The firm’s rationale for the decision was to “exercise controls to manage the capacity of the strategy in order to maintain the integrity of its investment process”, following a sustained period of “strong” performance with “significant” inflows from global investors.
Existing investors in the share class will still be able to increase their investment.
According to data from FE fundinfo, the fund has gained 22.9% over the 12 months to 1 February, compared with a 10.6% gain in the IA Global sector over the same period.
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The move follows RLAM’s decision to limit the issuance of shares in its UK-domiciled Royal London Global Equity Select fund in September 2023.
The company claimed the limitation was to “ensure the continued delivery of performance to clients and enable the strategy’s portfolio managers to maintain their ability to access all parts of the global equity market”.
Both new and existing investors can no longer purchase shares in the UK-domiciled fund.
Royal London AM limits access to Global Equity Select fund
The fund is part of the firm’s global equity range, which includes the Global Equity Diversified, Global Equity Income, Global Equity Transitions, and Global Equity Enhanced funds, all of which remain open to existing and new investors.
Rob Williams, chief distribution officer at RLAM, said: “Following a period of extremely strong interest in the Global Equity Select strategy, we have taken the decision to exercise controls over its capacity, with the best interests of our clients in mind.
“It ensures our investment team can retain its full opportunity set of potential investments across the world.”
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