Royal London Asset Management
Royal London AM Diversified Asset-Backed Credit Fund
Mega-cap
Jun 2026 → Sep 2026
Our archive holds 2 letters from this strategy and positions in 16 companies. Every quote below is copied verbatim from the letter it came from.
2 letters in a year · follow all of Royal London Asset Management for every strategy.
Performance
as of Sep 30, 2026 · net of fees · GBP · Z Acc GBP
- YTD+5.3%
- 1Y+5.3%
- 3Y · total+24.9%
- 5Y · total+32.7%
| YTD | 1Y | 3Ytotal | 5Ytotal | |
|---|---|---|---|---|
| Royal London AM Diversified Asset-Backed Credit Fund | +5.3% | +5.3% | +24.9% | +32.7% |
Calendar years
- 2025+8.1%
- 2024+9.7%
- 2023+7.9%
- 2022−1.5%
Disclaimer
These figures are copied from the manager’s latest letter, as of Sep 30, 2026. They were extracted automatically, have not been verified by HF Best Ideas and may contain errors. They cover a single share class, in the currency and fee basis stated above; other share classes and your own returns will differ. This is not investment advice, nor an offer to buy or sell any fund. Past performance does not predict future returns.
Read full disclosures →What it bought and sold
For instance, new issues from Germany-headquartered life sciences company Bayer, multinational food distributor Sysco and in the secondary market Roquette Freres, Europe’s leading starch producer, used across food, health and cosmetics products.
For instance, new issues from Germany-headquartered life sciences company Bayer, multinational food distributor Sysco and in the secondary market Roquette Freres, Europe’s leading starch producer, used across food, health and cosmetics products.
- New positionWatercareSep 2026
Further reflecting the active approach of the fund, with a real focus on identifying credit convictions beyond sterling credit markets, we took part in a new euro-denominated issue by Watercare, a New Zealand based water company, where we feel we are being overpaid for the fundamental credit risks in part due to the debut nature of the deal.
- New positionThe AASep 2026
We added a senior secured new issue from automobile recovery provider the AA, Sunshine Mortgage funding – a secured bond backed by equity release mortgage loans – and UK Logistics DAC – a commercial mortgage-backed securities (CMBS) transaction secured by a diverse pool of UK logistics assets.
In the secondary market, we picked up sterling-denominated long-dated Alphabet bonds, which had widened due to wider industry concerns despite its clear sector leadership, at attractive spread levels.
- New positionSunshine Mortgage fundingSep 2026
We added a senior secured new issue from automobile recovery provider the AA, Sunshine Mortgage funding – a secured bond backed by equity release mortgage loans – and UK Logistics DAC – a commercial mortgage-backed securities (CMBS) transaction secured by a diverse pool of UK logistics assets.
- New positionUK Logistics DACSep 2026
We added a senior secured new issue from automobile recovery provider the AA, Sunshine Mortgage funding – a secured bond backed by equity release mortgage loans – and UK Logistics DAC – a commercial mortgage-backed securities (CMBS) transaction secured by a diverse pool of UK logistics assets.
Over the period we bought sterling-denominated and US dollar new issues by US companies Amazon, the global e-commerce platform, which came to market twice over the quarter, issuing in multiple currencies and maturities, at attractive levels given the continuing strength of the issuer’s balance sheet.
- AddedRoquette FreresSep 2026
For instance, new issues from Germany-headquartered life sciences company Bayer, multinational food distributor Sysco and in the secondary market Roquette Freres, Europe’s leading starch producer, used across food, health and cosmetics products.
- AddedICSLSep 2026
There were numerous opportunities to add to favoured bonds in the secondary market, including both ICSL and Canary Wharf.
- AddedCanary WharfSep 2026
There were numerous opportunities to add to favoured bonds in the secondary market, including both ICSL and Canary Wharf.
During the quarter we added lower tier 2 issues from Barclays, and a relatively rare issue from Goldman Sachs, adding diversification to our financials exposure.
During the quarter we added lower tier 2 issues from Barclays, and a relatively rare issue from Goldman Sachs, adding diversification to our financials exposure.
- New positionSage HousingJun 2026
we were pleased to acquire a new issue from Sage Housing, England’s largest provider of new build affordable housing for the past five years.
For instance, we added a new sterling-denominated hybrid from French utility Engie at a yield well over 6%.
- AddedRabobankJun 2026
We also added several AT1 new issues, including for example a euro-denominated note by Netherlands-based mutual Rabobank and a sterling-denominated note issued by NatWest.
- AddedGreene KingJun 2026
Over the quarter we were able to supplement some favoured holdings, including Arqiva, secured on the UK’s digital broadcasting infrastructure, the UK holiday park operator, Center Parcs, and a number of legacy pub bonds issued by Greene King, Mitchells & Butlers and Unique – each of which benefit from very significant over-collateralisation from freehold pub assets.
- New positionWestfield Stratford CityJun 2026
We also added a new issue secured on the London-based shopping centre Westfield Stratford City following the early repayment of existing bonds above market levels.
- AddedCenter ParcsJun 2026
Over the quarter we were able to supplement some favoured holdings, including Arqiva, secured on the UK’s digital broadcasting infrastructure, the UK holiday park operator, Center Parcs, and a number of legacy pub bonds issued by Greene King, Mitchells & Butlers and Unique – each of which benefit from very significant over-collateralisation from freehold pub assets.
In real estate, Vonovia, one of Europe’s largest residential real estate companies headquartered in Germany, came to market with a sterling-denominated 12-year bond.
We also added several AT1 new issues, including for example a euro-denominated note by Netherlands-based mutual Rabobank and a sterling-denominated note issued by NatWest.
Over the quarter we were able to supplement some favoured holdings, including Arqiva, secured on the UK’s digital broadcasting infrastructure, the UK holiday park operator, Center Parcs, and a number of legacy pub bonds issued by Greene King, Mitchells & Butlers and Unique – each of which benefit from very significant over-collateralisation from freehold pub assets.
- AddedArqivaJun 2026
Over the quarter we were able to supplement some favoured holdings, including Arqiva, secured on the UK’s digital broadcasting infrastructure, the UK holiday park operator, Center Parcs, and a number of legacy pub bonds issued by Greene King, Mitchells & Butlers and Unique – each of which benefit from very significant over-collateralisation from freehold pub assets.
Also held
- Logicor
- Fresh
- Telereal
- Road Management Services
- Co-Op Wholesale Soc
- Aviva
- British Land Co
- Finance for Residential Social Housing
- Highways 2021 PLC
- Virgin Money UK PLC
- HSBC
- Just Group
- Metrocentre Finance
- Unique Pub Finance
- CPUK Finance Ltd