AP1 Ushers in New Passive Fund

on

Stockholm (NordSIP) – On Wednesday, November 25, Legal & General Investment Management (LGIM) launched the L&G Emerging Market Equity Future Core Fund with the support of AP1. The new fund combines passive emerging market exposure with the integration of sustainable investment factors. The fund was developed to satisfy institutional investors’ growing demand for index-linked funds with an extended sustainability profile.

According to LGIM, the L&G Emerging Market Future Core Fund tracks the Solactive L&G Emerging Markets Future Core ESG (ex Fossil-Fuel) Index but applies an extra filter, which adjusts its holdings based on how well the companies perform within several sustainability criteria, overweighting leaders and underweighting laggards.

- Promotion -

According to AP1, the index consists of large and medium-sized companies in 26 emerging markets that meet basic requirements for sustainability. The fund is completely fossil-free, in line with AP1’s policy to divest from fossil fuels to limit exposure to climate risks. It is also available for other investors.

The index also only incorporates companies that do not have excessive exposure or involvement in nuclear power generation, assault weapons, United Nations Global Compact violation, controversial weapons, coal extraction, tobacco production and retailing, recreational cannabis, gambling, oil sand extraction, and fossil fuels.

The fund is available to institutional investors. AP1’s external manager selectors Majdi Chammas and Tina Rönnholm highlighted the fund’s transparent and active work with several sustainability aspects to support companies that want to achieve positive change while achieving a return profile consistent with an index-related investment.

Image by Ahmad Ardity from Pixabay

Partner message

In the midst of a global pandemic, Apple announced one of the corporate world’s most ambitious environmental blueprints – to reduce the climate impact of every Apple device to net zero by 2030. The plan involves cutting 75 per cent of the company’s existing carbon footprint, not only for its own business but also across the manufacturing supply chain and product life cycle.

Learn more

NordSIP Insights

Most read this week

Taxonomy: Sustainability Platform to the Rescue

With the new EU regulations on sustainable finance on the doorstep of the entire industry, asset managers are scrambling to sort through the various...

Biden’s Climate Plan