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The Future World funds are for clients who want to express a conviction on environmental, social and governance (ESG) themes, depending on their different investment styles. The funds extend LGIM’s approach to sustainable investing across a broad array of asset classes and strategies.
Sustainable investing is here to stay – and we are bringing it into the mainstream through our Future World fund range.
Anton Eser, Chief Investment Officer
Future World is a natural evolution of what LGIM has always done – it reflects our culture and is aligned with our clients’ values. It seeks to identify long-term themes and opportunities, while managing the risks of a changing world.
Investors are increasingly recognising that ESG factors play a crucial role in determining asset prices, and helping to identify the companies that will succeed in a rapidly changing world – the winners of the future. As a result, sustainable investing is very much here to stay.
This is why we are bringing investments that incorporate ESG principles into the mainstream through our Future World fund range.
Our approach rests on three pillars: long-term thematic analysis, the integration of ESG considerations and active ownership.
Analysing the long-term themes that are likely to shape the investment landscape
We believe assessing the long-term themes that are likely to shape the investment landscape can help us to identify the winners of the future. Analysing the connections between these themes, through a combined research effort across asset classes, provides valuable and often unique insights into how companies are adapting to a changing world.
Integrating ESG considerations throughout our investment processes
We incorporate ESG factors throughout our investment processes in the Future World funds. This involves combining long-term thematic considerations, such as the impact of climate change on energy markets, with analysis into how ESG factors can alter the risk and return profile of individual companies, and active ownership. In doing so, we seek to offer our clients investments that provide both desired financial outcomes and positive societal impacts. The investment processes vary according to asset class and strategy. As a common thread that aims to improve the standards and performance across the entire market, we have developed the LGIM ESG Score for each investable company, in order to help drive investment decisions, prompt engagement programmes and inform global voting policies.
Providing effective stewardship to bring about real, positive change
We seek to provide effective stewardship by bringing about real, positive change in the companies and markets in which we invest.
The following funds make up the Future World range.
These funds provide equity and fixed income exposure to a variety of markets, while incorporating ESG ‘tilts’ to LGIM-designed indices.
|UK institutional funds||Asset class / style||Benchmark Index|
|Future World North America Equity Index Fund||Index equity||Solactive L&G ESG North America Index|
|Future World Europe (ex UK) Equity Index Fund||Index equity||Solactive L&G ESG Europe ex UK Index|
|Future World UK Equity Index Fund||Index equity||Solactive L&G ESG UK Index|
|Future World Asia Pacific (ex Japan) Equity Index Fund||Index equity||Solactive L&G ESG APAC ex Japan Index|
|Future World Japan Equity Index Fund||Index equity||Solactive L&G ESG Japan Index|
|Future World GBP Corporate Bond Index Fund||Index fixed income||Solactive L&G ESG GBP Investment Grade Corporate TR Index|
|Future World USD Corporate Bond Index Fund||Index fixed income||Solactive L&G ESG USD Investment Grade Corporate TR Index|
|Future World EUR Corporate Bond Index Fund||Index fixed income||Solactive L&G ESG EUR Investment Grade Corporate TR Index|
Adviser / Wealth