ETF (UCITS compliant)

L&G Digital Payments UCITS ETF

L&G Digital Payments UCITS ETF

An investment strategy focused on the growth potential of digital payment technologies and the global transition to a cashless economy.

View Fund Profile

Fund facts

Fund size*
$14.1m
Base currency
USD
Listing date
27 May 2021
Domicile
Ireland
Index ticker
SOLDPAY
Replication method
Physical - full replication

Statistics

*As at 03 Dec 2021

Fund aim

The L&G Digital Payments UCITS ETF (the "ETF") aims to track the performance of the Solactive Digital Payments Index NTR (the “Index”).

  • Long-term allocation

Long-term megatrend that we believe is radically transforming the way we make payments

  • High growth potential

Aims to capture the outsized growth potential of global digital payments

  • Leveraging industry expertise

An index tracking investment strategy that is supported by a team of payments experts

  • 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.

Solactive Digital Payments Index

The Index is designed to provide exposure to equity securities of global companies that are actively engaged in the digital payments ecosystem. The digital payments ecosystem consists of the card payment and the cardless open-banking payment ecosystems.

The index universe encompasses companies that are actively engaged in the value-chain of digital payments, which includes payment acquirer, card issuers, payment gateways, payment processors, payment technology providers, and cardless payment service providers.

A company is only eligible for inclusion in the Index if it is of a sufficient size (determined by reference to the total market value of its shares that are publically traded) and it is sufficiently "liquid" (a measure of how actively its shares are traded on a daily basis). Moreover, the Index excludes certain companies: (a) that derive substantial revenues from coal mining; (b) involved in the production of controversial weapons; or (c) that, for a continuous period of three years, have been classified as being in breach of at least one of the UN Global Compact principles, which is a set of globally accepted standards on human rights, labour, environment and corruption.

The universe of companies out of which the Index selection is made is refreshed semi-annually in June and December. All constituents of the Index are equally weighted within the Index subject to certain liquidity based weight caps made to ensure that securities with lower liquidity are not overly represented in the Index. On a monthly basis, the weight of each company is assessed and, if any of them exceed 15% of the index, the weights of all companies are adjusted so that they are again equally weighted subject to liquidity constraints within the Index.

Index data

Provider
Solactive
Bloomberg code
SOLDPAY
Reuters code
.SOLDPAY
Type
Net Total Return
Website
www.solactive.com

Portfolio

As at 31 Oct 2021. 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.

Sector (%)

Information Technology87.9
Financials10.1
Communication Services2.0

Currency (%)

USD64.5
EUR9.3
CAD7.2
AUD5.1
JPY5.0
HKD3.1
GBP3.1
NZD2.6
Top 10 constituents33.5
Rest of Index66.5
No. of constituents in Index43

Top 10 constituents (%)

GreenSky5.2
Nuvei3.9
Zuora3.6
Lightspeed3.3
Adyen3.2
Afterpay3.1
Shopify2.9
Square, Inc.2.8
International Money Express2.7
American Express2.7

Country (%)

United States55.3
Canada10.2
Cayman Islands6.2
Australia5.1
Japan5.0
France3.9
Netherlands3.2
New Zealand2.6
Puerto Rico2.6
Other5.8

Investment Manager

Legal & General Investment Management Limited is the investment manager for this ETF and is responsible for its day-to-day investment management decisions. The team is highly experienced with respect to all aspects relating to the management of an ETF portfolio, including collateral management, OTC swap trading, adherence to UCITS regulations and counterparty exposure and monitoring.

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
Climate Impact Pledge
Exclusions

Issuers are excluded from the Index based on the below criteria:

  • Companies that derive 30% or more of their revenues (as a % of 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.
  • Companies involved in controversial weapons are also excluded. These exclusions, however, did not form the rationale for the article 8 categorisation.
Tilting
Paris-aligned benchmark optimisation
ESG integration

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

Further information on the Index methodology can be found on the Solactive AG. website at: https://www.solactive.com/indices/?se=1&index=DE000SL0BRN9

The above information in respect of the Index has been produced from methodologies, statements and disclosures of the index provider for purposes of satisfying the regulatory requirements under SFDR. The information is, therefore, not the property of LGIM and is provided “as is” and “as available”. LGIM 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 includes the following features: exclusion of companies engaged in pure coal mining or companies that violate the UN Global Compact principles, as determined by the index provider’s methodology. The Index is consistent with the environmental characteristics as it excludes such companies as set out in the “Index Description” section below. 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; 3) utilising its voting rights; and 4) 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.

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.

Literature

Fact sheets

2021Change date

Prices

Name
USD Acc
Currency
USD
NAV
8.27
Price time
16:00 EST (NY)

Further details

Charges and tax

TER
0.49%
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 ExchangeGBPDPAG27/05/2021IE00BF92J153DPAG LNDPAG.L08:00 - 16:30
London Stock ExchangeUSDDPAY27/05/2021IE00BF92J153DPAY LNDPAY.L08:00 - 16:30
Borsa ItalianaEURDPAY27/05/2021IE00BF92J153DPAY IMDPAY.MI09:00 - 17:30
Deutsche BörseEURDPGA27/05/2021IE00BF92J153DPGA GYDPGA.DE09:00 - 17:30
SIX Swiss ExchangeCHFDPAY17/11/2021IE00BF92J153DPAY SWDPAY.S09:00 - 17:30

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.

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

The ETF is not sponsored, promoted, sold or supported by Solactive AG. Nor does Solactive AG offer any express or implicit guarantee or assurance either with regard to the results of using the Index and/or Index trade mark or the Index price, at any time or in any other respect.

The Index is calculated and published by Solactive AG. Solactive AG uses its best efforts to ensure that the Index is calculated correctly. Irrespective of its obligations towards the Company, Solactive AG has no obligation to point out errors in the Index to third parties including, but not limited to, investors and/or financial intermediaries of the ETF. Solactive AG does not guarantee the accuracy and/or the completeness of the Index or any related data, and shall not have any liability for any errors, omissions or interruptions therein.

Neither publication of the Index by Solactive AG, nor the licensing of the Index or Index trade mark, for the purpose of use in connection with the ETF, constitutes a recommendation by Solactive AG to invest capital in said ETF nor does it, in any way, represent an assurance or opinion of Solactive AG with regard to any investment in this ETF. In no event shall Solactive AG have any liability for any lost profits or indirect, punitive, special or consequential damages or losses, even if notified of the possibility thereof.