The RAW Mortgage Fund (“the Fund”) delivered attractive and consistent risk-adjusted returns to investors during 2020, along with a high level of capital security and diversification from other assets classes.
The Fund delivered gross returns of 4.93% and net returns of 4.43% to institutional investors with little volatility and no negative months’ performance. For context, the Fund’s target net return is 4.00% and its benchmark, a 0-5 year GBP Corporate Bond Index, delivered 3.39% to investors with greater volatility of returns and a maximum drawdown of 3.69%.
The Fund’s performance is thanks to that of its underlying book of more than 300 individual mortgage loans worth £78.3 million. The Fund has recorded no defaults and has had no write-offs since launch in May 2015. At the time of writing, the Fund has no arrears of more than 1 month.
Given its track record, we believe the RAW Mortgage Fund will continue to provide attractive and consistent risk-adjusted returns along with a high level of capital security
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