Royal London Asset Management has introduced a new product called the Royal London Ethical Bond Trust, which has been designed specifically for investors with an ethical and sensitive approach.
The fund has already received GBP35 million of initial investment, and Royal London Asset Management (RLAM) has stated that further interest has been made by other institutions and investors.
The trust holds a strict policy of not investing in companies and organizations with significant trading sectors in alcohol, armaments, gambling, tobacco and pornography.
The objective of the fund is to maximize income, while maintaining capital, over the medium- to long-term. It will invest primarily in Sterling denominated fixed interest securities issued by companies or organizations that meet the predefined ethical criteria.
The new product is expected to build on the success of the Royal London Corporate Bond Trust.
We believe that increasingly clients should not have to make a choice between performance and ethical considerations, said Robert Talbut, RLAM’s chief investment officer and head of corporate governance. This fund will allow investors to benefit from our strong performance record while also exercising their ethical preferences.