Sustainable Investing at Royal London Asset Management

OVERVIEW

Sustainable investing at Royal London Asset Management

The Royal London Sustainable range spans equity, mixed asset and fixed income solutions.

Our sustainable funds invest in companies whose products and services (what they do) have a positive impact on society and whose operations (how they do it) have strong environmental, social (ESG) credentials and governance performance. Our Sustainable Investing team has a track record of over 20 years and positions us as a trusted partner for financial advisers and investors seeking credible, transparent solutions in a fast-evolving regulatory environment.

Whether investing across the UK or globally, across equity or fixed income markets, we invest in companies with the following broad characteristics:

Companies that provide a positive contribution to society through their products and services
Companies that demonstrate leading environmental, social and governance practices in the way they operate.
Excluding companies in certain sectors that we feel cannot meet our sustainable criteria – for example armaments or tobacco manufacturing, and fossil fuel extraction.

We invest in innovative, well-managed companies with strong business models that are helping solve the world's sustainability challenges.

Mike Fox Head of Equities

Investment approach

We believe that owners and managers of capital can be a catalyst for positive social and environmental change. They can do this in two ways:

By investing in sustainable companies that are helping to solve the world’s social and environmental challenges
Through active engagement to encourage continual improvement.

Differentiated process

A flexible, bottom-up investment approach using positive screening to identify companies contributing to society. Applies rigorous research to uncover risks and opportunities beyond traditional ESG. Offering equities, fixed income and mixed assets solutions, across UK and global markets that all maintain our core sustainable investment approach and philosophy. This risk-rated suite of sustainable funds is tailored to a variety of client needs, with management focused on consistent, high-quality investment decisions.

Portfolio

In creating portfolios that we believe can deliver attractive long-term risk-adjusted returns, we weight sustainable credentials equally with financial considerations. Within equities, we believe that value creation and long-term compounding growth are the two key drivers of shareholder return. Within fixed income, we use our established credit philosophy based on a belief that there is an overdependence on credit ratings and benchmarks, and an undervaluation of security which can be exploited.

Sustainable screen

In our view, strong sustainable credentials are often a good leading indicator of long-term financial performance with respect to growth and profitability and we believe that sustainable investing focuses on an exploitable market inefficiency.

By embedding sustainability analysis into our investment process, we believe that we can identify investment insights that others may miss.

Our team

Experience

Our Sustainable Investment team is one of the most experienced in the industry with a long-term track record. We’ve been managing the sustainable funds since 2003, through varied market, economic and social cycles.

Collaboration

The Royal London Asset Management Sustainable team also works closely with our Responsible Investment, Equity and Fixed Income teams, and is able to draw upon their expertise and insights.

Advisory committee

The team collaborates, when needed, with an independent advisory committee of experts from academia, business, charities, and investments that challenges and provides insight and advice. The committee is advisory only.

Inv approach image.jpg

Image depicts team structure which includes 7 Sustainable Equity fund managers and analysts, 4 Sustainable Credit fund managers and analysts, Responsible Investment team, External Advisory committee

A diverse fund range

Our range of award-winning Sustainable funds are designed to meet varying risk, capital and income requirements. Our range covers 100% equity to 100% fixed income, including a number of mixed asset funds with relatively fixed asset allocations. These funds provide investors with a choice of investments mapped against potential risk and returns.

View our sustainable fund range

Literature

Key documents

Sustainable funds outcomes reports

Sustainable investing views

20 June 2025

Sustainable investing