RLAM launches Global Index Linked fund

Royal London Asset Management has launched a global index-linked bond fund aimed at hedging against potential inflation, but at higher yields than currently available in the UK.

Managed by George Henderson, the RLAM Global Index Linked fund seeks to provide annualised returns of 1% over its Barclays World Government Inflation-Linked Bond Index benchmark, over rolling three-year periods. Sitting in the IMA Global Bond sector, the fund typically holds 30-60 positions, hedged to sterling. Henderson believes a basket of overseas index-linked bonds can offer about 50bp of additional yield over a UK-focused fund. "On a real yield basis, there are attractive yields available in a low growth environment going forward," he says. "But we do not think UK linkers ...