Secondly, the proposal appears to capture a dividend reinvestment plan, which is also a form of capital raising and this potentially could result in shareholders losing franking credits over time.

“And finally, companies will still be able to fund dividends by taking on debt. This potentially puts small companies at a disadvantage given their limited access to capital markets relative to larger companies.

Kelly says “Overall we believe there are legitimate concerns that the proposed changes could just be the beginning of other broader changes. We believe that the proposed changes will reduce the effectiveness of Australia’s franking regime.

“In our view, those who will be most affected by the changes are self-funded retirees and retail investors, and those investors with low and marginal tax rates.

“For companies, under the new proposals, there’s the increased risk that franking credits will become permanently trapped within the companies.

“And there are also broader implications for the economy upon which Australia’s franking regime has supported investment and growth over time. We expect that franking rich companies will review and possibly increase dividend payout ratios and potentially also look to pay out special dividends more regularly.

“At DNR Capital, our investment strategy considers after-tax income and after-tax returns as part of our investment process and stock selection. And we still expect that there will be plenty of opportunities for investors to target companies delivering sustainable, growing tax effective income over time.”

The post Australia’s franking regime in doubt as the government targets franked distributions funded by capital raising appeared first on AdviserVoice.

Scott Kelly

Real Asset Management (RAM) Australia Has announced that its Credit Fund has received a ‘Superior’ four-star rating by SQM Research, making it suitable for inclusion on most Approved Product Lists (APLs).

SQM Research highlighted that the RAM Australia Credit Fund (“RACF”) has materially outperformed SQM Research’s selected reference index in all periods, and has materially lower volatility compared to its peers in all periods.

RAM Australia CEO, Scott Kelly, said SQM Research’s rating was pleasing given the RACF’s proven track record in providing investors with stable income through periods of economic uncertainty. 

“We are pleased to see that SQM Research recognised RACF’s potential to outperform over the medium to long term as well as its strong historical performance. It is a testament to the high level of expertise of our investment personnel and our robust systems and management processes for managing loans throughout their lifecycle.” 

Mr Kelly said RACF aims to provide wholesale investors with stable income through investment predominantly in Australian property credit secured by first-registered mortgages and has a lower risk profile than comprable funds. 

“RACF’s portfolio is dominated by prime and near-prime borrowers with low LVR, limited concentration risks, low levels of arrears, and ongoing risk management processes to ensure the portfolio remains invested true to label at all times. Every loan originated is intended to meet RACF’s high standards and maintain appropriate diversification required to meet the warehouse requirements and needs of RMBS investors.”

RACF offers eight investment classes with varying liquidity profiles and target returns. It also has two currency classes being AUD and USD.

“A key factor in generating superior risk-adjusted returns for investors is due to the constant flow of low LVR and highly regulated NCCP mortgages. Our goal is to provide investors with stable and reliable returns no matter the market cycle, and we know that we’re in a strong place to continue to do exactly that.” Said Mr Kelly.

The post RAM Australian Credit Fund rated ‘Superior’ by SQM Research appeared first on AdviserVoice.

Scott Kelly

Australian-owned wealth and asset manager Real Asset Management (RAM) is pleased to announce that its RAM Australian Diversified Fixed Income Fund and RAM Diversified Fixed Income & Credit SMA have been certified by the Responsible Investment Association Australasia (RIAA).

Being certified by RIAA signifies that the two RAM strategies have a commitment to ESG providing investors’ confidence we deliver on our responsible investment promise. It also confirms that the two strategies adhere to the strict operational and disclosure practices required under the Responsible Investment Certification Program for the category of product.

RAM Australia CEO Scott Kelly said the RIAA product certification achievement was a testament to RAM’s commitment to act according to its core values.

“Good governance, social responsibility and sustainability practices are key pillars of our company’s culture. Underpinning this is our belief that a proactive and transparent approach to ESG is linked to value creation and that we should align our investment activities with the broader interests of our stakeholders. We also believe we have a moral responsibility to make a positive contribution to the communities in which we operate,” Mr Kelly said.

RIAA CEO Simon O’Connor congratulated RAM on the certification. “RIAA’s Responsible Investment Certification Program differentiates quality, true to label responsible investment products which meet the Responsible Investment Standard.  We congratulate RAM for meeting the high benchmark set for Certification for its RAM Australian Diversified Fixed Income Fund and RAM Diversified Fixed Income & Credit SMA.”

Michael Frearson, RAM Head of Fixed Income added: “At RAM we recognise the importance of ESG considerations when managing investment portfolios and build portfolios to achieve specific objectives with minimal risks. Companies which operate in armaments, gaming, pornography, coal mining and tobacco industry groups are excluded from our investment universe. RAM’s issuer-level research process reviews and scores issuers on a range of metrics with a number being specifically related to ESG factors, and our transparent portfolio structure ensures ongoing visibility for our investors. Being a floating rate income strategy, our portfolios are well placed to continue to deliver on their investment objective with a rising income stream and relative capital stability, amid volatile investment conditions for Australian fixed income investors” he said.

RAM has won the Australian Fixed Interest category in the IMAP Managed Accounts Awards for four consecutive years (2018–2021). IMAP’s judging panel is comprised of independent consultants and industry executives who have commended RAM on the quality of its investment offering and risk adjusted approach to portfolio construction.

Other recent major RAM ESG milestones include:

• RAM was named an Inclusive Employer 2021-2022 by Diversity Council Australia (DCA). The accreditation comes off the back of DCA’s nationally representative survey of workplace inclusion – Inclusion@Work Index.
• In July 2021, RAM was recognised for its commitment to closing the gender pay gap with RAM Australia CEO Scott Kelly being appointed as a Pay Equity Ambassador by Workplace Gender Equality Agency (WEGA) after RAM voluntarily signed up for its program which encourages equal pay across workplaces in a range of sectors.

The post Real Asset Management fixed income funds certified by Responsible Investment Association Australasia appeared first on AdviserVoice.

Mr Strotton has more than 25 years’ real estate experience in global markets across capital transactions, product development, investment and funds management.

He joins RAM after more than 19 years at QIC Global Real Estate where he was Global Director and Head of Funds Management, with responsibility for the group’s Australian and United States portfolios.

Matthew was instrumental in increasing QIC’s real estate AUM by over $10 billion. He established QIC’s real estate brand and capabilities in the United States and assembled large tranches of the group’s global portfolio by constructing long term solutions for investment partners. Prior to joining QIC, he worked for Lendlease in a range of development roles in Australia.

Strotton joins RAM during a transformational period that’s seen significant growth across all areas of the business. During 2021, RAM’s global headcount increased by almost 60% to more than 100 employees in five offices across the Asia-Pacific Region.

As at 31 December 2021, RAM’s total AUM had increased more than 65% year on year to more than $2.74 billion, with Real Estate AUM surpassing $1 billion.

RAM CEO Australia Scott Kelly said hiring Strotton represented a further strengthening of a talented Real Estate team and will provide many opportunities to apply his expertise and experience.

“Matthew will play an integral role in crystallising our existing strategic plans and platforms in the unlisted and listed spaces as well as forging new partnerships and opportunities,” he added.

In the third quarter of 2021 RAM listed its first Real Estate Investment Trust on the ASX, the RAM Essential Services Property Fund (ASX:REP). The Fund consists of a geographically diversified and defensive portfolio of pure medical and essential retail based properties, underpinned by a high-quality essential services tenant profile including hospital operators and leading national supermarkets, and offers growth opportunities through an activated and significant value-add pipeline.

RAM has also acquired 4 properties for its RAM Diversified Property Fund, a new defensive unlisted property fund with a focus on office, retail, industrial and alternative sectors.

“I am excited to join a highly successful and energised team to deliver on existing successes and to bring new avenues of capital solutions and growth to the RAM group.” said Strotton.

Other RAM hires since January 2022 include:

• Lang Messer has joined RAM in Brisbane as Head of Investor Relations to help the firm connect with its growing institutional client base, with a particular focus on its listed offering. Lang has over 20 years of experience in finance and capital markets gained in Australia and the United Kingdom. Prior to joining RAM, he was Director at Equitory, a boutique Investor Relations Consultancy providing outsourced IR capability to high growth companies listed on London’s AIM and Main markets.
• Natasha Van Kempen has joined RAM in Brisbane as a Development Analyst. With a number of projects underway and many more scheduled to commence in 2022, Natasha is responsible for assisting with RAM’s growing value-add pipeline throughout the portfolio. Prior to joining RAM, Natasha worked within multiple sectors of the property industry having previously worked for Stockland, Colliers International and Cushman & Wakefield.
• Kala Muthusamy has joined RAM in Sydney as a Financial Controller. After starting her career at Ernst and Young and becoming a tax advisor at Nexia Australia, Kala was a Finance Manager at the OpenMarkets Australia and a Financial Controller at Acrux prior to joining RAM.
• Josephine Chan has joined RAM in Melbourne as a Business Development Manager. She previously worked for La Trobe as a Business Development Manager, and more recently as a Senior Business Development and Client Relationship Manager for BC Invest.

The post Real Asset Management appoints global real estate veteran as Head of Funds Management to drive ongoing growth appeared first on AdviserVoice.

Thompson has worked as MA Financial Group’s Head of Technology for the past two years and was General Manager of Information Technology for MA Hotel Management for five years.

At RAM Thompson’s role is to lead’s RAM’s digital transformation journey. He will spearhead work to digitise the onboarding process for the group’s wholesale and high net worth clients and create direct access to RAM funds through new digital pathways.

RAM CEO Australia Scott Kelly said Thompson was joining the group at a time of strong growth and would be able to immediately add value as RAM continued to increase scale across the APAC and other regions.

“Craig is a highly adaptive, results-driven, and innovative technology leader with a broad range of experience across the technology fields. He holds a proven track record in developing and implementing IT strategies, unlocking new business capabilities, and solving business problems through the deployment of technology,” Kelly added. 

“RAM has enjoyed successful growth over the years and being able to join the team at their expansive growth period is an exciting opportunity for anybody. RAM has the advantage of being nimble and marrying that with innovative digital capabilities, the possibilities are endless.” Thompson said.

RAM specialises in Real Estate, Credit and Private Equity markets for institutions and wealthy families globally. It opened its Australian office in 2013 and now has 5 offices in Sydney, Melbourne, Brisbane, Shanghai and Hong Kong. RAM has a team of more than 100 finance professionals managing in excess of A$2.0bn in assets.

Later this week RAM will list the RAM Essential Services Property Fund on the ASX. The Fund is expected to have a market capitalisation of $521.1 million and will initially own 33 Australian properties worth $706.3 million, split almost 50/50 between geographically diversified essential retail and medical real estate assets.

The post Industry Veteran joins Real Asset Management as Chief Technology Officer appeared first on AdviserVoice.

Scott Kelly

Leading Australian equity fund manager DNR Capital has announced that its Australian Equities Income Fund has been added to BT Panorama’s superannuation and investment menus.

The DNR Capital Australian Equities Income Fund¹ seeks to identify quality medium to long-term investments delivering sustainable, growing income. The Fund seeks to invest in a selection of securities that have sustainable dividend capability, strong profit-to-cash conversion and relatively assured earnings growth.

Scott Kelly, Portfolio Manager for the Fund adds: “Assessing a company’s dividend sustainability is core to our Income Fund. We look for quality companies that can demonstrate the ability to sustain and grow dividends over time.”

The Fund has a concentrated portfolio of up to 30 stocks, with a focus on quality companies that produce above-average income and associated franking credits.

Since it was launched in March last year, the Fund has returned 33.06%, compared with a return of 16.16% for the Fund benchmark, the S&P/ASX 200 Industrials Accumulation Index to 31 March 2021.

Kelly says it a good time for investors looking for dividend income. During the pandemic, boards cut dividends to preserve capital. This resulted in a greater than 30% fall in dividend per share (DPS) for the ASX 200.

“With the economic recovery underway and operating conditions improving, earnings are also recovering, and boards have started reinstating more generous payout ratios. Energy and Financials performed best during the recent reporting season, with Financials seeing the largest proportion of upgrades. As a result, average one‑year forward dividend expectations rose 1.4%,” says Kelly.

BT Panorama was the winner in three categories in Investment Trends’ 2020 Platform Competitive Analysis and Benchmarking report: best client portal, online business management and best mobile platform.

The post DNR Capital Australian Equities Income Fund added to BT Panorama menus appeared first on AdviserVoice.