Broad Equity
Broad equity market exposure with improved climate and governance characteristics
Our equity tilt range: Actively tilting for you.
Equity Tilt Strategies - In depth
Our proven equity tilt methodology - now available in ETF wrappers - systematically enhances broad market exposure across climate, governance and quality dimensions while staying closely aligned to benchmark characteristics.
What are tilts?
Climate risk is increasingly shaping investment markets. We understand that our clients need solutions that balance financial performance with credible climate objectives.
Our Tilt funds aim to provide that balance. They offer a compelling alternative to traditional active and passive strategies by minimising risk, while incorporating ESG considerations at a comparable cost to a tracker fund.
Tilt strategies take broad market indices and apply hundreds of small over- and underweights based on proprietary research scores covering climate transition, governance quality and financial resilience. Unlike concentrated stock-picking, tilts preserve diversification and benchmark risk while delivering gradual portfolio improvements.
Key Benefits
Low pricing
Low and consistent pricing across the range
Net-zero
Net-zero objectives embedded within a low active risk approach
Our process
We begin with replicating the holdings of the benchmark. By starting from the same underlying universe, portfolios maintain broad market exposure and familiar benchmark characteristics.
We then take a large number of small active weights relative to the benchmark. These 'tilts' gradually reshape the portfolio - for example by reducing exposure to high carbon emitters - while preserving diversification and keeping tracking error low.
Move away
from traditional cap weighted benchmarks
Move towards
strong portfolio level ESG metrics
Increase support
for companies that align with a lower carbon future
Decrease support
for high emitters
A stronger ESG profile
To achieve a stronger ESG profile than the index, we actively incorporate scoring across three areas:
Environmental:
Our goal is to create a portfolio with a significantly lower carbon emissions profile than the market by reducing our weightings to the biggest carbon emitters.
Social:
We reduce exposure to companies that fail to meet the principles of the United Nations Global Compact or derive material revenues from tobacco or nuclear weapons.
Engagement:
Rather than excluding companies outright, we focus on active engagement. Our funds aim to avoid poor governance by aligning with Royal London Asset Management's good governance policy.
Experience & scale
The Quantitative Equities team aims to deliver the best outcomes for clients through implementation, operational efficiency, infrastructure, research and development. Scale & breadth: £39.0bn* AUM in systematically invested equity strategies across all major regions Experienced: Our experienced team of portfolio managers is supported by quantitative analysts and assistants.
Insights: The team collaborates closely with the Responsible Investment team to ensure that the funds deliver on their carbon objective. This collaboration leverages investment expertise across both teams.
*Source: Royal London Asset Management 31 December 2024.
Matt Burgess
Head of Quantitative Equities
Nils Jungbacke
Senior Fund Manager
Michael Sprot
Fund Manager
JoJo Chen
Fund Manager
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