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Royal London Global Equity Transitions Fund

Combining expertise in global equities and supporting companies who seek to contribute to a more sustainable world.

Discover the Royal London Global Equity Transitions Fund.

With increasing challenges for both clients and the planet, engaging with those involved in the transition to a more sustainable world is both a financial and responsible necessity. The Global Equity Transition Fund brings together a long, successful track record of investing in global equities with an approach that aims to deliver financial returns without a style risk dominating, supports companies that make a real contribution to a more sustainable world and demonstrates active stewardship.

The Transitions concept

For the Global Equity team and this fund, sustainability means meeting the needs of today without compromising the ability of future generations to meet their needs.

We are currently living in an unsustainable world and believe that the transition needed to achieve a more sustainable path can be framed by four key themes:

Climate Stability 

Environmental 

Natural Capital Preservation

Environmental 

Health and Wellbeing

Social

Equality of Opportunity 

Social 

Through this lens, we seek to invest in corporates that can make a material contribution to the sustainability transition by either transitioning their business to a more sustainable path (‘Improver’) or enabling someone else’s transition (‘Enabler’) or both. We consider climate stability to be the most material of these themes from a financial and transition perspective and it is the most prevalent throughout the portfolio.

Key points

  • Financial performance is driven by a proven and differentiated global alpha engine
  • Proprietary ‘Life Cycle’ diversification lowers portfolio style risk e.g. no ‘Growth’ versus ‘Value’ bias unlike many strategies in this universe
  • Each holding is making a material contribution to one or more key sustainable development themes
  • Engagement is investor-led and used to hold companies to account and improve outcomes

Investment approach – Global alpha engine

Through the application of our proprietary Corporate Life Cycle concept, we aim to identify companies globally with:

  • Superior shareholder wealth and
  • Attractive valuations.

Differentiated stock ideas are combined in balanced portfolios, diversified across the Corporate Life Cycle, which exhibit low style/factor risk. Our Life Cycle approach has driven long-term performance across a range of strategies and market environments, from high conviction to lower tracking error funds.

RLAM Global Equities - Corporate Life Cycle

Corporate returns on productive capital and growth tend to progress along a Life Cycle. Every company can be located economically in a Life Cycle category. 

Image depicts global equity corporate life cycle concept

Source: RLAM. For illustrative purposes only.

Fund facts

Strategy launch date October 2021
Fund launch date 25 October 2022
Structure OEIC
Domicile Ireland
SFDR classification

Article 8 EU SFDR aligned vehicle 

Fund management fee

Class M (GBP Hedged) 0.83%
Class Z (GBP Hedged) 0.68%

Base currency

USD

Minimum investment

Class M: £100,000
Class Z: £3,000,000

Strategy AUM

£150 million

Fund AUM at launch

£75 million

Fund Manager

Bixuan Xu

The team

RLAM’s Global Equity team has over 10 dedicated portfolio managers and analysts who have proven effective in implementing our differentiated investment approach which utilises proven proprietary tools, datasets and techniques to screen and research a universe of 5000+ companies. The fund is managed by Bixuan Xu.

Investment Risks

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.

Concentration risk: The price of Funds that invest in a reduced number of holdings, sectors, or geographical areas may be more heavily affected by events that influence the stock market and therefore more volatile.

Counterparty Risk: The insolvency of any institutions providing services such as safekeeping of assets or acting as counterparty to derivatives or other instruments, may expose the Fund to financial loss.

Emerging Markets Risk: Investing in Emerging Markets may provide the potential for greater rewards but carries greater risk due to the possibility of high volatility, low liquidity, currency fluctuations, the adverse effect of social, political and economic instability, weak supervisory structures and accounting standards.

EPM techniques: The fund may engage in EPM techniques including holdings of derivative instruments. Whilst intended to reduce risk, the use of these instruments may expose the Fund to increased price volatility.

Exchange Rate Risk: Changes in currency exchange rates may affect the value of your investment.

Liquidity Risk: In difficult market conditions the value of certain fund investments may be difficult to value and harder to sell, or sell at a fair price, resulting in unpredictable falls in the value of your holding.

Responsible Investment Style Risk: The fund can only invest in holdings that demonstrate compliance with certain sustainable indicators or ESG characteristics. This reduces the number securities in which the strategy can invest and there may as a result be occasions where it forgoes more strongly performing investment opportunities, potentially underperforming non-sustainable strategies.