Corporate Bond Fund


Fund overview

The Fund aims to achieve a combination of income with some capital growth by investing across a broad range of sterling fixed interest assets. It is a predominantly investment grade Fund and represents an effective way of accessing the full skills and experience of RLAM’s fixed interest team in a single investment vehicle. The Fund invests mainly in sterling credit bonds although the manager can hold other securities including government bonds, index linked securities, non-sterling credit bonds and floating rate notes when thought appropriate.

Fund managers

Jonathan Platt and Shalin Shah are Co-Managers of the Fund.

Overall asset allocation is determined by Jonathan Platt. He is supported by RLAM’s award-winning Fixed Interest Team. 
Jonathan brings a wealth of experience and leadership to the Fixed Interest Team at RLAM. He joined the Royal London Group in 1985 and became Head of Fixed Interest in 1992. Jonathan has been instrumental in overseeing the development of the fixed interest process and remains committed to the management of client portfolios.  Jonathan has an MA degree in Philosophy, Politics and Economics from Oxford University.

Overall asset allocation is determined by Jonathan Platt. He is supported by RLAM’s award-winning Fixed Interest Team. 

Jonathan brings a wealth of experience and leadership to the Fixed Interest Team at RLAM. He joined the Royal London Group in 1985 and became Head of Fixed Interest in 1992. Jonathan has been instrumental in overseeing the development of the fixed interest process and remains committed to the management of client portfolios.  Jonathan has an MA degree in Philosophy, Politics and Economics from Oxford University.

Shalin joined the Fixed Income Team at RLAM in mid-2008. Over the last eight years he has been involved in a variety of areas, with a particular focus on actively managing credit portfolios and working closely with RLAM’s Head of Fixed Income (Jonathan Platt) and Head of Credit Research (Martin Foden) on the development and management of RLAM’s Buy & Maintain credit strategies. Prior to joining RLAM, Shalin worked at PricewaterhouseCoopers LLP, where he was involved in advising clients on a variety of investment solutions, including LDI and strategic asset allocation. Shalin holds a BSc in MORSE (Mathematics, Operational Research, Statistics and Economics) from the University of Warwick and is a qualified actuary.

Investment approach

Central to the investment process used across our Fixed Interest Team is the belief that fixed interest markets offer inefficiencies that can be exploited. The Fund aims to achieve outperformance from multiple sources (e.g. asset allocation, stock selection, duration and yield curve management as well as off-benchmark investing).

Asset allocation and duration / yield curve positions are derived from the team's quarterly economic review in which key economic factors such as growth, inflation and interest rates are assessed. Stock selection reflects the views of RLAM’s experienced credit team; the process is underpinned by a core investment philosophy of favouring 'covenants, structure and security'. This means that the team do not rely just on credit ratings; a key question for them is: “are we getting sufficient reward for the risk we are taking?”. In practice this means that credit bonds that are excluded from the credit benchmarks (e.g. unrated bonds, smaller issue size bonds, sub-investment grade bonds and non-sterling bonds) are held where valuations are believed to be attractive. This approach allows the team to focus on investing for the longer term.

The Fund will differ from benchmark weightings when the team have strong investment views. Asset allocation, interest rate views and stock / sector selection will be the key risks within the Fund. Credit diversification is deemed an important means of reducing single name credit risk.

Product Risk Warning

Past performance is not a guide to future performance. The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not get back the amount originally invested. Unlike the income from a single fixed income security, the level of income (yield) from a fund is not fixed and may go up and down. For funds that use derivatives, their use may be beneficial, however, they also involve specific risks. Derivatives may alter the economic exposure of a fund over time, causing it to deviate from the performance of the broader market.

Fixed income masterclass

Watch Jonathan take part in a fixed income panel debate:

Watch now

Webinar

Fixed income masterclass

Watch on asset tv