Mainstream Investment Strategy Incorporates Climate Change Factors Reinforced by Stewardship Activities
CHICAGO, IL / ACCESSWIRE / June 11, 2019 / Legal & General Investment Management America (LGIMA), an investment solutions provider with nearly $191 billion in assets under management, announces the launch of the Legal & General Future World Developed Climate Change Strategy. Developed for U.S. clients who want to express a conviction on environmental, social and governance (ESG) themes depending on their different investment styles, this is the first in LGIMA’s Future World Strategy series. This strategy leverages the experience and momentum of the Future World Fund series established by LGIM (LGIMA’s UK affiliate) in 2016, with assets exceeding $6.5 billion as of December 31, 2018.
A large corporate 401K plan engaged with LGIMA, Mercer Investments LLC, and FTSE Russell to build a strategy which offers diversified global exposure with explicit environmental economic considerations while mitigating tracking risk to standard market-cap strategies. The strategy is now accessible in the client’s U.S. defined contribution program as an investment option that specifically considers climate risk factors and related economic opportunities.
Tracking a FTSE Russell Index, the strategy invests in a globally diversified portfolio of developed market equities. It uses an equity index to reduce exposure to companies with carbon emissions and fossil fuel assets that are higher than industry peers, and increases exposure to companies that generate revenue from green products. The strategy has been constructed to be a core, long-term equity holding opportunity for qualified retirement plans.
“We are seeing increasing demand for straightforward investment strategies that efficiently balance risk and return while explicitly helping the world transition to a low carbon future,” said LGIMA CEO Aaron Meder. “The Future World Developed Climate Change Strategy meets this demand, at a low cost, with conventional index characteristics.”
In addition to the investment strategy, this product highlights Legal & General’s focused stewardship strategy, including the Climate Impact Pledge. The Pledge is a commitment to currently engage with 84 of the world’s largest companies to promote better climate change governance, transparency and action.
“Stewardship is an emerging strategy in the U.S., whereas in Europe, it is widely expected that managers are actively engaging with investments on behalf of their clients,” said John Hoeppner, LGIMA’s head of US stewardship and sustainable investments. “Our message of independence, action and transparency is resonating with both companies and investors.”
For more information on LGIMA, the Legal & General Future World Developed Climate Change Strategy and its other sustainable investment strategies, visit http://www.lgima.com/.
ABOUT LGIMA: Legal & General Investment Management America, Inc. (LGIMA) is a registered investment advisor specializing in designing and managing investment solutions across active fixed income, index strategies, multi-asset, liability driven investment, and sustainable investment strategies for the US institutional market. With nearly $191 billion in assets under management as of March 30, 2019, LGIMA is a wholly-owned subsidiary of Legal & General Investment Management US (Holdings) Inc., which is in turn, wholly owned by Legal & General Investment Management (Holdings) Ltd. (LGIM(H)). LGIM(H) also owns our affiliates Legal & General Investment Management Ltd. and LGIM International Ltd. Legal & General’s worldwide assets under management are approximately $1.3 trillion as of December 31, 2018. For more information on LGIMA, visit http://www.lgima.com/.
ABOUT MERCER: Mercer delivers advice and technology-driven solutions that help organizations meet the health, wealth and career needs of a changing workforce. Mercer’s more than 23,000 employees are based in 44 countries and the firm operates in over 130 countries. Mercer is a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), the leading global professional services firm in the areas of risk, strategy and people. With 75,000 colleagues and annualized revenue approaching $17 billion through its market-leading companies including Marsh, Guy Carpenter and Oliver Wyman, Marsh & McLennan helps clients navigate an increasingly dynamic and complex environment. For more information, visit www.mercer.com. Follow Mercer on Twitter @Mercer.
ABOUT FTSE RUSSELL: FTSE Russell is a global index leader that provides innovative benchmarking, analytics and data solutions for investors worldwide. FTSE Russell calculates thousands of indexes that measure and benchmark markets and asset classes in more than 70 countries, covering 98% of the investable market globally.
FTSE Russell index expertise and products are used extensively by institutional and retail investors globally. Approximately $16 trillion is currently benchmarked to FTSE Russell indexes. For over 30 years, leading asset owners, asset managers, ETF providers and investment banks have chosen FTSE Russell indexes to benchmark their investment performance and create ETFs, structured products and index-based derivatives.
A core set of universal principles guides FTSE Russell index design and management: a transparent rules-based methodology is informed by independent committees of leading market participants. FTSE Russell is focused on applying the highest industry standards in index design and governance and embraces the IOSCO Principles. FTSE Russell is also focused on index innovation and customer partnerships as it seeks to enhance the breadth, depth and reach of its offering.
FTSE Russell is wholly owned by London Stock Exchange Group. For more information, visit www.ftserussell.com
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SOURCE: Legal & General Investment Management America, Inc.
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