Two new ESG funds are added by LGIM

Two new funds have been added to the Future World ESG Multi-Index fund lineup by Legal & General Investment Management (LGIM).

Both of the two funds, L&G Future World ESG Multi-Index 6 and L&G Future World ESG Multi-Index 7, have a stronger inclination toward stocks.

As a means of diversification, these funds also allocate money to defensive and alternative investments.

Within the £200 million Future World ESG range, which debuted in 2019, investors can now choose from five funds. Although they use index funds, these strategies actively manage their asset allocation.

The risk/return profile for L&G Future World ESG Multi-Index 7 is the highest. The two new FW Multi-Index funds from LGIM will invest in a combination of the company's current ESG index building block funds. This kind of multi-asset fund diversifies across up to 30 different asset classes at once, allowing investors to spread their risk across a variety of equities, bonds, and alternative investments like real estate, as well as a variety of other assets. 0.36bps will be chosen as the charge rate.

"Inflationary and recession risks, combined with additional ESG risks such as climate change and plastic pollution, have created a difficult investment environment for advisers and clients to navigate," said Andrzej Pioch, multi-asset fund manager at LGIM, "we firmly believe that asset allocation is the key driver of risk and return for a multi-asset ESG proposition."

"We believe we have the flexibility to respond to market events by dynamically changing investments across multiple asset classes as required, seeking resilient risk-adjusted returns while securing material ESG benefits for our clients." 

In order to give investors the chance to seek out significant ESG benefits in managed and risk-focused solutions, the Future World ESG Multi-Index range was introduced in 2019.

By fLEXI tEAM