Royal London Asset Management (RLAM) has launched a retail offshore high-yield bond fund. The Ster...
Royal London Asset Management (RLAM) has launched a retail offshore high-yield bond fund.
The Sterling Extra Yield fund offers a 7.5% gross redemption yield and can invest up to 50% of its portfolio in unrated, asset-backed bonds. RLAM head of fixed interest Jonathan Platt said having unrated bonds secured by assets means the fund can access higher-yielding paper without additional risk or expense.
The fund, to be managed by Eric Holt, can also invest up to 100% in UK investment-grade bonds, up to 25% in non-UK bonds, up to 25% in convertible bonds, up to 75% in sub-investment grade bonds and up to 10% in equities. Platt said diversification is key to reducing risk for bond investors.
Charges are 4% initial and 1.25% annual, with maximum initial commission of 3%. Minimum investment is £1,000. The portfolio is the first of what the firm said will be a range of retail funds to be launched by RLAM Ireland.
No preferred charging model
To 1,552 families and businesses
HL and Liberty SIPP slowest
Lifetime and annual allowances