ETF (UCITS compliant)

L&G ESG Green Bond UCITS ETF

Fund facts

Fund size*
€8.0m
Base currency
EUR
Listing date
18 Feb 2021
Domicile
Ireland
Index ticker
JPEIGBFI
Replication method
Physical - optimised

Statistics

*As at 23 Sep 2022

Fund aim

The L&G ESG Green Bond UCITS ETF (the "ETF") aims to track the performance of the J.P. Morgan ESG Green Bond Focus Index (the “Index”).

The L&G ESG Green Bond UCITS ETF aims to provide exposure to green bonds across developed and emerging markets. Green bonds are issued in order to fund projects that have positive environmental outcomes and/or climate benefits.

Does it have a sustainable objective? The Fund has a sustainable investment objective as it invests in issuers which (i) contribute to environmental objectives, (ii) do not significantly harm any environmental or social objectives, and (iii) follow good governance practices. Further information can be found in the Fund Supplement.

Further details

Charges and tax

TER
0.25%
ISA eligible
Yes
SIPP eligible
Yes
UK Fund Reporting Status
Yes

Management / administration

Issuer
Legal & General UCITS ETF Plc
Depositary and Trustee
The Bank of New York Mellon SA/NV, Dublin Branch
Securities regulator
Central Bank of Ireland

Country registration

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

Listings

Details
Codes
ExchangeCurrencyTickerListing dateISINBloomberg codeReuters codeTrading hours (local)
London Stock ExchangeEURGBND18/02/2021IE00BMYDMD58GBND LNGBND.L08:00 - 16:30
London Stock ExchangeGBPGBNG18/02/2021IE00BMYDMD58GBNG LNGBNG.L08:00 - 16:30
London Stock ExchangeUSDGBNU10/08/2022IE00BMYDMD58GBNU LNGBNU.L08:00 - 16:30
Borsa ItalianaEURGBND18/02/2021IE00BMYDMD58GBND IMGBND.MI09:00 - 17:30
Deutsche Börse XetraEURGBNB18/02/2021IE00BMYDMD58GBNB GYGBND.DE09:00 - 17:30
SIX Swiss ExchangeCHFGBNB04/05/2021IE00BMYDMD58GBNB SWGBND.S09:00 - 17:30

J.P. Morgan ESG Green Bond Focus Index

The Index tracks green bonds issued across hard currency (USD, EUR and GBP denominated) credit and local currency government bonds across Developed and Emerging markets with a focus on green bonds that have been reviewed independently. The index applies an ESG scoring and screening methodology to tilt toward issuers ranked higher on ESG criteria, and to underweight issuers that rank lower.

Index data

Provider
J.P. Morgan
Bloomberg code
JPEIGBFI
Reuters code
.JPEIGBFI
Type
Total Return
Website
https://www.jpmorgan.com/insights/research/index-research/composition-docs

Performance

Source: Lipper.

Performance (%)
Select period:
Change

    Performance summary (%)

    As at 31 May 2022

    CumulativeFundBenchmark
    1 month-2.01-2.10
    6 months-12.31-12.50
    Year to date-11.17-11.39
    3 years--
    5 years--
    Since launch-11.99-12.06
    AnnualisedFundBenchmark
    1 year-9.69-9.85
    3 years--
    5 years--
    Since launch-9.37-9.42

    As at 30 Jun 2022

    CumulativeFundBenchmark
    Quarterly-8.16-8.20
    Year to date-14.13-14.24
    3 years--
    5 years--
    Since launch-14.93-14.89
    AnnualisedFundBenchmark
    1 year-13.75-13.84
    3 years--
    5 years--
    Since launch-11.05-11.02
    Rolling 12-month performance
    Calendar year performance
    Monthly performance
    Annualised performance

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

    12 months to 31 March 2018 2019 2020 2021 2022
    Fund-----6.16
    Benchmark-----6.16

    Calendar year performance (%)

    2017 2018 2019 2020 2021
    Fund-----
    Benchmark-----

    Monthly performance (%)

    Annualised performance (%)

    1 year3 years5 yearsSince launch
    Fund-9.69---9.37
    Benchmark-9.85---9.42

    Annualised performance (%)

    1 year3 years5 yearsSince launch
    Fund-13.75---11.05
    Benchmark-13.84---11.02

    Performance for the EUR Distributing ETF class in EUR, listed on 18 February 2021. Source: Lipper. Performance assumes all ETF charges have been taken and that all income generated by the investments, after deduction of tax, remains in the ETF.

    Past performance is not a guide to the future.

    Portfolio

    As at 31 May 2022. All data source LGIM unless otherwise stated. Totals may not sum to 100% due to rounding.

    The breakdowns below relate to the Index. The ETF’s portfolio may deviate from the below.

    Currency (%)

    EUR71.8
    USD22.0
    GBP6.2

    Years to maturity (%)

    0 - 5 Years37.1
    5 - 10 Years31.7
    10 - 15 Years10.7
    15 - 20 Years9.1
    20 - 25 Years6.3
    25 - 30 Years3.6
    30 - 40 Years1.4
    40+ Years0.3

    Credit rating (%)

    AAA18.3
    AA26.2
    A17.2
    BBB31.9
    BB4.7
    B1.7

    Country (%)

    France16.7
    Germany13.5
    United States11.4
    Netherlands9.4
    Supranational9.1
    United Kingdom6.1
    Spain5.6
    Italy5.2
    Belgium2.4
    Other20.6
    Top 10 holdings22.3
    Rest of portfolio77.7
    No. of holdings in ETF198
    No. of constituents in Index809

    Top 10 holdings (%)

    Top 10 holdings (%)

    French Govt Bond OAT 1.75% 25 Jun 396.0
    United Kingdom Gilt 0.875% 31 Jul 332.4
    French Govt Bond OAT 0.5% 25 Jun 442.0
    Belgium Govt Bd 1.25% 22 Apr 332.0
    European Union 0.4% 04 Feb 372.0
    Italy Buoni Del Tesoro 1.5% 30 Apr 451.9
    Netherlands Govt Bd 0.5% 15 Jan 401.8
    Deutschland Bunde 0% 15 Aug 301.6
    Ireland Govt Bd 1.35% 18 Mar 311.4
    KfW 0% 15 Sep 281.3

    Income

    Latest dividends

    of

    Dividend history

    Total dividends paid in each financial year of the fund.

    Investment Manager

    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 9Article 9: These funds have a sustainable investment objective

    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 has a sustainable investment objective. The Fund invests in securities of issuers which (i) contribute to an environmental objective, (ii) do not significantly harm any environmental or social objectives, and (iii) follow good governance practices. The Fund seeks to achieves its sustainable objective by tracking an index (the "Index") which focuses on securities of issuers which contribute to climate change mitigation, natural resources and conservation and pollution prevention and control (“green bonds”) that have been reviewed independently, to minimise the incidence of 'greenwashing'. The Index applies an ESG scoring and screening methodology to tilt toward green bond issuers ranked higher on ESG criteria and 'Certified Climate Bond' issues, and to underweight green bond issues that have not been reviewed independently. The green bond labelling, certification and information on independent review is carried out by an independent third party data provider. The Index Provider will determine the constituents and weighting of the Index on the basis of the independent third party data provider’s analysis. Only securities labelled as green bonds by the third party data provider will be eligible for inclusion in the Index.

    The Index applies J.P. Morgan ESG (JESG) issuer scores to adjust the market value of index constituents from the baseline J.P. Morgan Green Bond Index (GENIE). JESG issuer scores are a 0-100 percentile rank calculated based on normalized raw ESG scores from third-party research providers. An issuer’s finalized JESG score incorporates a 3-month rolling average. Corporate issuers with no coverage by either third-party research provider default to their region-sector 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 with a one-month lag.

    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

    If an instrument is categorized as a ‘Certified Climate Bond’ by the Climate Bonds Initiative, the security will receive a one-band upgrade. Instruments that have not been independently reviewed will receive a one band downgrade.

    Decarbonisation
    Net zero framework
    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:

    • Green Bond issuers considered non-adherent with United Nations Global Compact (UNGC) principles by independent third party data providers.
    • Green Bond issuers earning direct revenues from tobacco
    • Green Bond issuers earning direct revenues from the production of weapons
    Tilting
    Paris-aligned benchmark optimisation
    ESG integration
    UN SDG alignment

    Having assessed the existing constituents of the Index, we have concluded that such investments do not significantly harm any environmental and social objectives. We have implemented processes and checks, using both environmental and social indicators, to verify on a bi-annual basis that the Fund’s investments do not cause any significant harm to any such objectives.

    The data used to construct the index is sourced from independent third party data providers.

    The Index Provider, J.P. Morgan, determines the constituents of the Index.

    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 are met will likely be made available as part of the annual report published in 2022 as required by SFDR. The Fund’s most recent annual report does not include any information pursuant to SFDR.

    Pre-contractual disclosure

    SFDR Disclosure

    The Fund has a sustainable objective as it invests in issuers which (i) contribute to an environmental objective, (ii) do not significantly harm any environmental or social objectives and its investee companies follow good governance practices. The investment objective of the Fund is to provide exposure to the green bonds across developed and emerging markets. The Fund is passively managed and pursues its investment objective by seeking to track the performance of the Index. The Index differs from a broad market index as it seeks to provide exposure to issuers which contribute to climate change mitigation, natural resources conservation and pollution prevention and control. The Index applies an ESG scoring and screening methodology to tilt towards green bond issuers ranked higher on ESG criteria and ‘Certified Climate Bond’ issues, and to underweight green bond issues that have not been reviewed independently and excludes companies engaged in pure coal mining or companies that violate the UN Global Compact principles, Further information on the Index can be found in the “Index Description” section below, and at www.jpmorgan.com/country/US/en/jpmorgan/investbk/solutions/research/indices.

    The Manager aims to ensure that the issuers of investments in which the Fund is invested follow good governance practices. This is achieved by 1) setting expectations with the issuers' management with regard to good governance practices; 2) active engagement with the issuers; and 3) supporting policymakers and legislators to ensure a strong regulatory environment 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. Regular reporting on the outcomes of active engagement can be made available on request or can be found at: www.lgim.com.

    EU Taxonomy Disclosure

    This Fund invests in an economic activity that contributes to an environmental objective (within the meaning of SFDR) and it is therefore required, pursuant to the Regulation (EU) 2020/852 (the “Taxonomy Regulation"), to disclose information about the environmentally sustainable investments made.

    It is expected that through the attainment of the Fund’s sustainable investment objective, this Fund will contribute to the following environmental objectives set out in Article 9 of the Taxonomy Regulation: (a) climate change mitigation; (b) climate change adaptation; (c) the sustainable use and protection of water and marine resources; (d) the transition to a circular economy; (e) pollution prevention and control; as well as (f) the protection and restoration of biodiversity and ecosystems.

    In order to contribute to these objectives, it is expected that this Fund will make investments in economic activities, such as, but not limited to, electricity generation from wind power, hydropower and ocean energy technologies; freight rail transport and installation, maintenance and repair of energy efficiency equipment.  However, due to the current lack of data available on investee companies in which the Fund invests, required for the assessment of the EU Taxonomy alignment, it cannot at this stage be accurately calculated to what extent the Fund’s underlying investments qualify as environmentally sustainable as per Article 3 of the Taxonomy Regulation, nor can any of the underlying investments currently be classified as investments in environmentally sustainable economic activities under the Taxonomy Regulation.

    As data on investee companies becomes more available it is expected that this calculation will become more accurate and will be made available to investors. Such data will therefore be integrated into a future version of this document, along with information relating to the proportion of investments in enabling and transitional activities.

    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

    Prices

    Name
    EUR Dist
    Currency
    EUR
    NAV
    8.24
    Price time
    16:00 EST (NY)

    Key risks

    The value of an investment and any income taken from it is not guaranteed and can go down as well as up. You may not get back the amount you originally invested.

    Past performance is not a guide to the future.

    For more information, please refer to the key investor information document.

    Important information

    In the United Kingdom and outside the European Economic Area, it is issued by Legal & General Investment Management Limited, authorised and regulated by the Financial Conduct Authority, No. 119272. Registered in England and Wales No. 02091894 with registered office at One Coleman Street, London, EC2R 5AA.

    In the European Economic Area, it is issued by LGIM Managers (Europe) Limited, authorised by the Central Bank of Ireland as a UCITS management company (pursuant to European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 2011 (S.I. No. 352 of 2011), as amended) and as an alternative investment fund manager with “top up” permissions which enable the firm to carry out certain additional MiFID investment services (pursuant to the European Union (Alternative Investment Fund Managers) Regulations 2013 (S.I. No. 257 of 2013), as amended). Registered in Ireland with the Companies Registration Office (No. 609677). Registered Office: 70 Sir John Rogerson’s Quay, Dublin, 2, Ireland. Regulated by the Central Bank of Ireland (No. C173733).

    LGIM Managers (Europe) Limited operates a branch network in the European Economic Area, which is subject to supervision by the Central Bank of Ireland. In Italy, the branch office of LGIM Managers (Europe) Limited is subject to limited supervision by the Commissione Nazionale per le società e la Borsa (“CONSOB”) and is registered with Banca d’Italia (no. 23978.0) with registered office at Via Uberto Visconti di Modrone, 15, 20122 Milan, (Companies’ Register no. MI - 2557936). In Germany, the branch office of LGIM Managers (Europe) Limited is subject to limited supervision by the German Federal Financial Supervisory Authority (“BaFin”). In the Netherlands, the branch office of LGIM Managers (Europe) Limited is subject to limited supervision by the Dutch Authority for the Financial Markets (“AFM“) and it is included in the register held by the AFM and registered with the trade register of the Chamber of Commerce under number 74481231. Details about the full extent of our relevant authorisations and permissions are available from us upon request.

    We are a member of the Irish Funds Association.

    All features described on this website are those current at the time of publication and may be changed in the future. Nothing on this website should be construed as advice and it is therefore not a recommendation to buy or sell securities. If in doubt about the suitability of this product, you should seek professional advice. Copies of the prospectus, key investor information document, annual and semi-annual reports & accounts are available free of charge on request or at www.lgimetf.com.

    This website is only directed at investors resident in jurisdictions where our funds are registered for sale. It is not an offer or invitation to persons outside of those jurisdictions. We reserve the right to reject any applications from outside of such jurisdictions.

    Following the imposition of sanctions on Russian securities and assets being removed from indices the market has been 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 may 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.

    Source and third party data

    Source: Unless otherwise indicated all data contained on this website is sourced from Legal & General Investment Management Limited.

    Where this document contains third party data ('Third Party Data’), we cannot guarantee the accuracy, completeness or reliability of such Third Party Data and accept no responsibility or liability whatsoever in respect of such Third Party Data

    Index disclaimer

    Information has been obtained from sources believed to be reliable but J.P. Morgan does not warrant its completeness or accuracy. The Index is used with permission. The Index may not be copied, used, or distributed without J.P. Morgan’s prior written approval. Copyright 2021, J.P. Morgan Chase & Co. All rights reserved.