Royal London Asset Management is investing $1 billion to re-enter the Australian market, launching four new funds almost two years after losing its global equities team to Pinnacle. The London-based investment house, which manages approximately $380 billion in assets, established the funds late last year and plans to manage them offshore. Australian investors can access these funds through local unit trusts, with Royal London CEO Hans Georgeson stating the firm is committed to expansion in the region.
Georgeson said the company made a “conscious decision to stay in the market” despite a potential exit following the departure of its former head of equities, Peter Rutter, and his team in July 2024. Rutter’s team subsequently formed Life Cycle Investment Partners, supported by ASX-listed Pinnacle. Royal London believes Australia is a priority, citing regulatory and cultural similarities with the United Kingdom.
The asset manager is leveraging its $180 billion multi-asset portfolio to support the four new funds, and appointed Kevin Haran as local country head last year. Royal London has diversified into private assets, building a $20 billion commercial property business and acquiring London-based infrastructure investment manager Dalmore Capital. The company has also ventured into private credit, but has avoided software investments due to concerns about artificial intelligence.
Royal London’s renewed focus on Australia is part of a broader strategy to diversify beyond UK public markets. Georgeson added that the company has benefited from fortunate timing, with a second round of fundraising in its collateralised loan obligation business closing just before the recent outbreak of war in the Middle East. Royal London Asset Management is an investment management firm that offers a range of investment products and services to institutional and retail clients. It focuses on delivering long-term investment performance and sustainable returns.
