Royal London Global Sustainable Credit Fund

The RL Global Sustainable Credit Fund mainly invests in global investment grade corporate bonds that are deemed to make a positive contribution to society. It is actively managed by RLAM and focuses on bonds rather than shares. Because it holds a high allocation to bonds, the fund is generally expected to be less volatile than equities.

The RL Global Sustainable Credit Fund is designed for investors seeking a combination of income and capital growth from a global bond portfolio. Its stated investment horizon is medium term, around 3-5 years, and the factsheet also notes a medium to long-term horizon of at least 7 years. The fund may suit investors who want a bond-focused holding with a sustainability screen.

The RL Global Sustainable Credit Fund looks for global investment grade corporate bonds that are considered to make a positive contribution to society. That means the manager applies a sustainability-focused selection approach rather than simply buying broad corporate bonds. The fund also invests actively, so RLAM can choose holdings rather than tracking the benchmark closely.

The RL Global Sustainable Credit Fund’s holdings are spread across sectors such as banks and financial services, insurance, utilities, telecommunications, consumer goods, and general industrials. Its top holdings include companies such as Avista, Republic Services, HSBC, Lloyds Banking Group, and Phoenix Group. The portfolio is global, with exposure to the United States, the United Kingdom, the Netherlands, France, Spain, Germany, Belgium, Ireland, and Japan.

The RL Global Sustainable Credit Fund is exposed to market fluctuations, capital returns risk, currency risk, counterparty risk, liquidity risk, and sustainability risks. Currency risk means changes in exchange rates can affect returns when the fund holds assets in different currencies. Sustainability risk means an environmental, social, or governance event could hurt the value of a holding if it affects the issuer’s creditworthiness or bond price.