Proactively designed index strategies with ESG integration as standard
What distinguishes L&G ETF’s Fixed Income strategies?
ESG integration
Our fixed income ETF range is purpose built to give investors core fixed income exposure with ESG integration as standard, through tilting to issuers with stronger ESG profiles, allocating to green bonds, and excluding controversial sectors and UNGC violators.
Liquidity-aware
Our range benefits from an index approach that is optimised for liquidity and benefits from the expertise of our index portfolio managers and our fixed income dealing team.
Adding value
We have developed techniques to deliver more value when investing in bonds, such as avoiding crowded trades around rating actions and immediately reinvesting coupons; for the benefit of our investors, we are transparently incorporating these into the investment strategy of these ETFs.
L&G ETF
At L&G ETF, we offer solutions that seek to capture the opportunities, and mitigate the risks, of the rapidly shifting investment environment.
Investing more in issuers with strong ESG profiles
The index methodology for these ETFs both removes issuers with the weakest ESG profiles (by excluding sectors such as controversial weapons manufacturers, pure coal miners, and tobacco companies as well as the individual issuers with the lowest ESG scores) and invests more in bonds with the highest ESG scores, while retaining a similar risk/return profile to traditional indices.
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Key risks
The value of an investment and any income taken from it is not guaranteed and can go down as well as up, you may not get back the amount you originally invested. Past performance is no guarantee of future results.
Whilst LGIM has integrated Environmental, Social, and Governance (ESG) considerations into its investment decision-making and stewardship practices, this does not guarantee the achievement of responsible investing goals within funds that do not include specific ESG goals within their objectives.
The risks associated with each fund or investment strategy should be read and understood before making any investment decisions. Further information on the risks of investing in this fund is available in the prospectus at. http://www.lgim.com/fundcentre