Factsheet: Royal London Sterl Extra Yld Bd A
Rated Fund 2013-2018. A high yield with an emphasis on security
This fund won Money Observer's Best Larger Sterling Bond Fund award in 2014 and was highly commended in 2016. It lives up to its name, with a yield of over 5 per cent. Income is paid quarterly.
The fund is highly diverse with almost 200 holdings. It is managed by Eric Holt, who has three decades of experience in bond markets. He offers a different perspective on bond-market investing because he focuses on more esoteric, undervalued and overlooked areas. These include bonds without a credit rating.
At the end of 2017, more than a third of the portfolio was in unrated bonds. Holt aims to provide investors with a high yield without taking the degree of risk normally associated with high-yield funds. For this reason, he favours bonds that are secured against specific assets, such as property or cash flows.
Holt looks to exploit bond market inefficiencies. He believes that by considering a wider investment universe than his peers, he can uncover value in many areas that are often overlooked, including unrated and asset-backed bonds and loans.
He does not rely on bonds' credit ratings; the main question for him is whether there is sufficient reward for the risk being taken.
Narrative and ratings content all as of 01 January 2018.See all Money Observer rated funds
|Ei Grp 6.375%||2.39 %|
|Amedeo Air Four Plus||2.12 %|
|Premiertel 6.175%||1.91 %|
|Investec Bk 9.625%||1.85 %|
|Telereal Securitis FRN||1.61 %|
|Santander Uk Cv 10.0625%||1.58 %|
|Cybg Cv||1.57 %|
|United Kingdom||68.39 %|
|Europe - ex Euro||20.25 %|
|Financial Services||8.10 %|
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.
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