Royal London Global Bond Opportunities Fund Class Z GBP
Rated Fund 2019-20. Seeks a high yield from bonds globally
This fund has slightly underperformed its official sterling strategic bond fund sector over the past year but outperformed significantly over three years. Its high yield of 5.6% makes it a good option for those seeking quarterly income, and it has a growing following – it has more than doubled in size to £200 million over the past year.
Eric Holt, a fixed-income sector veteran, and Rachid Semaoune have run this fund since it launched in 2015. Holt has extensive knowledge of investment-grade and high-yield corporate bonds gained over a 40-year career. He has overall responsibility for Royal London Asset Management’s credit research process. Semaoune joined Royal London’s fixed-income team in 2015 and has almost 20 years’ experience in credit markets.
The pair run a very well-diversified fund of more than 200 holdings that focuses mainly on credit markets internationally. US and European debt account for more than 70% of the portfolio. UK debt accounts for around 20%. In terms of credit quality, the fund prefers high-yield and unrated bonds.
The managers believe that present pricing of corporate bonds is still attractive over the medium term, while the level of income being generated is also appealing, given the prospect of short-term interest rates staying lower for longer. They say credit valuations are underpinned by strong company balance sheets and a low default rate environment, which is pushing investors to broaden their search for yield.
Narrative and ratings content all as of 01 January 2020.See all Money Observer rated funds
|DigiPlex Norway Holding 2 AS 5.26%||1.78 %|
|ML 33 Holding AS 5.5%||1.77 %|
|GLH HOTELS LIMITED 7.88%||1.54 %|
|Credit Agricole S.A. 8.38%||1.40 %|
|Prudential plc 3.88%||1.23 %|
|HAVILAFJORD AS 6.52%||1.22 %|
|Stichting AK Rabobank Certificaten 6.5%||1.13 %|
|867176 Cds Eur P F 5.00000 Cds 20220620 Hsbc S||1.09 %|
|Bank of Scotland Capital Funding LP 7.75%||1.05 %|
|EI Group Plc 6.38%||1.03 %|
|United Kingdom||100.00 %|
|Financial Services||100.00 %|
Eric joined Refuge Assurance’s investment team in 1979, having been initially recruited into the Actuarial department. He has overall responsibility for RLAM’s credit research process and has extensive knowledge of UK corporate bonds, which has been his main focus for twenty years. Eric is a graduate of Nottingham University with a degree in mathematics and is an associate of the Institute of Actuaries.
Data provided by Morningstar.
The Content is only for your general information and use and is not intended to address your particular requirements. The Content does not constitute any form of advice, recommendation or arrangement by Money Observer and is not intended to be relied upon by you in making (or refraining from making) any specific investment or other decisions. Appropriate independent advice should be obtained before making any such decision.
This information is sourced from our partner Morningstar. We believe the data to be correct however you should take care in using any information.
You should be aware that prices may fall as well as rise and that the income derived can go down as well as up. When buying or selling any investment that fluctuates in price or value you may get back less than you invested. Past performance is not necessarily a guide to future performance.