Royal London Asset Management (RLAM) has launched a multi asset fund designed for investors looking to capture market upside while limiting downside risk.
The Royal London Multi Asset Strategies Fund (MAST) has assets under management of approximately £100 million including a significant investment from an external institution.
MAST is managed by Trevor Greetham, RLAM’s Head of Multi Asset, who has an established long term track record. He and his eight-strong team are responsible for managing about £65bn of assets including Royal London’s Governed Portfolios (GPs) and Global Multi Asset Portfolios (GMAPs).
The fund seeks to achieve an annualised total return of 4% over cash (defined as the Sterling Over Night Index Average) over rolling five year periods through two distinct types of multi asset strategy:
• Risk Premium Strategies aim to generate returns from positive market trends while reducing exposure to riskier assets during periods of turbulence.
• Tactical Asset Allocation Strategies aim to exploit opportunities using a robust process that has demonstrated added value, especially during bear markets.
The fund will invest in an asset mix including UK and overseas equities, commodities, bonds, money market instruments, deposits and cash, with a blend of active and passive RLAM funds and ETFs.
The multi asset team provides a high degree of transparency with a dedicated research website (www.investmentclock.co.uk) explaining their macro-economic views and fund positioning.
Commenting on the new fund, Rob Williams, Chief Distribution Officer, said:
“MAST aims to meet the needs of institutions who would like to generate growth with limited downside risk through a simple and cost-effective single fund solution. The fund may also be of interest to financial advisors looking for smoother returns or an absolute return building block to add resilience to a model portfolio.”
Trevor Greetham, Head of Multi Asset, added:
“We are experiencing the second longest economic expansion in modern US history and recession risks are starting to emerge. This is a good time to consider a portfolio’s resilience to negative shocks. MAST is designed to participate in stock markets while they are trending higher but follow a disciplined approach that also seeks to generate returns when conditions are more difficult.”
Notes to Editors
RLAM assets under management £118.9bn as at 30 Sept 2018.
MAST launched on 23 November 2018.
Annual management charge 45bp; no exit fee or performance fee.
Minimum initial investment £10,000
Team bios and pictures available on request.
The Investment Clock is a model linking asset class returns to the global business cycle. Market leadership passes from one asset class to another as the world economy expands and contracts and as inflation rises and falls. Investors, in aggregate, tend to extrapolate trends and miss important turning points, leading to periods of over and undervaluation relative to the fundamentals that we aim to exploit in our tactical asset allocation strategies.
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 £114 billion of assets and employs 92 investment professionals as at December 2018. 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 February 2019 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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