RLAM launches Global Bond fund
Royal London Asset Management is launching a new fund in the Investment Management Association’s (IMA) Global Bonds sector.
The Global Index Linked fund is designed for investors that would like to hedge against potential increases in global inflation.
It will be managed by George Henderson, flanked by Paul Rayner and Craig Inches in Royal London’s government bond team.
The fund aims to outperform the Barclays World Government Inflation-linked Bond index by one per cent over rolling three year periods, gross of fees through a portfolio of 30 to 60 holdings.
These holdings will be predominantly in global index linked bonds, although the fund will have the flexibility to invest up to 30 per cent in investment grade corporate debt.
George Henderson, fund manager at Royal London Asset Management, said that the unprecedented levels of liquidity pumped into the markets, coupled with undefined exit strategies have left an uncertain outlook for inflation.
He explained, ‘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.’
Investors buying the fund through a financial adviser should be aware that intermediaries have the option for their adviser to take 3 per cent commission from Royal London for this transaction.
Royal London Asset Management
Global Index Linked fund
IMA sector: IMA Global Bonds
UK
Fund size at launch: £10m
Initial charge: Class A: 4.0%; Class B: 0.0%
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
Advertisement
Latest news
F&C multi-manager duo to depart following Thames River deal 2 September 2010
F&C Asset Management has revealed that head of UK retail multi-manager Dean Cheeseman and fund manager Oliver Sonnbichler will leave the firm, following the completed acquisition of Thames River Capital.
- BlackRock to rename and alter High Income Bond Fund 2 September 2010
- BlackRock to close Japan fund 2 September 2010
- Gartmore's head of small caps resigns 1 September 2010
Recommendations
Top Ten Life Funds
| Fund | Offer | 1y | 3y | 5y |
|---|---|---|---|---|
| UBS Life Structured Credit A | 94.15 | 174.5 | n/a | n/a |
| Skandia Finland FIM Russia | 11.29 | 60.6 | -2.7 | 48.5 |
| Skandia Finland Alfred Berg Ryssland | 0.86 | 49.5 | -18.0 | n/a |
| Skandia Finland BlackRock Gold & General | 2.57 | 45.6 | 41.3 | 150.3 |
| Zurich American Property AL G4 | 43.30 | 44.7 | 20.9 | 39.3 |
| Skandia Norway Alfred Berg Ryssland | 0.87 | 41.2 | -16.8 | n/a |
| Aviva Investec Global Gold S4 | 0.00 | 41.0 | n/a | n/a |
| Skandia Finland JPM New European | 2.07 | 40.7 | -13.2 | 44.6 |
| Skandia Finland First State Greater China Growth | 1.35 | 40.0 | n/a | n/a |
| Skandia Finland Neptune Russia & Greater Russia | 1.49 | 39.8 | n/a | n/a |
Investment funds in depth
Structured range in development at Barclays 2 September 2010
Barclays Wealth is planning to launch a new range of structured products in the coming weeks, What Investment has learnt.
- Charges revealed for Neptune Africa launch 31 August 2010
- Edinburgh Partners dismisses double dip doomsters 19 August 2010
- Coventry witnesses savings rush 18 August 2010
Guides
Asset monitor: UK equities 29 June 2010
With investors reassessing their portfolios in light of fluctuating economic conditions, Joe McGrath asks the experts how they are riding the choppy markets. [Premium content]
- We voted for change, and change is what we’ve got 25 May 2010
- Investment Trusts: Corporate governance 15 April 2010
- Regular vs lump sum investing 1 April 2010
Special Offers
- Annual report service
Free access to annual reports and other information
on selected companies



