As at 31 Aug 2023
The Fund aims to provide investors a return in line with the performance of the global corporate bond market, as represented by the J.P. Morgan Global Credit Index (GCI) ESG Investment Grade Custom Maturity Index (the "Index").
The Index Fund Management team comprises 25 fund managers, supported by two analysts. Management oversight is provided by the Global Head of Index Funds. The team has average industry experience of 15 years, of which seven years has been at LGIM, and is focused on achieving the equally important objectives of close tracking and maximising returns.
LGIMIndex Fund Management Team
SFDR categorisation: Article 8Article 8: These funds promote environmental and/or social characteristics
The Fund promotes the following environmental characteristics relating to climate change:
The Fund also promotes the following other environmental characteristics:
The Fund promotes the following social characteristics relating to social norms and standards:
No reference benchmark has been designated for the purpose of attaining the environmental or social characteristics promoted by the Fund.
Whilst environmental and social characteristics are promoted through the application of the sustainability-related investment strategy, investors are reminded that these environmental and social characteristics are not sustainable investment objectives.
The Fund follows the following sustainability-related investment strategy by tracking the Index that applies:
The Index:
The Index positively tilts towards issuers ranked higher on ESG criteria and underweights lower ranking issuers. The Index applies JESG issuer scores to adjust the market value of index constituents from the baseline index. JESG issuer scores are a 0-100 percentile rank calculated based on normalized raw ESG scores from third-party research providers, including Sustainalytics and RepRisk. An issuer’s finalized JESG score incorporates a 3-month rolling average. Quasi-Sovereign issuers with no coverage from either third-party research provider default to their sovereign JESG score. The JESG scores are divided into five bands that are used to scale each issue’s baseline index market value, with the band rebalance occurring on a quarterly basis.
JESG Score Bands Scalar
Band 1: Score > 80 1.00
Band 2: 60 < Score <= 80 0.80
Band 3: 40 < Score <= 60 0.60
Band 4: 20 < Score <= 40 0.40
Band 5: Score <= 20 0.00
Issuers in Band 5 will be excluded from the index and will not be eligible for twelve months. If an instrument is categorized as a “green bond” by the Climate Bonds Initiative, the security will receive a one-band upgrade. Green bonds upgrades may happen intra quarter. Green bonds by issuers already in Band 1 will not receive any further upgrades.
Additionally, the Index incorporates positive screening techniques whereby ‘green’ bonds (bonds which are created to fund projects that have positive environmental and/ or climate benefits) of the same issuer are prioritised by the Index.
Further information on the index methodology can be found at: https://www.jpmorgan.com/insights/research/index-research/composition-docs
While the Fund promotes environmental and social characteristics within the meaning of Article 8 of the SFDR, it does not currently commit to investing in any “sustainable investments” within the meaning of the SFDR. Accordingly, it should be noted that the investments underlying the Fund do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.
While the Fund promotes environmental and social characteristics within the meaning of Article 8 of the SFDR, it does not currently commit to investing in any “sustainable investments” within the meaning of the SFDR.
Further information on LGIM's Sustainable Investment Methodology can be found here.
The Fund considers principal adverse impacts on sustainability factors and LGIM has identified a subset of the adverse sustainability indicators that are relevant to the Fund’s investments. The Fund considers principal adverse impacts, identified using the below listed sustainability indicators, through the implementation of the Fund’s ESG investment strategy.
This fund is closed on both UK and Irish public holidays. For further details, please see the Non-Trading Days document here.
N.B. Public Bank Holidays are greyed out in the calendar below.
This share class is registered for sale in the following countries:
Legal & General (Unit Trust Managers) Limited
PO Box 6080
Wolverhampton
WV1 9RB
Tel : 0370 050 0955
Email: investments@landg.com
Legal & General ICAV
LGIM Liquidity Funds Plc
Northern Trust International Fund Administration Services (Ireland) Limited
City East Plaza - Block A
Towlerton
Ballysimon Road
Limerick
Ireland
V94 X2N9
Fax: +353 1 434 5293
Telephone: +353 1 434 5080
Email: LGIM_ta_queries@ntrs.com
Legal & General SICAV
Northern Trust Global Services SE
10 Rue du Château d'Eau
L-3364 Leudelange
Grand-Duché de Luxembourg
Facsimile: +352 28 294 454
Telephone: +352 28 294 123
Email: LGIM-TA-LUX@ntrs.com
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.
This fund holds bonds that are traded through agents, brokers or investment banks matching buyers and sellers. This makes the bonds less easy to buy and sell than investments traded on an exchange. In exceptional circumstances the fund may not be able to sell bonds and may defer withdrawals, or suspend dealing. The Directors can only delay paying out if it is in the interests of all investors and with the permission of the fund depositary.
The fund invests directly or indirectly in bonds which are issued by companies or governments. If these companies or governments experience financial difficulty, they may be unable to pay back some or all of the interest, original investment or other payments that they owe. If this happens, the value of the fund may fall.
The fund could lose money if any institution providing services such as acting as counterparty to derivatives or other instruments, becomes unwilling or unable to meet its obligations to the fund.
Derivatives are highly sensitive to changes in the value of the asset on which they are based and can increase the size of losses and gains.
The fund may have underlying investments that are valued in currencies that are different from sterling (British pounds). Exchange rate fluctuations will impact the value of your investment. Currency hedging techniques may be applied to reduce this impact but may not entirely eliminate it.
We may take some or all of the ongoing charges from the fund's capital rather than the fund's income. This increases the amount of income, but it reduces the growth potential and may lead to a fall in the value of the fund.
Investment returns on bonds are sensitive to trends in interest rate movements. Such changes will affect the value of your investment.
This information is intended for investment professionals only and is for information purposes only. It should not be distributed without our permission.
No investment decisions should be made without first reviewing the key investor information document and prospectus (and any supplements thereto) of the relevant product which includes information on certain risks associated with an investment.
Unless otherwise agreed in writing, the Information on this website (a) is for information purposes only and we are not soliciting any action based on it, and (b) is not a recommendation to buy or sell securities or pursue a particular investment strategy; and (c) is not investment, legal, regulatory or tax advice. Any trading or investment decisions taken by you should be based on your own analysis and judgment (and/or that of your professional advisers) and not in reliance on us or the Information.
This information is only directed at investors resident in jurisdictions where each fund is registered for sale. It is not an offer or invitation to persons outside of those jurisdictions. We reserve the right to reject any applications from outside of such jurisdictions.
All information detailed on this website is current at the time of publication and may be changed in the future.
Source: Unless otherwise indicated all data contained on this website is sourced from Legal & General Investment Management Limited.
Where this document contains third party data ('Third Party Data’), we cannot guarantee the accuracy, completeness or reliability of such Third Party Data and accept no responsibility or liability whatsoever in respect of such Third Party Data
Issued by Legal & General Investment Management Limited as promoter and distributor for this fund in the UK.
Legal & General Investment Management Limited has been appointed as the discretionary investment manager for these Funds and is Registered in England and Wales No. 02091894. Registered Office: One Coleman Street, London, EC2R 5AA, United Kingdom. Authorised and regulated by the Financial Conduct Authority, No. 119272.
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