Royal London Asset Management
Royal London AM Diversified Asset-Backed Credit Fund
Mega-cap
Jun 2026 → Jun 2026
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What it bought and sold
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.
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%.
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.
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.
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.
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.