The aim is to invest in bonds that have been issued by socially-aware companies and will invest the portfolio in sterling investment grade bonds. Up to 20% may be held in unrated bonds. 75% of research is produced internally.
An independent EIRIS screen researches approximately two-thirds of the companies that could be considered. Royal London carry out their own research on ethical companies to improve the risk/return profile and achieve diversification.
The filtering system ensures that any issuer of the fund's holdings does not produce more than 10% of its annual turnover from a combination of any of the following:- Alcohol, armaments, gambling, tobacco, and pornography.