LGIM bolsters multi-asset fund range for DC schemes

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UK asset management company Legal & General Investment Management has bolstered its Future World Fund range with the launch of a new multi-asset fund.

The Future World MAF targets defined contribution schemes that seek to integrate environmental, social and governance factors into their investment strategy.

The fund aims to deliver a rate of return more conservative than that of developed-market equities over the long term, with reduced volatility and seeks to comply with the criteria of the ABI Mixed Investment 40-85% Shares sector.

It will primarily hold L&G Future World ESG index funds, incorporating ESG considerations via tilts to the underlying standard indices.

The vehicle also includes LGIM’s Climate Impact Pledge, focused on speeding up the progress companies are making in addressing climate change and transitioning to a low-carbon economy.

Emma Douglas, head of DC at LGIM said: “As one of the world’s largest investment companies, we believe we have a duty to both our clients and wider society to ensure the long-term success of the companies in which we invest. We’ve seen a marked change in attitudes from savers who want to use their pension to help create the future they want to retire in and research has shown that 85% of millenials would like their future investments to reflect their social and environmental values.

“Through the launch of the Future World MAF, LGIM has created a fund that can be used as a default for DC schemes.This fund demonstrates our established expertise in ESG. The methodology behind this fund is closely linked with how we hold companies to account through engagement and voting at LGIM.”

LGIM had total assets of £983.3bn (€1.12trn) as of end 2017.