Royal London embeds tilts in pension range

Introduction of tilts in Royal London’s passive equity funds comes in bid to further boost RI

Jonathan Stapleton
clock • 1 min read
The tilts will increase holdings in firms with good ESG practices
Image:

The tilts will increase holdings in firms with good ESG practices

Royal London has introduced tilts to its £23bn passive equity funds - including in its flagship governed range – in a bid to further embed responsible investment across its propositions.

The insurer said the move will reduce the carbon intensity of the equity investment in its governed range by more than 10%.

It said the tilted equity funds will increase holdings of companies with good ESG practices and reduce holdings in companies with poorer practices. Royal London said these adjustments will be implemented to improve the ESG profile of the funds, without significantly impacting risk or returns and at no additional cost to customers.

Royal London chief commercial officer Julie Scott said: "The introduction of these tilts to our pension range is part of investing our customers' money responsibly to make a positive difference to the planet. We will also continue to engage with companies to promote positive change.

"We are committed to making investing responsibly easy. That's why we are making this enhancement to our default pension fund range, with no extra charge to our customers."

In June, Royal London outlined its climate commitments to achieve net zero across its investment portfolio by 2050; reduce its carbon equivalent emissions from the investment portfolio by 50% by 2030, while also developing climate solutions that enable customers to invest in the low carbon transition; and achieve Net Zero direct operational emissions by 2030.

More on Risk Reduction

Just completes largest ever deal in £345m buy-in

Just completes largest ever deal in £345m buy-in

Deferred-heavy deal completed at the end of 2021 in midst of ‘intense market’ conditions

James Phillips
clock 21 January 2022 • 1 min read
PIC and IMI agree fifth buy-in in £250m deal

PIC and IMI agree fifth buy-in in £250m deal

Around 1,200 members were covered by the deal, with 80% of scheme now insured

James Phillips
clock 21 January 2022 • 2 min read
Pensions de-risking deals set to hit record £65bn this year

Pensions de-risking deals set to hit record £65bn this year

Despite subdued market 2021 also expected to be third busiest year after H2 stampede

James Phillips
clock 20 January 2022 • 2 min read
Trustpilot