The UCITS III fund will invest primarily in UK-listed companies and will consist of a concentrated portfolio of 40-60 holdings, aiming to deliver a combination of capital growth and income over the medium to long term.
The fund seeks to achieve annualized returns of 2-3% per annum in excess of its benchmark, the FTSE All-Share Index, according to RLAM.
The fund will be managed by Bradley Mitchell, who has more than 20 years’ experience of UK equities and has been the manager of the Scottish Life Ethical Equity Pension Fund since March 2004.
The fund, placed in the IMA UK All Companies sector, has an initial charge of 4% and an annual management charge of 1.4%, with a minimum investment of £1,000.
Mitchell said there is increasing demand from investors for a range of solutions to help them align their ethical and social priorities with the need for investment returns.
"Having run an ethical portfolio that has consistently outperformed its benchmark, it is clear to us that the former does not have to come at the expense of the latter," Mitchell concluded.
