RLAM expands equity offering with launch of two new global equity funds
12 October 2017
Royal London Asset Management (RLAM) today announces the launch of a pair of new global equity funds. Both funds are aimed at wholesale and institutional investors and will be managed by Head of Global Equities Peter Rutter, along with Will Kenney and James Clarke. Overall, RLAM manages £33bn of UK and overseas equities. The global equity team joined RLAM at the beginning of the year and manages global equities mandates on behalf of both the Royal London group and third parties.
The Royal London Global Equity Select Fund will invest in a concentrated portfolio of 25-40 global stocks from both developed and emerging markets. A high conviction approach means this fund will not be constrained by the constituents or weightings of the benchmark index. This will allow the team to invest in a small number of stocks which they consider to be attractive, regardless of their geography, sector, industry or market capitalisation. The Select Fund will aim to outperform the MSCI World Net Total Return index by 2.5% per annum, net of fees, over rolling three year periods.
The second fund being launched is the Royal London Global Equity Diversified Fund, which will invest in a much more diversified global equity portfolio, with country and sector exposures broadly in line with its benchmark, the MSCI World Net Total Return index. The Diversified Fund will aim to outperform this benchmark by 0.5% per annum, net of fees, over rolling three year periods.
Both funds will be managed in accordance with the team’s ‘corporate lifecycle approach’ to equity investing. This differentiated process takes the investable universe of over 3,000 companies, analyses them based on their economic return and then uses this data to assess where their returns place them in the corporate lifecycle. The stocks which pass this initial screen are then subject to further analysis by the team, with the aim of finding companies which create shareholder wealth and are fundamentally undervalued. Investment ideas generated through this process can be considered for inclusion in either fund.
Peter Rutter, Head of Global Equities at Royal London Asset Management, said:
“Global equities give UK investors the ability to access a broader range of stocks than are available in the UK market, and in some cases opportunities that are simply not available domestically.
These funds will offer clients the benefits of our team’s investment process, focused on identifying and investing in stocks globally, with particular shareholder wealth creation and valuation characteristics.”
Piers Hillier, Chief Investment Officer at Royal London Asset Management, commented:
“Having seen significant client demand for global equity products, we’re pleased to offer clients a pair of strategies which can harness the time-tested approach of our new global equity team. The Select and Diversified portfolios offer investors access to exciting opportunities and the benefits of diversification which global equities provide. Launching these new funds reinforces RLAM’s commitment to active equity investing in areas where we believe we can add value for our clients.”
For further information please contact:
02032 725 125
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 £106 billion of assets and employs 85 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.
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