Royal London Asset Management has announced the launch of Global Equity Transitions, the latest addition to the house’s range of global equity investment strategies.
The new fund will invest in companies that play “a material role in the areas of climate transition, natural capital preservation, health and wellbeing, and equality of opportunity” and will own companies that are on the path to sustainability or facilitate the transition of others.
It will be managed by Bixuan Xu, who has been with Royal London since 2021 and was previously an analyst at Allianz Global Investors.
Xu will manage a portfolio of 40 to 60 companies that “can make a real contribution to the transition to a more sustainable world” and have demonstrated a record of active shareholder engagement.
The selection process will follow Royal London’s Corporate Life Cycle approach, which divides companies into five categories, according to what stage of their life cycle they are in, from early-stage accelerators and growth compounders to more mature returners and turnarounds. It will also align with Article 8 principles.
Rob Williams, chief distribution officer at Royal London, said: “The companies faced with the biggest challenges are those with the potential to make the biggest difference, particularly as environmental and social concerns become more acute. By engaging with these businesses and aiding their transition, we believe we can facilitate meaningful contributions to a more sustainable world, whilst also providing investors with opportunities to access highly attractive sources of return.”