L&G Absolute Return Bond Plus Fund
SICAV (UCITS compliant)
L&G Absolute Return Bond Plus Fund
I-Class GBP (Hedged) Accumulation
ISINLU0989307953
Price113.97p12 Oct 2023
ISINLU0989307953
Price113.97p12 Oct 2023
Fund aim
The objective of the Fund is to provide a combination of growth and income above those of the ICE BofA USD 3 Month Deposit Offered Rate Constant Maturity Total Return Index, the "Benchmark Index". The Fund is actively managed and aims to outperform the Benchmark Index by 3.5% 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. The Fund aims to generate positive returns in all market conditions. The Fund has a higher performance target than that of the L&G Absolute Return Bond Fund. The objective is before the deduction of any charges and measured over rolling three year periods. 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 | $308.3m |
| Base currency | USD |
| Fund launch date | 29 Nov 2013 |
| Domicile | Luxembourg |
| Share class launch | 15 Dec 2016 |
| Modified duration | 3.79 years |
Benchmark
ICE BofA USD 3 Month Deposit Offered Rate Constant Maturity Total Return Index
Costs
| Initial charge | 0.00% |
| Ongoing charges figure | 0.69% |
| Dilution adjustment | 0.428% - round trip |
| Swing factor | 0.214% |
Performance
Performance scenarios
Example investment:10,000 GBP
| Scenarios | 1 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 costs | 7,520GBP | 8,650GBP |
| Average return each year (%) | -24.81 | -2.85 | |
| Unfavourable scenario | What you might get back after costs | 9,360GBP | 10,180GBP |
| Average return each year (%) | -6.43 | 0.35 | |
| Moderate scenario | What you might get back after costs | 10,280GBP | 11,430GBP |
| Average return each year (%) | 2.81 | 2.71 | |
| Favourable scenario | What you might get back after costs | 11,700GBP | 12,180GBP |
| Average return each year (%) | 16.97 | 4.02 | |
There is no minimum guaranteed return. You could lose some or all of your investment.
Portfolio breakdown
As at 31 Aug 2023
| Top 10 issuers | 24.9% |
|---|---|
| Rest of portfolio | 75.1% |
| No. of issuers | 507 |
|---|
Top 10 issuers (%)
| United States of America | 11.9 |
| United Kingdom | 2.1 |
| Barclays | 1.6 |
| National Amusements | 1.5 |
| Banco Santander | 1.4 |
| Westpac Banking | 1.4 |
| HSBC Holdings | 1.4 |
| Permanent TSB Group Holdings | 1.3 |
| Boeing Co | 1.2 |
| UBS Group | 1.2 |
Sector (%)
Banks | 27.6 |
Sovereign | 18.9 |
ABS | 10.3 |
Consumer Services | 6.7 |
Consumer Goods | 6.4 |
Cash and Equivalents | 6.3 |
Utilities | 4.1 |
Insurance | 3.3 |
Industrials | 3.3 |
Oil & Gas | 3.0 |
Real Estate | 2.6 |
Financial Services | 1.9 |
Telecommunications | 1.9 |
Basic Materials | 1.7 |
Other | 2.1 |
| Top 10 issuers | 24.9% |
|---|---|
| Rest of portfolio | 75.1% |
| No. of issuers | 507 |
|---|
Top 10 issuers (%)
| United States of America | 11.9 |
| United Kingdom | 2.1 |
| Barclays | 1.6 |
| National Amusements | 1.5 |
| Banco Santander | 1.4 |
| Westpac Banking | 1.4 |
| HSBC Holdings | 1.4 |
| Permanent TSB Group Holdings | 1.3 |
| Boeing Co | 1.2 |
| UBS Group | 1.2 |
Sector (%)
Banks | 27.6 |
Sovereign | 18.9 |
ABS | 10.3 |
Consumer Services | 6.7 |
Consumer Goods | 6.4 |
Cash and Equivalents | 6.3 |
Utilities | 4.1 |
Insurance | 3.3 |
Industrials | 3.3 |
Oil & Gas | 3.0 |
Real Estate | 2.6 |
Financial Services | 1.9 |
Telecommunications | 1.9 |
Basic Materials | 1.7 |
Other | 2.1 |
Credit rating (%)
| AAA | 5.8 | |
| AA | 19 | |
| A | 14.2 | |
| BBB | 32.5 | |
| BB | 14.7 | |
| B | 5.7 | |
| CCC | 0.6 | |
| DDD | 0.3 | |
| NR | 0.8 | |
| Other | 6.4 |
Currency (%)
USD | 55.9 |
GBP | 27.2 |
EUR | 15.8 |
NZD | 0.5 |
SEK | 0.1 |
Other | 0.1 |
Country (%)
United States | 28.6 |
United Kingdom | 21.4 |
Spain | 5.9 |
France | 4.6 |
Germany | 3.2 |
Ireland | 2.9 |
Italy | 2.3 |
Switzerland | 1.9 |
Australia | 1.6 |
Other | 27.5 |
All data source LGIM unless otherwise stated. Totals may not sum due to rounding.
Fund managers
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
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
Article 8
Environmental characteristics
Social characteristicsNo 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.
Environmental characteristicsSocial characteristicsNo 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.
The Fund seeks to implement LGIM’s Responsible Investment Framework which aims to provide a consistent and systematic approach to exclusions, refined criteria and thresholds for setting environmental and social characteristics with a defined terminology and approach to support the implementation of such characteristics across the financial products managed by LGIM.
The Responsible Investment Framework sets out the various types of investment strategies that LGIM’s financial products can follow and the responsible investing methodologies that explain how such investment strategies are defined and implemented.
The Fund follows the following sustainability-related investment strategy:
Battery Value-Chain ThemeClean Water ThemeClean Energy ThemeHydrogen Economy ThemeHealthcare Breakthrough ThemePharma Breakthrough ThemeGreen Bonds
RAFI ESG Score
RAFI Exclusions
Solactive PAB OptimisationSolactive Exclusions
Net Zero
SDG Alignment
Carbon Emissions Intensity TargetLGIM ESG Score
LGIM’s Future World Protection List
LGIM’s Climate Impact PledgeFoxberry Paris AlignedMSCI ExclusionsMSCI ESG ScoreJPM ExclusionsJPM ESG ScoreAdditional Exclusions
ESG Factor EvaluationDecarbonisationLGIM Coal PolicyLGIM Controversial WeaponsJ.P. Morgan ESG ExclusionsJ.P. Morgan ESG ScoreFTSE ESG ExclusionsROBO Global ESG PolicySolactive ESG ExclusionsSolactive ESG Enhanced ExclusionsNasdaq ESG ExclusionsStoxx ExclusionsTaxonomySustainable InvestmentsPrincipal Adverse ImpactsLiterature
Document type
Prices
Pricing information
| Price basis | Single swing |
| Price time | 16:00 CET |
| Currency | GBP |
Codes and dealing
Codes
| ISIN | LU0989307953 |
| SEDOL | - |
| Bloomberg | LGAIGHA LX |
| MEX | - |
Dealing information
| Valuation frequency | Daily, 16:00 CET |
| Dealing frequency | Each Business Day |
| Settlement period | T+3 |
| Administrator/Custodian | Northern Trust |
Country registration
This share class is registered for sale in the following countries:
