Delivering core market exposure, tilted for better outcomes

The benefits of Tilts funds as a core holding within a centralised investment proposition

Royal London Asset Management’s Equity Tilt funds are designed to sit at the centre of client portfolios. They aim to deliver benchmark‑like returns at passive‑like cost, while seeking to improve portfolio quality through systematic tilts towards companies with stronger climate, governance and sustainability characteristics.

The range is comprised of a range of low active risk, low cost, regional and global equity funds. They are tilted towards well‑governed companies, mindful of their role in the transition to net zero. They behave like a core index fund in terms of diversification and risk, but with enhanced ESG and climate characteristics.

As such, they are potentially well‑suited to advisers seeking to create centralised investment propositions that are low cost, scalable, transparent and fulfil Consumer Duty requirements.

Read in full: Delivering core market exposure, tilted for better outcomes

Investment risks

Investment Risk: The value of investments and the income from them may go down as well as up and is not guaranteed.Investors may not get back the amount invested.

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.

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

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.

Exchange Rate Risk: Investing in assets denominated in a currency other than the base currency of the Funds means the value of the investment can be affected by changes in exchange rates.

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 Funds can only invest in holdings that demonstrate compliance with certain sustainable indicators or ESG characteristics. This reduces the number securities in which the Funds can invest and there may as a result be occasions where they forgo more strongly performing investment opportunities, potentially underperforming non‑sustainable funds.

Environmental, social and governance: A list of pre Environmental, social and governance: defined criteria that determines how a company operates in terms of sustainability and overall corporate governance.

Important information
For Professional Clients only, not suitable for Retail Clients.
This is a financial promotion and is not investment advice. The views expressed are those of Royal London Asset Management at the date of publication unless otherwise indicated, which are subject to change, and is not investment advice.

The Funds are sub-funds of Royal London Equity Funds ICVC, an open-ended investment company with variable capital with segregated liability between sub-funds, incorporated in England and Wales under registered number IC000807. The Authorised Corporate Director (ACD) is Royal London Unit Trust Managers Limited, authorised and regulated by the Financial Conduct Authority, with firm reference number 144037.

For more information on the fund or the risks of investing, please refer to the Prospectus or Key Investor Information Document (KIID), available via the relevant Fund Information page on www.rlam.com.