We don’t support this browser anymore.
This means our website may not look and work as you would expect. Read more about browsers and how to update them here.

Royal London Sterling Extra Yield Bond Class Y - Income (GBP)

Sell:96.72p Buy:96.72p Change: 0.01p (0.01%)
Prices as at 24 July 2025
Sell:96.72p
Buy:96.72p
Change: 0.01p (0.01%)
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Invest now
Prices as at 24 July 2025
Sell:96.72p
Buy:96.72p
Change: 0.01p (0.01%)
Prices as at 24 July 2025
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Invest now
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

Our view on this Fund

This fund does not feature on the Wealth Shortlist of funds our analysts believe have the potential to outperform their peers over the long term. This is not a recommendation to sell; however, if you are thinking of adding to your investments, we believe the Wealth Shortlist is a good place to start. View funds on the Wealth Shortlist »

Eric Holt and Rachid Semaoune invest in a wide range of bonds in different sectors and from different companies. They also look in areas ignored by many other bond investors and this makes the fund different from its competitors.

The amount invested in unrated and high yield bonds makes this fund a more adventurous and higher risk option compared to many peers in the IA £ Strategic Bond sector. Because of this, we think this fund should be used as part of a diversified investment portfolio.

Our view on the sector

Strategic bond funds have the freedom to invest across the fixed-interest spectrum, from traditional government and corporate bonds to higher-risk high-yield bonds. They can also invest up to 20% of the fund overseas and potentially benefit from currency movements. But this relies on the skill of the fund manager in making the right calls. Given the huge flexibility fund managers in this sector have, each fund should be judged on its own merits. Some focus on generating an income while others try to grow investors' money, or shelter it when times get tougher.

Performance Analysis

Eric Holt has performed well over the long term and delivered a much greater return than his peers since the fund launched. The fund can be more volatile than other bond funds though, which we saw during the 2008 financial crisis and at the start of 2020 amid the coronavirus pandemic. We don't think the fund is likely to offer shelter in an economic or bond market downturn.

Investments in some areas of the market that other investors tend to overlook, like unrated and higher yielding bonds have helped deliver strong returns for investors in the fund. But these investments are less liquid, meaning they can be more difficult to trade in large volumes. The increase in the fund's size in recent years may mean it is less able to take advantage of these opportunities in the future.

Investment Philosophy

The managers look to spot opportunities across the credit market by investing in a combination of investment grade, sub-investment grade and unrated bonds. They tend to focus more on the prospects for individual bonds, rather than taking wider views on things like duration (a bond's sensitivity to a change in interest rates). Holt and Semaoune therefore aim to add value for investors by investing in bonds others don't fully understand and could go on to perform well in the future.

Process and Portfolio Construction

Eric Holt and Rachid Semaoune have the help of a team of analysts and other fund managers at Royal London. They research areas of the market that most others overlook. For example, they look at bonds backed by the assets a company owns, such as property. These can be sold if the company can't repay its bonds.

They also invest in unrated bonds, which are issued by companies that don't pay for a credit rating from an agency. They pay higher yields to compensate for the extra uncertainty. Overall, a large chunk of the fund tends to be invested in higher-risk high yield and unrated bonds.

As an offshore fund you're not normally entitled to compensation through the UK Financial Services Compensation Scheme.

question mark Manager Track Record Based on HL Quantitative Research

  • Royal London Sterling Extra...
  • IA £ Strategic Bond
FROM: TO:


Source: Refinitiv Lipper

Fund Track Record

25/07/20 to 25/07/21 25/07/21 to 25/07/22 25/07/22 to 25/07/23 25/07/23 to 25/07/24 25/07/24 to 25/07/25
Annual return 13.95% -3.18% 3.08% 12.54% 11.10%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Information about the fund

Fund manager biography

manager photo
Manager Name: Eric Holt
Manager start date: 11 April 2003
Manager located in: London

Eric Holt has extensive knowledge of UK investment grade and high yield corporate bonds, gained over a career spanning more than 30 years. He has overall responsibility for RLAM’s credit research process, as well as managing the Sterling Extra Yield Bond Fund and the Ethical Bond Fund. He joined RLAM in 1999 following RLAM's acquisition of Refuge Assurance’s investment team, where he had worked for the previous 20 years. Eric is a graduate of Nottingham University with a degree in mathematics and is an associate of the Institute of Actuaries.

Manager Name: Rachid Semaoune
Manager start date: 2 January 2019
Manager located in: London

Rachid Semaoune joined RLAM in February 2015 as a Credit Fund Manager within the Fixed Income Team.  Rachid joined from UBS Asset Management where he spent three years managing investment grade credit portfolios.  Prior to this he was a deputy credit fund manager at Old Mutual Asset Management.  Rachid began his investment career in 2001 at Gulf International Bank where he worked as a credit analyst and deputy fund manager. Rachid studied for a PhD in Physics at Imperial College London and holds a Postgraduate Degree in Laser Physics from the Université Paris 13.

Data policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used. Benchmark data provided subject to this disclaimer.
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Invest now