RREIX — REMS Real Estate Income 50-50 Fund
Data updated: 2020-10-29
RREIX — REMS Real Estate Income 50-50 Fund. United States Real Estate · $34.31M AUM · 0.69% expense ratio. Holdings, fees, performance and SEC filings.
RREIX Fund Overview
RREIX — REMS Real Estate Income 50-50 Fund is a US mutual fund managed by World Funds Trust, categorised as United States Real Estate. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.
- Type: US mutual fund
- Manager: World Funds Trust
- Category: United States Real Estate
- Assets under management: $34.31M
- Ticker: RREIX
- SEC CIK: 0001396092
- SEC series ID: S000046322
- Share class ID: C000144754
RREIX Investment Objective and Strategy
REMS Real Estate Income 50-50 Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by World Funds Trust.
Investment objective
The Fund seeks to achieve a primary objective of high current income with a secondary objective of long-term capital growth through investment in the shares of publicly traded real estate securities.
Principal investment strategy
"The Fund seeks to achieve a primary objective of high current income with a secondary objective of long-term capital growth. The Fund will pursue its income strategy though a portfolio of 50% real estate preferred securities and 50% real estate common equities, rebalanced periodically to offset changes in market valuations. This strategy is intended to produce high relative portfolio income and longer term potential for growth in asset value. The manager may shift the allocation up to a minimum of 25% of either real estate common or preferred equities or a maximum of 75% in either type if in its discretion another allocation within this range would better achieve the Fund?s objectives. This strategy often leads to investment in smaller capitalization companies (under $1B). Under normal conditions, the Fund invests at least 80% of its assets, plus the amount of any borrowings for investment purposes, in equity securities of companies principally engaged in the real estate industry.
The Fund considers a company to be principally engaged in the real estate industry if it either (i) derives at least 50% of its revenues from the ownership, construction, financing, management or sale of commercial or residential real estate or (ii) has at least 50% of its assets in real estate or such real estate businesses. These include securities issued by real estate investment trusts (""REITs"") and other real estate companies. The Fund does not invest in real estate directly. In selecting Fund investments, the Adviser applies a proprietary real estate valuation model that is intended to identify for investment companies whose underlying real estate assets trade at a discount to comparable private market valuations. The proprietary real estate valuation model combined with in-depth industry and company specific research.
The Adviser under normal conditions seeks to invest Fund assets in income producing securities issued by real estate companies, consisting primarily of REITs and real estate operating companies, as well as investing in REIT preferred securities. The portfolio of securities in which the Fund invests will normally represent a broad range of geographic region, property type and tenant. The portfolio generally will consist of securities of U.S. issuers. The real estate common equity securities generally will be of issuers considered by the Adviser to be undervalued and to have dividend yields greater than the NAREIT equity index. In addition to attractive underlying real estate valuation, the Adviser will seek company fundamentals that may produce dividend increases over time. When the Fund investments in preferred REIT securities and REIT debt securities it will typically focus on investment grade securities.
These securities will be selected by the Adviser based on fundamental research on the issuer, the issuer's corporate and capital structure, and the placement of the preferred or debt securities within that structure. In selecting investments in preferred or fixed income securities, the Adviser will seek attractive dividend yields combined with fixed charge and dividend coverage adequate to cover those obligations. In executing its investment strategy, the Fund may use leverage, i.e., borrow money for investing, for the purpose of enhancing returns and meeting operating expenses and redemption requests while maintaining investment capacity. When the Fund borrows, it will maintain varying levels of leverage depending on factors such as the price of a particular security relative to the underlying real estate associated with that security and the returns of the security relative to the interest expense of the Fund.
The amount of leverage may not exceed 33-1/3% of the Fund?s total assets less its liabilities other than borrowings. The Adviser is most likely to employ the use of leverage during periods when it believes it will obtain a greater return than the cost of borrowing, and when the Adviser believes that the securities are trading at a discount to their underlying real estate value. Notwithstanding this expectation, the Fund will not use leverage, or will use leverage to a lesser extent, if the Adviser anticipates that leveraged assets in the Fund would result in lower returns to shareholders. The Adviser may also purchase securities for which there is a limited liquid market or companies with limited operating histories. The remainder of the Fund's assets will be invested in cash or short-term investments or securities of real estate operating companies that may pay little or no dividends."
RREIX Costs and Fees
RREIX costs about $69 per $10,000 invested per year in fund expenses.
- Net expense ratio: 0.69%
- Gross expense ratio: 1.11%
- Portfolio turnover: 20%
- Brokerage commissions: 12.39 bps of average net assets (SEC N-CEN)
RREIX Cashflows
Over the 12 months to 2020-09, REMS Real Estate Income 50-50 Fund had net inflows of $327.65K, from monthly SEC N-PORT filings.
| Month | Net flow |
|---|---|
| 2020-09 | −$104.97K |
| 2020-08 | −$50.82K |
| 2020-07 | −$119.18K |
| 2020-06 | $19.79K |
| 2020-05 | −$735.57K |
| 2020-04 | $351.54K |
RREIX Debt Constituents
No individual debt constituents are reported in REMS Real Estate Income 50-50 Fund's latest SEC N-PORT filing.
RREIX Prospectus and SEC Filings
Official REMS Real Estate Income 50-50 Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.
- Prospectus (485BPOS) — filed 2020-05-14
- Prospectus (485BPOS) — filed 2019-05-16
- Prospectus supplement (497) — filed 2018-12-19
- Portfolio holdings (N-PORT) — filed 2020-10-29
- Portfolio holdings (N-PORT) — filed 2020-08-26
- Portfolio holdings (N-PORT) — filed 2020-05-29
- Annual census (N-CEN) — filed 2020-03-16
- Annual census (N-CEN) — filed 2019-03-18
Related Funds
Other United States Real Estate funds tracked on ABC INVEST:
Data Sources
ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.