Royal London Asset Management (RLAM) has rolled out a high-conviction, actively managed strategy that it says will invest in companies that can “make a real contribution” to the transition to a more sustainable world.
RLAM’s Global Equity Transition strategy is an article 8 EU taxonomy-aligned fund and will be made up of 40 to 60 holdings. The asset manager has stipulated that each company within the fund should be able to “transition their own businesses over time to a more sustainable path”, or contribute to the transition of others, or both, while also demonstrating a record of active engagement with shareholders.
Elaborating further, the asset manager said the strategy will specifically focus on those corporates able to play a material role in the areas of climate transition, natural capital preservation, health and wellbeing, and equality of opportunity.
Naturally, a company’s ability to deliver “superior risk-adjusted returns” was also an investment priority for the fund, which has an OCF of 0.83%.
The strategy is domiciled in Ireland and has a minimum investment of £100,000 for M-class shares. At launch, which occurred on 25 October 2022, the fund has £75m AUM.
An RLAM spokesperson confirmed to Portfolio Adviser that the fund is available to all investor types.
Bixuan Xu (pictured), the fund’s manager, said: “In an ever-evolving world, it is important to be on the right side of change. We believe that our approach provides investors with a highly attractive solution to access businesses that can meaningfully benefit from transitioning to environmental and social sustainability, whilst having a positive impact on the world around them.”
Rob Williams, chief distribution officer at RLAM, added: “We believe it is important to engage with change. Those companies faced with the biggest challenges are those with the potential to make the biggest difference, particularly as environmental and social concerns become more acute. By engaging with these businesses and aiding their transition, we believe we can facilitate meaningful contributions to a more sustainable world whilst also providing investors with opportunities to access highly attractive sources of return.”