The fund will provide exposure to firms aiding the transition to a more sustainable world
Royal London Asset Management has launched a global equity transitions fund.
The asset manager said the article 8 fund will invest in global equity markets to provide exposure to firms aiding the transition to a more sustainable world.
Investing in 40 to 60 companies, the fund will prioritise stocks that are able to transition their own business or contribute to the transition of others, while holding a record of active engagement with shareholders, with a specific focus on firms working in the areas of climate transition, health and wellbeing, natural capital preservation and equal opportunities.
The portfolio launched on 25 October with assets under management of £75m.
The fund will have a management fee of 0.68% for institutional investors, with a minimum investment of £3m.
Portfolio manager Bixuan Xu 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."
RLAM chief distribution officer Rob Williams 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."
