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ROYAL LONDON ETHICAL BOND - Fund overview

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Overview of ROYAL LONDON ETHICAL BOND

A mid green ethical version of the Royal London Corporate Bond, investing entirely in UK bonds. The ethical screening restricts the investable universe by approximately 5% when compared to the Corporate Bond trust. This fund sets itself apart from the peer group within the sector by the relatively large position the manager is prepared to take in unrated bonds (up to 20%). This is designed to reduce the volatility of returns and improve the risk/return characteristics of the fund. Diversification of individual credit risk is emphasised by the large number of companies in which the fund holds a single issue only.

Standard Initial Charge

3.00% 0.00%

Invest via Bestinvest

to save 3.00%

Fund summary

Sector  £ Corporate Bond
Product type  OEIC
Launched  January, 2007
Size  £117m
Yield 5.0%
Charging basis  50% Income 50% Capital
Dividends paid  31/3, 30/6, 30/9, 31/12.
Bid price 94.27p

Fund Charges

Standard Initial charge 3.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.90%
Total expense ratio 0.94%
Reduction in yield (10yr) 0.94%

Bestinvest says


No information available.

Portfolio

royal london ethical bond asset allocation illustration
Allocation Proportion
Equity 0%
High yield bonds 9%
Quality bonds 91%
Property 0%
Commodities 0%
Hedge 0%
Fund cash 0%
royal london ethical bond equity geographic illustration
Allocation Proportion
UK 100%
Europe 0%
Nth America 0%
Japan 0%
Pacific 0%
Other Equity 0%

No data available.

Investment process


The aim is to invest in bonds that have been issued by socially-aware companies and will invest the portfolio in sterling investment grade bonds. Up to 20% may be held in unrated bonds. 75% of research is produced internally.
An independent EIRIS screen researches approximately two-thirds of the companies that could be considered. Royal London carry out their own research on ethical companies to improve the risk/return profile and achieve diversification.
The filtering system ensures that any issuer of the fund's holdings does not produce more than 10% of its annual turnover from a combination of any of the following:- Alcohol, armaments, gambling, tobacco, and pornography.

The value of your investments and the income from them can go down as well as up, and you can get back less than you originally invested. Past performance or any yields quoted should not be considered reliable indicators of future returns. Before investing in funds please check the specific risk factors on the key features document or refer to our risk warning notice as some funds can be high risk or complex; they may also have risks relating to the geographical area, industry sector and/or underlying assets in which they invest. Prevailing tax rates and relief are dependent on your individual circumstances and are subject to change.

Bestinvest (Brokers) Ltd & Bestinvest (Consultants) Ltd are authorised and regulated by the Financial Services Authority. This site is for UK Investors only

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