Kevin Haran

Royal London Asset Management, one of the UK’s leading active investment managers, has further demonstrated its commitment to Australian investors with the launch of four new funds, with Equity Trustees as Responsible Entity. Royal London Asset Management manages A$378 billion* for clients in the UK and select international locations and is an integral part of the Royal London Mutual Insurance Society, the UK’s largest mutual life, pensions and investment company**.

The firm has been helping clients in Australia achieve their financial goals since 2017. Building on the appointment of Sydney-based Kevin Haran earlier this year, yesterday’s announcement introduces the first four active funds to the local market, underscoring its continued commitment to investing into Australia.

Hans Georgeson, Chief Executive Officer, Royal London Asset Management commented: “We are building solid foundations in Australia. Our mutual ownership gives us the ability to focus on building partnerships and managing clients’ futures for the long-term, rather than dealing with the short-term demands of corporate shareholders. We are excited to continue to partner with clients in a market that shares many similarities with our own domestic market in the UK. We are confident that our proven and principled approach to active management, for individual and institutional investors, including pension schemes, will be attractive and valuable to Australian investors.”

The four new Australian unit trusts are structured as ‘feeder funds’ into the firm’s flagship Dublin-based UCITS fund range and have been carefully selected based on investor needs and launched at scale with approximately A$1 billion of AUM.

The new unit trusts are the:

• Royal London Global Equity Select Fund
• Royal London Global Equity Diversified Fund
• Royal London Global Equity Enhanced Fund
• Royal London Short Duration Global High Yield Fund.

Royal London Asset Management’s global equity approach combines disciplined research with a focus on wealth creation and valuation. By assessing companies at different stages of development accelerating, compounding, maturing, or turnaround, portfolio managers identify high-quality opportunities without style bias. This strategy delivers balanced, diversified portfolios designed to perform across market cycles, underpinned by rigorous valuation discipline and integrated ESG principles.

The Short Duration Global High Yield Fund is the firm’s first local fixed income offering.  The fund is a defensive, liquidity focused high yield bond strategy with a long history of delivering absolute returns across market cycles. The approach provides exposure to the high yield market allowing significant participation in the upside whilst giving a much lower exposure to downside volatility. Many clients have used this as a core allocation in portfolios.

Kevin Haran, Head of Regional Sales, Royal London Asset Management, said: “We are investing with the aim of developing our own local funds and distribution model in Australia over time. Not only do these funds launches demonstrate our commitment to the market and that we are here for the long haul, but it also highlights our customer-led approach. We focus on understanding the needs of our clients firsthand, and we know the best approach to doing this is meeting them and their advisers face-to-face.”

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*As at 30 June 2025

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Kevin Haran

Australian investors say they prefer safety over performance yet have expectations of annual returns of 9.6% above inflation, without taking on extra risk. The need to diversify and play the long game to fund retirement is well understood, yet few are putting their money where their mouth is.

These are some of the key findings from the 2017 Natixis Global Asset Management Individual Investor Survey (the Survey), which today revealed the thinking and behaviour of over 8300 individual investors from around the world. The aim of the Survey is to reveal investor thoughts about portfolio construction, risk, retirement, advice and saving, as well as general sentiment towards investment. The survey also compares Australian investors with their global counterparts.

“Australian investors say that they expect annual returns of 9.6% above inflation, which is a goal that would absolutely push them towards riskier assets, yet 81% said they prefer safety over performance, which does seem like a contradiction,” said Kevin Haran, Managing Director of Natixis in Australia.

“At the same time, this focus on risk is set against a backdrop of short-termism, where over a quarter (27%) of Australian investors say that losses or fluctuations at a monthly level concern them, when really they need to focus on the long term,” he said.

Investing strategies and risk

What Australian investors say and what they do appear to be two different things when it comes to investment strategy and how much risk they are willing to take.

Mr Haran pointed out that achieving true portfolio diversification and risk management through investment in alternatives, in addition to bonds and stocks, is proving elusive for some investors.

“Three-quarters (76%) of Australian investors (compared with 70% globally) say they are willing to invest in alternatives in order to diversify their portfolio and minimise risk, yet only 39% actually do.

“Part of the reason may be that, as an industry, we haven’t explained alternatives well. There may be some misunderstanding about their role in portfolio construction. For example, 70% of Australian investors (compared with 66% globally) think alternatives are riskier than traditional asset classes, and 63% say they are too complicated to invest in,” Mr Haran said.

Attitudes towards index funds

Investors’ appetite for index funds is strong, with both global (66%) and Australian (64%) investors agreeing that index funds give them returns comparable to the market. Interestingly, almost six in ten (58%) of Australian investors believe that index funds are less risky (62% globally), and can help minimise losses.

Mr Haran said that while Australian investors may embrace index funds, they are wary of closet- indexers.

“Seventy-seven percent of Australian and 74% of global investors do believe that a number of fund managers who describe themselves as active are actually closet-indexers, meaning they charge high fees for essentially tracking the index,” he said.

Retirement and wealth transfer

Mr Haran said that despite our mandatory superannuation system, nearly 80% of Australian investors believe funding their retirement is increasingly a personal responsibility.

“Over nine in ten (94%) of Australian investors think personal retirement savings are an important source of funding in retirement, and are much more concerned than their global counterparts about outliving their assets – 21% of Australians compared with 11% globally.

“One of the reasons investors are concerned about outliving their assets is that they are realistic and well-informed when it comes to understanding how much they will need in retirement. Seventy-seven percent of Australian investors said they knew how much they need to save in total, 72% (69% globally) know how much income they will need to fund their lifestyle in retirement and 71% (68% globally) know how much they need to save each year,” Mr Haran said.

Trust a key consideration when seeking financial advice

Against a backdrop of general suspicion around alternative facts, sophisticated message control and the veracity of information appearing through social media channels, investors are more focused than ever on trust in their relationship with their financial advisor.

“In Australia, 93% of investors cited their financial adviser as their trusted source when making investment decisions, compared with 88% of investors globally, whereas our trust in financial institutions was relatively low, at 59%, compared with 62% globally,” Mr Haran said.

One major point of difference between Australian and global investors is that Australians appear to be more focused on cost than their global counterparts. Over half (51%) of Australian investors considered cost a very important factor when choosing a financial adviser, compared with 40% of global investors.

Cost concerns were echoed by the responses of unadvised investors: 47% of Australian investors said they were put off by the cost, compared with 35% of investors globally, while 34% said the results are not worth the fee.

Insights into investor thinking have implications for finance industry

In conclusion, Mr Haran said the Survey provides important information for investment managers and financial advisers alike.

“It’s great to see that Australian investors understand how important it is to save for retirement and how much they will realistically need to fund the lifestyle they want. On the other hand, it’s clear many investors need to take a longer-term view, and look carefully at their portfolio construction decisions.

“We as an industry have a role to play. Asset managers and other financial professionals need to help individuals understand the benefits of diversification, the pros and cons of index funds and how to use alternatives to minimise risk and achieve performance over the long term,” he said.

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Australia in the top 10.

Australian retirees’ wellbeing is ranked number six in the world, according to new research from Natixis Global Asset Management.

The 2017 Global Retirement Index (GRI), released yesterday by Natixis Global Asset Management, measures the ability of countries to meet the needs of retirees. It examines the factors that drive retirement security and provides a comparison tool for best practices in public, fiscal and retirement policy in 43 nations around the world.

Top ten countries for retirement outcomes

The top ten countries are dominated by Western Europe (8 of the top 10), with Norway at number one, followed by Switzerland, Iceland, Sweden, New Zealand, Australia, Germany, The Netherlands, Denmark and Luxembourg. While Australia and New Zealand reach the top ten, the wider Asia Pacific region was the worst performing region overall as the poor rankings of China and India and population-weighted methodology impacted the region’s score.

“Australians can be justifiably proud of our robust retirement system, which is held up as an example of global best practice on many fronts, particularly financial wellbeing. There’s no question that Australians benefit from mandatory superannuation polices, which have contributed to ongoing strong performance in the Global Retirement Index. However, the index reveals room for improvement in Australia’s score for material well-being, which measures retirees’ ability to support themselves based on income per capita. This suggests that there still needs to be greater individual engagement with super in order for retirees to achieve the outcomes they desire,” said Kevin Haran, Managing Director of Natixis Global Asset Management in Australia.

Introduced in 2013, the GRI creates an overall retirement security score based on four factors that affect the lives of retirees. Finances in retirement are weighted most heavily, but the index also includes considerations for material wellbeing, health and quality of life to provide a more holistic view.

Australia’s environmental performance improves

Australia registered the fifth-strongest improvement of all countries in the environmental factors indicator, primarily due to declines in CO2 emissions and the increased prevalence of renewable electricity. Nevertheless, the country still has the ninth-lowest score in the environmental indicator, so further improvements are needed.

“Australia’s strongest year-on-year improvement was within the environmental ranking, which in turn boosted the country’s overall performance for Quality of Life in Retirement (9th place in 2017 vs 13th place in 2016). This is in line with recent research from Natixis Global Asset Management that shows that ESG investing is becoming a key consideration for investors. From a local perspective, we’ve seen an increased demand for ESG offerings within superfunds’ offerings, and a strong interest from local institutions in Natixis affiliate manager Mirova, which specialises in ESG and impact investing,” said Mr Haran.

Superannuation policy remains the centrepiece for high achievement

Australia’s compulsory superannuation is the centerpiece of what is viewed by many as one of the best retirement systems in the world. The Australian pension market is one of the world’s largest ($2.3 trillion as at March 2017, according to ASFA), and is praised for its voluntary contributions system.

Australia’s low interest rate environment and sustainable public finances drive its strong ranking in overall finances in retirement (5th overall), demonstrating positive signs for the purchasing power of retirees. While Australia still ranks favourably for governance, a slight decline in indicator score sees it fall one spot and out of the top 10 for this sub-index.

Innovation needed from asset managers

Mr Haran said innovation from asset managers could help Australians achieve better retirement outcomes.

“Australia’s mandatory superannuation policies are lauded by policy-makers around the world in terms of their improvement to retirement outcomes. However, at an individual level, many people don’t have a clear idea of what is needed to retire comfortably. The GRI aims to help spark the initial conversation about retirement plans. The asset management industry has a vital role to play here in helping to educate investors; understanding their goals, and constructing durable portfolios to respond to market factors and each individual’s risk tolerance,” said Mr Haran.

Global Trends

Policy makers and employers can learn from the following major trends that characterise the top-ranked nations:

1. Access: An ageing workforce and increased lifespans in many Western countries have made traditional pay-as-you-go models for government retirement benefits unsustainable. As individuals assume greater responsibility for their retirement funding, public policymakers in leading countries ensure workers have access to alternative savings models.

2. Incentives: Smart policy expands short-term incentives for retirement savings in order to reduce long-term challenges in providing support for retirees. Favourable tax treatment for retirement savings helps workers put away more money, making it more likely they can take care of their own needs.

3. Engagement: Automatic enrolment in workplace retirement plans is a step in the right direction, but there needs to be more information and education about how to maximise plan benefits. Good policy also ensures that workers have the right balance of investments.

4. Economics: Retirement security extends beyond the savings vehicles themselves. It includes consideration for an ageing population that will be living on a fixed income. Monetary, fiscal and healthcare policies all play a role in ensuring retirees are self-sufficient.

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