Investing with intent: The case for equity tilts

As climate risks grow and become more financially material, demand is still high for investment solutions with effective climate objectives. For clients looking for low-cost passive index trackers there are plenty of options out there.

However, the Royal London Asset Management Equity Tilt funds go a step further. The firm believes that it is possible to drive positive outcomes, delivering significant carbon intensity reductions, without compromising on risk and returns.

The asset manager's range of Equity Tilt funds do this by incorporating active decision making, based on insights it gains via company engagements. This innovative approach ensures that it is able to change its allocated weightings relative to the benchmark and contribute to a substantial carbon reduction compared to a standard benchmark. The funds offer all this plus the low-cost advantages of a tracker fund.

Rather than divesting or excluding, Royal London Asset Management tilts away from high carbon emitters and toward companies actively focusing on decarbonising or enabling low-carbon transition. Its solutions invest in not just what the world is, but what it must become.

Last week, Matt Burgess, Head of Quantitative Equities and Nils Jungbacke, Senior Fund Manager, gave a CPD-accredited webinar, where they covered:

• The importance of active stewardship
• A proven, robust and credible investment process
• How investments can drive positive outcomes for clients

Click "Visit" to register for access to the webinar recording.