RLAM launches absolute return bond fund

Royal London Asset Management has launched an absolute return bond fund focused on the G10 markets.

RLAM head of derivatives Darren Bustin and the firm’s head of government bonds Paul Rayner are co-managing the RLAM Absolute Return Government Bond, which aims to deliver absolute positive capital growth over a 12-month rolling period by investing in government bonds and associated derivatives. 

According to the management team the portfolio will take long-term strategic positions that reflect their views on the global economic themes affecting bond markets.

RLAM’s head of distribution commented Rob Williams, said: “Government bonds will remain an important asset class for institutional and wholesale investors alike over the long term. The launch of this fund completes RLAM’s full-spectrum sovereign bond offering, which includes international exposure and long-only, short duration and now absolute return approaches.”

The fund is a Ucits-compliant Dublin domiciled Oeic and will sit in the Investment Management Association’s Targeted Absolute Return sector. The annual management charge is 1 per cent for a minimum investment of £1,000, which tapers back for higher amounts.