Collectives

SICAV (UCITS compliant)

L&G Absolute Return Bond Fund

I-Class GBP Accumulation

ISINLU1000844222

Price112.29p12 Oct 2023

Fund aim

The objective of the Fund is to provide a combination of growth and income above those of the ICE BofA SONIA 3 Month Constant Maturity Total Return Index, the "Benchmark Index". The Fund is actively managed and aims to outperform the Benchmark Index by 1.5% per annum. The Fund aims to deliver this objective while decarbonising the portfolio over time, targeting a 50% reduction in weighted average carbon intensity by 2030, compared to a December 2019 baseline level. This objective is before the deduction of any charges and measured over rolling three year periods. The Fund aims to generate positive returns in all market conditions. There can be no assurance that the Fund will achieve its investment objective.

Fund snapshot

  • What does it invest in? Invests predominantly in fixed income securities, including bonds and other debt instruments, issued in in a variety of currencies by companies and governments worldwide.
  • How does it invest? Actively managed, investing primarily in debt with an investment grade (lower risk) credit rating. May also invest in debt with a sub-investment grade (higher risk) credit rating or unrated bonds. Will use derivatives extensively for investment purposes or for efficient portfolio management.
  • Does it promote sustainability characteristics? The Fund promotes a range of environmental and social characteristics. Further information on how such characteristics are met by the Fund can be found in the Supplement.

Fund facts

Fund size£1,513.3m
Base currencyGBP
Fund launch date13 Dec 2013
DomicileLuxembourg
Share class launch27 Apr 2020
Modified duration0.87 years
As at 31 Aug 2023

Benchmark

ICE BofA SONIA 3-Month Constant Maturity Total Return Index

Costs

Initial charge0.00%
Ongoing charges figure0.54%
Dilution adjustment0.256% - round trip
Swing factor0.128%

Performance

Performance for the I GBP Acc unit class in GBP, launched on 27 April 2020. Source: Lipper. This fund has adopted a single swinging price, this means that on any given day the single dealing price will be set at either bid, offer or somewhere in between, based on whether there was a net inflow or outflow into or out of the Fund. The past performance depicted in this factsheet is based on that dealing price and therefore may appear more volatile than it would otherwise be if we were to show the notional bid or offer performance, this is as a result of the daily swing.
Past performance is not a reliable indicator of future performance. Markets could develop very differently in the future. It can help you to assess how the fund has been managed in the past. The tables and charts above shows the fund's performance as the percentage loss or gain per year over the last 10 years.
Share class launch date:27 Apr 2020
Benchmark:ICE BofA SONIA 3-Month Constant Maturity Total Return Index
Share class launch date:27 Apr 2020
Benchmark:ICE BofA SONIA 3-Month Constant Maturity Total Return Index
    Share class launch date:27 Apr 2020
    Benchmark:ICE BofA SONIA 3-Month Constant Maturity Total Return Index

    Performance scenarios

    The figures shown include all the costs of the product itself, but may not include all the costs that you pay to your advisor or distributor. The figures do not take into account your personal tax situation, which may also affect how much you get back.
    What you will get from this product depends on future market performance. Market developments in the future are uncertain and cannot be accurately predicted.
    The unfavourable, moderate, and favourable scenarios shown are illustrations using the worst, average, and best performance of the product with input from the over the last 10 years. Markets could develop very differently in the future.

    Example investment:10,000 GBP

    Scenarios1 year(Recommended holding period) 5 years
    Minimum

    There is no minimum guaranteed return. You could lose some or all of your investment.

    Stress scenario
    What you might get back after costs9,170GBP9,420GBP
    Average return each year (%)-8.31GBP-1.18GBP
    Unfavourable scenario
    What you might get back after costs9,730GBP10,250GBP
    Average return each year (%)-2.71GBP0.50GBP
    Moderate scenario
    What you might get back after costs10,060GBP10,280GBP
    Average return each year (%)0.58GBP0.56GBP
    Favourable scenario
    What you might get back after costs10,870GBP11,240GBP
    Average return each year (%)8.74GBP2.37GBP

    Portfolio breakdown

    As at 31 Aug 2023

    Top 10 issuers25.9%
    Rest of portfolio74.1%
    No. of issuers506

    Top 10 issuers (%)

    United Kingdom10.2
    United States of America3.1
    UBS Group2.0
    Volkswagen1.9
    JPMorgan Chase & Co1.9
    Lloyds Banking Group1.6
    Banco Santander1.5
    Tokyo Century1.3
    Brookfield Infrastructure Partners1.3
    Toyota Motor1.2

    Sector (%)

    Banks
    26.4
    Sovereign
    15.3
    ABS
    15.0
    Consumer Goods
    9.2
    Utilities
    4.2
    Cash and Equivalents
    4.0
    Consumer Services
    3.9
    Unknown
    3.8
    Insurance
    3.3
    Industrials
    2.8
    Financial Services
    2.2
    Covered
    2.1
    Health Care
    1.7
    Oil & Gas
    1.6
    Other
    4.4

    All data source LGIM unless otherwise stated. Totals may not sum due to rounding.

    Fund managers

    Colin Reedie headshot

    Colin Reedie

    Colin is co-Head of Global Fixed Income and has responsibility for the London based fixed income team as well as overall portfolio management responsibilities for our Global Credit and Absolute Return strategies. Colin joined LGIM in 2005 from Henderson Global Investors where he was Head of Investment Grade Credit Fund Management. He has over 30 years’ experience in bond markets, specialising in non-government debt, and he has previously worked for Henderson Global Investors, Scottish Widows and Scottish Amicable.

    Matthew Rees headshot

    Matthew Rees

    Matthew was appointed Head of Global Bond Strategies in September 2019. Prior to this he was co-head of the Euro credit portfolio management team, responsible for Euro-benchmarked and absolute return funds. He joined LGIM in March 2009 as a senior research analyst responsible for covering financial institutions and joined the Euro credit portfolio management team in February 2011. Prior to this Matthew spent three years as a Partner at Banquo Credit Management (a multibillion euro absolute return investment manager) and four years at UBS as Head of Financial Institutions Ratings Advisory. Matthew has more than 20 years’ experience in financial services and graduated from the University of York with a BA (hons) in English. He qualified as a chartered accountant with Coopers & Lybrand in 1996.

    Sustainability

    SFDR categorisation

    Environmental characteristics
    Social characteristics

    No reference benchmark has been designated for the purpose of attaining the environmental or social characteristics promoted by the Fund.

    Whilst environmental and social characteristics are promoted through the application of the sustainability-related investment strategy, investors are reminded that these environmental and social characteristics are not sustainable investment objectives.

    Literature

    Prices

    Pricing information

    Price basisSingle swing
    Price time16:00 CET
    CurrencyGBP
    Monthly price history

    Codes and dealing

    Codes

    ISINLU1000844222
    SEDOLBK94358
    BloombergLGARBIG LX
    MEX-

    Dealing information

    Valuation frequencyDaily, 16:00 CET
    Dealing frequencyEach Business Day
    Settlement periodT+3
    Administrator/CustodianNorthern Trust

    Country registration

    This share class is registered for sale in the following countries:

    Italy
    Luxembourg
    Switzerland
    United Kingdom