16 July 2018

RLAM to launch a monthly income bond fund

5 min read

 
Margherita Orlandini, Corporate PR Manager, Royal London

Margherita Orlandini

Corporate PR Manager, Royal London

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Royal London Asset Management (RLAM) will launch a monthly income bond fund later this year. It will be managed by RLAM’s Head of Fixed Income Jonathan Platt and has been designed with a range of clients in mind, particularly IFAs and wealth managers.

 

The fund will invest in a number of underlying Royal London credit and high yield portfolios, with the option to hold up to 30% of the resulting portfolio in individual bonds and other fixed income securities. The fund will also be able to invest in unrated securities, gilts and foreign sovereign debt.

Using RLAM’s well-established fixed income range, the new offering exploits the inefficiencies inherent in credit markets which result from over-reliance on liquidity, credit ratings and orientation towards benchmarks. This investment philosophy, focusing on value and security, aims to offer higher yields without compromising on risk management.

Jonathan Platt, Head of Fixed Income at Royal London Asset Management, commented:

"This fund allows us to translate RLAM’s unique credit philosophy, with a strong emphasis on active management, rigorous analysis of fundamentals and genuine stock selection, into a flexible and diversified new offering."

Sitting within the IA Sterling Strategic Bond sector, the fund has a flexible remit and aims to deliver an income of 5%, with opportunities for capital growth.

Phil Reid, Head of Wholesale at Royal London Asset Management, added:

"As we have expanded our distribution footprint in the advisory segment, many intermediaries are looking for investments paying a monthly income, which is how several of their clients manage their finances.

“We have seen a great deal of client demand for a solution that blends our existing credit capabilities to deliver this. By pooling the cash flows available from a range of fixed interest asset classes and distributing these in a smooth and regular manner, the new fund will meet this demand for a sustainable level of income."

Jonathan will be assisted in the running of the fund by Deputy Fund Manager Richard Nelson. A number of specialists from RLAM’s fixed income team will also support them in the asset allocation decision making, including Head of Credit Eric Holt, Head of Global High Yield Azhar Hussain and Senior Client Portfolio Manager Ewan McAlpine.

- ENDS -

For further information please contact:

Margherita Orlandini, Corporate PR Manager, Royal London

Note to editors

The fund will be benchmarked against a composite of two indices, in accordance with the expected positioning of the fund: 

50% - BofA ML 1-10 Year Sterling Non-Gilt Index 

50% - BofA ML BB-B Global Non-Financial High Yield Constrained Index (hedged to Sterling) 

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 £117 billion of assets and employs 89 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.

For professional clients only, not suitable for retail investors.

Issued September 2018 by Royal London Asset Management Limited, registered in England and Wales number 2244297; authorised and regulated by the Financial Conduct Authority. Registered Office: 55 Gracechurch Street, London, EC3V 0RL.

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