The Fund will enable investors to access LGIM’s successful active European Corporate bond strategy in combination with the firm’s proprietary ESG approach.
22 Oct 2019
Legal & General Investment Management (LGIM) today announced the launch of the L&G Euro Corporate Bond Fund (Responsible Exclusions)1 for European institutional and wholesale investors2.
The Fund’s objective is to deliver capital growth and income by investing in a broad range of predominately euro-denominated corporate bonds. It aims to outperform the Markit iBoxx Euro Corporates Total Return index by 0.5% per annum, over a three-year rolling period, gross of fees, while excluding companies that are on the Responsible Exclusions list.
The Responsible Exclusions list includes bonds issued by companies involved in the production of controversial weapons, nuclear weapons or firearms. Additionally, the Fund will restrict its investments in bonds of companies deriving their revenues from the production of tobacco or coal, or that are UNGC offenders. The list will be reviewed on an annual basis.
An important addition to LGIM’s existing Euro Credit strategies3, the new Fund will be managed by Lan Wu, Euro Credit Portfolio Manager, and the wider team headed up by Marc Rovers. The team is managing a range of Euro Credit strategies, with AUM totaling to over €5bn4.
Lan Wu, Euro Credit Portfolio Manager at LGIM, added: “Investor demand for European credit strategies with responsible exclusions continues to grow. The fund is specifically designed to provide capital growth and income while maintaining diversification, drawing on LGIM’s European credit expertise combined with our proprietary ESG approach. We believe we are one of the few active credit managers to be able to offer a solution in this space with a cost-competitive product that is based on our strong track record and capability. In doing so, we are also leveraging the expertise of our global fixed income and other investment teams for the benefit of our clients."
The L&G Euro Corporate Bond Fund (Responsible Exclusions) is registered for distribution to institutional and wholesale investors in Germany, the Netherlands, Sweden, Denmark, Norway, Finland, Ireland, Luxembourg and the UK. In Italy the Fund is registered for institutional investors only.
1 L&G Euro Corporate Bond Fund (Responsible Exclusions) is a SICAV structure Fund
2 In Italy the Fund is registered for institutional investors only
3 Inception date since 2007
4 As of of the end of Q2 2019
5 LGIM internal data as at 30 June 2019. These figures include assets managed by LGIMA, an SEC Registered Investment Advisor. Data includes derivative positions.
Volker Kurr, Head of Europe Institutional, LGIM: "After numerous conversations with European institutional investors, we have identified a strong demand from institutional investors for exposure to European credit while meeting their ESG requirements at the same time. With this new fund we are offering investors the opportunity to invest in our long-standing Euro Credit strategy and simultaneously to take advantage of our strong and established expertise in responsible investing."
Legal & General Investment Management
LGIM is one of Europe’s largest asset managers and a major global investor, with total assets under management of £1.16 trillion1 ($1.47tn, €1.35tn, CHF 1.31tn). We work with a wide range of global clients, including pension schemes, sovereign wealth funds, fund distributors and retail investors.
For more than 50 years, we have built our business through understanding what matters most to our clients and transforming this insight into valuable, accessible investment products and solutions. We provide investment expertise across the full spectrum of asset classes including fixed income, equities, commercial property, and cash. Our capabilities range from index-tracking and active strategies to liquidity management and liability-based risk management solutions.
1 Data as at 30 June 2023. Data combines assets under management by LGIM in the UK, LGIMA in the US and LGIM Asia in Hong Kong.
Assets under management include securities and derivatives positions
*as at HY 2023