Royal London Multi-Asset Defensive Fund

The RL Multi-Asset Defensive Fund invests across a diversified mix of global asset classes, including bonds, equities, property, cash and alternatives. It typically has a high exposure to lower-risk assets such as bonds, which is consistent with its defensive positioning. The fund is actively managed by RLAM and sits within the Royal London Ireland Multi-Asset range.

The RL Multi-Asset Defensive Fund is designed to target a low to medium level of risk and return relative to the other funds in the Royal London Ireland Multi-Asset range. It may suit investors who want broad diversification but prefer a more defensive mix with a heavier bond allocation. The fund is intended for the medium to long term, ideally at least 7 years, because longer holding periods can help reduce the effect of short-term market swings.

The RL Multi-Asset Defensive Fund aims to deliver long-term returns through a combination of capital growth and income from a diversified portfolio of global assets. It is actively managed, so RLAM makes ongoing decisions about the mix of holdings rather than simply tracking an index. Its portfolio includes areas such as corporate bonds, government bonds, equities and property, with a strong emphasis on lower-risk income-producing assets.

The RL Multi-Asset Defensive 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. Because the fund invests in multiple asset classes and regions, diversification can help reduce the impact of a problem in any single area, but it does not remove risk.

The RL Multi-Asset Defensive Fund is the more defensive option in the Royal London Ireland Multi-Asset range, which has four funds with different risk and return profiles. Compared with the other funds in the range, it aims for lower to medium risk and return and usually keeps a higher exposure to bonds. That makes it more focused on capital preservation and steadier income than a more equity-heavy multi-asset fund.