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Legal & General Future World ESG Developed Index Class C - Income (GBP)

Sell:80.29p Buy:80.29p Change: 0.11p (0.14%)
Prices as at 23 May 2024
Change: 0.11p (0.14%)
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Prices as at 23 May 2024
Change: 0.11p (0.14%)
Prices as at 23 May 2024
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

Our view on this Fund

This fund is on the Wealth Shortlist of funds our analysts believe have the potential to outperform their peers over the long term. However, this is not a recommendation to buy.

We think this fund is a good option for broad exposure to global stock markets, while being mindful of environmental, social and governance (ESG) issues. An index tracker fund is one of the simplest ways to invest, and we think this fund could be a good addition to a broader investment portfolio aiming to deliver long-term growth in a responsible way. It could also be a good addition to a portfolio of other tracker funds.

Our view on the sector

It's natural for UK investors to focus on funds investing in their home market. But as the world has become more connected, so has the investment landscape. There are lots of funds investing across the globe, and these can be a great way to diversify an investment portfolio. Funds in the global sector can invest anywhere in the world. But they go about this in different ways. They vary in how much they can invest in certain types of companies, sectors, countries, or regions. Some focus on developed markets or large multinational corporations, while others invest more in higher-risk emerging markets or smaller companies. Some target companies with higher-growth expectations and others search for unloved companies with the potential to recover.

Performance Analysis

The fund's tracked its index well since launch in April 2019, although this is only over a short period of time. Over the long run, we'd expect the fund's performance to fall behind the index due to the costs involved , although that's to be expected from virtually all tracker funds. Given Legal & General's size, experience and expertise running index tracker funds, we expect the fund to continue to track the index well in future, though there are no guarantees how it will perform. Like all funds, it can fall as well as rise in value so investors could make a loss.

Investment Philosophy

Legal & General has become synonymous with passive funds. It has around £470bn invested in this part of the business, allowing them to offer a wide range of index-tracking options. It has also built a team of experienced index tracker fund specialists. We also admire Legal & General's commitment to encouraging good corporate practices among the companies they invest in. They proactively engage with businesses and use proxy voting rights to highlight important matters like environmental, social and governance issues. Legal & General's Future World range of funds also incorporates their 'Climate Impact Pledge', focused on speeding up the progress companies are making in addressing climate change and transitioning to a world powered by renewables rather than mainly oil and gas. They have identified the companies that are critical to the shift to a low-carbon economy and pay special attention to their actions, engaging with managers where necessary.

Process and Portfolio Construction

This fund aims to track the performance of the Solactive Legal and General ESG Developed Markets Index. It's made up of around 1,500 companies based across the globe, focused towards sectors such as technology, pharmaceuticals and financials. The index adopts two methods of ESG analysis; positive and negative screening. For the positive screening, it increases the weighting in companies that score well on a variety of ESG criteria from the level of carbon emissions generated, to the number of women on the board and the quality of disclosure on executive pay. It also reduces the allocation to companies that score poorly on these measures. The advantage of reducing investments in poorly-scoring companies, rather than selling their shares completely, is that the Legal & General team can (and do) engage with poorly-scoring companies to help them improve. An increased investment in exchange for improvement on various factors is a good incentive, so investors' money makes a positive difference. The fund does employ some negative screens on top of this however, and won't invest in tobacco companies, pure coal producers, makers of controversial weapons (such as cluster munitions, anti-personnel mines and chemical and biological weapons) or persistent violators of the UN Global Compact Principles (a UN pact on human rights, labour, the environment and anti-corruption). In any index tracker fund, things like withholdings taxes, dealing commissions and spreads, and the cost of running the fund all drag on performance. To try and bring it back more in line with the index, the team can use derivatives. The use of derivatives adds risk.

question mark Manager Track Record Based on HL Quantitative Research

This information is currently unavailable.

Fund Track Record

23/05/19 to 23/05/20 23/05/20 to 23/05/21 23/05/21 to 23/05/22 23/05/22 to 23/05/23 23/05/23 to 23/05/24
Annual return n/a n/a 2.30% 9.77% 21.11%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Information about the fund

Fund manager biography

manager photo
Manager Name: LGIM Index Fund Management Team
Manager start date: 30 September 2013
Manager located in: London

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

Data policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used. Benchmark data provided subject to this disclaimer.
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account