RLAM Is Repositioning Its European Equity Offering
7 August 2014
Royal London Asset Management (RLAM) is repositioning its European equity offering. As a consequence its European Income Fund has become the European Opportunities Fund.
The fund’s new strategy reflects investors’ consensus that the EU economy is growing and that there are pockets which will grow faster than others. The European Opportunities Fund invests in a more concentrated portfolio of shares of 30-40 European (excluding UK) companies, which have potential for above average growth. Preference will be given to companies which offer niche products or services that will grow faster than the broader economy, that operate in markets with high barriers to entry and generate strong cash flows.
The fund is the result of a change in objectives of RLAM’s original European Income Fund, launched in September 2008. The repositioned fund adopts a more active management approach and focuses on a more concentrated and carefully selected portfolio of companies. It will also have greater exposure to small and mid-cap stocks. Available for investment as of 1 July 2014, the European Opportunities Fund runs alongside the European Growth Fund, which invests in 40-60 European (excluding UK companies) companies.
Neil Wilkinson and Andrea Williams jointly manage the European Equity products. Neil is the lead manager of the European Opportunities Fund and Andrea the lead manager of the European Growth Fund. To support the activity of RLAM’s European Equity team, Sebastien Beguelin recently joined as an equity analyst.
Neil Wilkinson, Senior Fund Manager at RLAM, comments: “Investors are seeing signs of improvement in the Eurozone economy, incentivised by a pro-business and pro-growth agenda. The growth focus and more concentrated approach of the repositioned fund is designed to meet current market demands, and the geographical remit gives investors exposure to strategic sectors, including the car industry which does not have a significant presence in the UK.”
For further information please contact:
Margherita Orlandini - 0207 506 679 / 07919171953
Royal London is the largest mutual life and pensions company in the UK with Group funds under management of £76.2 billion. Group businesses serve around 5.3 million customers and employ 2,900 people. (Figures quoted are as at 31 March 2014).
Over the next two years the Group is moving to operate all of its UK life, pension and investment business under a new version of the Royal London brand. Royal London Asset Management is now under the new master-brand and the Scottish Life, Scottish Provident and Bright Grey brands will migrate over the next eighteen months.