The fund expands LGIM’s Future World Fund range and aims to provide long-term investment growth through exposure to a diversified range of asset classes.
It will primarily hold L&G Future World ESG index funds, incorporating ESG considerations via tilts to the underlying standard indices. This will involve the weighting of index constituents according to their performance against ESG metrics.
As part of the fund’s ESG focus, it incorporates LGIM’s Climate Impact Pledge, which is focused on speeding up the progress companies are making in addressing climate change and transitioning to a low-carbon economy.
LGIM has identified the companies that are critical to the shift to a low-carbon economy and ranked them against criteria such as their commitment to this transition, board composition, strategy and transparency.
Last week, it named several global companies as climate change laggards, saying it was to divest from them across its Future World range.
Emma Douglas (pictured), head of DC at LGIM, said: “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 millennials 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.”
LGIM said the fund aims to meet the criteria of the ABI Mixed Investment 40-85% Shares sector.
