ETF (UCITS compliant)

L&G Pharma Breakthrough UCITS ETF

Fund facts

Fund size*
$32.3m
Base currency
USD
Listing date
23 Jan 2018
Domicile
Ireland
Index ticker
SOLBIOT
Replication method
Physical - backed by equities

Statistics

*As at 14 Jun 2021

Fund aim

The L&G Pharma Breakthrough UCITS ETF (the "ETF") aims to track the performance of the Solactive Pharma Breakthrough Value Index (the "Index").

  • Long-term allocation

Long-term value in a pharmaceutical sub-sector that benefits from certain commercial and regulatory incentives

  • High growth potential

Aims to capture the future growth opportunity in orphan drugs

  • Leveraging industry expertise

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

  • Does it have a sustainable objective?

The Fund has a sustainable investment objective as it invests in companies which (i) contribute to social 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.

Solactive Pharma Breakthrough Value Index

The Index is comprised of bio-technology companies which are publicly traded on various stock exchanges around the world that are actively engaged in the research, development and manufacture of orphan drugs. An “orphan drug” is a pharmaceutical product that has been developed specifically to treat rare diseases or disorders. A company is only eligible for inclusion in the Index if (1) it is of a sufficient size (determined by reference to the total market value of the proportion of its shares that are publicly traded) and (2) it is sufficiently “liquid” (a measure of how actively its shares are traded on a daily basis).

The universe of companies out of which the Index selection is made is refreshed annually in April. However, the Index is reconstituted semi-annually in April and October in accordance with the full selection criteria and all companies are equally weighted within the Index. On a monthly basis, the weight of each company is assessed and, if any of them exceeds 15% of the Index, the weights of all companies are adjusted so that they are again equally weighted within the Index.

Index data

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

Fund updates

Performance

Source: Lipper.

Performance (%)
Select period:
Change

    Performance summary (%)

    As at 30 Apr 2021

    CumulativeFundBenchmark
    1 month1.641.67
    6 months8.779.10
    Year to date-4.00-3.80
    3 years33.2235.81
    5 years--
    Since launch22.5525.13
    AnnualisedFundBenchmark
    1 year13.5114.15
    3 years10.0210.73
    5 years--
    Since launch6.427.10

    As at 31 Mar 2021

    CumulativeFundBenchmark
    Quarterly-5.55-5.39
    Year to date-5.55-5.39
    3 years31.0033.58
    5 years--
    Since launch20.5823.07
    AnnualisedFundBenchmark
    1 year31.6632.41
    3 years9.4110.10
    5 years--
    Since launch6.056.73
    Rolling 12-month performance
    Calendar year performance
    Monthly performance
    Annualised performance

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

    12 months to 31 March 2017 2018 2019 2020 2021
    Fund--7.93-7.8131.66
    Benchmark--8.74-7.2432.41

    Calendar year performance (%)

    2016 2017 2018 2019 2020
    Fund---12.6727.09
    Benchmark---13.4527.73

    Monthly performance (%)

    Annualised performance (%)

    1 year3 years5 yearsSince launch
    Fund13.5110.02-6.42
    Benchmark14.1510.73-7.10

    Annualised performance (%)

    1 year3 years5 yearsSince launch
    Fund31.669.41-6.05
    Benchmark32.4110.10-6.73

    Performance for the USD Accumulating ETF class in USD, listed on 23 January 2018. 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 30 Apr 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 (%)

    Health Care96.8
    Precision Medicine3.2

    Currency (%)

    USD55.3
    EUR12.7
    JPY11.3
    CHF5.9
    DKK3.5
    AUD3.2
    SEK3.0
    HKD2.9
    GBP2.1
    Top 10 constituents33.3
    Rest of Index66.7
    No. of constituents in Index34

    Top 10 constituents (%)

    United Therapeutics3.5
    Halozyme3.5
    Genmab3.5
    Ipsen3.4
    Grifols3.3
    Sanofi3.3
    BeiGene3.3
    Alexion Pharmaceuticals3.2
    CSL3.2
    Horizon Therapeutics3.1

    Country (%)

    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 Fund has a sustainable investment objective. The Fund invests in companies which (i) contribute to a social objective, (ii) do not significantly harm any environmental or social objectives, and (iii) follow good governance practices. The Fund seeks to achieve its sustainable objective by tracking an index (the "Index") which seeks to provide exposure to pharmaceutical and bio-technology companies that are actively engaged in the research, development and/or manufacturing of orphan drugs that treat rare diseases or rare disorders.

    Companies eligible for inclusion in the Index universe shall be determined based on industry classification data provided by an independent third-party provider of consensus forecasts of leading industry analysts and analysis of the pharmaceutical and biotechnology healthcare sectors. In order to be eligible for inclusion in the Index a company must have a minimum of two marketed orphan drugs and must derive a proportion of revenue from orphan drugs which is within the top two quartiles of relevant orphan drugs companies, as determined by an independent third-party provider.

    Stock selection
    Carbon intensity
    Future World Protection List
    Climate Impact Pledge
    Exclusions
    Tilting
    ESG integration

    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 index provider uses independent third party data sources.

    The Index Provider, Solactive AG, determines the constituents of the Index in accordance with the Index methodology.

    Further information on the index methodology can be found at: https://www.solactive.com/Indices/?index=DE000SLA30N4

    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 has a sustainable objective as it invests in companies which (i) contribute to a social 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 global orphan drugs industry. 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 bio-technology companies that are actively engaged in the research, development and/or manufacturing of orphan drugs that treat rare diseases. Further information on the Index can be found in the “Index Description” section below, and at https://www.solactive.com/?s=Solactive%20Biotechnology&index=DE000SLA30N4.

    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.

    Investment Manager

    GO ETF Solutions LLP 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.

    Literature

    Prices

    Name
    USD Acc
    Currency
    USD
    NAV
    13.46
    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 ExchangeGBPBIGT23/01/2018IE00BF0H7608BIGT LNBIGT.L08:00 - 16:30
    London Stock ExchangeUSDBIOT23/01/2018IE00BF0H7608BIOT LNGEBIOT.L08:00 - 16:30
    Borsa ItalianaEURBIOT23/02/2018IE00BF0H7608BIOT IMECBIOT.MI09:00 - 17:30
    Deutsche BörseEURETLI06/02/2018IE00BF0H7608ETLI GYETLI.DE09:00 - 17:30
    EuronextEURBIOT01/02/2018IE00BF0H7608BIOT NAGOBIOT.AS09:00 - 17:30
    SIX Swiss ExchangeCHFBIOT05/06/2020IE00BF0H7608BIOT SWBIOTC.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.

    An investment in the ETF involves a significant degree of risk. Any decision to invest should be based on the information contained in the relevant prospectus. Prospective investors should obtain their own independent accounting, tax and legal advice and should consult their own professional advisers to ascertain the suitability of the ETF as an investment.

    The value of the shares in the ETF is directly affected by increases and decreases in the value of the Index. Accordingly the value of a share in the ETF may go up or down and a shareholder may lose some or the entire amount invested.

    The ETF's ability to closely track the Index will be affected by its ability to purchase and/or sell the Index constituents and any legal or regulatory restrictions or disruptions affecting them.

    The ETF's ability to closely track the Index will also be affected by transaction costs and taxes incurred when adjusting its investment portfolio generally and/or to mirror any periodic adjustments to the constituents of the Index. There can be no certainty that ETF shares can always be bought or sold on a stock exchange or that the market price at which the ETF shares may be traded on a stock exchange will reflect the performance of the Index.

    The ETF is subject to the risk that third party service providers (such as a bank entering into swaps with the ETF or the ETF's depositary) may go bankrupt or fail to pay money due to the ETF or return property belonging to the ETF.

    As the Index includes micro, small and medium-sized publicly traded companies, the ETF is subject to the risk that such companies may be more vulnerable to adverse business or economic events and greater and more unpredictable price changes than larger companies or the stock market as a whole.

    Companies that are actively engaged in the research, development and manufacture of orphan drugs are particularly vulnerable to the risk that, following lengthy and costly development periods, a drug may not ultimately enter into revenue-generating commercial production as a result of: (i) clinical trial failures, (ii) governmental intervention or refusal to grant appropriate approvals and/or licenses for clinical trials or commercial production and/or (iii) a lack of commercially viability. Additionally, the emergence of cheaper or more effective drugs could lead to a decline in the revenues of such companies. Such factors could lead to a decline in the value of the companies represented in the Index and therefore the ETF.

    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 L&G Pharma Breakthrough UCITS ETF (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 Solactive Pharma Breakthrough Value Index (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 Legal & General UCITS ETF Plc, 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.