- Royal London ranked number one in our fund manager league table for the performance of their unit trust range of funds over the past 1, 3 & 5 years.
- 123 of the funds analysed were from Royal London’s pension fund range. Our analysis of these funds found that 34 have consistently outperformed their peers with considerably higher returns than the sector average.
- 36.8% of the funds in Royal London’s unit trust/ISA range received a top-performing 4 or 5 star rating.
- The Royal London Governed Portfolio is one of the largest multi-asset solutions in the market, managing over 2 million plans and approximately £54 billion in assets. Our analysis of this range of 9 portfolios, identifies mixed performance.
Royal London is the UK's largest mutual life, pensions, and investment company with funds under management in excess of £162 billion.
As one of the UK's most recognisable investment brands, Royal London has consistently demonstrated its ability to deliver high-quality investment options. This is evidenced by their recent top ranking in our fund manager league table, specifically regarding the performance of their unit trust range.
Top Performing Royal London Funds
In this comprehensive analysis, we examine Royal London's diverse offering, including their pension funds, Governed portfolio range, and their selection of unit trust/ISA funds. We identify the best performing funds from Royal London by including the performance, sector ranking and overall performance rating for each fund over the past 1, 3, and 5 years.
Royal London Fund Performance
We analyse a total of 172 Royal London funds, of which 52 have consistently ranked among the top performers over the recent 1, 3, and 5-year periods. This report provides detailed insights into Royal London's best-performing funds while also identifying those that have underperformed, offering a balanced and thorough assessment of their fund range.
The above table encompasses the combined unit trust/ISA and pension funds managed by Royal London.
Royal London Pension Fund Performance
Royal London Pension Funds span multiple investment sectors, making it essential to evaluate the performance of each fund compared to its sector peers to understand their effectiveness. To achieve this, we compared the returns of Royal London’s 123 pension funds against other competing funds within the same sector over the recent 1, 3, and 5-year periods.
Our analysis of the Royal London Pension Fund identified that 34 funds have received an impressive rating of 4 or 5 stars, indicating strong performance from a sizeable portion of their pension funds.
In contrast, 65 of their pension funds have a history of poor performance, with an equal 17 funds receiving a poor performing one and two star rating. This indicates that a significant portion (52.8%) of their pension funds underperformed relative to their peers, over the recent 1, 3 & 5 years.
Best Royal London Pension Funds
Royal London's pension fund range comprises a diverse selection of investment options, each demonstrating varying levels of performance. Our comprehensive analysis encompassed 123 funds from this range, each with varying degrees of performance. The analysis identifies that 33 of these funds have consistently outperformed their peers and managed to rank among the best performing funds in their respective sectors. These top rated funds have not only ranked among the best in their respective sectors but have also delivered returns significantly above their sector averages.
Below we feature 3 Royal London funds that have consistently excelled within their sectors over the past 1, 3 & 5 years.
Royal London Global Equity Select 2 Pn
Launched in March 2002, the Royal London Global Equity Select 2 Pn, the Royal London Global Equity Select fund has been a standout performer in Royal London's pension range. This fund focuses on investing in a carefully curated selection of global equities by investing at least 90% of assets in companies across both developed and emerging markets.
Over the past 1, 3 & 5 years, the Royal London Global Equity Select 2 Pn fund has returned impressive growth of 30.44%, 64.22%, and 139.75%, respectively, significantly outperforming sector averages of 19.26%, 22.55%, and 56.88%. According to our analysis, this fund is one of the best performing within the Royal London pension funds, showcasing the highest returns over the past five years.
RLP Sustainable Diversified Trust Pn
The RLP Sustainable Diversified Trust Pn fund stands out as a top performer in Royal London's pension fund range, offering investors a balanced approach to sustainable investing. This fund aims to generate long-term growth by investing in a diverse portfolio of assets that meet specific environmental, social, and governance (ESG) criteria. Its impressive performance has consistently surpassed the sector average, demonstrating the potential of sustainable investing strategies.
Over the past year, the fund delivered a robust return of 14.15%, significantly outpacing the sector average of 10.01%. Its 3-year performance of 6.61% more than doubled the sector average of 2.65%, while its 5-year return of 31.89% was nearly 2.5 times the sector average of 13.32%. These figures underscore the fund's ability to deliver strong, sustainable returns while adhering to responsible investment principles, making it an attractive option for investors seeking both financial performance and positive impact.
Royal London US Growth Pn
The Royal London US Growth Pn Fund aims to achieve capital growth over the medium to long term (5 to 7 years) by investing at least 80% of its assets in US companies listed on the New York Stock Exchange.
The fund's goal is to outperform the MSCI USA £ Net Total Return Index, which measures the performance of the largest companies on the NYSE. This strategy allows the fund manager to select high-growth potential companies and adapt investments to maximise returns.
The PN North American Equities sector averaged returns of 24.25%, 32.34%, and 82.78% over the past 1, 3, and 5 years. In contrast, the consistently top-performing Royal London US Growth Pn Fund delivered growth of 30.49%, 52.47%, and 112.24% over the same periods.
Royal London Governed Portfolio Performance
Royal London's extensive pension fund range also includes their Governed portfolios, which are a range of 9 risk rated multi asset portfolios that are among the most popular in the UK with over 2 million plans and £54 billion in assets in the range.
These 9 portfolios are categorised into three main risk profiles: cautious, balanced, and adventurous, with each profile offering three different portfolios tailored to varying degrees of risk tolerance and investment strategies. Our analysis of these 9 funds identified impressive performance over the past 3 years & 5 years, but mixed performance over the recent 1 year.
RLP Governed Portfolio 4 Pn
Launched in November 2020, this fund has £325.59 million of client assets under management. The ‘Royal London Governed Portfolio 4’ pension fund aims to deliver above inflation growth in the value of the fund at retirement, whilst taking a level of risk consistent with a moderately cautious or balanced risk attitude over a long time period. The fund acts as a readymade portfolio with underlying holdings consisting of a range of Royal London funds.
The fund ranked among the top performers in the sector with a 5-star rating and has returned growth of 14.43%, 17.67%, and 32.97% over the past 1, 3, and 5 years, respectively. These returns are among the very best in the sector, particularly impressive given the fund's relatively low-risk approach in a sector that typically includes more adventurous funds.
RLP Governed Portfolio 8 Pn
Managed by Trevor Greetham, the RLP Governed Portfolio 8 Pn is another top-performing fund in their range with approximately £83.89 million of funds under management. This fund aims to deliver above inflation growth while taking on a medium to high level of investment risk relative to other funds in the Governed Portfolio range. It balances risk and returns for investors with an adventurous attitude who are a medium time away from retirement.
In the Mixed Investment 40-85% Shares sector, the RLP Governed Portfolio 8 Pn has consistently ranked among the best-performing funds. Over the past 1, 3, and 5 years, the fund has returned growth of 14.42%, 18.19%, and 34.04%, respectively, which are significantly better than the sector averages of 12.94%, 9.43%, and 26.46%.
Royal London Governed Portfolio 1 Underperforms
Not all of the Royal London pension funds managed to deliver competitive returns. In the Governed Portfolio range the “RLP Governed Portfolio 1” pension fund has ranked among the bottom 50% of funds within its sector over the past 1 & 5 years.
Over the past 12 months, it has returned 13.00%, which ranked 433rd out of 755 funds in its sector, and over 5 years, it returned growth of 24.05%, which is below the 26.46% sector average.
Royal London Unit Trust / ISA Fund Performance Summary
Royal London Unit Trust / ISA Funds are a diversified portfolio designed to offer medium to long-term growth and income for investors. These funds are managed by professional fund managers and are tailored to meet a variety of investment goals through a range of sectors and asset classes.
To determine the performance and sector ranking of each of Royal London’s 49 unit trust and ISA funds, we compared their returns with those of other competing funds within the same sector over the recent 1, 3, and 5-year periods.
Our analysis found that most of the funds received impressive ratings of 4 or 5 stars, indicating strong performance over the past 1, 3, and 5 years.
However, 26.6% of the funds, including 2 with a 1-star rating and 14 with a 2-star rating, have underperformed compared to their sector peers over the past 1, 3 & 5 years.
Best Royal London ISA Funds
We analysed 58 funds from Royal London’s Unit Trust / ISA range. Impressively, 20 of these funds consistently returned growth higher than the sector average and ranked among the best performers in their sectors over the past 1, 3 & 5 years.
Below, we have detailed some of the top-performing Royal London Unit Trust / ISA funds, based on growth performance, sector ranking, sector average, and other indices over the recent years.
Royal London Global Equity Select
One of Royal London’s best performing unit trust / ISA funds was their Royal London Global Equity Select M Acc. Launched in 2017, this Fund manages £667.36 million of clients' assets. The investment strategy of the fund is to achieve long-term capital growth, typically over 7 or more years, by mainly investing in global company shares listed on stock exchanges. At least 90% of the fund's assets are invested in global equities, encompassing both developed and emerging markets.
Over the past 1, 3 & 5 years, the Royal London Global Equity Select M Acc Fund has returned growth of 30.80%, 65.24%, and 136.30% respectively, in comparison to the sector averages of 17.22%, 17.08%, and 56.22%. This fund has consistently excelled in the IA Global sector, securing the 1st position out of 382 funds with the highest growth returns in the entire sector, over the past 5 years.
Royal London US Growth Trust
The Royal London US Growth Trust A Inc fund is designed to provide capital growth over the medium to long term by investing more than 80% of its assets in a diversified portfolio of US companies listed on the New York Stock Exchange.
The fund focuses on high-potential US companies in the technology, healthcare, and consumer discretionary sectors and is classified within the IA North America sector. The fund manager employs an active management approach, making decisions based on thorough research and market analysis.
This fund currently manages £364.2 million of client assets and has consistently been one of the top performers in its sector. Over the recent 1, 3 & 5 years, this fund has returned growth of 30.31%, 51.38%, and 108.80% respectively, each of which were among the highest in the sector.
Royal London Global Equity Diversified Fund
The Royal London Global Equity Diversified M Acc Fund is the largest in Royal London’s range, managing about £5.6 billion. It aims for long-term (7 years) capital growth by investing at least 90% of its assets in companies listed on global stock exchanges. The fund diversifies across various sectors and regions, primarily focusing on the US, Japan, and the Eurozone, to manage risk and enhance returns.
Its strategy has returned growth of 26.44%, 44.51%, and 89.28% over the recent 1, 3, and 5 years, respectively, which ranked higher than at least 75% of all other funds in the sector. The IA Global sector averaged returns of 17.22%, 17.08%, and 56.22% over the same periods, respectively.
Summary
Royal London, the UK's largest mutual life, pensions, and investment company, has demonstrated strong performance across its diverse range of funds. Our analysis of 185 Royal London funds revealed that 53 consistently ranked among the top performers over the past 1, 3, and 5 years. Notably, their pension funds and Governed portfolio range showed impressive results, with 34 out of 123 pension funds receiving high ratings. In the unit trust/ISA category, 20 out of 58 funds consistently outperformed their sector averages.
However, the analysis also highlighted areas for improvement. A significant portion of Royal London's pension funds (52.8%) underperformed relative to their peers over the recent years. Similarly, 26.6% of their unit trust/ISA funds received low ratings. Despite these challenges, Royal London's top-performing funds, such as the Global Equity Select and US Growth funds, have delivered exceptional returns across both pension and unit trust/ISA categories. This mixed performance suggests that while Royal London offers some excellent investment options, careful fund selection remains crucial for investors seeking optimal returns.
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