Royal London Sustainable Managed Growth Trust


Fund overview

The Fund aims to provide a total return by way of accumulated income, with some capital growth. The Fund invests mainly in fixed income securities with some equities, mainly in the United Kingdom.

Fund manager

Richard Nelson joined RLAM from The Co-Operative Group when its life, pensions and asset management business was acquired by Royal London in 2013. Richard joined The Co-operative as a trainee actuary in 1994, before moving into Asset Management in 1997 where he helped run the cash and treasury function from 1999.  He has been managing gilts since 2000 and corporate bonds since 2005.  Richard qualified as an actuary in 2003 and holds a degree in Mathematics & Statistics from Exeter University.

Investment approach

RLAM's sustainable team favours a distinctive approach, integrating the consideration of environmental, social and governance (ESG) issues, alongside financial analysis, throughout the investment process. Every holding has to meet key criteria and the team actively engage with the companies in which we invest to champion best practice on behalf of our clients, challenging companies on issues such as environmental policy and corporate governance standards.

The team’s exclusion policy is focused on avoiding companies believed to expose investors to unacceptable financial risk resulting from poor management of ESG issues.

This investment approach is characterised by a number of features:

  • Focus on long-term themes and trends such as infrastructure or changing demographics
  • Emphasis on active management across focused, high conviction ‘best ideas’ portfolios 
  • Valuation driven approach aimed at identifying mispriced opportunities
  • Low turnover with companies held within portfolios for typically 3 – 5 years
  • Careful analysis of company specific factors
  • Full integration of financial and ESG considerations throughout the investment process

Product Risk Warning

Past performance is not a guide to future performance. 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. Unlike the income from a single fixed income security, the level of income (yield) from a fund is not fixed and may go up and down. For funds that use derivatives, their use may be beneficial, however, they also involve specific risks. Derivatives may alter the economic exposure of a fund over time, causing it to deviate from the performance of the broader market.

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