Product Adviser: RLAM launches two global equity funds for ex-Waverton managers

They will be managed by Peter Rutter, head of the global equities team, along with Will Kenney and James Clarke. The trio joined from Waverton earlier this year.

The Royal London Global Equity Select Fund will invest in a concentrated portfolio of 25-40 global stocks from developed and emerging markets. The high-conviction approach means it will not be constrained by the constituents or weightings of the benchmark index, the firm said.

The Select Fund will aim to outperform the MSCI World Net Total Return index by 2.5 percentage points per year over rolling three-year periods.

The second fund is the Royal London Global Equity Diversified Fund. It will invest in a much more diversified global equity portfolio, with country and sector exposures broadly in line with its benchmark, the MSCI World Net Total Return index. The fund will aim to outperform this benchmark by 0.5 percentage points per year over rolling three-year periods.

Both funds will be managed in accordance with the team’s corporate lifecycle approach to equity investing. This process takes the investable universe of more than 3,000 companies, analyses their economic returns and uses this data to assess where their returns place them in the corporate life cycle.

Investment ideas generated through this process can be considered for inclusion in either fund.

Provider view

Peter Rutter, head of global equities at RLAM, said: “Global equities give UK investors the ability to access a broader range of stocks than are available in the UK market, and in some cases opportunities that are simply not available domestically.

“These funds will offer clients the benefits of our team’s investment process, focused on identifying and investing in stocks globally, with p articular shareholder wealth creation and valuation characteristics.”

Piers Hillier, chief investment officer at RLAM, added: “Launching these new funds reinforces RLAM’s commitment to active equity investing in areas where we believe we can add value for our clients.”

Adviser view

Mel Kenny, chartered financial planner at Radcliffe & Newlands, said: “While it is no surprise to see a new global equity team look to make its mark with the launch of new funds, RLAM has also been short on global fund options compared with its peers, so the new funds are overdue.”

Charges

N/A

Verdict

These funds were always necessary for RLAM to complete its suite of equity funds, but differentiation will be difficult.

 A concentrated portfolio is not unique in the global equity space, and the diversified fund is essentially a tracker-plus product. Fees must match this.