RLAM launches Royal London Global Index Linked Fund
9 February 2010
Royal London Asset Management (RLAM) confirms the launch of the Royal London Global Index Linked Fund (the Fund) to help investors hedge against potential increases in global inflation and target more attractive yields outside the UK. The Fund is managed by George Henderson with the support of Paul Rayner and Craig Inches in the RLAM government bond team.
The Fund seeks to provide annualised returns in excess of +1.0% against its benchmark, the Barclays World Government Inflation-Linked Bond Index (hedged to GBP), over rolling three year periods, gross of fees. It will invest in a portfolio of between 30 and 60 holdings, predominantly in global index linked bonds. The Fund will have the flexibility to invest up to 30% in both conventional government bonds and investment grade corporate debt.
Fund Manager George Henderson said,
"The unprecedented levels of liquidity pumped into markets coupled with undefined exit strategies and a lack of familiarity with new monetary policy tools create an uncertain outlook for global inflation. Index linked bonds provide a very useful hedge against potentially higher inflation and we are seeing compelling opportunities in global index linked bonds which can offer over 50 basis points of increased yield over their UK equivalents."
Susan Spiller, Head of Marketing at RLAM said,
"Inflation expectations have fluctuated significantly over recent years, with investors facing projections ranging from deflation to high inflation scenarios. RLAM is committed to offering the kinds of products that help our clients meet their investment objectives. The launch of the Royal London Global Index Linked Fund reflects client concerns over higher long term global inflation and offers a useful diversifying tool in a balanced investment portfolio."
- ENDS -
Key Features
IMA sector: IMA Global Bonds
Structure: The Fund is structured as an OEIC and sits within the Royal London Bond
Funds ICVC
Domicile: UK
Fund size at launch: £10m
Initial charge: Class A: 4.0%; Class B: 0.0%
Commission: Class A: 3.0%; Class B: 0%
AMC: Class A: 0.70%; Class B: 0.30%
Minimum investment: Class A: £1,000; Class B: £1,000,000
Valuation: Daily at 12 noon
For further information:
RLAM
Stephen Watchorn
Tel: 020 7506 6582
Stephen.watchorn@rlam.co.uk
Quill Communications
Jo Stonier
Tel: 020 7758 2230
Jo@quillpr.com
Editor's notes:
Royal London Asset Management (RLAM)
was established in 1988 and specialises in providing investment management solutions for both the Royal Source: rlam as at 8th February unless otherwise stated. rlam is a marketing brand including the following companies: Royal London Asset Management Limited registered in England & Wales number 2244297; Financial Services Authority (FSA) register number 141665. Royal London Pooled Pensions Company Limited registered in Scotland number SC048729; FSA register number 110456. Royal London Unit Trust Managers Limited registered in England & Wales number 2372439; FSA register number 144037. All of the above are authorised and regulated by the Financial Services Authority. It also includes Royal London Asset Management Bond Funds Plc registered in Ireland number 364259 and regulated by the Irish Financial Services Regulatory Authority (IFSRA). All these companies are subsidiaries of The Royal London Mutual Insurance Society Limited registered in England and Wales number 00099064. Head office: 55 Gracechurch Street, London EC3V 0RL. Our reference: 040-PRESS-02/2010-SW London Group and a range of external institutions. These include FTSE 250 companies, local authorities, universities, charities, wealth managers, financial advisers and private clients. RLAM manages over £35bn of assets, employing more than 50 experienced investment professionals in our London based office.
Royal London Group
, is a specialist financial service provider. Its businesses focus on those sectors of the market which value quality propositions, operating through a number of brands:
- Scottish Life – UK pensions market
- Bright Grey – UK protection market
- Scottish Provident – UK protection market
- Royal London 360° – offshore investment markets
- RLAM – fund management
- RLCM – specialist cash and liquidity management for UK onshore clients
- RLAM C.I. – specialist cash and liquidity management for offshore clients
- RLAS – life and pensions administration
- Fundsdirect / Ascentric – funds supermarket; Wrap platform
Royal London also distributes life and pensions products through Santander's UK branch networks.
Royal London is the largest mutual life and pensions company in the UK with Group funds under management of £35.9 billion. Group businesses serve around 3.4 million customers and employ 2,800 people. Figures quoted are as at 31 December 2009.