Royal London caught up in the Thames Water crisis
Royal London got involved in the Thames Water crisis: Mutual insurer funds are among the most exposed to the troubled utility giant
Royal London funds are among those most exposed to bonds or debt issued by Thames Water which have fallen in value
The UK’s largest mutual insurer has been caught up in the Thames Water crisis.
Royal London manages approximately £150 billion in assets on behalf of pension schemes, life insurance and investors.
But the funds are among those most exposed to bonds or debt issued by Thames Water, which have fallen in value on fears the utility giant could collapse under a mountain of liabilities totaling around £14bn.
About 10 of the 25 funds with the highest exposure to debt issued by the company’s parent company, Thames Water (Kemble) Finance, are managed by Royal London, which has approximately 2 million members.
Bond values plummeted last week on growing fears about the company’s financial health and that it could be nationalized again.
But Jonathan Platt, head of fixed income at Royal London Asset Management, said exposure to Thames Water debt was “little”.