Responsible Investing - Multi-Asset Funds- ESG Criteria- RL360

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The ESG Multi-Asset Fund follows an asset allocation policy that seeks to maximize total return in a manner consistent with the principles of environmental, social and governance “ESG”- focused investing. The Fund invests globally in the full spectrum of permitted investments including equities, fixed income transferable securities (which may include some high yield fixed income transferable securities), units of undertakings for collective investment, cash, deposits and money market instruments. 


The Investment Adviser (IA) will take into account certain ESG characteristics when selecting the securities to be held directly by the Fund. In doing so, the IA will seek to limit and/or exclude direct investment (as applicable) in issuers which, in the opinion of the IA, have exposure to, or ties with, certain sectors. The IA will also limit direct investment in securities of issuers involved the production, distribution or licensing of alcoholic products, the ownership or operation of gambling-related activities or facilities, production, supply and mining activities related to nuclear power and production of adult entertainment materials. The Fund adopts a “best in class” approach to sustainable investing. This means that the Fund selects the best issuers (from an ESG perspective) for each relevant sector of activities. More than 90% of the issuers of securities the Fund invests in are ESG rated or have been analysed for ESG purposes. The application of the ESG criteria described above reduces the portfolio of the Fund compared to the Index by at least 20%. The Fund may gain limited exposure to issuers that do not meet the ESG criteria Described above.




The Fund aims to provide capital growth over the long term (5 years or more) by investing in companies that are responsibly run, giving due consideration to environmental, social and governance issues. The Fund will avoid investing in companies that the Investment Manager considers to potentially have a negative impact on the development of a sustainable global economy. The Fund invests in shares (also known as equities) and bonds of companies and issuers, in any industry, in any country, and will normally have significant allocations to the UK as well as other countries. 


The Fund is actively managed with reference to the Investment Association Mixed Investment 40–85% Shares sector average, which is based on a peer group of broadly similar funds, as this limits the level of exposure the Fund may have to company shares. The investment manager has a high degree of freedom to choose individual investments for the Fund and to vary allocations between asset types within the constraints of the sector.