RLAM launches Multi Asset Credit Fund for institutional investors
17 July 2017
Royal London Asset Management (RLAM) today announces the launch of its Multi Asset Credit Fund (MAC) in response to client demand for greater diversification of credit in a low yield environment.
The fund builds on the proven success of RLAM’s existing credit capabilities and will invest directly in a globally diversified portfolio concentrating on the ‘alternative’ part of the credit universe. Asset classes include secured and unsecured high yield debt, leveraged loans, asset backed securities and emerging market debt. The fund has a rolling 3 year objective of cash+4-6% and will be managed by Azhar Hussain, RLAM’s Head of Global High Yield and MAC fund manager Khuram Sharih.
Azhar Hussain, Head of Global High Yield at RLAM, commented: “We have seen considerable client interest, particularly in the institutional space, in incorporating a range of higher yielding credit assets into a single, diversified fund. Leveraged loans should be a key part of the fund at this mature stage of the credit cycle: they offer protection against interest rates and defaults and historically display lower volatility characteristics than the high yield market.
John Burke, Head of Institutional at RLAM added: “The MAC strategy marks an important evolution in our credit solutions to institutional clients. MAC builds on RLAM’s successful credit investment approach, focusing on security and income, striking the right balance in terms of diversification, risk/return and liquidity to meet the changing needs of our clients. We have seen significant demand from our current clients for this type of solution.”
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Notes to Editors
1) RLAM manages £104.5 billion of assets, including £60bn in fixed interest and cash.
2) The fund will be launched under a Dublin Qualifying Investor Alternative Investment Fund (QIAIF) structure, allowing the managers the flexibility to use the wide range of instruments efficiently, and is suitable for UK institutional investors.
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 £104.5 billion of assets and employs 86 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.
About Royal London:
Royal London is the largest mutual life, pensions and investment company in the UK, with Group funds under management of £104.5 billion. Group businesses provide around 9.0 million policies and employ 3,341 people. (Figures quoted are as at 31 March 2017)