Royal London Asset Management has launched two asset-backed securities funds, as part of its pool fund range.
The Global Senior ABS Fund will invest in a mixture of AAA/AA securities.
The Global Mezzanine ABS Fund will invest across the credit spectrum from AAA- BB.
Both funds have a global investment remit, focusing on UK, Europe and Australia.
The funds will be managed by Jeremy Deacon, Head of Asset Backed Securities (ABS) and Seema Sopal, ABS Fund Manager supported by a highly experienced team of five who have worked together for over ten years managing securitised assets.
Asset-backed securities currently offer a higher yield for the equivalent risk when compared to corporate or government bonds.
Investors can therefore benefit from the ‘complexity premium’ that ABS offer, due to the specialisms required to understand both the underlying assets and how they operate within each securitisation.
Jeremy Deacon, Head of Asset Backed Securities, said: “The launch of these two ABS funds marks a significant milestone in our commitment to expanding access to private assets.
“Investors are increasingly looking for diversified opportunities beyond traditional markets and ABS provide a compelling way to tap into high-quality, income generating investments.”
