SICAV (UCITS compliant)

L&G Future World Global Credit Fund

Fund facts

Fund size
$211.9m
Base currency
USD
Launch date
11 Jul 2018
Domicile
Luxembourg
Share class launch

Statistics

Modified duration
8.84 years
Gross redemption yield (unhedged)
5.02%

As at 31 Aug 2023

Fund aim

The Fund aims to produce a return derived from capital growth and income by investing in fixed and floating-rate securities. 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.

Benchmark

  • What does it invest in? Invests predominantly in fixed income securities including corporate bonds and other debt instruments, issued globally and denominated predominantly in US Dollar but also in Euro and Sterling.
  • How does it invest? Actively managed, investing primarily in debt with an investment grade (rated as lower risk) credit rating. May also invest in other types of securities and derivatives. The Fund will also seek to reflect the Investment Manager’s long-term thematic views including risks relating to climate change, and environmental, social and governance (ESG) factors are integrated into the Fund's investment process.
  • 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.

Performance

Source: Lipper

Performance for the I EUR (Hedged) Acc unit class in EUR, launched on 17 August 2022. 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.

Performance for the I USD Acc unit class in USD, launched on . 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.

Performance for the I USD Dist unit class in USD, launched on . 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.

Performance for the P USD Acc unit class in USD, launched on . 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.

Performance for the P USD Dist unit class in USD, launched on . 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.

Performance for the R USD Acc unit class in USD, launched on . 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.

Performance for the R USD Dist unit class in USD, launched on . 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.

Performance for the X USD Acc unit class in USD, launched on 11 July 2018. 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.

Performance for the X USD Dist unit class in USD, launched on 11 July 2018. 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.

Performance for the Z JPY (Unhedged) Acc unit class in JPY, launched on 11 July 2018. 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.

Performance for the Z USD Acc unit class in USD, launched on . 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.

Performance for the Z USD Dist unit class in USD, launched on 11 July 2018. 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.

Performance (%)
Select period:
Change

    Performance summary (%)

    As at 31 Aug 2023

    CumulativeFund
    1 month-0.92
    6 months0.63
    Year to date0.79
    3 years-
    5 years-
    Since launch-6.95
    AnnualisedFund
    1 year-3.64
    3 years-
    5 years-
    Since launch-6.70

    As at 30 Jun 2023

    CumulativeFund
    Quarterly-1.13
    Year to date1.58
    3 years-
    5 years-
    Since launch-6.22
    AnnualisedFund
    1 year-
    3 years-
    5 years-
    Since launch-7.13
    Rolling 12-month performance
    Calendar year performance
    Monthly performance
    Annualised performance

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

    Fund
    2014-
    2015-
    2016-
    2017-
    2018-
    2019-
    2020-
    2021-
    2022-
    2023-

    Calendar year performance (%)

    Fund
    2013-
    2014-
    2015-
    2016-
    2017-
    2018-
    2019-
    2020-
    2021-
    2022-

    Monthly performance (%)

    Annualised performance (%)

    1 year3 years5 yearsSince launch
    Fund-3.64---6.70

    Annualised performance (%)

    1 year3 years5 yearsSince launch
    Fund----7.13

    Portfolio

    As at 31 Aug 2023. All data source LGIM unless otherwise stated. Totals may not sum due to rounding.

    Currency (%)

    USD76.2
    EUR19.5
    GBP4.3

    This is the currency breakdown before allowing for any hedging the fund may use.

    Credit rating (%)

    AAA3.8
    AA11.3
    A52.0
    BBB31.2
    Cash1.7

    Sector (%)

    Consumer Goods13.0
    Real Estate12.5
    Consumer Services9.9
    Utilities9.7
    Banks9.3
    Health Care8.8
    Industrials8.6
    Financial Services7.2
    Insurance7.1
    Other13.9
    Top 10 issuers8.1
    Rest of portfolio91.9
    No. of issuers265

    Top 10 issuers (%)

    Anheuser-Busch InBev1.0
    Vodafone Group0.9
    Nippon Telegraph & Telephone0.8
    Diageo0.8
    Siemens0.8
    Sempra0.8
    AT&T0.8
    Extra Space Storage0.8
    Visa0.8
    Power of Canada0.7

    Fund Manager

    Maurice is the portfolio manager for our buy and maintain strategy in the Global Fixed Income team. Maurice joined LGIM in March 2013 from Aviva Investors where he worked for over six years as a credit portfolio manager. At Aviva he managed a range of sterling, euro and global credit portfolios including buy and maintain strategies. Maurice began his investment career in 2001 as a credit analyst and subsequently a manager of global credit portfolios at Merrill Lynch Investment Managers. Maurice graduated from the University of Cambridge and holds an MA in economics. He is also a CFA charterholder.

    MauriceBrowne

    Sustainability-related Disclosures

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

    Environmental characteristics

    The Fund promotes the following environmental characteristics related to climate change:

    • reduction of greenhouse gas emissions intensity;
    • avoiding investments in certain fossil fuels; and
    • support of better practices in energy consumption (or usage).

    The Fund also promotes the following other environmental characteristics:

    • support of biodiversity and responsible land use.
    Social characteristics

    The Fund promotes the following social characteristics relating to social norms and standards:

    • human rights, labour rights and anti-corruption as set out in the principles of the UN Global Compact; and
    • avoiding the financing of controversial weapons.

    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.

    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 Theme
    Clean Water Theme
    Clean Energy Theme
    Hydrogen Economy Theme
    Healthcare Breakthrough Theme
    Pharma Breakthrough Theme
    Green Bonds
    RAFI ESG Score
    RAFI Exclusions
    Solactive PAB Optimisation
    Solactive Exclusions
    Net Zero
    SDG Alignment
    Carbon Emissions Intensity Target

    Carbon emissions intensity aims to measure the volume of carbon emissions of investee companies and/or countries in relation to the revenue they generate. It is intended as an indication of how exposed a portfolio is to high or low carbon intensity companies. The Fund manages its weighted average carbon emissions intensity in order to achieve a 50% reduction by 31 December 2030 compared to the Fund’s portfolio as at 31 December 2019.

    LGIM ESG Score
    LGIM's Future World Protection List

    The Future World Protection List (‘FWPL’) consists of companies that fail to meet minimum standards of globally accepted business practices on sustainability, or our minimum requirements on the carbon transition. There are three components to the list:

    • Companies that generate 20% or more of their revenues from involvement in mining and extraction of thermal coal, thermal-coal power generation and oil sands,
    • Companies that are in breach of one or more principles of the United Nation Global Compact for a continuous period of three years (36 months) or more (that are considered persistent violators), or
    • Companies involved in the
    • manufacture and production of controversial weapons.

    The Fund excludes investments in companies on FWPL. The list is monitored on an on-going basis and updated semi-annually. In order to determine the companies included on the list, we use data from a number of external ESG data providers.

    Further information can be found at https://www.lgim.com/landg-assets/lgim/_document-library/capabilities/future-world-protection-list-public-methodology.pdf

    LGIM's Climate Impact Pledge

    The Fund excludes companies that fail to meet LGIM’s minimum requirements on climate change following engagement under Climate Impact Pledge (‘CIP’).

    • The CIP maps out a large number of companies worldwide, in climate-critical sectors against key indicators. Using quantitative and qualitative measures, such companies are assessed under a traffic light system drawing on independent data providers and our pioneering climate modelling.
    • Based on the results of engagement with these companies, LGIM uses escalating methods as necessary, which includes a period of engagement with companies and in the event that a company continues to make insufficient progress and fails to meet LGIM’s minimum standard expectation, may include sanction through voting and divestment.
    • The CIP is monitored on an on-going basis and updated annually. The ESG data that is used in connection with the CIP is sourced from third-party data providers.

    Further information can be found at Climate Impact Pledge overview

    Foxberry Paris Aligned
    MSCI Exclusions
    MSCI ESG Score
    JPM Exclusions
    JPM ESG Score
    Additional Exclusions
    ESG Factor Evaluation

    LGIM considers ESG factors when making investment decisions on behalf of the Fund which include a number of environmental and social factors, for example relating to:

    • climate change
    • water and waste
    • supply chain
    • environmental policies and controls
    • labour rights, health and safety
    • bribery and corruption.

    The evaluation process starts with the identification of ESG factors using both top-down and bottom-up approaches. The top-down research analysis focuses on determining the resiliency of sectors on a macro level, while the bottom-up research process evaluates the ESG credentials of individual companies.

    LGIM has developed a proprietary research tool called Active ESG View which brings together granular quantitative and qualitative ESG inputs. Active ESG View primarily uses third-party data from multiple different vendors which includes hundreds of ESG metrics (including data on carbon emissions, water and waste, environmental policies and controls, labour, health and safety, bribery and corruption) spanning 64 specific sectors and/or sub-sectors from a number of ESG data providers.

    The quantitative inputs consist of two components:

    1. an ESG score calculated in Active ESG View which evaluates and scores issuers from an environmental, social and governance perspective, and
    2. a screening of investee companies in respect of their involvement in certain products and services, and certain controversies and violations of norms and standards. This screening, directly or indirectly, maps to some of the adverse sustainability indicators set out in Table 1 of Annex I of the Level 2 Measures.

    LGIM sets minimum thresholds for both of these components in Active ESG View. These are then supplemented by LGIM’s qualitative assessment of the sustainability risks and opportunities relating to the relevant issuer. This qualitative assessment is performed by the Global Research and Engagement Groups (“GREGs”) which bring together representatives from LGIM’s investment and investment stewardship teams across regions and asset classes. Where issuers fail to meet either of the components of the quantitative assessment, and the GREGs have reviewed and agreed with the assessment through qualitative analysis, the Fund’s aggregate exposure to such issuers shall be limited so that the Fund shall almost exclusively hold investments that meet the above requirements.

    The sustainability indicator that will be used in relation to the attainment of the environmental and social characteristics relating to this process will measure the aggregate exposure to issuers that are not aligned with LGIM’s requirements for ESG factor evaluation.

    Decarbonisation
    LGIM Coal Policy
    LGIM Controversial Weapons
    J.P. Morgan ESG Exclusions
    J.P. Morgan ESG Score
    FTSE ESG Exclusions
    ROBO Global ESG Policy
    Solactive ESG Exclusions
    Solactive ESG Enhanced Exclusions
    Nasdaq ESG Exclusions
    Stoxx Exclusions
    Taxonomy

    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 the Fund do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation.

    Sustainable Investments

    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.

    Further information on LGIM's Sustainable Investment Methodology can be found here.

    Principal Adverse Impacts

    The Fund considers principal adverse impacts on sustainability factors and LGIM has identified a subset of the adverse sustainability indicators that are relevant to the Fund’s investments. The Fund considers principal adverse impacts, identified using the below listed sustainability indicators, through the implementation of the Fund’s ESG investment strategy.

    • PAI 1: GHG emissions
    • PAI 2: Carbon footprint
    • PAI 3: GHG intensity of companies
    • PAI 4: Exposure to fossil fuel companies
    • PAI 5: Share of non-renewable energy
    • PAI 6: Energy consumption intensity
    • PAI 7: Activities negatively affecting biodiversity-sensitive areas
    • PAI 8: Emissions to water
    • PAI 9: Hazardous waste
    • PAI 10: Companies violating UNGC/OECD
    • PAI 11: Companies without policies on UNGC/OECD
    • PAI 12: Unadjusted gender pay gap
    • PAI 14: Controversial weapons

    Literature

    ESG reports

    Trading information

    Prices

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