ICAV (UCITS compliant)

L&G ESG Emerging Markets Government Bond (Local Currency) Index Fund

I-Class EUR (Unhedged) IncomeI-Class USD AccumulationC-Class GBP (Unhedged) AccumulationC-Class GBP (Unhedged) DistributionC-Class EUR (Unhedged) AccumulationC-Class USD DistributionK-Class EUR (Unhedged) AccumulationK-Class EUR (Unhedged) IncomeZ-Class GBP (Unhedged) AccumulationZ-Class EUR (Unhedged) AccumulationZ-Class USD Accumulation
ISIN
Price94.38p
As at15 Aug 2022
Price97.19c
As at15 Aug 2022
Price82.50c
As at15 Aug 2022
Price83.58c
As at15 Aug 2022
Price90.35p
As at15 Aug 2022
Price103.49p
As at15 Aug 2022
Price97.72c
As at15 Aug 2022
Price86.65c
As at15 Aug 2022
Price95.38p
As at15 Aug 2022
Price98.41c
As at15 Aug 2022
Price94.83c
As at15 Aug 2022
Price95.62p
As at15 Aug 2022
Price98.91c
As at15 Aug 2022
Price85.20c
As at15 Aug 2022

Given current market events we have now populated Fund Centre with Fund exposures to assets with “country of risk*” as either Russia, Ukraine, or Belarus, or exposures to Russian Rouble currency. Please see the exposures below for further information.

*Sourced from Bloomberg

Fund facts

Fund size
$1,157.8m
Base currency
USD
Launch date
31 Jan 2019
Domicile
Ireland
Share class launch

Statistics

Modified duration
4.86 years
Gross redemption yield (unhedged)
6.95%

As at 30 Jun 2022

Fund aim

The investment objective of the Fund is to provide investors with a return in line with the Emerging Markets government bond market, as represented by the JPMorgan ESG GBI-EM Global Diversified Local Currency Index (the “Index”).

Benchmark

JPMorgan ESG GBI-EM Global Diversified Local Currency Index

  • What does it invest in? Invests primarily in bonds issued in the relevant national currency by governments of developing countries as determined by the index. These bonds will be a mixture of sub-investment grade (higher risk), investment grade (lower risk) and non-rated bonds. The index includes only bonds that meet the index provider’s socially responsible investing (“SRI”) requirements and environmental, social and governance (“ESG”) rating criteria. The Fund may also use derivatives.
  • How does it invest? Passively managed, aiming to replicate the performance of the index.
  • Does it promote sustainability characteristics? The Fund promotes a range of environmental and social characteristics which are met by tracking the Index. Further information on how such characteristics are met by the Fund can be found in the Fund Supplement.

Russia exposure

23 Feb 2022
6.92%
30 Jun 2022
0.00%

As at 30 Jun 2022

These numbers give indicative Fund exposures to assets with “country of risk” sourced from Bloomberg as either Russia, Ukraine, or Belarus, or exposures to Russian Rouble currency. The figures are based on early price estimated data so may differ from the fully verified month end NAV exposure. Where the holding is “indirect” (for example held in a sub-fund), best efforts have been made to ensure that exposure to the sub-fund(s) is on a consistent basis. As at dates have been chosen to reflect exposure both before and after the significant recent falls in values of impacted assets.

Exposures are presented to two decimal places, exposures may be rounded to 0 if less than 0.05%.

These exposures do not give an indication of the relative exposures versus the benchmark. With regard to index-based strategies, LGIM has a duty to track the relevant index to ensure clients receive exposure as set out in the relevant investment objective. Following the imposition of sanctions and assets being removed from indices the market was effectively frozen for foreign investors and all equity positions have been marked to zero in line with LGIM’s fair value pricing policy. Regardless of being priced at zero LGIM funds still own these securities and any value realised in the future will be for the sole benefit of the relevant fund. LGIM will seek to divest from such securities at such a time that market conditions allow consistent with our fiduciary duties and applicable sanctions.

Performance

Source: Lipper

Performance (%)
Select period:
Change

    Performance summary (%)

    As at 30 Jun 2022

    CumulativeFund
    1 month-2.44
    6 months-7.13
    Year to date-7.13
    3 years-
    5 years-
    Since launch-13.84
    AnnualisedFund
    1 year-9.53
    3 years-
    5 years-
    Since launch-5.68

    Share class launch date: N/A

    Share class launch date: N/A

    Share class launch date: 07 Jun 2019

    Share class launch date: 11 Jun 2020

    Share class launch date: 14 Dec 2021

    Share class launch date: 23 Mar 2022

    Share class launch date: 21 Mar 2019

    Share class launch date: 13 Dec 2019

    Share class launch date: 21 Mar 2019

    Share class launch date: 31 Oct 2019

    Share class launch date: 31 Jan 2019

    Share class launch date: 27 Mar 2020

    Share class launch date: 12 Apr 2019

    Share class launch date: 04 Mar 2019

    Share class launch date: 10 Apr 2019

    Share class launch date: 02 Jul 2019

    As at 30 Jun 2022

    CumulativeFund
    Quarterly-2.75
    Year to date-7.13
    3 years-
    5 years-
    Since launch-13.84
    AnnualisedFund
    1 year-9.53
    3 years-
    5 years-
    Since launch-5.68

    Share class launch date: N/A

    Share class launch date: N/A

    Share class launch date: 07 Jun 2019

    Share class launch date: 11 Jun 2020

    Share class launch date: 14 Dec 2021

    Share class launch date: 23 Mar 2022

    Share class launch date: 21 Mar 2019

    Share class launch date: 13 Dec 2019

    Share class launch date: 21 Mar 2019

    Share class launch date: 31 Oct 2019

    Share class launch date: 31 Jan 2019

    Share class launch date: 27 Mar 2020

    Share class launch date: 12 Apr 2019

    Share class launch date: 04 Mar 2019

    Share class launch date: 10 Apr 2019

    Share class launch date: 02 Jul 2019

    Rolling 12-month performance
    Calendar year performance
    Monthly performance
    Annualised performance

    Rolling 12-month performance to last quarter end (%)

    12 months to 30 June 2018 2019 2020 2021 2022
    Fund---0.80-9.53

    Data as at 30.06.2022

    Calendar year performance (%)

    2017 2018 2019 2020 2021
    Fund----4.99-3.28

    Data as at 30.06.2022

    Monthly performance (%)

     

    Annualised performance (%)

    1 year3 years5 yearsSince launch
    Fund-9.53---5.68

    Data as at 30.06.2022

    Annualised performance (%)

    1 year3 years5 yearsSince launch
    Fund-9.53---5.68

    Data as at 30.06.2022

    Performance for the unit class in None, launched on . Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the unit class in None, launched on . Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the C EUR (Unhedged) Acc unit class in EUR, launched on 07 June 2019. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the C GBP (Unhedged) Acc unit class in GBP, launched on 11 June 2020. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the C USD Dist unit class in USD, launched on 14 December 2021. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the C GBP (Unhedged) Dist unit class in GBP, launched on 23 March 2022. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the I EUR (Unhedged) Acc unit class in EUR, launched on 21 March 2019. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the I EUR (Unhedged) Inc unit class in EUR, launched on 13 December 2019. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the I GBP (Unhedged) Acc unit class in GBP, launched on 21 March 2019. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the I USD Acc unit class in USD, launched on 31 October 2019. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the K EUR (Unhedged) Acc unit class in EUR, launched on 31 January 2019. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the K EUR (Unhedged) Inc unit class in EUR, launched on 27 March 2020. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the K GBP (Unhedged) Acc unit class in GBP, launched on 12 April 2019. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the Z EUR (Unhedged) Acc unit class in EUR, launched on 04 March 2019. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the Z GBP (Unhedged) Acc unit class in GBP, launched on 10 April 2019. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the Z USD Acc unit class in USD, launched on 02 July 2019. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Portfolio

    As at 30 Jun 2022. All data source LGIM unless otherwise stated. Totals may not sum due to rounding. In order to minimise transaction costs, the Fund will not always own all the assets that constitute the index and on occasion it will own assets that are not in the index.

    Currency (%)

    MYR10.0
    IDR9.9
    PLN9.9
    MXN9.8
    THB9.7
    ZAR9.4
    BRL9.1
    CZK7.4
    CNY6.8
    Other18.0

    Years to maturity (%)

    0 - 5 Years50.8
    5 - 10 Years29.6
    10 - 15 Years9.7
    15 - 20 Years5.0
    20 - 25 Years2.1
    25 - 30 Years3.0

    Credit rating (%)

    AA7.4
    A+0.1
    A29.0
    A-0.1
    BBB42.8
    BB18.8
    B1.8
    Undefined0.2
    Top 10 holdings13.6
    Rest of portfolio86.4

    Top 10 holdings (%)

    Brazil Letras do Tes 0% 01 Jan 242.4
    Brazil Letras do Tes 0% 01 Jul 231.7
    South Africa Govt Bd 10.5% 21 Dec 261.6
    Mexican Bonos 5.75% 05 Mar 261.3
    South Africa Govt Bd 8% 31 Jan 301.3
    South Africa Govt Bd 8.75% 28 Feb 481.2
    Poland Govt Bd 2.5% 25 Jul 261.1
    Brazil Notas do Tes F 10% 01 Jan 271.0
    Mexican Bonos 7.5% 03 Jun 271.0
    Mexican Bonos 7.75% 29 May 311.0

    Country (%)

    Malaysia10.0
    Indonesia9.9
    Poland9.9
    Mexico9.8
    Thailand9.7
    South Africa9.4
    Brazil9.1
    Czech Republic7.4
    China6.8
    Other18.0

    Management Team

    The Index Fund Management team comprises 25 fund managers, supported by two analysts. Management oversight is provided by the Global Head of Index Funds. The team has average industry experience of 15 years, of which seven years has been at LGIM, and is focused on achieving the equally important objectives of close tracking and maximising returns.

    LGIMIndex Fund Management Team

    Sustainability

    Sustainability disclosures

    The Sustainable Finance Disclosure Regulation (SFDR) is an EU regulation that came into force on 10 March 2021, and imposes disclosure requirements for EU financial products. These requirements include disclosing sustainability-related information for funds that (i) promote (among other characteristics) environmental or social characteristics (Article 8 products), or (ii) have a sustainable investment objective (Article 9 products), both as defined under SFDR.

    SFDR categorisation: Article 8Article 8: These funds promote environmental and/or social characteristics

    The EU Taxonomy Regulation (EU Taxonomy) sets out a classification system in respect of environmentally sustainable economic activities. EU Taxonomy covers six environmental objectives, ranging from climate change mitigation to protection and restoration of biodiversity, with technical screening criteria to determine whether certain economic activities supports these objectives. EU Taxonomy recognises these economic activities as green, or “environmentally sustainable” if they make a substantial contribution to at least one of the environmental objectives, while at the same time not significantly harming any of these objectives and meeting minimum social safeguards. EU Taxonomy came into force on 1 January 2022 for the first two, climate-related, environmental objectives. EU Taxonomy also amends the disclosure obligations under SFDR to extend the information to be disclosed for Article 9 products and Article 8 products with an environmental focus. You will find the relevant disclosures under the ‘Pre-contractual disclosure’ tab.

    The Fund promotes a range of environmental and social characteristics as described below. These are met by tracking the Index which applies:

    Decarbonisation
    Net zero framework
    [email protected]
    Stock selection
    Carbon intensity
    Future World Protection List
    Climate Impact Pledge
    Exclusions

    Issuers are excluded from the index based on the below criteria, as determined by J.P. Morgan:

    • Issuers with revenue from the Thermal Coal sector
    • Issuers not in compliance with UN Global Compact principles
    • Issuers with J.P. Morgan (JESG) scores less than 20, these issuers are not eligible for index re-inclusion for 12 months
    • Issuers associated to tobacco or weapons industries are also excluded
    Tilting

    The Index applies JESG issuer scores to adjust the market value of index constituents from the baseline J.P. Morgan GBI-EM Global Diversified index. JESG issuer scores are a 0-100 percentile rank calculated based on normalized raw ESG scores from third-party research providers, including Sustainalytics and RepRisk. An issuer’s finalized JESG score incorporates a 3-month rolling average. Quasi-Sovereign issuers with no coverage from either third-party research provider default to their sovereign JESG score. The JESG scores are divided into five bands that are used to scale each issue’s baseline index market value, with the band rebalance occurring on a quarterly basis.

    JESG Score Bands                 Scalar

    Band 1: Score > 80                 1.00

    Band 2: 60 < Score <= 80      0.80

    Band 3: 40 < Score <= 60      0.60

    Band 4: 20 < Score <= 40      0.40

    Band 5: Score <= 20              0.00

    Issuers in Band 5 will be excluded from the index and will not be eligible for twelve months. If an instrument is categorized as a “green bond” by the Climate Bonds Initiative, the security will receive a one-band upgrade. Green bonds upgrades may happen intra quarter. Green bonds by issuers already in Band 1 will not receive any further upgrades.

    Green bonds are bonds which are created to fund projects that have positive environmental and/or climate benefits.

    Further information on the index methodology can be found on the J.P. Morgan website.

    Paris-aligned benchmark optimisation
    ESG integration
    UN SDG alignment

    The Index Provider, J.P. Morgan, determines the constituents of the Index. The Index Provider uses external data sources.

    Courtesy of J.P. Morgan Securities LLC, Copyright 2021

    Further information on the index methodology can be found at: https://www.jpmorgan.com/insights/research/index-research/composition-docs

    The above information in respect of the Index has been derived by us from methodologies, statements and disclosures of the index provider for purposes of satisfying our disclosure requirements under SFDR. The information is, therefore, not the property of LGIM and is provided “as is” and “as available”. We seek to ensure the information in respect of the Index is up to date, however there is no guarantee or representations made as to the accuracy or completeness of the information at all times. On that basis, and to the maximum extent permitted by law, no liability is accepted by us in respect of this information.

    A description of the extent to which the environmental and social characteristics, or sustainable investment objectives where relevant, have been met is available as part of the annual report as required by SFDR.

    Pre-contractual disclosure

    SFDR Disclosure

    The Fund promotes a range of environmental and social characteristics. The characteristics promoted by the Fund are met by tracking an Index that (i) excludes issuers with revenue from thermal coal and United Nations Global Compact violators, as determined by the Index providers methodology, (ii) positively tilts towards issuers ranked higher on ESG criteria and green bond issues and (iii) underweights and excludes lower ranking issuers. The Index is consistent with the environmental and social characteristics of the fund by providing exposure to such securities of issuers in accordance with the Index methodology as set out above.

    The Investment Manager aims to ensure that (where applicable) the issuers in which the Fund is invested follow good governance practices by 1) setting its expectations with issuers' management with regard to good governance practices; 2) actively engaging with the issuers; and 3) supporting policymakers and legislators to ensure there is strong regulation and standards. Active engagement with the issuers is used as a tool to drive progress and influence positive change and is conducted independently and in collaboration with industry peers and broader stakeholders. Engagement activities normally focus on specific material ESG issues and involve formulating an engagement strategy with regard to such issues with the aim to track and review the progress of the issuers during this process. The Investment Manager also provides regular reporting on the outcomes of its engagement. This can be made available on request or can be found at: www.lgim.com.

    EU Taxonomy Disclosure

    While the Fund promotes environmental and social characteristics within the meaning of Article 8 of the SFDR, it does not currently commit to investing in any “sustainable investments” within the meaning of the SFDR. Accordingly, it should be noted that the investments underlying this Fund do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation and, as such, the Fund’s portfolio alignment with the Taxonomy Regulation is not calculated.

    Governance practices

    The ways in which we ensure that investee companies follow good governance practices are set out below.

    Setting expectations

    A number of policies and processes guide the engagement activities, set out the approach to investment stewardship, and outline the expectations of investee issuers. The Global Corporate Governance and Responsible Investment Principles set out the approach and expectations with respect to key topics that are essential for an efficient governance framework, and for building a sustainable business model. We expect all issuers on a global scale to closely align with our principles which set out the fundamentals of corporate governance. We also take into account market specificities and take a tailored approach to voting on some topics in various markets. Further related policies can be found on the Investment Stewardship section of the LGIM website.

    Active engagement

    Active engagement with the issuers is used as a tool to drive progress and influence positive change and is conducted independently and in collaboration with industry peers and broader stakeholders. Engagement activities normally focus on specific material ESG issues and involve formulating an engagement strategy with regard to such issues with the aim to track and review the progress of the issuers during this process.

    Voting
    Supporting policymakers and legislators

    LGIM's Investment Stewardship team actively engages with policy makers and legislators to ensure there is strong regulation and standards in regards to governance practices.

    Literature

    Key literature

    Non-Trading Days
    01 Jan 2022
    Fact sheet
    30 Jun 2022
    Fact sheet
    30 Jun 2022
    Fact sheet
    30 Jun 2022
    Fact sheet
    30 Jun 2022
    Fact sheet
    30 Jun 2022
    Fact sheet
    30 Jun 2022
    Fact sheet
    30 Jun 2022
    Fact sheet
    30 Jun 2022
    Fact sheet
    30 Jun 2022
    Fact sheet
    30 Jun 2022
    Fact sheet
    30 Jun 2022
    Fact sheet
    30 Jun 2022
    Fact sheet
    30 Jun 2022
    Fact sheet
    30 Jun 2022
    KIID (German)
    17 Feb 2022
    KIID (German)
    07 Jun 2022
    KIID (German)
    17 Feb 2022
    KIID (German)
    04 Mar 2022
    KIID (German)
    17 Feb 2022
    KIID (German)
    03 Dec 2021
    KIID (German)
    28 Apr 2020
    KIID (German)
    17 Feb 2022
    KIID (German)
    17 Feb 2022
    KIID (German)
    17 Feb 2022
    KIID (German)
    17 Feb 2022
    KIID (German)
    07 Jun 2022
    KIID (German)
    27 Sep 2021
    KIID (German)
    27 Sep 2021
    Prospectus
    16 Jun 2022
    First Addendum to Prospectus
    17 Feb 2021
    Second Addendum to Prospectus (German)
    19 Jul 2021

    Fact sheets

    2022Change date
    Fact sheet
    Choose share class

    Legal documents

    KIID (German)
    17 Feb 2022
    KIID (German)
    07 Jun 2022
    KIID (German)
    17 Feb 2022
    KIID (German)
    04 Mar 2022
    KIID (German)
    17 Feb 2022
    KIID (German)
    03 Dec 2021
    KIID (German)
    28 Apr 2020
    KIID (German)
    17 Feb 2022
    KIID (German)
    17 Feb 2022
    KIID (German)
    17 Feb 2022
    KIID (German)
    17 Feb 2022
    KIID (German)
    07 Jun 2022
    KIID (German)
    27 Sep 2021
    KIID (German)
    27 Sep 2021
    UK EMT costs and charges
    05 Jul 2022
    European EMT costs and charges
    05 Jul 2022
    Prospectus
    16 Jun 2022
    Country Supplement - Germany
    16 Jun 2022
    Incorporation Document
    23 Mar 2017
    First Addendum to Prospectus
    17 Feb 2021
    Second Addendum to Prospectus (German)
    19 Jul 2021

    Reports and accounts

    2021Change date
    Annual Report and Accounts
    31 Dec 2021
    Annual Report and Accounts
    31 Dec 2020
    Annual Report and Accounts
    31 Dec 2019
    Annual Report and Accounts
    31 Dec 2018
    Annual Report and Accounts
    31 Dec 2017
    Interim Report and Accounts
    30 Jun 2021
    Interim Report and Accounts
    30 Jun 2020
    Interim Report and Accounts
    30 Jun 2019

    Trading information

    Non-Trading Days
    01 Jan 2022

    Prices