Quick-start funds
Royal London funds selection rationale

Royal London Sustainable Managed Growth Trust

The team is led by Mike Fox who has been part of the sustainable team since its formation in 2003. George Crowdy and Sebastian Beguelin joined the team in 2020 before becoming co-managers in April 2021, working alongside Fox on the equity side. Shalin Shah, who has been with the bonds team since 2008, took over from Richard Nelson on the fixed income side in October 2020 when he stepped away from the sustainable range.

Fox looks to invest in companies that deliver a net benefit to society in terms of the products and services they provide, or which show leadership in environmental, social, and governance (ESG) management. Although the manager can invest across the market, since 2009 he had a consistent large-cap bias. Equities typically range from 0% to 35%, and in recent years there has been a concerted move to becoming more global in nature.

For bonds, Shah looks for similar ESG characteristics and makes use of the team's in-depth credit research and expertise in secured bonds. The bonds part of the portfolio is mainly populated with sterling denominated, higher-rated corporate bonds. There is no allocation to government bonds. Given its sustainability remit, the strategy has had a consistent bias towards bond issuers from the social housing sector, retail banks and insurers, while green bonds are also a feature.

Opinion

The funds is a strong choice for investors looking for modest income and capital growth from a portfolio centred around bonds, with some exposure to equities, using a sustainability approach that has been used in a disciplined manner over time. Fox and Shah are experienced investors and are supported by an experienced and respected team that is well-versed in the sustainable process employed here.

Royal London Sustainable Diversified Fund

The team is led by Mike Fox who has been part of the sustainable team since its formation in 2003. Shalin Shah, who has been with the bonds team since 2008, took over from Richard Nelson on the fixed income side in October 2020 when he stepped away from the sustainable range. George Crowdy and Sebastian Beguelin joined the team in 2020 before becoming co-managers in April 2021. They work alongside Fox on the equity side and were brought in, in part to reflect the team's desire to widen the investment universe outside of the UK and due to the fund's size increasing significantly.

Fox is head of sustainability and looks to invest in companies that deliver a net benefit to society in terms of the products and services they provide, or which show leadership in environmental, social, and governance (ESG) management on the equities side. On the fixed-income side, Shah looks for similar characteristics, but high quality bonds make up the core and are complemented by issuers that are currently out of favour but where he can see clear catalysts for improvement.

The equity portion of the portfolio will typically comprise 40-50 names with top 10 holdings making up the lion's share. Although the manager can invest across the market, since 2009 he has had a consistent large-cap bias in the belief that bigger companies with their resources are better placed to address sustainability issues that society faces while still being able to generate good long-term returns for shareholders.

Equities typically range from 50% to 60%, and in recent years there has been a concerted move to becoming more global in nature.

The bonds part of the portfolio is mainly populated with higher-rated corporate bonds, with a sizeable allocation to securitized bonds and no allocation to government bonds.

Opinion

The fund is a strong choice for investors looking for modest income and capital growth from a portfolio centred around bonds, with some exposure to equities, using a sustainability approach that has been used in a disciplined manner over time.

Fox and Shah are experienced investors and are supported by an experienced and respected team that is well-versed in the sustainable process employed here. They also leverage wider teams at Royal London Asset Management.

Royal London Sustainable World Trust

The team is led by Mike Fox who has been part of the sustainable team since its formation in 2003. Shalin Shah, who has been with the bonds team since 2008, took over from Richard Nelson on the fixed income side in October 2020 when he stepped away from the sustainable range. George Crowdy and Sebastian Beguelin joined the team in 2020 before becoming co-managers in April 2021. They work alongside Fox on the equity side and were brought in, in part to reflect the team's desire to widen the investment universe outside of the UK and due to the fund's size increasing significantly.

Fox is head of sustainability and looks to invest in companies that deliver a net benefit to society in terms of the products and services they provide, or which show leadership in environmental, social, and governance (ESG) management on the equities side. On the fixed-income side, Shah looks for similar characteristics, but high quality bonds make up the core and are complemented by issuers that are currently out of favour but where he can see clear catalysts for improvement.

The equity portion of the portfolio will typically comprise 50-60 names and while the managers can invest across the market, the portfolio typically has a  consistent large-cap bias as the managers believe the resources of bigger companies allow them to be better placed to address sustainability issues faced by society, while still being able to generate good long-term returns for shareholders.

Equities typically range from 75% to 85%, and in recent years there has been a concerted move to becoming more global in nature.

The bonds portion of the portfolio is mainly populated with higher-rated corporate bonds, with a sizeable allocation to securitized bonds and no allocation to government bonds.

Opinion

The fund is a strong choice for investors looking for modest income and capital growth from a portfolio centred around equities and using a sustainability approach that has been used in a disciplined manner over time.

Fox and Shah are experienced investors and are supported by an experienced and respected team that is well-versed in the sustainable process employed here. They also leverage wider teams at Royal London Asset Management.