Global Equity funds

Introducing our Global Equity funds

Your clients have access to five Global Equity funds managed by Royal London Asset Management (RLAM).

The most recent additions are the RLP Global Equity Diversified fund and the RLP Global Equity Select fund. Both funds offer good value for money and can be chosen as the equity fund within our Governed Range.

 

Watch our Global Equity Diversity Fund Video

The Royal London global equity diversified fund, is a diversified portfolio of approximately 200 investment holdings in equity markets from around the world.

Each of those holdings shares two key attributes. The first, is that every business in the portfolio is superior long-term shareholder wealth creating firm and secondly the valuation of that business is attractive relative to its peers. 

We have a differentiated investment process that we use to identify stocks and build our portfolio. It's built around a corporate lifecycle concept and also our use of an economic return framework.
It's a proven process that we have successfully used for more than 15 years as an investment team. We also integrate environmental social and governance analysis directly into the investment process. This occurs both when we are identifying long term shareholder wealth creating businesses, but also importantly when we are conducting our valuation work.


Environmental social and governance analysis will directly influence our cash flow forecasts for businesses. Therefore our valuation assessments and our ultimate portfolio decision making.
So what do investors get with this fund. Well the first thing is that by having a differentiated process you get differentiated stock picking and it's that differentiated stock picking which drives relative returns for investors over time.


The second thing is that by employing such a broad level of diversification, the relative returns of the portfolio tend to be very robust across different market environments and different performance cycles.
And finally ESG analysis is fully integrated into an investment decision making and the fund also has all of the responsible investment activities that RLAM brings to the table.


So for example proxy voting and engagement with management teams all over the world to improve environmental social and governance aspects of the holdings in the portfolio.

 

Watch our Global Equity Select Fund Video

The Royal London global equity Select Fund is a high conviction stock picking fund, representing the best ideas from the global equity investment team here at RLAM. The fund itself is typically 30 to 40 holdings and each and every holding shares two key attributes.

The first is that every company in the portfolio is superior long-term shareholder wealth creating business and the second, just as importantly, is that each holding has very attractive valuation characteristics relative to the market.
We have a differentiated investment process built around our use of a corporate lifecycle concept and also an economic return framework.

It's a proven process that we have successfully employed for more than 15 years as an investment team and on top of that we also integrate environmental social and governance analysis directly into the investment process itself.
We do this first at the long-term shareholder wealth creation assessment stage and also secondly at the valuation stage.

For example we directly model environmental social and governance factors into our cash flow forecasts which impact our valuation work and ultimate decision making.
So what do you get with this fund and process? There are three key things to highlight, the first is that by having a differentiated investment process it tends to lead to very differentiated stock picking and this means the portfolio performance is driven by stock selection.

The second thing is the ESG analysis integrated into the process and all of the responsible investment activities we have here at RLAM.
This includes proxy voting on all of our holdings and extensive engagement with management teams around the world.
And finally, the third thing is because of the valuation focus in the fund the fund tends to perform best when value and valuation factors are dominating returns in financial markets.

 

Fund information

The main differences between the two funds are the number of holdings, performance target and volatility:

  • RLP Global Equity Diversified fund typically has around 175-225 holdings and aims to outperform the benchmark by 0.4%-0.8% p.a. over rolling three year periods (net of fees).
  • RLP Global Equity Select fund has a more focussed 25-45 holdings and aims to outperform the benchmark by 2.5% p.a. over rolling three year periods (net of fees). This may make this fund more volatile than the RLP Global Equity Diversified fund.

Benefits of the funds

  • a maximum annual charge of just 1% per annum*
  • diversified portfolio, offering a range of opportunities in a changing market environment.
  • differentiated investment process - a robust methodology based on acknowledged financial principles
  • managed by a well-established investment team, with a strong track record and over 15 years’ experience
  • equity overcode – can be used to replace the equity fund within our Governed Range
  • environmental Social and Governance (ESG) analysis is integrated directly into the investment process and decision making.
  • the funds follow RLAM’s Responsible Investment principles

*The basic charge is 1% p.a., which is built into the fund price. For all customers, a discount is applied and depends on the value of the investment.

Find out more about our Global Equity funds

We have a further three Global Equity funds managed by Royal London Asset Management (RLAM).

As well as an extensive range of Global Equity funds managed by a number of external fund managers. A full list of funds can be found in our Fund Range Summary.

This website is intended for financial advisers only and shouldn't be relied upon by any other person. If you are not an adviser please visit royallondon.com.

The Royal London Mutual Insurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. The firm is on the Financial Services Register, registration number 117672. It provides life assurance and pensions. Registered in England and Wales number 99064. Registered office: 55 Gracechurch Street, London, EC3V 0RL.