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CAPABILITIES

Sustainable investing

Actively investing for a sustainable future

OVERVIEW

Sustainable investing at Royal London Asset Management

Sustainable investing helps investors align their money with their values, supporting causes like environmental and social responsibility. It can also help to manage longer-term risks by considering environmental, social, and governance (ESG) and sustainable factors that are indicators of how well a company is run.

We believe that by backing responsible companies, investors can drive positive change while still aiming for competitive financial returns.

Why Royal London Asset Management for sustainable investing?

Our team

We have one of the longest tenures in sustainable investing, managing through a number of market, economic and social cycles.

Our process

Positive screening for companies that make a positive contribution to society. And a bottom-up research process based on detailed due diligence and independent analysis.

Flexibility

Our investment approach is applicable across equities and fixed income to help meet your clients' needs.

Returns

Our aim as investors is to choose the investments that have the potential to outperform and make strong returns over the long term.

Process

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 we can identify investment insights that others may miss.

Our core principles

  1. We invest in sustainable companies based on what they do (products and services) and how they do it (operations). The positive contribution of a company can be through the products and services they provide, and operations of how a company looks after its operational assets, the environment, its stakeholders and the role it plays within its industry.
  2. We use active engagement to encourage good and responsible corporate behaviour and continuous improvement, where there are adverse impacts. We aim to drive positive change.
  3. We actively avoid companies that undertake business activities deemed to be detrimental to society and that breach our sustainable principles. These include areas such as tobacco and armament manufacturers, nuclear-power generators, and companies that are unwilling or unable to mitigate the significant negative environmental impacts associated with their business such as fossil fuel extraction or mining companies.

Team

The Sustainable Investment team is an integral part of our wider equities and fixed income capabilities and draws on expertise across the business. The Sustainable Investment team is headed by Mike Fox, a specialist in sustainable investing and one of the few fund managers in this area with such long tenure. The team is supported by our Responsible Investment team, which oversees our overall responsible investment strategy, company engagement and proxy voting.  

The integration of sustainability factors into investment decisions requires significant expertise and resource. We believe it is also best done internally as this allows the best decisions and greatest flexibility. Our Sustainable Investments Forum considers and validates whether a company or issuer is considered sustainable within Royal London Asset Management’s framework.

Additionally, we supplement our internal expertise with a high quality external Advisory Committee. This committee meets at least three times a year, advising on the approval and exclusion of companies as well as topical issues relevant to the sustainable investment universe. It is, however, an advisory body only – stock selection and portfolio decisions remain the responsibility of the portfolio manager.

  • Mike Fox

    Mike Fox

    Head of Equities
  • George Crowdy

    George Crowdy

    Senior Fund Manager
  • Sebastien Beguelin

    Sebastien Beguelin

    Senior Sustainable Fund Manager
  • Shalin Shah

    Shalin Shah

    Senior Fund Manager
  • Rachid Semaoune

    Rachid Semaoune

    Senior Fund Manager
  • Matt Franklin

    Matt Franklin

    Fund Manager

Advisory Committee

  • Ben Yeoh

    Ben Yeoh

    Chair of Advisory Committee Senior Fund Manager, Royal Bank of Canada
  • Nicola Parker

    Nicola Parker

    Charity Investment Adviser
  • Prof Alex Edmans

    Prof Alex Edmans

    London Business School, Professor of Finance
  • Rachel McEwan

    Rachel McEwan

    Chief Sustainability Officer SSE

Our funds

The Royal London Sustainable range of funds are labelled sustainability focus funds. Sustainability investment labels help investors find products that have a specific sustainability goal, for their own investment objectives and goals. The range spans equity, mixed asset and fixed income solutions.

View our sustainable fund range

Past performance is not a guide to future performance. The value of investments and any income from them may go down as well as up and is not guaranteed. Investors may not get back the amount invested. 

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