ICAV (UCITS compliant)

L&G Emerging Markets Equity Future Core Fund

Fund facts

Fund size
$375.0m
Base currency
USD
Launch date
23 Nov 2020
Domicile
Ireland
Share class launch

Statistics

As at 31 Oct 2021

Fund aim

The investment objective of the Fund is to provide investors with a return in line with the performance of the Solactive L&G Emerging Markets Future Core (ex Fossil Fuels) Index (the “Index”).

Benchmark

Solactive L&G Emerging Markets Future Core ESG (ex Fossil-Fuel) Index

  • What does it invest in? Invests in shares of companies from emerging markets as represented by the Index, which is alternatively weighted to give greater weight to companies that score well against environmental, social and governance criteria. This means the Fund will invest more in companies that score well against these criteria, and less in companies that do not. The ESG score is aligned to our engagement and voting activities.
  • How does it invest? Passively managed, to replicate the performance of the Index. The index also only incorporates companies that do not have excessive exposure or involvement in nuclear power generation, assault weapons, United Nations Global Compact violation, controversial weapons, tobacco production and retailing, recreational cannabis, gambling and fossil fuels.
  • 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.

Further details

Costs

Price basis
Single - dilution levy
Initial charge
0.00%
Ongoing charges figure
0.26%
Dilution levy
0.308%- round trip
Entry Anti-Dilution Levy
0.10%
Exit Anti-Dilution Levy
0.20%

Codes

ISIN
IE00BJVH6W62
SEDOL
BJVH6W6
Bloomberg
LGEFCIE ID
MEX
LGAAZN

Dealing information

Valuation frequency
Daily, 22:30 Irish time
Dealing frequency
Each Irish and UK Business Day
Settlement period
T+2
Administrator/Custodian
Northern Trust

Country registration

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

Portfolio

As at 31 Oct 2021. 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.

Sector (%)

TECHNOLOGY38.4
FINANCE25.6
CONSUMER SERVICES9.6
INDUSTRIALS7.7
HEALTHCARE5.0
CONSUMER NON-DURABLES4.7
CONSUMER DURABLES3.7
BASIC MATERIALS2.6
ENERGY1.5
UTILITIES1.4

Market capitalisation (%)

Large86.4
Mid11.8
Small1.8
Undefined-
Top 10 holdings30.6
Rest of portfolio69.4
No. of holdings in fund1,035
No. of holdings in index1,374

Top 10 holdings (%)

Taiwan Semiconductor Manufacturing8.5
Alibaba Group Holding5.5
Samsung Electronics Co Ltd4.4
Tencent Holdings Ltd4.2
Infosys Ltd - Sp Adr2.1
Meituan - Class B1.3
Naspers Ltd1.3
Reliance Industries Ltd1.2
Wuxi Biologics Cayman Inc1.2
Naver Corporation1.1

Country (%)

Taiwan18.7
India13.9
Korea11.2
United States11.1
Cayman Islands11.0
China9.6
South Africa4.3
Brazil3.3
Thailand2.5
Other14.3

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

Stock selection
Carbon intensity
Future World Protection List

The Future World Protection List captures companies failing to meet globally accepted business practices on sustainability, or our minimum requirements on the carbon transition. There are two environmental and/or social components to the list:

  • Companies that derive 30% or more of their revenues (as a % of their balance sheet) from coal mining or extraction are excluded from the Fund.
  • Companies that are in breach of at least one of the United Nation Global Compact principles for a continuous period of three years (36 months) or more are considered persistent violators and are excluded.
  • In addition, companies involved in controversial weapons are also excluded. These exclusions, however, did not form the rationale for the article 8 categorisation.
  • The Future World Protection List is monitored on an on-going basis and updated every 6 months. In order to determine the list of companies included on the Future World Protection List, we use data from a number of external ESG data providers.

Further information on the methodologies used to assess, measure and monitor the inclusion of companies on the Future World Protection List can be found at https://www.lgim.com/landg-assets/lgim/_document-library/capabilities/future-world-protection-list-public-methodology.pdf

The Index Provider, Solactive, determines the constituents of the Index. The index provider uses external data sources.

Climate Impact Pledge
Exclusions

Issuers are excluded  from the index based on the below criteria, as determined by Solactive:

  • Exclusion of companies listed on the Future World Protection List ("FWPL").
  • Exclusion of companies generating more than 50% of their revenues (in proportion to their total revenues) from nuclear power generation
  • Exclusion of companies generating more than 25% of their revenues (in proportion to their total revenues) from oil sand extraction
Tilting
Paris-aligned benchmark optimisation
ESG integration

Further information on the index methodology can be found at: https://www.solactive.com/wp-content/uploads/solactiveip/en/ESG_Methodology_Statement_DE000SLA9LC7.pdf

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

The Fund promotes a range of environmental and social characteristics. The characteristics promoted by the Fund are met by tracking an Index which excludes companies with excessive exposure or involvement in nuclear power generation, coal extraction, oil sand extraction, fossil fuels, and United Nations Global Compact violators as determined by the index provider’s methodology. 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 companies in which the Fund is invested follow good governance practices by 1) setting its expectations with company management with regard to good governance practices; 2) actively engaging with investee companies; 3) utilising its voting rights; and 4) supporting policymakers and legislators to ensure there is strong regulation and standards. Active engagement with the companies 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.

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 companies. 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 companies 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 companies 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

LGIM apply a common global strategy with respect to the use of voting rights, and setting expectations of investee companies with regards to planning, management and disclosure of sustainability issues. These principles impact on voting decisions, and for certain themes such as climate, gender and racial diversity there are structured voting and engagement processes in place.

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.

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

Literature

Prices

Name
I EUR Acc
Mid price
92.82c
Change (%)
0.151057
Currency
EUR
Price time
22:30 Irish time
Name
I USD Acc
Mid price
97.53c
Change (%)
0.858325
Currency
USD
Price time
22:30 Irish time
Name
Z EUR Acc
Mid price
105.26c
Change (%)
0.161766
Currency
EUR
Price time
22:30 Irish time
Name
Z USD Acc
Mid price
100.07c
Change (%)
0.856682
Currency
USD
Price time
22:30 Irish time

For valuations and account queries contact:

Legal & General (Unit Trust Managers) Limited
PO Box 6080
Wolverhampton
WV1 9RB
Tel : 0370 050 0955
Email: [email protected]

Legal & General ICAV
LGIM Liquidity Funds Plc

Northern Trust International Fund Administration Services (Ireland) Limited
City East Plaza - Block A
Towlerton
Ballysimon Road
Limerick
Ireland
V94 X2N9
Fax: +353 1 434 5293
Telephone: +353 1 434 5080
Email: [email protected]

Legal & General SICAV
Northern Trust Global Services SE
6 rue Lou Hemmer
L-1748 Senningerberg
Grand-Duché de Luxembourg
Facsimile: +352 276 222 150
Telephone: +352 276 222 514
Email: [email protected]

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 no guarantee of future results.

This fund invests in countries where investment markets are considered to be less developed. This means that investments are generally riskier than those in developed markets because they: may not be as well regulated; may be more difficult to buy and sell; may have less reliable arrangements for the safekeeping of investments; or may be more exposed to political and taxation uncertainties. The value of the fund can go up or down more often and by larger amounts than funds that invest in developed countries, especially in the short term.

The fund could lose money if any institution providing services such as acting as counterparty to derivatives or other instruments, becomes unwilling or unable to meet its obligations to the fund.

Derivatives are highly sensitive to changes in the value of the asset on which they are based and can increase the size of losses and gains.

The fund may have underlying investments that are valued in currencies that are different from sterling (British pounds). Exchange rate fluctuations will impact the value of your investment. Currency hedging techniques may be applied to reduce this impact but may not entirely eliminate it.

We may take some or all of the ongoing charges from the fund's capital rather than the fund's income. This increases the amount of income, but it reduces the growth potential and may lead to a fall in the value of the fund.

Important information

This information is intended for investment professionals only and is for information purposes only. It should not be distributed without our permission.

No investment decisions should be made without first reviewing the key investor information document and prospectus (and any supplements thereto) of the relevant product which includes information on certain risks associated with an investment.

Unless otherwise agreed in writing, the Information on this website (a) is for information purposes only and we are not soliciting any action based on it, and (b) is not a recommendation to buy or sell securities or pursue a particular investment strategy; and (c) is not investment, legal, regulatory or tax advice. Any trading or investment decisions taken by you should be based on your own analysis and judgment (and/or that of your professional advisers) and not in reliance on us or the Information.

This information is only directed at investors resident in jurisdictions where each fund is 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.

All information detailed on this website is current at the time of publication and may be changed in the future.

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

Issuer

Issued by Legal & General Investment Management Limited as promoter and distributor for this fund in the UK.

Legal & General Investment Management Limited has been appointed as the discretionary investment manager for these Funds and is Registered in England and Wales No. 02091894. Registered Office: One Coleman Street, London, EC2R 5AA, United Kingdom. Authorised and regulated by the Financial Conduct Authority, No. 119272.