Legal & General Investment Management (LGIM) has added two funds to its Future World ESG Multi-Index fund range.
The two funds, L&G Future World ESG Multi-Index 6 and L&G Future World ESG Multi-Index 7, both have a heavier tilt towards equities.
These funds also include allocations towards defensive and alternative investments, as a means of diversification.
Investors can now select from five funds within the £200 million Future World ESG range which first launched in 2019. Though index funds, these strategies’ asset allocation is actively managed.
L&G Future World ESG Multi-Index 7 has the highest risk/return profile. The two new additions to LGIM’s FW Multi-Index range will invest in a blend of LGIM’s existing ESG index building block funds. This type of multi-asset fund is diversified across up to 30 different asset classes at one time, spreading the risk for investors across a range of different equities and bonds while also including alternatives like property. The charge rate will be set at 0.36bps.
Andrzej Pioch, multi-asset fund manager at LGIM, said: “Inflationary and recession risks, combined with additional ESG risks such as climate change and plastic pollution, have created a difficult investment environment for advisers and clients to navigate. We firmly believe that asset allocation is the key driver of risk and return for a multi-asset ESG proposition.
“We believe we have the flexibility to respond to market events by dynamically changing investments across multiple asset classes as required, seeking resilient risk-adjusted returns while securing material ESG benefits for our clients.”
The Future World ESG Multi-Index range was launched in 2019, designed to offer investors the opportunity to seek to secure material ESG benefits in managed and risk-targeted solutions.
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