The firm has announced four funds for Australian investors to build on “solid foundations”, with Equity Trustees named as its responsible entity.
UK-based fund manager Royal London Asset Management (RLAM) managed $378 billion for clients in the UK and internationally but these will be its first dedicated funds in Australia.
The four new Australian unit trusts are structured as ‘feeder funds’ into the firm’s flagship Dublin-based UCITS fund range and have been chosen based on investor needs and launched at scale with approximately $1 billion of AUM.
The new unit trusts are the:
- Royal London Global Equity Select Fund
- Royal London Global Equity Diversified Fund
- Royal London Global Equity Enhanced Fund
- Royal London Short Duration Global High Yield Fund.
The fund launches had previously been flagged by InvestorDaily’s sister-brand, Money Management, last month with head of regional sales Kevin Haran stating Australian clients are seeking core allocations which are less driven by stylistic themes.
RLAM’s portfolio managers assess companies at different stages of development whether accelerating, compounding, maturing or in turnaround stage to identify high-quality opportunities without style bias.
This aims to deliver balanced, diversified portfolios designed to perform across market cycles, underpinned by rigorous valuation discipline and integrated ESG principles.
The Short Duration Global High Yield Fund is the firm’s first local fixed income offering which is a defensive, liquidity focused high yield bond strategy with a long history of delivering absolute returns across market cycles.
The approach provides exposure to the high yield market allowing significant participation in the upside whilst giving a much lower exposure to downside volatility.
Kevin Haran, head of regional sales at RLAM, said he is keen to meet with Australian financial advisers to understand their needs in the domestic market.
He said: “We are investing with the aim of developing our own local funds and distribution model in Australia over time. Not only do these funds launches demonstrate our commitment to the market and that we are here for the long haul, but it also highlights our customer-led approach.
“We focus on understanding the needs of our clients firsthand, and we know the best approach to doing this is meeting them and their advisers face-to-face.”
The RLAM global equities funds were previously distributed by Ironbark Asset Management in Australia but the exit of multiple RLAM managers to form their own company prompted the cessation of this relationship when Ironbark withdrew a $3 billion investment mandate.
As a result, RLAM decided it was time for the firm to expand into Australia without the use of a third-party distributor.
