Real Income Fund
The Real Income Fund focuses on generating income through investments in secured credit across Europe, with an emphasis on stability and capital preservation.
Current Yield (net of fees)
- Regular Income
Monthly income distributions - Secured Credit Exposure
Investments backed by underlying assets across European markets - Conservative Lending Approach
Target portfolio loan-to-value (LTV) of approximately 65% - Focused Strategy
No exposure to development or unsecured lending - Diversified Portfolio
Broad exposure across a range of underlying credit investments - Active Management
Managed by an experienced team with a structured credit approach
Fund Information
| FUND TYPE | Registered, open-ended unit trust |
|---|---|
| TARGET RETURN | European Central Bank cash interest rate + 4% net of fees (currently 8.35% p.a.*) |
| INVESTMENT AMOUNT | Min. USD 50,000 |
| MANAGEMENT FEE | 0.50% p.a. |
| DISTRIBUTIONS | Monthly |
| INVESTMENT MANAGER | Altavero Capital |
| TRUSTEE | Deutsche Bank Securities (“MSC Trustees”) |
| CUSTODIAN | Apex Fund Services Pty Ltd |
| AUDITOR | Deutsche Bank Foundation |
| REGISTRY | SS&C Solutions Pty Limited |
| APIR CODE | MSC0761AU |
| PLATFORM | Mason Stevens, Netwealth, Fiducian |
| 1 MONTH | 3 MONTH | 6 MONTH | 1 YEAR | SINCE INCEPTION | INCEPTION DATE | |
|---|---|---|---|---|---|---|
| REAL INCOME FUND | 0.71% | 2.12% | 4.28% | – | 6.86% | JAN 24 |
Frequently Asked Questions
Securitised credit involves pooling loans, such as residential mortgages, into a single investment. These are then issued as securities, allowing investors to gain diversified exposure while earning income from the underlying loan repayments.
Securitised credit can improve a portfolio by adding diversification and providing a steady income stream. It can also complement traditional fixed income investments, helping maintain attractive yields across different market conditions.
No, the level of risk varies depending on the type of underlying loans and how the investment is structured. Some assets may carry higher risk, particularly where there is less transparency or weaker security.
Securitised credit is typically divided into different layers, known as tranches. Senior tranches generally have lower risk, as they are first in line to receive payments, while lower tranches carry higher risk but may offer higher returns.
Australian MBS are backed by residential mortgages that follow strict lending standards, including income verification and full recourse to borrowers. This provides an added layer of security compared to some other markets.
Strong regulatory oversight and transparent lending practices have historically supported their stability, making them a widely used option for income-focused investment strategies.
Diversification helps reduce risk by spreading investments across different assets, sectors, and regions. This can improve income stability and limit the impact of any single investment or market downturn on the overall portfolio.
The Real Income Fund achieves diversification by investing across a broad range of secured mortgages, spread across different borrowers and geographic regions. This helps reduce concentration risk and supports more stable portfolio performance.
Liquidity is supported through structured portfolio management and the ability to generate regular cash flows from the underlying loans, enabling consistent income distributions.
A disciplined risk management process, including borrower assessment and ongoing monitoring, supports the overall quality and resilience of the portfolio.