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Fund Solutions

LGIM Rolls Out First Fund in Future World Range

Legal and General Investment Management (LGIM) has launched the L&G Future World ESG Emerging Markets Government Bond Local Currency Index Fund. The Article 8 EU Sustainable Finance Disclosure Regulation compliant fund provides investors with access to a “significantly enhanced” sovereign risk ESG framework for the integration of ESG across sovereign debt. This is the first of three funds in LGIM’s Index Fixed Income Sovereign Risk ESG Future World fund range. Over the next few months, this fund is set to be followed by the launch of the L&G Future World ESG Developed Markets Government Bond Index Fund and the L&G Future World ESG Emerging Markets Government Bond (USD) Index Fund. The three funds will also incorporate ESG factors and a new fourth ESG pillar, referred to as ‘geopolitical stability/risk’. This risk factor has the objective of identifying risks beyond headline sustainability metrics, which LGIM believes offers a “more comprehensive risk assessment of investing in Government debt”. LGIM has also designed and implemented a proprietary sovereign ESG score momentum factor to be incorporated by the fund range. Lee Collins, Head of the Index Fixed Income Desk at LGIM, said: “Whilst ESG integration in equities and corporate bonds exposures is a well-trodden path, it’s fair to say that developments in the Sovereign ESG sector have lagged behind. We believe that with several unique features, these new products will offer investors a deeper ESG integration in the asset class.” 

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