LGIM aims for broad exposure with responsible investing ETF

ETFsLegal & General Investment Management (LGIM) has added to its exchange-traded fund (ETF) range with the launch of a strategy geared towards clients seeking a responsible investing approach whilst maintaining broad market exposure.

Set up in partnership with London-based index provider Foxberry, the Ucits fund assesses companies against a range of criteria with the aim of minimising exposure to firms likely to face longer-term challenges such as consumer boycotts or environmental hazards.

It will exclude companies that become less responsible, whilst also accounting for companies that become more responsible that may otherwise be missed by static or sector-based exclusion, according to the fund manager.

LGIM’s head of ETFs Howie Li said: “We’ve seen a variety of different exclusion lists that have been embedded into investment strategies over the years but they are often static or constrained only to certain industries that captured the perspective at a single point in time.”

“Investor expectations and awareness of new issues are constantly evolving and this has highlighted a need for integrating a dynamic investor and expert-led approach to help navigate through the changing landscape.”

The L&G Europe Equity (Responsible Exclusions) Ucits ETF has raised €200 million from Varma, a Finnish pensions insurer recently recognised by the UN-supported Principles for Responsible Investment. The ETF is listed on the London Stock Exchange.

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