Our passive equity funds are one of the key building blocks of our Governed Range. We’re now taking a more active approach to the way we manage these funds through the introduction of our ‘tilts’, which will increase holdings of companies with good Environmental, Social and Corporate Governance (ESG) practices and reduce holdings in companies with poorer practices.
We’ll do this without significantly changing the established risk profile of our investment solutions, or increasing our charges. This means you can continue to recommend a solution that provides value for money, while giving your clients confidence that they’re helping to tackle climate change.
We believe this is an important step towards protecting the standard of living for this and future generations. It’s also part of how we expect to cut our carbon footprint across our investment portfolios in half by 2030 and achieving net zero by 2050.
In addition to carbon reduction, our more active management approach will give us the flexibility to adjust our exposure to companies with poor social practices or corporate governance issues.