Our approach to responsible investment

You can read about our approach to responsible investment here.

As investors with long-term investment goals, we believe that incorporating some responsible investment principles, such as shareholder engagement, within the investment process is in customers’ best interests. We want to be at the forefront of thinking in this area and will challenge and support our fund managers to achieve sustainable investment returns.

Assessing our fund managers

We have created a set of standards for Responsible Investment and we use these to measure our fund managers. This includes demonstrating how ESG and stewardship are integrated into their procurement, internal governance and investment processes. Around 98% of our pension assets are invested with Fund Managers who achieve ‘Advanced’ or ‘Intermediate’ status.

Royal London Asset Management (RLAM)

RLAM manage just over 85% of our pension assets and take their responsibilities as shareowners on our behalf seriously. They actively engage with UK companies they invest in according to principles of good corporate governance in line with their voting policy.

You can view RLAM's voting record here.

Environmental, Social and Governance factors (ESG)

There is some exposure to investments with a high ESG score within the Governed Portfolios and Governed Retirement Income Portfolios. This is via the emerging market equity holding that tracks the MSCI Emerging Markets ESG Index and favours companies in emerging markets that have high environmental, social and governance (ESG) scores relative to their sector peers.

In addition, we have a range of socially responsible investment (SRI) and Shariah funds. These are funds shaped by social, environmental and other ethical parameters.

Fund NameFund ManagerFund Manager ChargeAdditional ExpensesTotal Expense Ratio
RLP Emerging Markets Equity Tracker Royal London Asset Management 1.00% 0.00% 1.00%
RLP Ethical Bond Royal London Asset Management 1.00% 0.00% 1.00%
RLP Sustainable Diversified Trust Royal London Asset Management 1.00% 0.00% 1.00%
RLP Sustainable Leaders Trust Royal London Asset Management 1.00% 0.00% 1.00%
RLP Sustainable Managed Growth Trust Royal London Asset Management 1.00% 0.00% 1.00%
RLP Sustainable Managed Income Trust Royal London Asset Management 1.00% 0.00% 1.00%
RLP Sustainable World Trust Royal London Asset Management 1.00% 0.00% 1.00%
RLP/HSBC Amanah Global Equity Index HSBC 1.00% 0.25% 1.25%
RLP/Jupiter Ecology Jupiter 1.70% 0.03% 1.73%

UN Principles of Responsible Investing

The United Nations-backed Principles for Responsible Investment (PRI) is a set of six Principles developed by a network of international investors and reflect the view that the integration of environmental, social and corporate governance issues into investment management can all have a positive impact on investment performance.

UK Stewardship Code

The UK Stewardship Code consists of seven principles and is aimed at investment managers with the aim of enhancing engagement between manager and investor. Better engagement can ultimately lead to better long-term returns, achieved by efficiently exercising governance responsibilities.

Artemis Baillie Gifford BlackRock Dimensional First State Investments  Man GLG Janus Henderson HSBC Invesco Investec J.P. Morgan Asset Management Jupiter RLAM M&G Neptune Close Newton Rathbones Sarasin Schroders Seven Investment Management Standard Life Investments  UBS

Find out more

For more information see our Socially Responsible Investment leaflet.

Last updated: 11 Mar 2019

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.