Effective 20 June 2025, Royal London Asset Management is proud to confirm that all eight UK-domiciled funds in its sustainable range have officially adopted the FCA’s Sustainability Disclosure Requirements (SDR) Sustainability Focus label.
This milestone reflects a long-standing commitment of more than 20 years to sustainable investing and positions us as a trusted partner for financial advisers and investors seeking credible, transparent solutions in a fast-evolving regulatory environment.
A full spectrum of ‘sustainability focus’ labelled funds to choose from
Funds that invest mainly in assets that focus on sustainability for people or the planet.
Our Royal London sustainable fund range spans the full asset allocation spectrum—from fixed income to mixed asset and equity strategies.
The eight funds with sustainability focus labels are:
Fixed Income:
Royal London Sustainable Short Duration Corporate Bond
Royal London Sustainable Corporate Bond
Mixed Asset:
Royal London Sustainable Managed Growth Trust
Royal London Sustainable Diversified Trust
Royal London Sustainable Growth Fund
Royal London Sustainable World Trust
Equity:
Royal London Global Sustainable Equity Fund
Royal London Sustainable Leaders Trust
Royal London Asset Management is delighted to be able to provide a full range of eight funds spanning asset classes, including fixed income funds, to meet a range of sustainable investing needs for clients.
“Our sustainable strategies have both single asset and mixed asset funds that are managed collaboratively by the equities and credit teams. We champion innovation and social progress by embracing a future-focused approach that supports companies that make the world clean, healthy, safe and inclusive. Navigating challenging markets, we are optimistic about the ability of sustainable companies to deliver strong returns over the long term.” Piers Hillier, Chief Investment Officer
A consistent and embedded approach
All eight funds follow a consistent sustainable investing approach and sustainability objectives, designed to invest in companies and issuers that contribute positively to environmental and/or social outcomes.
This is done by ensuring at least 70% of the fund is invested in companies and issuers that meet our sustainability standard – these are companies that contribute positively to one or more sustainability themes—clean, healthy, safe, and inclusive through what they do (products and services) and through how they do it (operations) to encourage good corporate behaviour. The standard is that at least 50% of a company’s revenues must be derived from products or services aligned to one or more of the four sustainability themes, alongside rigorous financial analysis and governance evaluation.
These objectives are not aspirational—they are embedded into the investment process and enriched with in-depth sustainable analysis that uncovers insights too often overlooked.
Robust sustainable investment process
Our robust sustainable investment process is both rigorous and methodical, ensuring every asset aligns with clearly defined environmental and social objectives. The process includes:
- In-depth research: Comprehensive, evidence-based analysis of each company or issuer.
- Dual-layered screening:
- Exclusionary screen removes entities that contradict the fund’s sustainability goals.
- Conflict screen filters out those misaligned with our core sustainability themes.
- Revenue alignment: To be a Sustainable company, 50–100% of their revenues must be derived from products or services aligned with sustainability themes. At least 70% of the fund must meet this standard.
- Governance oversight: All research investment recommendations are reviewed and validated by our Sustainable Investments Forum, ensuring consistency and accountability.
Active engagement
Our sustainable investing commitment to sustainability goes beyond screening. We actively engage with companies to improve their ESG performance, using its influence as both bondholder and shareholder to drive meaningful change.
This includes prioritising companies with:
- Strong climate transition plans
- Social impact initiatives
- High ESG and sustainability ratings
Focused, yet adaptable solutions that are client-centric
Our investment approach is intentionally designed to be both focused and adaptable—ensuring we stay aligned with clients’ evolving needs and market opportunities. The sustainable fund range offers broad flexibility across asset classes, providing advisers and investors with meaningful choice.
“Adopting the sustainability focus label across all eight funds in our sustainable range was a deliberate and essential step. Few managers in the market currently offer SDR-labelled funds that span the full spectrum—from equities and mixed assets to fixed income—under the sustainability focus label. It reflects our commitment to consistency, transparency, and meeting the highest regulatory standards—while giving our clients the confidence that they are investing in solutions built for long-term impact.” – Ed Venner, Chief Client Officer
For professional investors only. This material is not suitable for a retail audience. Capital at risk. This is a financial promotion and is not investment advice. Past performance is not a guide to future performance. The value of investments and any income from them may go down as well as up and is not guaranteed. Investors may not get back the amount invested. Portfolio characteristics and holdings are subject to change without notice. The views expressed are those of the author at the date of publication unless otherwise indicated, which are subject to change, and is not investment advice.
