Royal London Asset Management (RLAM) has launched a UK-domiciled Global Equity Tilt Fund as part of its wider Equity Tilt fund range.

The fund aims to support clients in accessing a broad range of global equity market exposure while managing the portfolio’s carbon footprint.

Using the MSCI World Index as the benchmark, the Global Equity Tilt Fund applies a series of small, diversified ‘tilts’ in favour of companies demonstrating stronger environmental, social, or governance (ESG) characteristics.

RLAM said this approach combined elements of passive and active management, and enabled the fund to improve ESG outcomes while keeping the expected tracking error low.

The fund was launched to meet growing client demand for credible climate and ESG integration within core equity allocations without the high costs, liquidity constraints, or high tracking error risk often associated with traditional active or passive ESG strategies.

Alongside targeting benchmark returns, the fund aims to achieve a carbon footprint of at least 10 per cent below the benchmark, as well as long-term goals of a 50 per cent reduction in emissions by 2030 and net zero by 2050.

RLAM said it intended to make Equity Tilt strategies available to investors as exchange-traded funds (ETF) later in 2026.

“Investors shouldn’t have to choose between responsible investment and broad market exposure,” said RLAM head of passive and quantitative equities, Matt Burgess.

“Our Global Equity Tilt Fund is designed to deliver the diversification, liquidity and cost efficiency investors expect from a core equity holding, while systematically improving climate and ESG outcomes through many small, disciplined investment decisions.”

RLAM chief client officer, Ed Venner, added: “Clients are increasingly looking for interesting evolutions from core passive allocations, often in ways that align with their climate goals without introducing unnecessary complexity, cost or risk.

“Our Tilt strategies are proving popular by combining active stewardship and a robust, repeatable systematic investment process at the cost, return and risk profile of a passive product.”

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