Royal London Asset Management has launched a global equity tilt fund as part of its £42.5bn Equity Tilt range.
Tilt strategies combine active stewardship with a systematic investment process at the cost, return and risk profile of a passive product.
The UK-domiciled fund tracks the MSCI World index, applying small adjustments (or ‘tilts’) favouring companies with stronger environmental, social and governance (ESG) characteristics. This means it combines passive and active management elements, maintaining low tracking error.
It seeks to achieve benchmark returns while targeting a carbon footprint at least 10% below the benchmark, a 50% emissions reduction by 2030 and net zero by 2050.
Royal London Asset Management launched the fund in response to client demand for climate and ESG integration within core equity allocations. It said the fund addresses high costs, liquidity constraints and high tracking error risk associated with traditional active or passive ESG strategies.
Ed Venner, chief client officer at Royal London Asset Management, said clients are looking for “interesting evolutions from core passive allocations” that align with climate goals without adding complexity, cost or risk.
Matt Burgess, head of passive and quantitative equities at Royal London Asset Management, added: “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.”
Royal London Asset Management also plans to offer Equity Tilt strategies as ETFs in late 2026.