Page 10 - DIY INVESTOR MAGAZINE - NOVEMBER 2018
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    At this point should we wish to invest we need review the technical considerations - is there enough liquidity in the stock we are reviewing; what is the price volatility like. How is it trading versus NAV?
In excess of a 5% premium generally are screened out with an objective to have the overall portfolio not trading at a significant premium to NAV. Post investment the work does not stop as we move into the monitoring of the investment.
Within VT RM Alternative Income the objective is capital preservation and to generate an annualised income of 5%, with quarterly distributions and limited volatility. There are in excess of 45 companies currently in the portfolio with security or ownership across thousands of
physical assets thereby offering downside protection as well as investor liquidity.
Disclosure is excellent with a complete portfolio breakdown show on each monthly factsheet; all direct fees to the manager are disclosed to the investor and indeed are capped. Price valuation at the portfolio level is done externally on a daily basis offering daily liquidity for investors. The fund is available for investment via most investment platforms.
People will always look to reach for higher returns and perhaps forget the liquidity or governance, but as in the real story of the Tortoise and the Hare, like the Hare I remind myself ‘Don’t brag about your lightening pace, for Slow and Steady won the race’.
       VT RM ALTERNATIVE INCOME FUND
RM DIRECT LENDING FUND
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