RLAM launches corporate bond funds

Office buildingsRoyal London Asset Management is launching two new funds, which will be domiciled in Dublin and available for sale in the UK from 27 February. These are presented in response to increasing interest from investors in income generation from sub-investment grade corporate debt.  The Royal London Global High Yield Fund will aim to provide a combination of investment growth and income, targeting a return of 1% per annum above that of its benchmark, the BoAML BB-B Global Non-Financial High Yield Constrained Index. The Royal London Short Duration Global High Yield Fund will aim to provide income, targeting a return of 2% per annum above that of its benchmark, 3 month LIBOR, while maintaining a duration position close to two years. The funds will invest primarily in sub-investment grade debt issued by companies domiciled in the UK, Europe, Asia and the United States, across the high yield credit spectrum. They will be managed within pre-determined regional, sector and security exposures, in order to create portfolios that will deliver consistent alpha from multiple sources. Azhar Hussain, manager of both funds, has stressed the ‘diversification and good return characteristics’ of high yield bonds; expressing his belief that these new funds are ‘ideally suited to taking advantage of the current environment’ of ‘low growth and low interest rates.’ ©2013 funds europe

Executive Interviews

INTERVIEW: Put your money where your mouth is

Jun 10, 2016

At Kempen Capital Management, they believe portfolio managers should invest in their own funds. David Stevenson talks to Lars Dijkstra, CIO of the €42 billion manager.

EXECUTIVE INTERVIEW: ‘Volatility is the name of the game’

May 13, 2016

Axa Investment Managers chief executive officer, Andrea Rossi, talks to David Stevenson about bringing all his firm’s subsidiaries under one name and the opportunities that a difficult market...


ROUNDTABLE: Beyond the hype

Oct 13, 2016

The use of smart beta investing continues to grow. Our panel, made up of both providers and users, discusses what the strategy actually means, how it should be used and the kind of pitfalls that may arise when using this innovative investment technique.

MIFID II ROUNDTABLE: Following the direction of travel

Sep 07, 2016

Fund management firms Aberdeen and HSBC Global meet with specialist providers to speak about how the industry is evolving towards MiFID II.