SICAV (UCITS compliant)

L&G Emerging Markets Short Duration Bond Fund

Fund facts

Fund size
$379.8m
Base currency
USD
Launch date
24 Oct 2016
Domicile
Luxembourg
Share class launch

Statistics

Modified duration
3.18 years
Gross redemption yield (unhedged)
3.90%

As at 31 Aug 2021

Fund aim

The objective of the Fund is to provide investors with a combination of growth and income above those of the Blended benchmark consisting of 50% JP Morgan EMBI Global Diversified 3-5 year Total Return Index and  50% JP Morgan CEMBI Broad Diversified 3-5 year Total Return Index, the "Benchmark Index". The Fund is actively managed and aims to outperform the Benchmark Index by 1.25% per annum. This objective is before the deduction of any charges and measured over rolling three year periods. The Fund targets an overall duration of approximately 3 years.

Benchmark

Blended benchmark consisting of 50% JP Morgan EMBIG Div 3-5 year Total Return Index and 50% JP Morgan CEMBI BD 3-5 year Total Return Index

  • What does it invest in? Invests predominantly in fixed income securities with medium term maturity including bonds and other debt instruments, issued in a variety of currencies by companies and governments in emerging countries.
  • How does it invest? Actively managed, investing in debt which is a mixture of investment grade (lower risk) and sub-investment grade (higher risk). May also invest in unrated bonds, other types of securities and derivatives.
  • 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 Supplement.

Further details

Costs

Price basis
Single swing
Initial charge
0.00%
Ongoing charges figure
0.74%
Dilution adjustment
0.874%- round trip
Swing factor
0.437%

Codes

ISIN
LU1961077978
SEDOL
-
Bloomberg
LGESIGB LX
MEX
-

Dealing information

Valuation frequency
Daily, 23:00 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:

Fund updates

Performance

Source: Lipper

LIBOR is changing: read more on how future reforms of interbank offered rates may affect your investments with us.

Performance (%)
Select period:
Change

    Performance summary (%)

    As at 31 Aug 2021

    CumulativeFundBenchmark
    1 month1.200.74
    6 months2.512.27
    Year to date2.882.64
    3 years--
    5 years--
    Since launch13.4911.78
    AnnualisedFundBenchmark
    1 year6.605.92
    3 years--
    5 years--
    Since launch5.254.61

    As at 30 Jun 2021

    CumulativeFundBenchmark
    Quarterly2.132.00
    Year to date1.861.89
    3 years--
    5 years--
    Since launch12.3610.95
    AnnualisedFundBenchmark
    1 year9.177.94
    3 years--
    5 years--
    Since launch5.194.62
    Rolling 12-month performance
    Calendar year performance
    Monthly performance
    Annualised performance

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

    12 months to 30 June 2017 2018 2019 2020 2021
    Fund---0.009.17
    Benchmark----0.387.94

    Calendar year performance (%)

    2016 2017 2018 2019 2020
    Fund----5.05
    Benchmark----3.52

    Monthly performance (%)

    Annualised performance (%)

    1 year3 years5 yearsSince launch
    Fund6.60--5.25
    Benchmark5.92--4.61

    Annualised performance (%)

    1 year3 years5 yearsSince launch
    Fund9.17--5.19
    Benchmark7.94--4.62

    Performance for the I EUR (Hedged) Acc unit class in EUR, launched on 02 October 2017. 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 guide to the future.

    Performance for the I GBP (Hedged) Dist unit class in GBP, launched on 13 March 2019. 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 guide to the future.

    Performance for the I USD Acc unit class in USD, launched on 12 June 2019. 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 guide to the future.

    Performance for the P EUR (Hedged) Acc unit class in EUR, launched on 04 June 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 guide to the future.

    Performance for the P EUR (Hedged) Dist unit class in EUR, launched on 24 August 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 guide to the future.

    Performance for the Z EUR (Unhedged) Acc unit class in EUR, launched on 30 May 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 guide to the future.

    Performance for the Z EUR (Hedged) Acc unit class in EUR, launched on 20 July 2017. 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 guide to the future.

    Performance for the Z GBP (Unhedged) Acc unit class in GBP, launched on 30 May 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 guide to the future.

    Performance for the Z USD Acc unit class in USD, launched on 24 October 2016. 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 guide to the future.

    Performance for the Z USD Dist unit class in USD, launched on 24 October 2016. 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 guide to the future.

    Portfolio

    As at 31 Aug 2021. All data source LGIM unless otherwise stated. Totals may not sum due to rounding.

    Currency (%)

    USD100.0
    Other0.0

    This is the currency breakdown before allowing for any hedging the fund may use. We aim to hedge the portfolio 100% back to the base currency.

    Top 10 issuers18.8
    Rest of portfolio81.2
    No. of issuers179

    Top 10 issuers (%)

    Republic of Turkey2.9
    Government Of Ukraine2.6
    Kingdom of Bahrain2.3
    Greenko Energy Holdings1.8
    Republic of Kenya1.8
    Tengizchevroil LLP1.7
    Adani Transmissions Ltd1.6
    Republic of Ghana1.4
    Banco Mercantil De Norte1.4
    Kingdom of Saudi Arabia1.4

    Credit rating (%)

    FundBenchmarkRelative
    AAA-0.2-0.2
    AA2.85.3-2.5
    A8.518.2-9.7
    BBB20.624.6-4.0
    BB23.220.13.1
    B30.323.56.8
    Split Rated (B & CCC)1.11.3-0.2
    CCC and below4.84.30.5
    NR1.52.5-1.0
    Cash7.2-7.2

    Top sector over/underweights (%)

    FundBenchmarkRelative
    Cash and Equivalents7.2-7.2
    Utilities9.63.85.8
    Banks14.212.22.0
    Consumer Goods2.41.31.2
    Industrials4.63.51.1
    Financial Services5.95.40.5
    Health Care0.40.5-0.2
    Insurance-0.2-0.2
    Other0.40.6-0.3
    Telecommunications2.32.6-0.3
    Basic Materials5.05.4-0.4
    Oil & Gas10.010.7-0.7
    Real Estate1.52.2-0.7
    Consumer Services3.14.4-1.3
    Technology-1.7-1.7
    Sovereign33.545.6-12.0

    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 characteristics are met by:

    Stock selection
    Carbon intensity
    Future World Protection List
    Climate Impact Pledge
    Exclusions
    • Companies that derive 30% or more of their revenues (as a % of their balance sheet) from mining or extraction of thermal coal are excluded from the Fund.
    • Our coal exclusion list has been developed in conjunction with a third-party service provider and will apply to publicly listed, private and state-owned companies.
    • The list is reviewed twice a year and where new companies are identified, we will seek to divest holdings within the following 90 days.
    • Companies involved in controversial weapons are also excluded and UN Global Compact considerations are integrated into the investment process. These exclusions and considerations, however, did not form the rationale for the article 8 categorisation.
    Tilting
    Paris-aligned benchmark optimisation
    ESG integration

    Our ESG integration encompasses both top-down and bottom-up approaches to identify and assess ESG factors in the research analysis process. The top-down research analysis identifies long-term, thematic shifts and structural changes which help determine the resiliency of sectors and the companies within them. The bottom-up analysis uses a proprietary, company analysis tool called Active ESG View which provides information on the ESG credentials of companies.

    • Our Active ESG View tool forms an essential component of this overall active research process. The tool brings together granular quantitative and qualitative inputs in order to reflect a full picture of the ESG risks and opportunities embedded within each company.
    • Active ESG View combines ESG raw data with qualitative assessment capturing ESG insights from our company analysis and engagements.
    • The ESG analysis starts with 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.
    • Our Global Research and Engagement Groups (GREG), which is made up of Investment Stewardship and investment teams, have established a proprietary materiality matrix using such data which seeks to identify financially material topics for a given industry. The materiality matrix brings structure to our research and a framework to help systematically define and prioritise our engagement activity across the firm.
    • The GREGs review the ESG data within the Active ESG View tool for each sector in order to increase or decrease weightings for each environmental, social and/or governance factor within the tool with the aim to create an overall assessment.

    Active ESG View is an integral feature of this fund and the outputs of Active ESG View must be taken into account for all investment decisions.

    Active engagement is a vital pillar within our approach to ESG integration. In practice, the data alone may not tell the full story, which is why we believe that incorporating a qualitative element is essential in order to fully capture the ESG risks embedded within each company. Our qualitative inputs capture ESG insights leveraging on the extensive knowledge of our various research.

    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 Fund seeks to meet these characteristics by;

    (i) investing in bonds and bond related instruments issued by companies which meet the Investment Manager’s core pillars of ESG integration (as further described below); and

    (ii) excluding investments in bonds issued by companies that generate 30% or more of their revenues from mining and extraction of thermal coal. For the avoidance of doubt, the exclusion is at the corporate entity level only and will not include group or subsidiary companies; nor does it include metallurgical coal. A summary of the Investment Manager’s coal exclusion policy is available on request.

    Evaluating positive ESG factors is an integral part of the Fund’s investment process. The Investment Manager’s integrated framework for responsible investing across both public and private assets is primarily based on stewardship with impact and collaborative active research across asset classes. As part of the investment research process, material ESG factors are identified using both top-down and bottom-up approaches. The top-down research analysis performed by the Investment Manager’s sector experts, in conjunction with its investment stewardship teams; help determine the resiliency of sectors and the companies within them. ESG factors are also fully embedded into the bottom-up research process which involves evaluating the ESG credentials of companies that the Investment Manager considers for investment, alongside traditional financial metrics. The Investment Manager has developed a proprietary research tool called ESG Active View which brings together these granular quantitative and qualitative inputs by evaluating sector-specific ESG factors. The ESG Active View provides an overview of how companies manage potential, sector-specific ESG risks and opportunities, so that these can be considered alongside all other components of fundamental investment analysis.

    In addition to the above, 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. 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. Together, these activities enable the Investment Manager to conduct engagement that drives positive change and to deliver integrated investment solutions

    The Investment Manager finally aims to ensure that (where applicable) the issuers in which the Fund is invested follow good governance practices by 1) setting its expectations with issuers' management with regard to good governance practices; 2) actively engaging with the issuers; and 3) supporting policymakers and legislators to ensure there is strong regulation and standards.

    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.

    Fund Manager

    Uday is responsible for developing LGIM’s emerging market capabilities within the Global Fixed Income team. Uday joined LGIM in April 2014 from Gulf International Bank (UK) Ltd where he held the title of Chief Investment Officer with primary responsibility for managing the flagship EMD hedge fund and other fixed income portfolios. Uday has an MBA in finance from the University of Chicago and a BSc degree in industrial management from Carnegie Mellon University.

    UdayPatnaik

    Literature

    Fact sheets

    2021Change date
    Fact sheet
    Choose share class

    Trading information

    Prices

    This share class is not currently pricing.
    Name
    I GBP Hedged Dist
    Mid price
    101.86p
    Change (%)
    -
    Currency
    GBP
    Price time
    23:00 CET
    Name
    I EUR Hedged Acc
    Mid price
    110.58c
    Change (%)
    -
    Currency
    EUR
    Price time
    23:00 CET
    Name
    I USD Acc
    Mid price
    113.47c
    Change (%)
    -
    Currency
    USD
    Price time
    23:00 CET
    Name
    P EUR Hedged Acc
    Mid price
    110.96c
    Change (%)
    -
    Currency
    EUR
    Price time
    23:00 CET
    Name
    P EUR Hedged Inc
    Mid price
    100.69c
    Change (%)
    -
    Currency
    EUR
    Price time
    23:00 CET
    Name
    Z GBP Acc
    Mid price
    120.26p
    Change (%)
    -
    Currency
    GBP
    Price time
    23:00 CET
    Name
    Z EUR Acc
    Mid price
    123.23c
    Change (%)
    -
    Currency
    EUR
    Price time
    23:00 CET
    Name
    n/a
    Mid price
    n/a
    Change (%)
    n/a
    Currency
    n/a
    Price time
    n/a
    Name
    Z USD Acc
    Mid price
    133.61c
    Change (%)
    -
    Currency
    USD
    Price time
    23:00 CET
    Name
    Z USD Inc
    Mid price
    105.79c
    Change (%)
    -
    Currency
    USD
    Price time
    23:00 CET

    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 holds bonds that are traded through agents, brokers or investment banks matching buyers and sellers. This makes the bonds less easy to buy and sell than investments traded on an exchange. In exceptional circumstances the fund may not be able to sell bonds and may defer withdrawals, or suspend dealing. The Directors can only delay paying out if it is in the interests of all investors and with the permission of the fund depositary.

    The fund invests directly or indirectly in bonds which are issued by companies or governments. If these companies or governments experience financial difficulty, they may be unable to pay back some or all of the interest, original investment or other payments that they owe. If this happens, the value of the fund may fall.

    Prices of the ABS/MBS may be volatile, and will generally fluctuate due to a variety of factors that are inherently difficult to predict. In addition, the terms of the ABS/MBS may restrict its sale in particular circumstances.

    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 impact to the fund can be greater where derivatives are used in an extensive or complex way.

    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.

    Investment returns on bonds are sensitive to trends in interest rate movements. Such changes will affect the value of your investment.

    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.

    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.