Active fixed income

We believe that consistency of returns is important across all fixed income markets, and we have a strong track record of diversifying risk in our portfolios since the early 1970s. Using diversified portfolios of traditional bonds to generate alpha in a risk managed approach, we are able to respond nimbly to opportunities when they arise, all while aiming to deliver performance over multiple market cycles.

We bring together the best of LGIM’s expertise across a trinity of fixed income, equity and investment stewardship to collaboratively identify long-term fixed income themes and risks through the lens of sustainability. This collaborative approach also empowers fund managers to delegate management of specialist asset classes to sector experts in a risk-balanced way.

In line with our purpose to create a better future through responsible investing, we aim to incorporate sustainability considerations consistently across our product range using a range of techniques. Our Global Research & Engagement Groups – described in more detail below – draw on LGIM’s Active View ESG scoring tool, engagement activities and proprietary frameworks for aligning to Net Zero and the UN’s Sustainable Development Goals (SDGs).

• Engage with companies for positive change through our Global Research and Engagement Groups (GREGs)
• Focus on ESG as a financial risk at the sector and issuer level

• Seeking positive outcomes through targeted alignment to the United Nations’ Sustainable Development Goals (SDG) Framework
• Exclusion of negatively aligned companies and governments

• Decarbonisation objectives based on our proprietary LGIM Destination@Risk model
• Targeting temperate alignment of 1.5C by 2030, consistent with a net zero target by 2050