Royal London launches multi-asset range

Royal London Asset Management has launched a new range of six multi-asset funds.

The range of multi-asset funds will be managed by RLAM’s six-people team headed by Trevor Greetham, who joined the firm earlier in 2015 in a newly created role.

In November, Fund Strategy revealed the upcoming launch for the range as well as the new multi-asset team formation, including the hire of former Fidelity analyst Hiroki Hashimoto.

The risk-targeted funds range from cautious, which is a UK-focused fixed income fund including credit, gilts and cash, to dynamic, which will have a top-down managed UK and overseas equity strategy.

The range is also diversified across overseas equities, commercial property and commodities along with a range of bond market sectors and cash-benchmarked strategies.

Greetham says: “We are very strong believers in multi-asset funds tailored for different risks. For example, we have chosen commercial property as it is not exposed to many regulatory burdens as well as commodity which is a very uncorrelated asset class and resilient to unexpected inflation shocks.”

He also says he will use gilts to maintain a “robust” asset allocation despite many of his peers preferring credit as a better diversifier.

Asset class exposures are mainly through RLAM funds, including actively managed fixed interest funds, property funds and equity tracker funds though the Royal London Stakeholder UK Equity Tracker fund.

Greetham says RLAM is currently in talks with a number of platforms to offer the new range.

Royal London Asset Management head of distribution Rob Williams says: “We have undertaken research to ensure that the risk-reward balance across these funds meets with investors’ requirements. We think investors are best served by a straightforward investment solution that aims to generate real returns over the long term, is fairly priced and carefully risk-managed.”

The range, which will have charges of 0.6 per cent, will sit alongside Royal London’s existing risk targeted multi-asset pension portfolios, the Governed Range, which is also managed by Greetham and the team and counts approximately £10bn in assets.