04 Oct 2022
Every month we study the universe of funds in the investment marketplace to assess whether they meet our exacting standards and should be given the RSMR seal of approval.
Time Social Long Income PAIF and Feeder fund is a UK focused property fund, providing investors with exposure to a growing alternative property sector supported by long dated reliable cash flows with a high degree of inflation protection. The fund invests in properties and leases them to tenants over the long-term often with visible 15 -30-year income streams, each with a social dimension. The underlying revenue is either direct or indirectly public sector funded, or from financially and operationally strong private operators. There are PAIF and UK Feeder fund versions of the strategy, both launched in May 2017, and categorised within the IA UK Direct Property sector.
Unlike a traditional UK commercial property fund, the managers are looking at securing the long-term income stream from the lower risk end of property, i.e. long leases, by investing in buildings which are integral and inherent to the business or social organisation. This leads to the managers looking for a different sort of tenant, such as care home providers, medical centres, social supported living and assisted living providers. The fund origination team is responsible for sourcing suitable assets for consideration by the fund manager. If the manager believes that the assets are suitable and attractive for the fund, they are then proposed to the investment committee.
The Long Income fund operates at the low-risk end of the property market and capital values are not as important as the value of the income streams that the properties produce. Therefore, the drivers of the returns remain unaffected by sentiment to the broader commercial property market.
Click here to read the full profile for the PAIF fund
Click here to read the full profile for the Feeder fund
The Royal London Sustainable multi-asset fund range is a range of four multi-asset strategies that aim to deliver capital growth over the medium term by investing in a diverse range of assets while adhering to the investment manager’s ethical and sustainable investment policy. The funds invest in a combination of equities and fixed income with exposure to equities within each fund rising incrementally as you move up the risk scale. The funds are situated in the Investment Association (IA) Mixed Investment sectors.
Within their equity holdings, the sustainable funds have a bias towards innovative businesses helping to address the world’s challenges. This leads them to favour companies with growth and quality characteristics and is consistent through economic cycles. While benefiting from a common sustainable framework, within credit, the focus is on funding longer term, stable cashflows, within critical sectors, often out of reach of equity investors, e.g. social housing, infrastructure, community funding (building societies). There is a strong emphasis on targeting inefficiencies, e.g. the market’s focus on ratings and benchmarks, which allows them as active managers to add value over the long term. The credit portion acts as a good diversifier to the equity portions, whilst achieving attractive yields relative to the market.
The sustainable investment ability at RLAM is wide, considered, and integrated. The team has a high level of experience and continue to build and improve on a process that was first implemented around 20 years ago. Performance across the funds has been very good and is testament to the in-depth analysis carried out by the team.
Overall, we believe this is a strong proposition, employing a longstanding and proven sustainable investment process with a very well-resourced internal team and the funds are fully justified in being awarded RSMR Rated Range and Responsible ratings.
Click here to read the full profile
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The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested.