ICAV (UCITS compliant)

L&G ESG Emerging Markets Government Bond (USD) Index Fund

I-Class GBP (Unhedged) IncomeI-Class EUR (Hedged) AccumulationI-Class EUR (Hedged) IncomeI-Class USD AccumulationC-Class GBP AccumulationC-Class EUR (Unhedged) AccumulationC-Class EUR (Hedged) AccumulationC-Class USD AccumulationK-Class GBP (Unhedged) AccumulationK-Class GBP (Hedged) AccumulationK-Class EUR (Hedged) IncomeZ-Class GBP (Unhedged) AccumulationZ-Class GBP (Hedged) AccumulationZ-Class EUR (Unhedged) AccumulationZ-Class EUR (Hedged) AccumulationZ-Class USD AccumulationZ-Class CHF (Hedged) Accumulation
ISIN
Price95.55p
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Price109.06c
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Price90.93c
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Price102.27c
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Price94.93p
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Price99.46c
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Price96.68c
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Price95.57c
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Price105.36p
As at20 Jan 2022
Price100.23p
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Price113.77c
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Price106.02c
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Price104.26c
As at20 Jan 2022
Price91.81p
As at20 Jan 2022
Price112.32p
As at20 Jan 2022
Price111.60c
As at20 Jan 2022
Price105.78c
As at20 Jan 2022
Price117.78c
As at20 Jan 2022
Price1.09
As at20 Jan 2022

Fund facts

Fund size
$2,394.4m
Base currency
USD
Launch date
6 Dec 2018
Domicile
Ireland
Share class launch

Statistics

Modified duration
8.35 years
Gross redemption yield (unhedged)
4.51%

As at 30 Nov 2021

Fund aim

The investment objective of the Fund is to provide investors with a return in line with the Emerging Markets government bond market, as represented by the JPMorgan ESG Emerging Markets Bond Index (EMBI) Global Diversified (the “Index”).

Benchmark

JPMorgan ESG Emerging Markets Bond Index (EMBI) Global Diversified Index

  • What does it invest in? Invests primarily in bonds issued in US dollars by governments of developing countries as determined by the index. These bonds will be a mixture of sub-investment grade (higher risk), investment grade (lower risk) and non-rated bonds. The index includes only bonds that meet the index provider’s socially responsible investing (“SRI”) requirements and environmental, social and governance (“ESG”) rating criteria. The fund may also use derivatives.
  • How does it invest? Passively managed, aiming to replicate the performance of the index.
  • 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.

Performance

Source: Lipper

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Performance (%)
Select period:
Change

    Performance summary (%)

    As at 30 Nov 2021

    CumulativeFundBenchmark
    1 month1.831.80
    6 months5.085.17
    Year to date-0.63-0.45
    3 years--
    5 years--
    Since launch13.3213.26
    AnnualisedFundBenchmark
    1 year-1.25-1.00
    3 years--
    5 years--
    Since launch4.344.32

    Share class launch date: 22 Oct 2021

    Share class launch date: 17 Jan 2020

    Share class launch date: 08 Nov 2021

    Share class launch date: 08 Nov 2021

    Share class launch date: 21 Dec 2018

    Share class launch date: 22 Oct 2019

    Share class launch date: 21 Dec 2018

    Share class launch date: 18 Oct 2019

    Share class launch date: 31 Jan 2019

    Share class launch date: 31 Jan 2019

    Share class launch date: 27 Mar 2020

    Share class launch date: 12 Apr 2019

    Share class launch date: 06 Dec 2019

    Share class launch date: 07 Dec 2018

    Share class launch date: 04 Mar 2019

    Share class launch date: 04 Mar 2019

    Share class launch date: 21 Aug 2019

    Share class launch date: 21 Dec 2018

    Share class launch date: 06 Dec 2018

    As at 30 Sep 2021

    CumulativeFundBenchmark
    Quarterly1.491.53
    Year to date-0.79-0.62
    3 years--
    5 years--
    Since launch13.1413.07
    AnnualisedFundBenchmark
    1 year-1.35-1.13
    3 years--
    5 years--
    Since launch4.544.52

    Share class launch date: 22 Oct 2021

    Share class launch date: 17 Jan 2020

    Share class launch date: 08 Nov 2021

    Share class launch date: 08 Nov 2021

    Share class launch date: 21 Dec 2018

    Share class launch date: 22 Oct 2019

    Share class launch date: 21 Dec 2018

    Share class launch date: 18 Oct 2019

    Share class launch date: 31 Jan 2019

    Share class launch date: 31 Jan 2019

    Share class launch date: 27 Mar 2020

    Share class launch date: 12 Apr 2019

    Share class launch date: 06 Dec 2019

    Share class launch date: 07 Dec 2018

    Share class launch date: 04 Mar 2019

    Share class launch date: 04 Mar 2019

    Share class launch date: 21 Aug 2019

    Share class launch date: 21 Dec 2018

    Share class launch date: 06 Dec 2018

    Rolling 12-month performance
    Calendar year performance
    Monthly performance
    Annualised performance

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

    12 months to 30 September 2017 2018 2019 2020 2021
    Fund----1.50-1.35
    Benchmark----2.01-1.13

    Data as at 30.11.2021

    Calendar year performance (%)

    2016 2017 2018 2019 2020
    Fund---11.033.09
    Benchmark---11.462.52

    Data as at 30.11.2021

    Monthly performance (%)

     

    Annualised performance (%)

    1 year3 years5 yearsSince launch
    Fund-1.25--4.34
    Benchmark-1.00--4.32

    Data as at 30.11.2021

    Annualised performance (%)

    1 year3 years5 yearsSince launch
    Fund-1.35--4.54
    Benchmark-1.13--4.52

    Data as at 30.09.2021

    Performance for the C EUR (Unhedged) Acc unit class in EUR, launched on 22 October 2021. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the C EUR (Hedged) Acc unit class in EUR, launched on 17 January 2020. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the C GBP Acc unit class in GBP, launched on 08 November 2021. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the C USD Acc unit class in USD, launched on 08 November 2021. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the I EUR (Hedged) Acc unit class in EUR, launched on 21 December 2018. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the I EUR (Hedged) Inc unit class in EUR, launched on 22 October 2019. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the I GBP (Unhedged) Inc unit class in GBP, launched on 21 December 2018. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the I USD Acc unit class in USD, launched on 18 October 2019. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the K EUR (Unhedged) Acc unit class in EUR, launched on 31 January 2019. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the K EUR (Hedged) Acc unit class in EUR, launched on 31 January 2019. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the K EUR (Hedged) Inc unit class in EUR, launched on 27 March 2020. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the K GBP (Unhedged) Acc unit class in GBP, launched on 12 April 2019. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the K GBP (Hedged) Acc unit class in GBP, launched on 06 December 2019. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the Z CHF (Hedged) Acc unit class in CHF, launched on 07 December 2018. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the Z EUR (Unhedged) Acc unit class in EUR, launched on 04 March 2019. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the Z EUR (Hedged) Acc unit class in EUR, launched on 04 March 2019. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the Z GBP (Unhedged) Acc unit class in GBP, launched on 21 August 2019. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the Z GBP (Hedged) Acc unit class in GBP, launched on 21 December 2018. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the Z USD Acc unit class in USD, launched on 06 December 2018. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Portfolio

    As at 30 Nov 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.

    Currency (%)

    USD100.0

    Years to maturity (%)

    0 - 5 Years28.0
    5 - 10 Years28.7
    10 - 15 Years9.1
    15 - 20 Years5.1
    20 - 25 Years8.1
    25 - 30 Years16.0
    30 - 40 Years4.3
    40+ Years0.7

    Credit rating (%)

    AA8.8
    AA-0.5
    A+0.2
    A11.2
    BBB38.1
    BB17.3
    B+0.1
    B19.9
    B-0.2
    Other3.8
    Top 10 holdings7.3
    Rest of portfolio92.7

    Top 10 holdings (%)

    Uruguay Govt Intl Bd 5.1% 18 Jun 501.3
    Ecuador Govt Intl Bd 1% 31 Jul 350.9
    Uruguay Govt Intl Bd 4.975% 20 Apr 550.9
    Russian Eurobond 5.25% 23 Jun 470.8
    Kuwait Govt Intl Bd3.5% 20 Mar 270.8
    Uruguay Govt Intl Bd 4.375% 23 Jan 310.7
    Qatar Govt Intl Bd5.103% 23 Apr 480.5
    Qatar Govt Intl Bd4.817% 14 Mar 490.5
    Jamaica Govt Intl Bd 7.875% 28 Jul 450.5
    Croatia Govt Intl Bd 6% 26 Jan 240.5

    Country (%)

    United Arab Emirates5.9
    Saudi Arabia4.7
    Uruguay4.6
    Qatar4.4
    Panama4.1
    Indonesia3.9
    Chile3.8
    Russia3.7
    Philippines3.6
    Other61.4

    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

    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 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 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, as determined by J.P. Morgan:

    • Issuers with revenue from the Thermal Coal sector
    • Issuers not in compliance with UN Global Compact principles
    • Issuers with J.P. Morgan (JESG) scores less than 20, these issuers are not eligible for index re-inclusion for 12 months
    • Issuers associated to tobacco or weapons industries are also excluded
    Tilting

    The Index applies JESG issuer scores to adjust the market value of index constituents from the baseline J.P. Morgan GBI-EM Global Diversified index. JESG issuer scores are a 0-100 percentile rank calculated based on normalized raw ESG scores from third-party research providers, including Sustainalytics and RepRisk. An issuer’s finalized JESG score incorporates a 3-month rolling average. Quasi-Sovereign issuers with no coverage from either third-party research provider default to their sovereign 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 on a quarterly basis.

    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

    Issuers in Band 5 will be excluded from the index and will not be eligible for twelve months. If an instrument is categorized as a “green bond” by the Climate Bonds Initiative, the security will receive a one-band upgrade. Green bonds upgrades may happen intra quarter. Green bonds by issuers already in Band 1 will not receive any further upgrades.

    Green bonds are bonds which are created to fund projects that have positive environmental and/or climate benefits.

    Further information on the index methodology can be found on the J.P. Morgan website.

    Paris-aligned benchmark optimisation
    ESG integration

    The Index Provider, J.P. Morgan, determines the constituents of the Index. The Index Provider uses external data sources.

    Courtesy of J.P. Morgan Securities LLC, Copyright 2021

    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 promotes a range of environmental and social characteristics. The characteristics promoted by the Fund are met by tracking an Index that (i) excludes issuers with revenue from thermal coal and United Nations Global Compact violators, as determined by the Index providers methodology, (ii) positively tilts towards issuers ranked higher on ESG criteria and green bond issues and (iii) underweights and excludes lower ranking issuers. 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 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. 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.

    EU Taxonomy Disclosure

    While the Fund promotes environmental and social characteristics within the meaning of Article 8 of the SFDR, it does not currently commit to investing in any “sustainable investments” within the meaning of the SFDR. Accordingly, it should be noted that the investments underlying this Fund do not take into account the EU criteria for environmentally sustainable economic activities within the meaning of the Taxonomy Regulation and, as such, the Fund’s portfolio alignment with the Taxonomy Regulation is not calculated.

    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

    Key literature

    Non-Trading Days
    01 Jan 2022
    Fact sheet
    30 Nov 2021
    Fact sheet
    30 Nov 2021
    Fact sheet
    30 Nov 2021
    Fact sheet
    30 Nov 2021
    Fact sheet
    30 Nov 2021
    Fact sheet
    30 Nov 2021
    Fact sheet
    30 Nov 2021
    Fact sheet
    30 Nov 2021
    Fact sheet
    30 Nov 2021
    Fact sheet
    30 Nov 2021
    Fact sheet
    30 Nov 2021
    Fact sheet
    30 Nov 2021
    Fact sheet
    30 Nov 2021
    Fact sheet
    30 Nov 2021
    Fact sheet
    30 Nov 2021
    Fact sheet
    30 Nov 2021
    Fact sheet
    30 Nov 2021
    KIID
    17 Feb 2021
    KIID
    17 Feb 2021
    KIID
    17 Feb 2021
    KIID
    17 Feb 2021
    KIID
    08 Nov 2021
    KIID
    17 Sep 2021
    KIID
    17 Feb 2021
    KIID
    08 Nov 2021
    KIID
    17 Feb 2021
    KIID
    17 Feb 2021
    KIID
    17 Feb 2021
    KIID
    17 Feb 2021
    KIID
    17 Feb 2021
    KIID
    17 Feb 2021
    KIID
    17 Feb 2021
    KIID
    17 Feb 2021
    KIID
    17 Feb 2021
    Prospectus
    31 Dec 2020

    Fact sheets

    2021Change date
    Fact sheet
    Choose share class

    Legal documents

    KIID
    17 Feb 2021
    KIID
    17 Feb 2021
    KIID
    17 Feb 2021
    KIID
    17 Feb 2021
    KIID
    08 Nov 2021
    KIID
    17 Sep 2021
    KIID
    17 Feb 2021
    KIID
    08 Nov 2021
    KIID
    17 Feb 2021
    KIID
    17 Feb 2021
    KIID
    17 Feb 2021
    KIID
    17 Feb 2021
    KIID
    17 Feb 2021
    KIID
    17 Feb 2021
    KIID
    17 Feb 2021
    KIID
    17 Feb 2021
    KIID
    17 Feb 2021
    UK EMT costs and charges
    13 Apr 2021
    European EMT costs and charges
    13 Apr 2021
    Prospectus
    31 Dec 2020
    Country Supplement - UK
    04 Mar 2021
    Incorporation Document
    23 Mar 2017

    Reports and accounts

    2021Change date
    Annual Report and Accounts
    31 Dec 2020
    Annual Report and Accounts
    31 Dec 2019
    Annual Report and Accounts
    31 Dec 2018
    Annual Report and Accounts
    31 Dec 2017
    Annual Report and Accounts
    31 Dec 2016
    Interim Report and Accounts
    30 Jun 2021
    Interim Report and Accounts
    30 Jun 2020
    Interim Report and Accounts
    30 Jun 2019
    Interim Report and Accounts
    30 Jun 2018
    Interim Report and Accounts
    30 Jun 2017

    Trading information

    Non-Trading Days
    01 Jan 2022

    Prices