RML Sustainable Value Creation and Impact Investing AMC - 2020 (full year): +13.62%

Climate change, climate scenarios, climate risks and CO2 pricing are topics that currently dominate the socio-political as well as the economic discourse. The ambitious transformation towards a carbon-neutral economy and a sustainable world requires the interaction of many convinced actors. For a more sustainable financial economy, we at RML Advisory would like to be a source of inspiration and a discussion partner for all those who are as committed to sustainability as we are.

That's why, for investors who want to integrate sustainable investments into their portfolio selection process, we have developed a best-in-class, semi-liquid diversified investment solution that drives measurable social and environmental progress alongside attractive financial returns.

The RML Sustainable Value Creation and Impact Investing — Actively Managed Certificate provides access to proprietary sourced private credit, private debt and liquid sustainable and impact investment equity strategies with an absolute return goal of 6 % to 9 % p.a. net of any fees (over the life cycle). Human oversight is built into the process with a thorough investment due diligence and external compliance management. The strategy pre-dominantly focusses on investment opportunities in the aeras high performance green computing units and CO2 neutral heat generation, heat transfer and storage of produced thermal energy & green electricity, circular economy/tire recycling pyrolysis, renewable energy production, and liquid climate- and global environmental investment opportunities.

Within our portfolio construction process we focus on clearly understandable, sustainable projects that all achieve measurable social and environmental benefits and are aligned with the UN Sustainable Development Goals (SDGs). The borrowing companies are leaders in their respective industries and regions from an environmental, ethical and economic perspective and have the best earnings prospects. The maximum maturity of the bond instruments does usually not exceed 5 years. The average duration is currently 3.5 years. In addition, 20% of the portfolio is allocated to daily liquid sustainable UCITS fund structures.

Key Highlights

  • Access to first-class financing opportunities with underlying businesses that achieve measurable social, environmental and ecological benefits in addition to attractive financial returns.

  • Attractive risk / reward profile and regular distribution of cash flows in form of coupons.

  • Diversification in terms of individual borrowers, sectors and business cases, regions and maturities.

  • Concentrated portfolio with a maximum portfolio weighting per single investment of 20%.

  • Transparency on positions.

  • Unique investment solution that combines the advantages and rationales of sustainability & impact investing in the form of private debt and liquid sustainable equity investments.

  • Structure: Protected Cell Company (PCC); the assets of each individual AMC are segregated.

  • Issuer: award-winning Swiss investment and technology partner of banks, independent asset managers and pension funds; off balance sheet (only theoretical issuer risk by definition of a structured product)

  • Custodian: single Swiss Bank as custodian, paying agent and broker

The Sustainable Value Creation & Impact Investing AMC offers quarterly liquidity with 30 days of notice. The product has an initial lock-up of 12 month. Due to the nature of the product (80% Private Deb/Private Credit), there is a risk that a redemption request in the product cannot be fulfilled accordingly in a timely manner. In some cases, the issuer, together with the adviser, has the right but not the obligation to reduce redemption requests to investors on a pro rata basis if the combined redemption requests at any quarter end exceed 15% of the portfolio value.

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