Royal London Asset Management has launched a Global Equity Tilt Fund, domiciled in the UK, and part of its wider Equity Tilt fund range with around £42.5bn AUM.
The fund is designed to help clients access broad global equity market exposure at a comparatively low cost, while managing the portfolio’s carbon footprint.
Using the MSCI World Index as the benchmark, the Global Equity Tilt Fund applies a series of small, diversified ‘tilts’ in favour of companies demonstrating stronger Environmental, Social or Governance (ESG) characteristics.
This approach combines the best elements of passive and active management and allows the fund to improve ESG outcomes while keeping the expected tracking error low.
The fund has been launched in response to growing client demand for credible climate and ESG integration within core equity allocations, without the high costs, liquidity constraints or high tracking error risk often associated with traditional active or passive ESG strategies.
In addition to targeting benchmark returns, the fund seeks to achieve a carbon footprint at least 10% below the benchmark, alongside long-term goals of achieving a 50% reduction in emissions by 2030 and net zero by 2050.
Royal London Asset Management intends to make Equity Tilt strategies available to investors as ETFs later in 2026.
Matt Burgess, head of passive and quantitative equities, Royal London Asset Management said: “Investors shouldn’t have to choose between responsible investment and broad market exposure.
“Our Global Equity Tilt Fund is designed to deliver the diversification, liquidity and cost efficiency investors expect from a core equity holding, while systematically improving climate and ESG outcomes through many small, disciplined investment decisions.”
