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 £1.29 trillion1. 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.
1Globally, we manage assets of £1.42 trillion or CHF 1.75 trillion as at 31 December 2021 (source: LGIM internal data as at 31 December 2021). The 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.
*at 11 Jan 2023
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. For illustrative purposes only. Reference to a particular security is on a historical basis and does not mean that the security is currently held or will be held within an LGIM portfolio. The above information does not constitute a recommendation to buy or sell any security. Views expressed are of LGIM as at 3 January 2023.
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In the European Economic Area, it is issued by LGIM Managers (Europe) Limited, authorised by the Central Bank of Ireland as a UCITS management company (pursuant to European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 2011 (S.I. No. 352 of 2011), as amended) and as an alternative investment fund manager with "top up" permissions which enable the firm to carry out certain additional MiFID investment services (pursuant to the European Union (Alternative Investment Fund Managers) Regulations 2013 (S.I. No. 257 of 2013), as amended). Registered in Ireland with the Companies Registration Office (No. 609677). Registered Office: 70 Sir John Rogerson's Quay, Dublin, 2, Ireland. Regulated by the Central Bank of Ireland (No. C173733).
LGIM Managers (Europe) Limited operates a branch network in the European Economic Area, which is subject to supervision by the Central Bank of Ireland. In Italy, the branch office of LGIM Managers (Europe) Limited is subject to limited supervision by the Commissione Nazionale per le società e la Borsa ("CONSOB") and is registered with Banca d'Italia (no. 23978.0) with registered office at Piazza della Repubblica 3, 20121 Milan, (Companies' Register no. MI - 2557936). In Germany, the branch office of LGIM Managers (Europe) Limited is subject to limited supervision by the German Federal Financial Supervisory Authority ("BaFin"). In the Netherlands, the branch office of LGIM Managers (Europe) Limited is subject to limited supervision by the Dutch Authority for the Financial Markets ("AFM") and it is included in the register held by the AFM and registered with the trade register of the Chamber of Commerce under number 74481231.Details about the full extent of our relevant authorisations and permissions are available from us upon request. For further information on our products (including the product prospectuses), please visit our website.