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RLAM updates prospectus to permit limited issuance of Global Equity Select fund

16th January 2023

Royal London Asset Management (RLAM) today announces an addition to the Royal London Equity Funds ICVC prospectus in order to permit the limit of share issuance in the Royal London Global Equity Select Fund, following proactive assessment of the Global Equity Select strategy’s capacity.

With a current net asset value (NAV) of £772 million, the Global Equity Select Fund employs RLAM’s established Global Equity team’s longstanding and proven bottom-up investment process, which seeks to deliver a balanced, concentrated portfolio with low style risk able to meet the needs of a broad spectrum of investors.

Having seen strong inflows across the range of portfolios and managed accounts that utilise the Global Equity Select strategy, RLAM’s assessment indicates that assets under management are now approaching a level where the strategy is reaching capacity. Further growth could impact the investment team’s ability to continue to implement its investment policy and meet its long-term objectives of achieving capital growth over the long-term (a period of 7-plus years).

The restriction of the issuance of shares will come into effect after 60 days’ notice and when the Fund’s NAV reaches £900 million, at which point investors will not be able to buy additional shares. RLAM believes this controlled approach to the Fund’s growth will allow it to continue to meet its objectives and the requirements of existing investors. Investors will continue to be able to redeem shares. Issuance will only be limited for the Global Equity Select Fund; there is no change for the other funds in the RLAM Global Equity range – Global Equity Diversified, Global Equity Income, Global Equity Transitions, and Global Equity Enhanced.

Rob Williams, Chief Distribution Officer at RLAM, commented:

“We regularly undertake capacity management assessments across all of our investment strategies to ensure that we are able to continue to meet the needs of our clients. We have been monitoring the growth of the Global Equity Select Fund closely, which reflects the strong interest we have seen from investors and the outperformance that has been delivered by the strategy. We now feel assets under management are at a point where it is in the best interests of our clients to add more stringent controls to the Fund’s growth in order to ensure the investment team continues to be best placed to deliver attractive long-term outperformance in line with the Fund’s objective.”


The views expressed are those of the author at the date of publication unless otherwise indicated, which are subject to change, and is not investment advice.