Royal London Japan Equity Tilt Fund
SRI Style:
Limited Tilt or Exclusions
SDR Labelling:
Unlabelled - promotes sustainable characteristics (has CFD)
Product:
OEIC
Fund Region:
Japan
Fund Asset Type:
Passive / Index
Launch Date:
31/01/1986
Last Amended:
Jun 2026
Dialshifter (
):
Fund/Portfolio Size:
£255.17m
(as at: 31/03/2026)
Total Screened Themed SRI Assets:
£80000.00m
(as at: 31/03/2026)
Total Responsible Ownership Assets:
£197940.00m
(as at: 31/03/2026)
Total Assets Under Management:
£197940.00m
(as at: 31/03/2026)
ISIN:
GB00B52R6496, GB00BQ2NKQ44
Objectives:
The Royal London Equity Tilt Range Funds aim to deliver capital growth and income in line with their respective benchmarks over rolling three-year periods, while integrating responsible investment, carbon and ESG considerations. The funds adopt a pragmatic, low-tracking-error approach, generally holding all or nearly all index constituents, with controlled stock and sector tilts applied to meet ESG and carbon objectives. Carbon intensity is targeted to be at least 10% and up to 30% lower than the benchmark, alongside assessment of companies’ transition credentials.
Portfolio construction is systematic, using proprietary optimisation tools to manage relative risk (expected to remain below 1% per annum) and minimise trading costs. Cashflows, corporate actions and index events are used efficiently to move portfolios toward targets, supported by daily monitoring. Additional value is sought through efficient index implementation, participation in corporate actions and securities lending to help offset tracking-related costs.
Sustainable, Responsible
&/or ESG Overview:
The Royal London Equity Tilt Funds aim to deliver capital growth and income, after the deduction of charges, in line with their respective benchmarks over rolling three‑year periods, while incorporating responsible investment, carbon and environmental, social and governance (ESG) insights into the investment process. The funds typically hold all or almost all index constituents, with tight active weight constraints at stock and sector level, and apply tilts to achieve carbon and ESG objectives. The funds seek to achieve carbon intensity of at least 10% and up to 30% lower than that of the index, while also considering a company’s ability and willingness to transition and contribute to a lower‑carbon economy. ESG and climate objectives are implemented systematically using proprietary portfolio construction and optimisation tools, with relative risk controlled and expected not to exceed 1% per annum.
Primary fund last amended:
Jun 2026
Information directly from fund manager.
Fund Filters
Sustainability - General
Aim to encourage higher sustainability standards through responsible ownership / stewardship / engagement / voting activity
Environmental - General
Has policies which relate to environmental issues. These will typically set out their stance on issues such as pollution, climate change, resource management, biodiversity loss, carbon emissions, plastics and/or additional environmental impacts. Strategies vary.
Options that limit or 'reduce' their exposure to carbon intensive industries (ie sectors which are major contributors to climate change). Strategies vary.
Aims to invest in companies with strong or market leading environmental policies and practices. Strategies vary. See individual entry information for more detail.
Climate Change & Energy
Has policies (documented strategies that explain their position) on climate change related issues such as greenhouse gas/carbon emissions, net zero, transitioning to lower carbon. Strategies vary.
Encourage the transition to lower carbon activities through asset selection and / or responsible ownership activity.
Social / Employment
Has policies which set out their approach to social issues (e.g. human rights, labour standards, equal opportunities, child labour and/or adherence to internationally recognised codes such as the UN Global Compact). Strategies with social policies typically avoid companies with low standards and/or work to encourage higher standards. See fund information for detail.
Has a written diversity policy – where the manager will aim to select companies with a carefully considered, positive employment standards. This may cover a range of issues including gender, ethnicity, disability, beliefs and sexual orientation.
Ethical Values Led Exclusions
Has policies that set out their position on ethical or 'personal values' based issues. Strategies vary.
Excludes companies which make controversial weapons such as landmines, cluster munitions and chemical weapons.
Avoids companies that manufacture weapons intended specifically for military use. Strategies vary - may or may not include non-strategic military products.
Meeting Peoples' Basic Needs
Have investments in social housing or similar assets.
Governance & Management
Has policies that relate to corporate governance issues such as board structure, executive remuneration, bribery and/or corporate corruption. These funds will typically avoid companies with poor practices. Strategies vary.
Exclude companies that are subject to United Nations sanctions. See eg https://main.un.org/securitycouncil/en/content/un-sc-consolidated-list
Encourage the companies they invest in to have more diverse board structures (e.g. more women on boards)
Encourage the banks and insurance companies they invest in to publish climate change related financial information - as set out by the Task Force on Climate Related Financial Disclosures (with the aim of helping investors measure and respond to climate risk).
Aim to encourage higher ESG standards through responsible ownership / stewardship / engagement /voting activity
Product / Service Governance
Find fund / asset managers that factor in 'environmental, social and governance' issues as part of their investment decision making process. A focus on 'ESG' typically means a fund is carrying out additional research to help reduce ESG related risks. It does not necessarily mean a focus on sustainability. Strategies vary. See fund literature.
Asset Size
Invests more than half of their money into what are commonly regarded as 'large companies'. This will typically mean that the market capitalisation (or value) of the companies they hold is in excess of £5 to £10 billion.
How The Fund/Portfolio Works
Focuses on finding and investing in companies with positive / beneficial attributes. This strategy can be applied in addition to exclusion criteria and engagement/stewardship activity.
Has principle 'ethical approach' to avoid companies by using negative screening criteria. Strategies vary.
Invest more heavily in assets which have higher ESG ratings/standards or scores and less heavily in companies with lower ESG ratings. Where this is central to the strategy you should expect assets in most sectors. Strategies vary.
Makes stock selection (and ongoing management) decisions based on ESG data or company ratings (normally supplied by third parties) rather than focusing on what individual companies do, how they operate or their plans for the future
Considers both the 'positive' and 'negative' aspects of company behaviour and makes balanced, considered decisions as part of their investment approach. May apply to a range of different issues and policy areas.
Publish explanations of their ethical, social and/or environmental policies online (i.e. investment decision making strategies/ buy/sell &/or asset management strategies).
Intended Clients & Product Options
Designed to meet the needs of individual investors with an interest in sustainability issues.
Available via a tax efficient ISA product wrapper.
Labels & Accreditations
A voluntary corporate culture standard for investment managers, see https://www.investorsact.com/ - City Hive
Fund Management Company Information
About The Business
Finds fund / asset management companies that have a published company wide stewardship, engagement and / or responsible ownership policy or strategy that covers all investments. Stewardship typically involves encouraging higher ESG standards through voting and dialogue.
Find fund / asset management companies that actively encourage higher 'environmental, social and governance' and / or 'sustainable and responsible investment' practices across investee companies - typically where the aim is to encourage positive change that is aligned with the best interests of investors. Strategies vary. See additional information and options.
Find fund / asset managers that vote all* the shares they own at Annual General Meetings and Extraordinary General Meetings. A commitment to voting shares is a key indicator of 'responsible share ownership' demonstrating their support for or disagreement with management policy. (*situations can legitimately, occasionally occur where voting proves impossible, but in principle all shares should be voted.)
Find fund / asset managers that consider responsible ownership and ESG to be a key differentiator for their business.
Find fund / asset management companies that take sustainability criteria into account when selecting and/or managing all of their property / real estate investments.
Find fund / asset management companies that consider environmental, social and governance (ESG) issues when deciding whether or not to invest in a company for all / almost all of their funds and other assets. This is increasingly seen as part of sound risk management.
Finds organisations / fund managers that have an in-house (company wide) diversity improvement programme - meaning that they are working to ensure that within their own businesses they employ people from diverse backgrounds - often typically focused on ethnicity and/or sex.
This fund / asset management company invests in companies which have recently listed on a stock exchange (which is important as it can help grow new businesses).
Fund / asset management company has investments in bonds designed to meet sustainability requirements - however these assets may not be 'ringfenced' for this purpose. See website for details.
Collaborations & Affiliations
Find fund / asset management companies that have signed up to the UN backed 'Principles of Responsible Investment'.
Find fund / asset management companies that are members of UKSIF - the UK Sustainable Investment and Finance association
Find fund / asset management companies that have partnered with Fund EcoMarket - meaning that they are helping to improve access to information on sustainable and responsible investment by paying an annual fee to us which enables us to publish information for free. Partner funds are listed ahead of other funds and have their logos displayed.
Fund management entity is a member of the Investment Association https://www.theia.org/
Resources
Find fund / asset management companies that employ people to steer and support fund managers in voting shares at company AGM's and EGMs in ways that are consistent with encouraging higher ESG/sustainability standards.
Find a fund / asset management company that directly employs specialist ESG/SRI/sustainability researchers or analysts. This allows asset managers to discuss environmental, social and governance risks and opportunities directly with companies.
Find fund / asset management companies that makes use of expert external research companies. This can help deliver specialist expertise and means resources are pooled with other investors.
Accreditations
Find fund / asset managers that are signatories to the FRC UK Stewardship Code, which sets out a framework for constructive investor / investee relations where managers are encouraged to behave like responsible, typically longer term 'company owners'.
Engagement Approach
Find fund / asset management companies that regularly initiate or run industry wide (collaborative) investor projects aimed at raising environmental, social and governance standards amongst investee companies.
Fund / asset manager has stewardship /responsible ownership strategy that is focused on addressing climate change with investee assets.
Fund / asset manager has a stewardship /responsible ownership strategy that involves working with fossil fuel companies on climate change related issues. See fund manager website for details.
Fund / asset manager has a stewardship / responsible ownership policy that means they are working to encourage more responsible mining practices - where environmental and social issues are properly dealt with by the companies they invest in.
The fund / asset manager has a responsible ownership / stewardship strategy that focuses on biodiversity and nature issues relating to the assets they invest the aim of which will be to reduce harm and or deliver improvement. Strategies vary. https://tnfd.global
Fund / asset manager has a responsible ownership / stewardship strategy which means they are working to encourage the shift to more sustainable business practices in ways that respect and are sensitive to social issues and the impact change has on people effected by the changes that are taking place. https://www.transitionpathwayinitiative.org/ https://transitiontaskforce.net/
Fund / asset manager has responsible ownership / stewardship strategy in place which aims to address human rights issues in investee companies (and potentially their suppliers) with the aim of raising standards
Fund / asset manager has responsible ownership / stewardship strategy in place that aims to improve labour standards for the benefit of employees in investee companies (and potentially their suppliers)
Fund / asset management company has a stewardship strategy in place which involves working to raise diversity, equality and inclusion standards across investee assets
Fund / asset manager is working with the assets they hold to help stamp out modern slavery - where direct or indirect company employees are exploited for business benefits.
Fund / asset managers have stewardship strategies in place that focus on improving governance standards across investee assets
Fund / asset manager has stewardship strategy in place which involves discussing mental health issues with investee companies - with the aim of raising standards
Has a stewardship / responsible ownership strategy that encourages responsible supply chain - ie the managers will discuss environmental, social and governance issues with investee companies with the aim of raising standards
Working to address sustainability, ESG and related concerns around artificial intelligence.
This fund / asset manager may vote differently for different clients or regions. See fund manager stewardship policy for further information.
Escalation policies describe how a manager will proceed if stewardship / engagement activity is not successful in the short term.
Company Wide Exclusions
Find fund / asset management companies (not funds) that avoid investment in 'controversial weapons' across all of their funds and other investment vehicles.
Find funds / asset managers that are reviewing, or have reviewed, their exposure to carbon intensive industries including (but not only) mining, oil and gas companies. (Typically with reference to climate change.)
Climate & Net Zero Transition
Fund / asset management organisations that have pledged to reduce their greenhouse gas emissions to ‘net zero’. Strategies vary - this area is changing rapidly.
Fund / asset manager AGM / EGM voting strategy has processes in place that mean they will normally be expected to vote in a way that will encourage the transition to net zero greenhouse gas emissions.
Find fund / asset management companies that have published a Climate Risk policy or statement that is signed / owned by their Chief Executive.
This fund / asset management company has set a date by which they plan to achieve net zero greenhouse gas / CO2e emissions.
Find fund / asset management companies that are working with the companies they invest in to encourage reductions in carbon dioxide and other greenhouse gas emissions.
Finds organisations / fund managers that have published ‘forward looking climate metrics’ e.g. 'implied temperature rise' data that are a total of the asset management company's share (% owned) of all the investee company emissions of the assets they manage, as well as their own direct and other indirect emissions.
This fund / asset management company plans to achieve net zero greenhouse gas (CO2e) emissions by reducing their emissions. Calculations and scope vary.
Finds organisations / fund management companies that are in the process of working out how to make a ‘net zero commitment’ - meaning that when that is finalised they will have started the process of reducing their total greenhouse gas emissions to 'zero'.
Transparency
Find fund / asset management companies that publish a report detailing their responsible investment ownership - also known as 'Stewardship' - activity.
Find fund / asset management companies that publish information about their sustainable and responsible investment strategies on their company website.
Find fund / asset management companies that will supply information about their sustainable and responsible investment activity on request.
Fund / asset management companies that publish a full record of how they vote their shares at AGMs (annual general meetings) and EGMs (extraordinary general meetings). Voting strategies have an important role to play encouraging higher environmental, social and governance standards.
Find fund / asset management companies that have supplied Dialshifter information. See Dialshifter tab within record for more information.
Sustainable, Responsible &/or ESG Policy:
The Royal London Equity Tilt funds target, conditional on remaining within permitted tracking error, a minimum 30%* improvement in aggregate portfolio level weighted average carbon intensity, defined as tons of scope 1 and 2 emissions per million USD revenue, relative to the benchmark. RLAM will also consider actions taken by the company in making meaningful reductions in their emissions to align with a low carbon future.
In addition to the low carbon objectives, business involvement screening is systematically implemented to enable the fund to tilt towards an improved ESG profile by focusing on superior corporate governance and lower social risk/higher social value.
Whilst this aligns with RLAM’s policy of engagement over exclusion we do incorporate hard exclusions in line with RLAM’s controversial weapons policy.
RLAM believe that, in most markets, tracking a third party ESG or low carbon index results in a sub-optimal outcome for clients. Third party indices, by definition, remove any control we have as a fund manager when it comes to divestment. Third party indices are also restrictive on our ability as a fund manager to 1) build infrastructure to systematically incorporate insights from our experience Responsible Investment team and 2) to add value with improving ESG datasets and corporate disclosure.
The ‘tilt’ process enables RLAM to provide a positive environmental impact and incorporate entry level ESG considerations whilst delivering a risk and return profile in line with the benchmark – ‘doing the same thing in a better way’ is a more preferable outcome in comparison to tracking a more generic third party index.
A detailed disclosure of the investment process cand RLAM’s controversial weapons policy can be found at https://www.rlam.co.uk/policy.
*Please note that for the UK Funds there is a target of 10% minimum improvement.
Process:
Proprietary portfolio construction and optimisation applications are used to ensure that the funds are invested within the investment parameters and constraints to systematically deliver the fund’s objectives whilst also controlling relative risk, which is not expected to exceed 1% per annum. The funds are monitored daily to ensure the predicted tracking error is minimised whilst achieving the required carbon and ESG objectives whilst avoiding inefficient implementation and excessive trading.
The funds are implemented systematically with fund managers leveraging proprietary portfolio management applications and databases to monitor specified ESG and climate objectives including:
- Carbon intensity
- Business involvement screening
- Internal models, including voting and engagement history
- Exclusions, according to RLAM’s controversial weapons policy
- Constraints on sector and stock active weights
The funds are rebalanced quarterly in line with their respective benchmarks but will trade towards optimal target portfolios in between rebalance dates to accommodate larger cashflows or when the fund is out of tolerance with its ESG and climate objectives. Trades are built using proprietary optimisation and portfolio construction applications, targeting proprietary models and third-party data, to ensure ESG and climate objectives are met within risk budget ad any relevant constraints.
Currency exposures for the overseas funds are monitored and aligned with their respective benchmark as far as is practicable. Futures are used for efficient portfolio management and to invest smaller cash flows into the fund.
Resources, Affiliations & Corporate Strategies:
Royal London Asset Management’s in-house Responsible Investment (RI) team of 16 professionals is led by Head of Responsible Investment, Ashley Hamilton-Claxton.
The RI team works with the investment teams to monitor, assess and analyse ESG factors, vote our shares and engage with companies to encourage better social and environmental outcomes, or better risk management. This team is also responsible for helping to set out our approach and policies around systemic issues such as climate change, providing guidance, feedback and coaching to fund managers and analysts on the latest data, research, policy and industry practices. The Head of Responsible Investment reports to the Chief Investment Officer and is a member of the Front Office leadership team. As the Head of Responsible Investment, Ashley Hamilton Claxton sits on the Investment Committee whilst Will Nicoll, CIO, sits on both the Board and Investment Committee.
Royal London Asset Management is a member of the following initiatives:
Dialshifter
This fund is helping to ‘shift the dial from brown to green’ by..
..incorporating lower carbon objectives to traditional index tracking strategies, providing a high-capacity ESG investment solution at a low cost.
We believe traditional index tracking funds are not able to meet the increasingly high investor demand for incorporating ESG considerations into portfolios.
We also recognize that systematic ESG/Sustainable index funds require significant tracking error versus their core benchmarks however investors do not want core allocations to deviate significantly from traditional cap weighted indices. Ultimately, our flexible tilt model aims to decrease support for high emitters and increase support for companies that align with a lower carbon future.
SDR Labelling:
Unlabelled - promotes sustainable characteristics (has CFD)
Key Performance Indicators:
The funds’ sustainability objectives are to invest at least 70% of their assets in companies or issuers making a positive contribution to one or more of our sustainability themes, through their products and services. In addition, all company’s revenues and operations must not conflict with the sustainability themes. This is determined using a standard based on having a majority (at least 50%) of a company or issuer’s revenues aligned to one or more of the following:
- Clean – to support the low carbon economy, the reduction of carbon emissions and/or the prevention or remediation of negative environmental impacts such as pollution and biodiversity loss.
- Healthy – to support the protection and improvement of people's mental and physical health and wellbeing.
- Safe – to support the prevention of physical and mental harm and injury in homes and workplaces and/or keeping data and information safe and secure.
- Inclusive – to support people to participate in economic and social life by providing products and services which are affordable, accessible and of a quality that supports equitable treatment of customers and/ or people in society.
This information, accompanied by a thorough research note that examines each company’s products and services and operations, is presented to our Sustainability Forum, to verify whether an issuer is suitable for investment.
We will publish the following metrics as KPIs to demonstrate the fund’s progress:
- % of the portfolio invested in Sustainable Companies or Issuers; and
- % weighted average of the portfolio revenue aligned with the sustainability objective for each theme.
Voting Record
Disclaimer
.Important Information
For further information, please contact:
Royal London Asset Management Limited
80 Fenchurch Street
London, EC3M 4BY
Telephone: 020 3272 5594
E-mail: BDSupport@rlam.com
Telephone Calls may be recorded
For professional clients only. This document may not be distributed to any unauthorised persons and is not suitable for retail clients.
This document is a financial promotion. It does not provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations. The views expressed are the author’s own and do not constitute investment advice. Past performance is not a reliable indicator of future results. The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not get back the amount originally invested. For more information concerning the risks of investing, please refer to the Prospectus or Key Investor Information Document (KIID), available via the relevant Fund Price page on www.rlam.com.
All confidential information relating to any Royal London Group company must be treated by you in the strictest confidence. It may only be used for the purposes of assessing the proposal to engage Royal London Asset Management Limited. Confidential information should not be disclosed to any third party and should only be disclosed to those of your employees and professional advisers who are required to see such information for the purpose set out above. You should ensure that these persons are made aware of the confidential nature of such information and treat it accordingly. You agree to return and/ or destroy all confidential information on receipt of our written request to do so.
Notice for UK Investors
The Fund is recognised in the UK under the Overseas Fund Regime (OFR) but is not a UK authorised fund and is not authorised by the Financial Conduct Authority (FCA). It is therefore not subject to the same regulatory oversight as UK authorised Funds and is not required to adhere to the UK sustainable investment labelling disclosure requirements. Most of the protections provided by the UK regulatory system, and the compensation under the Financial Services Compensation Scheme, will not be available. Investors are strongly encouraged to seek independent financial advice before making any investment decisions.
Royal London Japan Equity Tilt Fund
The Fund is a sub-fund 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.
Issued in April 2026 by Royal London Asset Management Limited, 80 Fenchurch Street, London, EC3M 4BY Registration Number 141665 which is authorised and regulated by the Financial Conduct Authority. A subsidiary of The Royal London Mutual Insurance Society Limited The Royal London Mutual Insurance Society Limited is on the Financial Services Register, registration number 117672. Registered in England and Wales number 99064. Our Ref: CONREQ-7543.
| Fund Name | SRI Style | SDR Labelling | Product | Region | Asset Type | Launch Date | Last Amended |
|
|---|---|---|---|---|---|---|---|---|
Royal London Japan Equity Tilt Fund |
Limited Tilt or Exclusions | Unlabelled - promotes sustainable characteristics (has CFD) | OEIC | Japan | Passive / Index | 31/01/1986 | Jun 2026 | |
ObjectivesThe Royal London Equity Tilt Range Funds aim to deliver capital growth and income in line with their respective benchmarks over rolling three-year periods, while integrating responsible investment, carbon and ESG considerations. The funds adopt a pragmatic, low-tracking-error approach, generally holding all or nearly all index constituents, with controlled stock and sector tilts applied to meet ESG and carbon objectives. Carbon intensity is targeted to be at least 10% and up to 30% lower than the benchmark, alongside assessment of companies’ transition credentials. Portfolio construction is systematic, using proprietary optimisation tools to manage relative risk (expected to remain below 1% per annum) and minimise trading costs. Cashflows, corporate actions and index events are used efficiently to move portfolios toward targets, supported by daily monitoring. Additional value is sought through efficient index implementation, participation in corporate actions and securities lending to help offset tracking-related costs. |
Fund/Portfolio Size: £255.17m (as at: 31/03/2026) Total Screened Themed SRI Assets: £80000.00m (as at: 31/03/2026) Total Responsible Ownership Assets: £197940.00m (as at: 31/03/2026) Total Assets Under Management: £197940.00m (as at: 31/03/2026) ISIN: GB00B52R6496, GB00BQ2NKQ44 |
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Sustainable, Responsible &/or ESG OverviewThe Royal London Equity Tilt Funds aim to deliver capital growth and income, after the deduction of charges, in line with their respective benchmarks over rolling three‑year periods, while incorporating responsible investment, carbon and environmental, social and governance (ESG) insights into the investment process. The funds typically hold all or almost all index constituents, with tight active weight constraints at stock and sector level, and apply tilts to achieve carbon and ESG objectives. The funds seek to achieve carbon intensity of at least 10% and up to 30% lower than that of the index, while also considering a company’s ability and willingness to transition and contribute to a lower‑carbon economy. ESG and climate objectives are implemented systematically using proprietary portfolio construction and optimisation tools, with relative risk controlled and expected not to exceed 1% per annum. |
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Primary fund last amended: Jun 2026 |
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Information received directly from Fund Manager |
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Fund FiltersSustainability - General
Encourage more sustainable practices through stewardship
Aim to encourage higher sustainability standards through responsible ownership / stewardship / engagement / voting activity Environmental - General
Environmental policy
Has policies which relate to environmental issues. These will typically set out their stance on issues such as pollution, climate change, resource management, biodiversity loss, carbon emissions, plastics and/or additional environmental impacts. Strategies vary.
Limits exposure to carbon intensive industries
Options that limit or 'reduce' their exposure to carbon intensive industries (ie sectors which are major contributors to climate change). Strategies vary.
Favours cleaner, greener companies
Aims to invest in companies with strong or market leading environmental policies and practices. Strategies vary. See individual entry information for more detail. Climate Change & Energy
Climate change / greenhouse gas emissions policy
Has policies (documented strategies that explain their position) on climate change related issues such as greenhouse gas/carbon emissions, net zero, transitioning to lower carbon. Strategies vary.
Encourage transition to low carbon through stewardship activity
Encourage the transition to lower carbon activities through asset selection and / or responsible ownership activity. Social / Employment
Social policy
Has policies which set out their approach to social issues (e.g. human rights, labour standards, equal opportunities, child labour and/or adherence to internationally recognised codes such as the UN Global Compact). Strategies with social policies typically avoid companies with low standards and/or work to encourage higher standards. See fund information for detail.
Diversity, equality & inclusion Policy (product level)
Has a written diversity policy – where the manager will aim to select companies with a carefully considered, positive employment standards. This may cover a range of issues including gender, ethnicity, disability, beliefs and sexual orientation. Ethical Values Led Exclusions
Ethical policies
Has policies that set out their position on ethical or 'personal values' based issues. Strategies vary.
Controversial weapons exclusion
Excludes companies which make controversial weapons such as landmines, cluster munitions and chemical weapons.
Armaments manufacturers avoided
Avoids companies that manufacture weapons intended specifically for military use. Strategies vary - may or may not include non-strategic military products. Meeting Peoples' Basic Needs
Invests > 5% in social housing
Have investments in social housing or similar assets. Governance & Management
Governance policy
Has policies that relate to corporate governance issues such as board structure, executive remuneration, bribery and/or corporate corruption. These funds will typically avoid companies with poor practices. Strategies vary.
UN sanctions exclusion
Exclude companies that are subject to United Nations sanctions. See eg https://main.un.org/securitycouncil/en/content/un-sc-consolidated-list
Encourage board diversity e.g. gender
Encourage the companies they invest in to have more diverse board structures (e.g. more women on boards)
Encourage TCFD alignment for banks & insurance companies
Encourage the banks and insurance companies they invest in to publish climate change related financial information - as set out by the Task Force on Climate Related Financial Disclosures (with the aim of helping investors measure and respond to climate risk).
Encourage higher ESG standards through stewardship activity
Aim to encourage higher ESG standards through responsible ownership / stewardship / engagement /voting activity Product / Service Governance
ESG integration strategy
Find fund / asset managers that factor in 'environmental, social and governance' issues as part of their investment decision making process. A focus on 'ESG' typically means a fund is carrying out additional research to help reduce ESG related risks. It does not necessarily mean a focus on sustainability. Strategies vary. See fund literature. Asset Size
Over 50% large cap companies
Invests more than half of their money into what are commonly regarded as 'large companies'. This will typically mean that the market capitalisation (or value) of the companies they hold is in excess of £5 to £10 billion. How The Fund/Portfolio Works
Positive selection bias
Focuses on finding and investing in companies with positive / beneficial attributes. This strategy can be applied in addition to exclusion criteria and engagement/stewardship activity.
Negative selection bias
Has principle 'ethical approach' to avoid companies by using negative screening criteria. Strategies vary.
ESG weighted / tilt
Invest more heavily in assets which have higher ESG ratings/standards or scores and less heavily in companies with lower ESG ratings. Where this is central to the strategy you should expect assets in most sectors. Strategies vary.
Data led strategy
Makes stock selection (and ongoing management) decisions based on ESG data or company ratings (normally supplied by third parties) rather than focusing on what individual companies do, how they operate or their plans for the future
Balances company 'pros and cons' / best in sector
Considers both the 'positive' and 'negative' aspects of company behaviour and makes balanced, considered decisions as part of their investment approach. May apply to a range of different issues and policy areas.
SRI / ESG / Ethical policies explained on website
Publish explanations of their ethical, social and/or environmental policies online (i.e. investment decision making strategies/ buy/sell &/or asset management strategies). Intended Clients & Product Options
Intended for clients interested in sustainability
Designed to meet the needs of individual investors with an interest in sustainability issues.
Available via an ISA (OEIC only)
Available via a tax efficient ISA product wrapper. Labels & Accreditations
ACT signatory
A voluntary corporate culture standard for investment managers, see https://www.investorsact.com/ - City Hive Fund Management Company InformationAbout The Business
Responsible ownership / stewardship policy or strategy (AFM companywide)
Finds fund / asset management companies that have a published company wide stewardship, engagement and / or responsible ownership policy or strategy that covers all investments. Stewardship typically involves encouraging higher ESG standards through voting and dialogue.
ESG / SRI engagement (AFM companywide)
Find fund / asset management companies that actively encourage higher 'environmental, social and governance' and / or 'sustainable and responsible investment' practices across investee companies - typically where the aim is to encourage positive change that is aligned with the best interests of investors. Strategies vary. See additional information and options.
Vote all* shares at AGMs / EGMs (AFM companywide)
Find fund / asset managers that vote all* the shares they own at Annual General Meetings and Extraordinary General Meetings. A commitment to voting shares is a key indicator of 'responsible share ownership' demonstrating their support for or disagreement with management policy. (*situations can legitimately, occasionally occur where voting proves impossible, but in principle all shares should be voted.)
Responsible ownership / ESG a key differentiator (AFM companywide)
Find fund / asset managers that consider responsible ownership and ESG to be a key differentiator for their business.
Sustainable property strategy (AFM companywide)
Find fund / asset management companies that take sustainability criteria into account when selecting and/or managing all of their property / real estate investments.
Integrates ESG factors into all / most research (AFM companywide)
Find fund / asset management companies that consider environmental, social and governance (ESG) issues when deciding whether or not to invest in a company for all / almost all of their funds and other assets. This is increasingly seen as part of sound risk management.
In-house diversity improvement programme (AFM companywide)
Finds organisations / fund managers that have an in-house (company wide) diversity improvement programme - meaning that they are working to ensure that within their own businesses they employ people from diverse backgrounds - often typically focused on ethnicity and/or sex.
Invests in newly listed companies (AFM companywide)
This fund / asset management company invests in companies which have recently listed on a stock exchange (which is important as it can help grow new businesses).
Invests in new sustainability linked bond issuances (AFM companywide)
Fund / asset management company has investments in bonds designed to meet sustainability requirements - however these assets may not be 'ringfenced' for this purpose. See website for details. Collaborations & Affiliations
PRI signatory
Find fund / asset management companies that have signed up to the UN backed 'Principles of Responsible Investment'.
UKSIF member
Find fund / asset management companies that are members of UKSIF - the UK Sustainable Investment and Finance association
Fund EcoMarket partner
Find fund / asset management companies that have partnered with Fund EcoMarket - meaning that they are helping to improve access to information on sustainable and responsible investment by paying an annual fee to us which enables us to publish information for free. Partner funds are listed ahead of other funds and have their logos displayed.
Investment Association (IA) member
Fund management entity is a member of the Investment Association https://www.theia.org/ Resources
In-house responsible ownership / voting expertise
Find fund / asset management companies that employ people to steer and support fund managers in voting shares at company AGM's and EGMs in ways that are consistent with encouraging higher ESG/sustainability standards.
Employ specialist ESG / SRI / sustainability researchers
Find a fund / asset management company that directly employs specialist ESG/SRI/sustainability researchers or analysts. This allows asset managers to discuss environmental, social and governance risks and opportunities directly with companies.
Use specialist ESG / SRI / sustainability research companies
Find fund / asset management companies that makes use of expert external research companies. This can help deliver specialist expertise and means resources are pooled with other investors. Accreditations
UK Stewardship Code signatory (AFM companywide)
Find fund / asset managers that are signatories to the FRC UK Stewardship Code, which sets out a framework for constructive investor / investee relations where managers are encouraged to behave like responsible, typically longer term 'company owners'. Engagement Approach
Regularly lead collaborative ESG initiatives (AFM companywide)
Find fund / asset management companies that regularly initiate or run industry wide (collaborative) investor projects aimed at raising environmental, social and governance standards amongst investee companies.
Engaging on climate change issues
Fund / asset manager has stewardship /responsible ownership strategy that is focused on addressing climate change with investee assets.
Engaging with fossil fuel companies on climate change
Fund / asset manager has a stewardship /responsible ownership strategy that involves working with fossil fuel companies on climate change related issues. See fund manager website for details.
Engaging to encourage responsible mining practices
Fund / asset manager has a stewardship / responsible ownership policy that means they are working to encourage more responsible mining practices - where environmental and social issues are properly dealt with by the companies they invest in.
Engaging on biodiversity / nature issues
The fund / asset manager has a responsible ownership / stewardship strategy that focuses on biodiversity and nature issues relating to the assets they invest the aim of which will be to reduce harm and or deliver improvement. Strategies vary. https://tnfd.global
Engaging to encourage a Just Transition
Fund / asset manager has a responsible ownership / stewardship strategy which means they are working to encourage the shift to more sustainable business practices in ways that respect and are sensitive to social issues and the impact change has on people effected by the changes that are taking place. https://www.transitionpathwayinitiative.org/ https://transitiontaskforce.net/
Engaging on human rights issues
Fund / asset manager has responsible ownership / stewardship strategy in place which aims to address human rights issues in investee companies (and potentially their suppliers) with the aim of raising standards
Engaging on labour / employment issues
Fund / asset manager has responsible ownership / stewardship strategy in place that aims to improve labour standards for the benefit of employees in investee companies (and potentially their suppliers)
Engaging on diversity, equality & / or inclusion issues
Fund / asset management company has a stewardship strategy in place which involves working to raise diversity, equality and inclusion standards across investee assets
Engaging to stop modern slavery
Fund / asset manager is working with the assets they hold to help stamp out modern slavery - where direct or indirect company employees are exploited for business benefits.
Engaging on governance issues
Fund / asset managers have stewardship strategies in place that focus on improving governance standards across investee assets
Engaging on mental health issues
Fund / asset manager has stewardship strategy in place which involves discussing mental health issues with investee companies - with the aim of raising standards
Engaging on responsible supply chain issues
Has a stewardship / responsible ownership strategy that encourages responsible supply chain - ie the managers will discuss environmental, social and governance issues with investee companies with the aim of raising standards
Engaging on the responsible use of AI
Working to address sustainability, ESG and related concerns around artificial intelligence.
Split voting policy
This fund / asset manager may vote differently for different clients or regions. See fund manager stewardship policy for further information.
Stewardship escalation policy
Escalation policies describe how a manager will proceed if stewardship / engagement activity is not successful in the short term. Company Wide Exclusions
Controversial weapons avoidance policy (AFM companywide)
Find fund / asset management companies (not funds) that avoid investment in 'controversial weapons' across all of their funds and other investment vehicles.
Review(ing) carbon / fossil fuel exposure for all funds (AFM companywide)
Find funds / asset managers that are reviewing, or have reviewed, their exposure to carbon intensive industries including (but not only) mining, oil and gas companies. (Typically with reference to climate change.) Climate & Net Zero Transition
Net Zero commitment (AFM companywide)
Fund / asset management organisations that have pledged to reduce their greenhouse gas emissions to ‘net zero’. Strategies vary - this area is changing rapidly.
Voting policy includes net zero targets (AFM companywide)
Fund / asset manager AGM / EGM voting strategy has processes in place that mean they will normally be expected to vote in a way that will encourage the transition to net zero greenhouse gas emissions.
Publish 'CEO owned' Climate Risk policy (AFM companywide)
Find fund / asset management companies that have published a Climate Risk policy or statement that is signed / owned by their Chief Executive.
Net Zero - have set a Net Zero target date (AFM companywide)
This fund / asset management company has set a date by which they plan to achieve net zero greenhouse gas / CO2e emissions.
Encourage carbon / greenhouse gas reduction (AFM companywide)
Find fund / asset management companies that are working with the companies they invest in to encourage reductions in carbon dioxide and other greenhouse gas emissions.
‘Forward Looking Climate Metrics’ published / ITR (AFM companywide)
Finds organisations / fund managers that have published ‘forward looking climate metrics’ e.g. 'implied temperature rise' data that are a total of the asset management company's share (% owned) of all the investee company emissions of the assets they manage, as well as their own direct and other indirect emissions.
Carbon offsetting – do NOT offset carbon as part of net zero plan (AFM companywide)
This fund / asset management company plans to achieve net zero greenhouse gas (CO2e) emissions by reducing their emissions. Calculations and scope vary.
Working towards a ‘Net Zero’ commitment (AFM companywide)
Finds organisations / fund management companies that are in the process of working out how to make a ‘net zero commitment’ - meaning that when that is finalised they will have started the process of reducing their total greenhouse gas emissions to 'zero'. Transparency
Publish responsible ownership / stewardship report (AFM companywide)
Find fund / asset management companies that publish a report detailing their responsible investment ownership - also known as 'Stewardship' - activity.
Full stewardship / responsible ownership policy information on company website
Find fund / asset management companies that publish information about their sustainable and responsible investment strategies on their company website.
Full stewardship / responsible ownership policy information available on request
Find fund / asset management companies that will supply information about their sustainable and responsible investment activity on request.
Publish full voting record (AFM companywide)
Fund / asset management companies that publish a full record of how they vote their shares at AGMs (annual general meetings) and EGMs (extraordinary general meetings). Voting strategies have an important role to play encouraging higher environmental, social and governance standards.
Dialshifter statement
Find fund / asset management companies that have supplied Dialshifter information. See Dialshifter tab within record for more information. Sustainable, Responsible &/or ESG Policy:The Royal London Equity Tilt funds target, conditional on remaining within permitted tracking error, a minimum 30%* improvement in aggregate portfolio level weighted average carbon intensity, defined as tons of scope 1 and 2 emissions per million USD revenue, relative to the benchmark. RLAM will also consider actions taken by the company in making meaningful reductions in their emissions to align with a low carbon future. In addition to the low carbon objectives, business involvement screening is systematically implemented to enable the fund to tilt towards an improved ESG profile by focusing on superior corporate governance and lower social risk/higher social value. Whilst this aligns with RLAM’s policy of engagement over exclusion we do incorporate hard exclusions in line with RLAM’s controversial weapons policy. The ‘tilt’ process enables RLAM to provide a positive environmental impact and incorporate entry level ESG considerations whilst delivering a risk and return profile in line with the benchmark – ‘doing the same thing in a better way’ is a more preferable outcome in comparison to tracking a more generic third party index. A detailed disclosure of the investment process cand RLAM’s controversial weapons policy can be found at https://www.rlam.co.uk/policy.
Process:Proprietary portfolio construction and optimisation applications are used to ensure that the funds are invested within the investment parameters and constraints to systematically deliver the fund’s objectives whilst also controlling relative risk, which is not expected to exceed 1% per annum. The funds are monitored daily to ensure the predicted tracking error is minimised whilst achieving the required carbon and ESG objectives whilst avoiding inefficient implementation and excessive trading. The funds are implemented systematically with fund managers leveraging proprietary portfolio management applications and databases to monitor specified ESG and climate objectives including:
The funds are rebalanced quarterly in line with their respective benchmarks but will trade towards optimal target portfolios in between rebalance dates to accommodate larger cashflows or when the fund is out of tolerance with its ESG and climate objectives. Trades are built using proprietary optimisation and portfolio construction applications, targeting proprietary models and third-party data, to ensure ESG and climate objectives are met within risk budget ad any relevant constraints. Currency exposures for the overseas funds are monitored and aligned with their respective benchmark as far as is practicable. Futures are used for efficient portfolio management and to invest smaller cash flows into the fund. Resources, Affiliations & Corporate Strategies:Royal London Asset Management’s in-house Responsible Investment (RI) team of 16 professionals is led by Head of Responsible Investment, Ashley Hamilton-Claxton. The RI team works with the investment teams to monitor, assess and analyse ESG factors, vote our shares and engage with companies to encourage better social and environmental outcomes, or better risk management. This team is also responsible for helping to set out our approach and policies around systemic issues such as climate change, providing guidance, feedback and coaching to fund managers and analysts on the latest data, research, policy and industry practices. The Head of Responsible Investment reports to the Chief Investment Officer and is a member of the Front Office leadership team. As the Head of Responsible Investment, Ashley Hamilton Claxton sits on the Investment Committee whilst Will Nicoll, CIO, sits on both the Board and Investment Committee. Royal London Asset Management is a member of the following initiatives:
Dialshifter (Fund)This fund is helping to ‘shift the dial from brown to green’ by.. ..incorporating lower carbon objectives to traditional index tracking strategies, providing a high-capacity ESG investment solution at a low cost. We believe traditional index tracking funds are not able to meet the increasingly high investor demand for incorporating ESG considerations into portfolios. We also recognize that systematic ESG/Sustainable index funds require significant tracking error versus their core benchmarks however investors do not want core allocations to deviate significantly from traditional cap weighted indices. Ultimately, our flexible tilt model aims to decrease support for high emitters and increase support for companies that align with a lower carbon future.
Dialshifter (Corporate)Our organisation is helping to support the Paris Climate Agreement and the Race to Net Zero by… Net Zero Commitment Summary By 2030, Royal London Asset Management aims to engage issuers representing 70% of financed emissions, encouraging science-based targets (e.g., SBTi) and climate transition plans. This firm-level commitment is transparently reported and does not apply to all RLAM funds—please refer to individual fund prospectuses. The focus is on real-economy decarbonisation through engagement, not divestment. RLAM supports decarbonising portfolio companies and collaborates with segregated clients who have net zero goals. This commitment assumes supportive government action and alignment with RLAM’s fiduciary duties. SDR Labelling:Unlabelled - promotes sustainable characteristics (has CFD) Key Performance Indicators:
The funds’ sustainability objectives are to invest at least 70% of their assets in companies or issuers making a positive contribution to one or more of our sustainability themes, through their products and services. In addition, all company’s revenues and operations must not conflict with the sustainability themes. This is determined using a standard based on having a majority (at least 50%) of a company or issuer’s revenues aligned to one or more of the following:
This information, accompanied by a thorough research note that examines each company’s products and services and operations, is presented to our Sustainability Forum, to verify whether an issuer is suitable for investment. We will publish the following metrics as KPIs to demonstrate the fund’s progress:
Voting RecordDisclaimer.Important Information For further information, please contact: For professional clients only. This document may not be distributed to any unauthorised persons and is not suitable for retail clients. This document is a financial promotion. It does not provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations. The views expressed are the author’s own and do not constitute investment advice. Past performance is not a reliable indicator of future results. The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not get back the amount originally invested. For more information concerning the risks of investing, please refer to the Prospectus or Key Investor Information Document (KIID), available via the relevant Fund Price page on www.rlam.com. All confidential information relating to any Royal London Group company must be treated by you in the strictest confidence. It may only be used for the purposes of assessing the proposal to engage Royal London Asset Management Limited. Confidential information should not be disclosed to any third party and should only be disclosed to those of your employees and professional advisers who are required to see such information for the purpose set out above. You should ensure that these persons are made aware of the confidential nature of such information and treat it accordingly. You agree to return and/ or destroy all confidential information on receipt of our written request to do so. Notice for UK Investors Royal London Japan Equity Tilt Fund Issued in April 2026 by Royal London Asset Management Limited, 80 Fenchurch Street, London, EC3M 4BY Registration Number 141665 which is authorised and regulated by the Financial Conduct Authority. A subsidiary of The Royal London Mutual Insurance Society Limited The Royal London Mutual Insurance Society Limited is on the Financial Services Register, registration number 117672. Registered in England and Wales number 99064. Our Ref: CONREQ-7543. |
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