Royal London Sterl Extra Yld Bd A

Fund
add to virtual portfolio
trade
This fund can be held in
Trading AccountISAJISASIPP

Fund Info

  • Yield History5.45%
  • 3 Year sharpe0.33
  • 3 Year alpha1.28
  • Distribution Typeincome
  • BenchmarkFTSE Act UK Cnvt Gilts Over 15 Yr TR GBP
  • Legal StructureOpen Ended Investment Company
  • Fund Size (month end)Open Ended Investment Company
  • OCF0.84%
  • IA Sector£ Strategic Bond
  • Manager GroupRoyal London
  • DomicileIreland
  • ISINIE0032571485

Investment Strategy

The fund’s objective is to achieve a high level of income and to achieve gross redemption yield of 1.25 times the gross redemption yield of the FTSE Actuaries British Government 15 year index. The above objective applies to Class A and Class B shares in each of the sub-funds. The sub-fund seeks to achieve its investment objective by investing at least 75% of its assets in Sterling denominated securities traded principally on the London Stock Exchange or over the counter markets. The sub-fund may also invest up to 25% of its assets in non-Sterling denominated securities traded principally on European, U.S., Canadian and Australian exchanges or over the counter markets.

ii Super 60 selected

This Fund is a member of our ii Super 60 rated list

Royal London Sterling Extra Yield Bond fund has been managed since its 2003 launch by Eric Holt, who has three decades of bond market experience behind him. In 2019, he teamed up with co-manager Rachid Semaoune.

The managers aim to provide investors with a high yield (5.5% at present, paid quarterly) without taking the degree of risk normally associated with high-yield funds. For this reason, they favour bonds secured against specific assets, such as property or cashflow.

They look to exploit bond market inefficiencies and believe that by considering a wider investment universe than many of their peers, they can uncover value in many areas that are often overlooked and undervalued. They do not rely on bonds’ credit ratings. The main question for them is whether there is enough reward for the risk being taken. In practice, this means that the portfolio will hold untypical bonds, such as unrated bonds, sub-investment-grade bonds, smaller issue-size bonds and non-sterling bonds.

The fund is highly diverse, with almost 240 holdings. It typically has around 30% of the portfolio in unrated bonds.

September 2020

Latest news

Currently there for this fund. Visit our news hub for other news .