LGIM, a prominent investment firm, has introduced the L&G Future World ESG Emerging Markets Government Bond Local Currency Index Fund.
The inception of this new fund is fuelled by the necessity for a more nuanced approach to sovereign risk in ESG frameworks. Recognising the inherent income bias in sovereign ESG scores, LGIM seeks to democratise access to capital for nations requiring it most, whilst incentivising improvement in ESG practices.
LGIM’s role in the financial sphere is multifaceted, primarily focusing on investment management. They are esteemed for providing strategic solutions that combine traditional investment wisdom with innovative financial tools, catering to a diverse range of clients and sectors.
The newly launched product offers a comprehensive ESG framework that integrates a unique blend of environmental, social, governance, and geopolitical stability factors. This approach is designed to provide investors with a more holistic assessment of government debt risks.
Additional features of the funds include ‘wealth bands’, a proprietary ESG score momentum factor, and methodologies aligned with key sustainable investment initiatives. These elements collectively aim to offer a fairer and more forward-looking investment opportunity within the government bond market.
Further details about the funds reveal a collaborative effort with industry experts, ensuring the integration of best-in-class methodologies and data analytics. This reflects LGIM’s commitment to innovation and ethical investment practices.
Lee Collins, Head of Index Fixed Income at LGIM, shared his enthusiasm for the launch: “Following 18 months of research and development, we are delighted to be launching our first, LGIM designed, Index fixed income Sovereign ESG products, collaborating with industry leaders like JP Morgan & Verisk Maplecroft to bring this to market.
“Whilst ESG integration in equities and corporate bonds exposures is a well-trodden path, it’s fair to say that developments in the Sovereign ESG sector have lagged behind. We believe that with several unique features, these new products will offer investors a deeper ESG integration in the asset class.”
Keep up with all the latest FinTech news here.
Copyright © 2023 FinTech Global
