The new fund provides diversified access to multiple long-term themes
26 Apr 2021
Legal & General Investment Management (LGIM) has today announced the launch of a Global Thematic Fund. Through this fund, investors will be able to access multiple investment themes focused on innovation and long-term growth while seeking to maximise diversification.
The fund, which is structured as an onshore unit trust, has been designed specifically for UK investors following an increasing demand for access to multiple themes. As a renowned specialist1 in constructing thematic investment funds, LGIM has brought together eight investment themes into the Legal & General Global Thematic Fund (‘the Fund’), in the areas of technology, energy and resources and changing demographics, all of which are currently available to investors via a suite of L&G building-block ETFs.
By combining the investment universes of its existing individual thematic strategies, LGIM has created a simple and easily accessible fund for investors seeking exposure to a portfolio of companies that we believe are positioned to benefit from these long-term themes. This fund brings together LGIM’s deep expertise in active index design, active research, and investment stewardship alongside tracker-like implementation.
With an underlying investment universe of just over 400 stocks the Fund uses a quantitative allocation model to provide exposure to growth themes while seeking to maximise diversification. This model aims to improve overall portfolio volatility and return characteristics as each theme evolves over time, weighting the underlying thematic strategies so that they contribute approximately the same level of risk to the Fund. The underlying thematic strategies invest in unique stocks not typically captured by traditional market cap weighted benchmarks, and the Fund therefore allows investors to complement their existing investments with exposure to a wider range of growth-oriented companies.
The Fund itself will be managed by Dave Barron, Head of Index Equity and Smart Beta at LGIM and is benchmarked against the MSCI World Total Return Net Index. As one of the largest providers of index funds in the UK, LGIM has offered index products to customers for over 30 years. This fund will leverage LGIM’s scale, index and ETF expertise while seeking to minimise transaction costs, savings which can be passed back to investors.
James Crossley, LGIM’s Head of UK Retail Sales: "Thematic investing has risen in popularity in recent years, thanks to its ability to capitalise on the structural and foundational changes shaping our society.
However, we often hear from clients about the challenges of accessing ETFs and having to choose between specific investment themes, and in designing the Global Thematic Fund, we wanted to make that decision easier. By providing a single point of entry to a diversified universe of companies, the fund offers investors access to a broad range of growth opportunities. We believe it to be an attractive proposition for advisers seeking differentiated investment ideas for clients and a unique and cost-effective way to invest in the themes that are shaping the future of our environment, work and society."
Aanand Venkatramanan, Head of ETF Investment Strategies at LGIM: "The Global Thematic Fund complements the success of LGIM’s ETF and thematic businesses, offering clients simple access to diversified themes, which traditionally have been difficult to capture in a single product. We are proud of the strong track record of the existing strategies within our thematic universes and are pleased to bring the investment philosophy to a wider investor audience."
Senior PR Manager
Legal & General Investment Management
T: +44 (0)20 3124 4363
Established in 1836, Legal & General is one of the UK's leading financial services groups and a major global investor, with over £1.2 trillion in total assets under management* of which a third is international. We also provide powerful asset origination capabilities. Together, these underpin our leading retirement and protection solutions: we are a leading international player in pension risk transfer, in UK and US life insurance, and in UK workplace pensions and retirement income. Through inclusive capitalism, we aim to build a better society by investing in long-term assets that benefit everyone.
*at 31 Dec 2022
Legal & General Investment Management
Legal & General Investment Management is one of Europe’s largest asset managers and a major global investor, with total assets under management of £1.2 trillion1 ($1.4tn, €1.4tn, CHF 1.4tn). 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.
*at 31 Dec 2022
1LGIM internal data as at 31 December 2022. These figures include assets managed by LGIMA, an SEC Registered Investment Advisor. Data includes derivative positions.
Important Information: For professional clients only. Past performance is not a guide to the future. 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. Assumptions, opinions and estimates are provided for illustrative purposes only. There is no guarantee that any forecasts made will come to pass. Views expressed are of LGIM as at 17/02/2023. The Information in this document (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.