RLAM plans Absolute Return Bond launch

Royal London Asset Management (RLAM) is planning to launch an absolute return bond fund later this year for Paul Rayner and Craig Inches, Investment Week understands.

The fund will be a mirror version of a segregated mandate the duo are currently running for an institutional client, targeting a return of LIBOR plus 3%. The vehicle is likely to be Dublin-domiciled and aimed at wealth managers and high-net-worth retail investors. Rayner and Inches manage RLAM’s £505m Index Linked Gilt and £458m UK Government Bond funds, with Rayner also head of government bonds at the firm. In recent months, a number of multi-asset managers have been boosting exposure to absolute return bond funds as an alternative to UK government debt, given the low returns on o...