Royal London Asset Management launches Enhanced Cash Plus Fund
18 May 2015
Royal London Asset Management (RLAM) today launches the Royal London Enhanced Cash Plus Fund. The Fund, a UK domiciled OEIC, will invest in money market instruments as well as short-dated investment grade debt securities (including highly rated asset backed securities) issued by financials, corporates, governments and supra-nationals. The new fund builds on the success of the existing Royal London Cash Plus Fund, which has attracted assets of over £1 billion (as at 31 March 2015).
The fund’s aim is to minimise risk to capital while providing income and capital growth in excess of money market rates. It will have a similar investment approach to the existing Royal London Cash Plus Fund, with the potential for increased yield and a corresponding increase in risk.
The Fund will be managed by Craig Inches and Richard Nelson, who have a combined 35 years’ experience. It will follow RLAM’s existing cash investment philosophy of creating robust, transparent and highly rated portfolios, with the aim of delivering a positive return with a risk profile commensurate with the outperformance objective. It will be well-diversified across a range of asset types and pre-approved counterparties. The debt securities will predominantly be Sterling investment grade. Overseas assets are permitted, however all foreign currency investments will be hedged back to Sterling.
The Fund enhances RLAM’s range of short duration solutions, complementing an existing suite of money market and short duration bond strategies. The Fund will cater for clients with a longer term time horizon for cash investing, who are looking to achieve a yield in excess of the existing Royal London Cash Plus Fund. We anticipate significant demand for the product among institutional customers in particular.
Craig Inches, fund manager at RLAM, commented:
“We’re pleased to be able to offer a wider choice to our clients by enhancing our comprehensive range of short duration solutions. We believe this Fund will appeal to investors who are seeking the potential for enhanced yield, in excess of that currently offered by our existing cash funds. The launch of this Fund strengthens RLAM’s position as a leading provider of specialist cash and short duration strategies for a range of investors.”
RLAM manages in excess of £7 billion of cash assets on behalf of more than 300 clients including corporates, universities, insurance companies, wealth managers, charities and governments.
For further information please contact:
Margherita Orlandini 02075066791 / 07919171953 Margherita.Orlandini@royallondon.com
About Royal London:
Royal London is the largest mutual life, pensions and investment company in the UK, with Group funds under management of £86.3 billion. Group businesses serve around 5.3 million policy holders and employ 2,859 people. (Figures quoted are as at 31 March 2015).
The Group is currently moving all of its UK businesses under a new version of the Royal London brand. The Group's independent wrap platform will remain branded Ascentric.
About Royal London Asset Management (RLAM):
Established in 1988, Royal London Asset Management (RLAM) is one of the UK's leading fund management companies, providing investment management solutions to both wholesale and institutional clients such as not-for-profit organisations, local authorities and the insurance sector.
RLAM manages over £86.3bn of assets and employs 73 investment professionals. It invests in all major asset classes including UK and overseas equities, government bonds, investment grade and high yield corporate bonds, property and cash.