{"id":14384,"date":"2023-11-08T16:21:13","date_gmt":"2023-11-08T16:21:13","guid":{"rendered":"https:\/\/www.esgtoday.com\/?p=14384"},"modified":"2023-11-08T16:21:44","modified_gmt":"2023-11-08T16:21:44","slug":"lgim-launches-series-of-government-bond-esg-funds","status":"publish","type":"post","link":"https:\/\/www.esgtoday.com\/lgim-launches-series-of-government-bond-esg-funds\/","title":{"rendered":"LGIM Launches New Series of Government Bond ESG Funds"},"content":{"rendered":"\n
\n <\/div>\n\n\n\n

Legal & General Investment Management (LGIM), one of Europe\u2019s largest asset managers, announced the launch of the L&G Future World ESG Emerging Markets Government Bond Local Currency Index Fund, the first in a series of new funds aimed at providing investors with exposure to an enhanced sovereign ESG framework, and the integration of ESG across sovereign debt.<\/p>\n\n\n\n

Additional funds to be launched in the series will include a developed market government bond index fund, and a USD denominated emerging markets government bond fund.<\/p>\n\n\n\n

According to LGIM, in addition to a range of ESG factors, the funds will also incorporate \u201cGeopolitical stability\/risk\u201d as a new proprietary fourth ESG pillar, focused on identifying risks beyond headline sustainability metrics, which the company said provides a more comprehensive risk assessment of investing in government debt.<\/p>\n\n\n\n

Citing World Bank research revealing an ingrained income bias in sovereign ESG scores, which results in money flowing primarily to more developed countries and away from developing nations that need the investment, LGIM said that the new framework seeks to eliminate this bias by facilitating a higher allocation of capital to nations that require debt issuance to advance their economies, and rewarding countries that are on a path to improving their ESG credentials while penalizing those that are trending negatively.<\/p>\n\n\n\n

LGIM added that it has implemented \u2018wealth bands\u2019 into their Index Fixed Income Sovereign Risk ESG Future World fund range, applying tiered thresholds for exclusions based on different levels of country income. The company said this will provide investors with exposure to sovereign debt with deeper ESG integration, factoring in forward-looking sovereign risk factors and adjusting for wealth bias.<\/p>\n\n\n\n

LGIM also said that the new fund range will incorporate a \u201csovereign ESG score momentum factor\u201d that rewards countries trending positively on ESG factors, and penalizes countries trending down, amplifying risk signals key to future growth within sovereign ESG. <\/p>\n\n\n\n

Lee Collins, LGIM\u2019s Head of the Index Fixed Income Desk said:<\/p>\n\n\n\n

\n

\u201dWhilst ESG integration in equities and corporate bonds exposures is a well-trodden path, it\u2019s fair to say that developments in the Sovereign ESG sector have lagged behind. We believe that with several unique features, these new products will offer investors a deeper ESG integration in the asset class.\u201d<\/p>\n<\/blockquote>\n\n\n\n

The company said that the new fund will use sovereign risk ESG data powered by Verisk Maplecroft<\/a>, and leverage JP Morgan\u2019s fixed income benchmark methodologies.<\/p>\n\n\n\n

James Lockhart Smith, VP of Markets & ESG at Verisk Maplecroft, said:<\/p>\n\n\n\n

\n

\u201cWe are delighted to be working with LGIM on their new Sovereign ESG Index funds. The scale of fast-evolving environmental risks, as well as persistent social and governance deficits, has increased the need for sovereign debt investment products that use ESG criteria in an impactful way.\u201d<\/p>\n<\/blockquote>\n\n\n\n

Shaku Pithavadian, Managing Director, Deputy Head of Global Index Research at JP Morgan, added:<\/p>\n\n\n\n

\n

\u201cWe have leveraged our best-in-class fixed income benchmark methodologies and new means of index construction to enhance customized product design for our clients. We are pleased to work with LGIM to integrate their bespoke Sovereign ESG framework in a scalable index solution.\u201d<\/p>\n<\/blockquote>\n\n\n\n

The funds have been categorized as Article 8 under the Sustainable Finance Disclosure Regulation.<\/p><\/span>","protected":false},"excerpt":{"rendered":"

Legal & General Investment Management (LGIM), one of Europe\u2019s largest asset managers, announced the launch of the L&G Future World ESG Emerging Markets Government Bond Local Currency Index Fund, the first in a series of new funds aimed at providing investors with exposure to an enhanced sovereign ESG framework, and the integration of ESG across […]<\/p>\n","protected":false},"author":16,"featured_media":14385,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[2,9],"tags":[],"acf":[],"yoast_head":"\nLGIM Launches New Series of Government Bond ESG Funds - ESG Today<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.esgtoday.com\/lgim-launches-series-of-government-bond-esg-funds\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"LGIM Launches New Series of Government Bond ESG Funds - ESG Today\" \/>\n<meta property=\"og:description\" content=\"Legal & General Investment Management (LGIM), one of Europe\u2019s largest asset managers, announced the launch of the L&G Future World ESG Emerging Markets Government Bond Local Currency Index Fund, the first in a series of new funds aimed at providing investors with exposure to an enhanced sovereign ESG framework, and the integration of ESG across […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.esgtoday.com\/lgim-launches-series-of-government-bond-esg-funds\/\" \/>\n<meta property=\"og:site_name\" content=\"ESG Today\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/ESGToday\/\" \/>\n<meta property=\"article:published_time\" content=\"2023-11-08T16:21:13+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-11-08T16:21:44+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.esgtoday.com\/wp-content\/uploads\/2023\/11\/LGIM2.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1364\" \/>\n\t<meta property=\"og:image:height\" content=\"830\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Susan Lahey\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@EsgToday\" \/>\n<meta name=\"twitter:site\" content=\"@EsgToday\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Susan Lahey\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.esgtoday.com\/lgim-launches-series-of-government-bond-esg-funds\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.esgtoday.com\/lgim-launches-series-of-government-bond-esg-funds\/\"},\"author\":{\"name\":\"Susan Lahey\",\"@id\":\"https:\/\/www.esgtoday.com\/#\/schema\/person\/97e13a5b49d5c769104360ded30d2826\"},\"headline\":\"LGIM Launches New Series of Government Bond ESG Funds\",\"datePublished\":\"2023-11-08T16:21:13+00:00\",\"dateModified\":\"2023-11-08T16:21:44+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.esgtoday.com\/lgim-launches-series-of-government-bond-esg-funds\/\"},\"wordCount\":537,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.esgtoday.com\/#organization\"},\"articleSection\":[\"Investors\",\"New funds & products\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.esgtoday.com\/lgim-launches-series-of-government-bond-esg-funds\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.esgtoday.com\/lgim-launches-series-of-government-bond-esg-funds\/\",\"url\":\"https:\/\/www.esgtoday.com\/lgim-launches-series-of-government-bond-esg-funds\/\",\"name\":\"LGIM Launches New Series of Government Bond ESG Funds - ESG Today\",\"isPartOf\":{\"@id\":\"https:\/\/www.esgtoday.com\/#website\"},\"datePublished\":\"2023-11-08T16:21:13+00:00\",\"dateModified\":\"2023-11-08T16:21:44+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/www.esgtoday.com\/lgim-launches-series-of-government-bond-esg-funds\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.esgtoday.com\/lgim-launches-series-of-government-bond-esg-funds\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.esgtoday.com\/lgim-launches-series-of-government-bond-esg-funds\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.esgtoday.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"LGIM Launches New Series of Government Bond ESG Funds\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.esgtoday.com\/#website\",\"url\":\"https:\/\/www.esgtoday.com\/\",\"name\":\"ESG Today\",\"description\":\"ESG investing news, analysis, research and information\",\"publisher\":{\"@id\":\"https:\/\/www.esgtoday.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.esgtoday.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.esgtoday.com\/#organization\",\"name\":\"ESG Today\",\"url\":\"https:\/\/www.esgtoday.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.esgtoday.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.esgtoday.com\/wp-content\/uploads\/2023\/05\/ESG-Today-Logo.png\",\"contentUrl\":\"https:\/\/www.esgtoday.com\/wp-content\/uploads\/2023\/05\/ESG-Today-Logo.png\",\"width\":618,\"height\":350,\"caption\":\"ESG Today\"},\"image\":{\"@id\":\"https:\/\/www.esgtoday.com\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/ESGToday\/\",\"https:\/\/twitter.com\/EsgToday\",\"https:\/\/www.linkedin.com\/company\/esg-today\/\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.esgtoday.com\/#\/schema\/person\/97e13a5b49d5c769104360ded30d2826\",\"name\":\"Susan Lahey\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.esgtoday.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/cab60e69514f8fa9da35d98b8240df92?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/cab60e69514f8fa9da35d98b8240df92?s=96&d=mm&r=g\",\"caption\":\"Susan Lahey\"},\"description\":\"Susan Lahey started her career as a business reporter for The Kansas City Star and has worked as a freelancer covering business, investment, technology, sustainability and science for numerous publications. She has also worked as a writer and editor for publicly funded projects mandating environmental cleanup of a molybdenum mine in Northern New Mexico; and recovery and resiliency measures following Hurricane Maria in Puerto Rico. Recently she worked as Director of Communications for a European wave energy company.\",\"url\":\"https:\/\/www.esgtoday.com\/author\/susan-lahey\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"LGIM Launches New Series of Government Bond ESG Funds - ESG Today","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.esgtoday.com\/lgim-launches-series-of-government-bond-esg-funds\/","og_locale":"en_US","og_type":"article","og_title":"LGIM Launches New Series of Government Bond ESG Funds - ESG Today","og_description":"Legal & General Investment Management (LGIM), one of Europe\u2019s largest asset managers, announced the launch of the L&G Future World ESG Emerging Markets Government Bond Local Currency Index Fund, the first in a series of new funds aimed at providing investors with exposure to an enhanced sovereign ESG framework, and the integration of ESG across […]","og_url":"https:\/\/www.esgtoday.com\/lgim-launches-series-of-government-bond-esg-funds\/","og_site_name":"ESG Today","article_publisher":"https:\/\/www.facebook.com\/ESGToday\/","article_published_time":"2023-11-08T16:21:13+00:00","article_modified_time":"2023-11-08T16:21:44+00:00","og_image":[{"width":1364,"height":830,"url":"https:\/\/www.esgtoday.com\/wp-content\/uploads\/2023\/11\/LGIM2.jpg","type":"image\/jpeg"}],"author":"Susan Lahey","twitter_card":"summary_large_image","twitter_creator":"@EsgToday","twitter_site":"@EsgToday","twitter_misc":{"Written by":"Susan Lahey","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.esgtoday.com\/lgim-launches-series-of-government-bond-esg-funds\/#article","isPartOf":{"@id":"https:\/\/www.esgtoday.com\/lgim-launches-series-of-government-bond-esg-funds\/"},"author":{"name":"Susan Lahey","@id":"https:\/\/www.esgtoday.com\/#\/schema\/person\/97e13a5b49d5c769104360ded30d2826"},"headline":"LGIM Launches New Series of Government Bond ESG Funds","datePublished":"2023-11-08T16:21:13+00:00","dateModified":"2023-11-08T16:21:44+00:00","mainEntityOfPage":{"@id":"https:\/\/www.esgtoday.com\/lgim-launches-series-of-government-bond-esg-funds\/"},"wordCount":537,"commentCount":0,"publisher":{"@id":"https:\/\/www.esgtoday.com\/#organization"},"articleSection":["Investors","New funds & products"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.esgtoday.com\/lgim-launches-series-of-government-bond-esg-funds\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.esgtoday.com\/lgim-launches-series-of-government-bond-esg-funds\/","url":"https:\/\/www.esgtoday.com\/lgim-launches-series-of-government-bond-esg-funds\/","name":"LGIM Launches New Series of Government Bond ESG Funds - ESG Today","isPartOf":{"@id":"https:\/\/www.esgtoday.com\/#website"},"datePublished":"2023-11-08T16:21:13+00:00","dateModified":"2023-11-08T16:21:44+00:00","breadcrumb":{"@id":"https:\/\/www.esgtoday.com\/lgim-launches-series-of-government-bond-esg-funds\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.esgtoday.com\/lgim-launches-series-of-government-bond-esg-funds\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.esgtoday.com\/lgim-launches-series-of-government-bond-esg-funds\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.esgtoday.com\/"},{"@type":"ListItem","position":2,"name":"LGIM Launches New Series of Government Bond ESG Funds"}]},{"@type":"WebSite","@id":"https:\/\/www.esgtoday.com\/#website","url":"https:\/\/www.esgtoday.com\/","name":"ESG Today","description":"ESG investing news, analysis, research and information","publisher":{"@id":"https:\/\/www.esgtoday.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.esgtoday.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.esgtoday.com\/#organization","name":"ESG Today","url":"https:\/\/www.esgtoday.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.esgtoday.com\/#\/schema\/logo\/image\/","url":"https:\/\/www.esgtoday.com\/wp-content\/uploads\/2023\/05\/ESG-Today-Logo.png","contentUrl":"https:\/\/www.esgtoday.com\/wp-content\/uploads\/2023\/05\/ESG-Today-Logo.png","width":618,"height":350,"caption":"ESG Today"},"image":{"@id":"https:\/\/www.esgtoday.com\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/ESGToday\/","https:\/\/twitter.com\/EsgToday","https:\/\/www.linkedin.com\/company\/esg-today\/"]},{"@type":"Person","@id":"https:\/\/www.esgtoday.com\/#\/schema\/person\/97e13a5b49d5c769104360ded30d2826","name":"Susan Lahey","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.esgtoday.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/cab60e69514f8fa9da35d98b8240df92?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/cab60e69514f8fa9da35d98b8240df92?s=96&d=mm&r=g","caption":"Susan Lahey"},"description":"Susan Lahey started her career as a business reporter for The Kansas City Star and has worked as a freelancer covering business, investment, technology, sustainability and science for numerous publications. She has also worked as a writer and editor for publicly funded projects mandating environmental cleanup of a molybdenum mine in Northern New Mexico; and recovery and resiliency measures following Hurricane Maria in Puerto Rico. Recently she worked as Director of Communications for a European wave energy company.","url":"https:\/\/www.esgtoday.com\/author\/susan-lahey\/"}]}},"builder_content":"","_links":{"self":[{"href":"https:\/\/www.esgtoday.com\/wp-json\/wp\/v2\/posts\/14384"}],"collection":[{"href":"https:\/\/www.esgtoday.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.esgtoday.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.esgtoday.com\/wp-json\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/www.esgtoday.com\/wp-json\/wp\/v2\/comments?post=14384"}],"version-history":[{"count":0,"href":"https:\/\/www.esgtoday.com\/wp-json\/wp\/v2\/posts\/14384\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.esgtoday.com\/wp-json\/wp\/v2\/media\/14385"}],"wp:attachment":[{"href":"https:\/\/www.esgtoday.com\/wp-json\/wp\/v2\/media?parent=14384"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.esgtoday.com\/wp-json\/wp\/v2\/categories?post=14384"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.esgtoday.com\/wp-json\/wp\/v2\/tags?post=14384"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}