RM Funds Targets Infrastructure Sector With Bond Fund Launch

The fund will invest in a range of infrastructure assets, including healthcare facilities, educational institutions, airports, shipping ports, transportation networks, telecommunication infrastructure and renewable energy generation companies. 

By diversifying across these key sectors, the strategy aims to mitigate risk, preserve capital, and generate consistent income for investors. 

New infrastructure income trust targets £300m IPO

RM Funds said the strategy is "well-positioned" as a diversifier within fixed income allocations, sitting alongside core credit holdings but without exposure to cyclical corporates or financials/AT1s.

SVS RM Infrastructure Bond is the only dedicated infrastructure bond strategy within the IA Sterling Strategic Bond sector, the firm said. 

The team will employ a rigorous fundamental selection process, supported by macro-economic analysis and an ESG overlay, focusing on assets with stable and potentially index-linked cash flows, limited duration, and attractive risk-adjusted returns. 

This approach ensures that RMIBF's portfolio comprises investments that are expected to provide steady income and potential capital appreciation over the long term, RM Funds said.

James Robson, CIO at RM Funds and lead portfolio manager,  said:  "The RMIBF launch is timely as investors should be cautious of broader corporate credit at this stage of the economic cycle. 

"This offering allows investors access to a defensive sector of the corporate bond market without compromising on income returns, with an experienced credit and infrastructure focused manager."

Gresham House boosts sustainable infrastructure team with triple hire

James Satterthwaite, head of distribution at RM Funds, said: "This sector is underpinned by key structural tailwinds and embedded inflation pass-through mechanisms within business models, an important characteristic in a high-inflation environment." 

The firm had been developing the strategy for the last twelve months, having dry launched the fund in July with internal seed capital. RM Funds said there is already visibility for over £15-20m of forthcoming investor commitments.

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