RLAM launches Global Equity Tilt fund
Royal London Asset Management (RLAM) has launched a global equity fund aiming to track the MSCI World with a tilt towards companies with a stronger ESG profile.
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 strategy applies a series of small, diversified ‘tilts’ in favour of companies demonstrating stronger ESG characteristics.
While targeting benchmark returns, the fund aims 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.
“Investors shouldn’t have to choose between responsible investment and broad market exposure,” RLAM head of passive and quantitative equities Matt Burgess said.
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“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.”
For the ‘M’ share class, which is minimum £100k investment, the strategy charges 0.11%, while the £3m minimum ‘Z’ share class costs 0.08%.
RLAM said the strategy 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.
Royal London Asset Management said it intends to make strategies within the £42.5bn AUM Equity Tilt range available to investors as ETFs later in 2026.
This article first appeared on Portfolio Adviser