L&G Global Developed Four Factor Index Fund

SRI Style:

Environmental Style

SDR Labelling:

Unlabelled with sustainable characteristics

Product:

OEIC

Fund Region:

Global

Fund Asset Type:

Passive Equity

Launch Date:

07/08/2018

Last Amended:

Aug 2025

Dialshifter ():

Fund Size:

£3209.70m

(as at: 30/04/2025)

Total Screened Themed SRI Assets:

£424600.00m

(as at: 31/12/2024)

Total Responsible Ownership Assets:

£1117672.56m

(as at: 31/12/2024)

Total Assets Under Management:

£1117672.56m

(as at: 31/12/2024)

ISIN:

GB00BF18NR50, GB00BF18NT74, GB00BD904M12, GB00BL4PNZ39, GB00BJXTNG32, GB00BKTPDF16, GB00BMDH1756

Objectives:

The objective of the Fund is to track the performance of the SciBeta Developed Low-Carbon & ESG High-Factor-Intensity Multi-Beta (vol, val, mom, pro/inv) Maximum Deconcentration Index, the "Benchmark Index" on a net total return basis before fees and expenses are applied.

Sustainability investment labels help investors find products that have a specific sustainability goal. This product does not have a UK sustainability investment label in accordance with the FCA’s Sustainability Disclosure Requirements as it does not have a specific sustainability objective in its investment objective, which is a requirement for a sustainability investment label. However, this Fund and the benchmark index that the Fund replicates apply environmental, social and governance criteria.

Further information on the Fund’s sustainability characteristics can be found in the Fund Details set out in the Prospectus.

Sustainable, Responsible
&/or ESG Overview:

The fund aims to help deliver positive impacts by:

  • Exclusions: controversial weapons, companies violating fundamental ethical norms, tobacco companies and coal companies
  • Application of a Carbon Footprint filter: the carbon filter applied by the Benchmark Index provider excludes certain companies with higher Carbon Footprint compared to other companies.
Primary fund last amended:

Aug 2025

Information directly from fund manager.

Fund Filters

Sustainability - General
Sustainability policy

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Sustainability focus

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UN Global Compact linked exclusion policy

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Report against sustainability objectives

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Environmental - General
Environmental policy

Funds that have policies which relate to environmental issues. These will typically set out the fund's stance on issues such as pollution, climate change, resource management, biodiversity loss, carbon emissions, plastics and/or additional environmental impacts. Strategies vary. See fund information for further information.

Limits exposure to carbon intensive industries

Funds that limit or 'reduce' their exposure to carbon intensive industries (ie sectors which are major contributors to climate change. Funds vary - some funds may be 'underweight' in this area which means they may have some investment in highly carbon intensive areas. Funds of this kind may choose companies they consider to be 'best in sector' and encourage ever higher standards. Strategies vary. See fund information for further details.

Favours cleaner, greener companies

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Climate Change & Energy
Coal, oil & / or gas majors excluded

Funds that avoid investing in major coal, oil and/or gas (extraction) companies. Funds vary: some may exclude all companies that extract oil. Others may have exposure to oil extraction via more diversified energy companies. See fund literature to confirm details.

Fracking and tar sands excluded

Funds that avoid companies involved in fracking and tar sands - which are widely regarded as controversial methods of oil and gas extraction. Strategies vary. See fund information for further information.

Fossil fuel reserves exclusion

Funds that avoid investing in companies with coal, oil and gas reserves. See fund information for further details.

Encourage transition to low carbon through stewardship activity

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Social / Employment
Social policy

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Ethical Values Led Exclusions
Ethical policies

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Tobacco and related product manufacturers excluded

Companies are excluded if they are involved in any aspect of the production chain for tobacco products, including cigarettes, vaping, e-cigarettes, chewing tobacco and cigars.

Tobacco and related products - avoid where revenue > 5%

Companies are excluded if they make more than 5% of their revenue from the manufacture, sale or distribution of tobacco products including cigarettes, vaping, e-cigarettes, chewing tobacco and cigars.

Controversial weapons exclusion

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Armaments manufacturers avoided

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Civilian firearms production exclusion

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Gilts & Sovereigns
Does not invest in sovereigns

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Banking & Financials
Invests in banks

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Invests in insurers

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Governance & Management
Governance policy

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Avoids companies with poor governance

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Asset Size
Invests in small, mid and large cap companies / assets

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Impact Methodologies
Aims to generate positive impacts (or 'outcomes')

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Positive environmental impact theme

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Invests in sustainability / ESG disruptors

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How The Fund Works
Positive selection bias

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Negative selection bias

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ESG weighted / tilt

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Passive / index driven strategy

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SRI / ESG / Ethical policies explained on website

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Do not use stock / securities lending

This fund does not use stock lending for performance or risk purposes.

Intended Clients & Product Options
Intended for investors interested in sustainability

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Fund Management Company Information

About The Business
Responsible ownership / stewardship policy or strategy (AFM company wide)

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ESG / SRI engagement (AFM company wide)

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Vote all* shares at AGMs / EGMs (AFM company wide)

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Responsible ownership / ESG a key differentiator (AFM company wide)

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Sustainable property strategy (AFM company wide)

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Senior management KPIs include environmental goals (AFM company wide)

The leadership team of this asset manager have performance targets linked to environmental goals.

Responsible ownership policy for non SRI funds (AFM company wide)

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Integrates ESG factors into all / most (AFM) fund research

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In-house diversity improvement programme (AFM company wide)

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Diversity, equality & inclusion engagement policy (AFM company wide)

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Invests in newly listed companies (AFM company wide)

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Invests in new sustainability linked bond issuances (AFM company wide)

Asset management company has investments in bonds designed to meet sustainability requirements - however these assets may not be 'ringfenced' for this purpose. See fund manager website for details.

Collaborations & Affiliations
PRI signatory

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TNFD forum member (AFM company wide)

A member of the Taskforce for Nature Related Financial Disclosures group which aims to aid risk management and shift money towards nature-positive outcomes.

Investment Association (IA) member

Fund management entity is a member of the Investment Association https://www.theia.org/

Resources
In-house responsible ownership / voting expertise

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Employ specialist ESG / SRI / sustainability researchers

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Use specialist ESG / SRI / sustainability research companies

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ESG specialists on all investment desks (AFM company wide)

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Accreditations
UK Stewardship Code signatory (AFM company wide)

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Engagement Approach
Regularly lead collaborative ESG initiatives (AFM company wide)

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Engaging on climate change issues

Fund manager has stewardship /responsible ownership strategy that is focused on addressing climate change with investee assets.

Engaging with fossil fuel companies on climate change

Asset manager has a stewardship /responsible ownership strategy that involves working with fossil fuel companies on climate change related issues. See fund manager website for details.

Engaging to reduce plastics pollution / waste

Asset manager has stewardship /responsible ownership strategy with involves encouraging investee asset to reduce plastic waste and pollution.

Engaging to encourage responsible mining practices

Asset manager has a stewardship / responsible ownership policy that means they are working to encourage more responsible mining practices - where environmental and social issues are properly dealt with by the companies they invest in.

Engaging on biodiversity / nature issues

The asset manager has a responsible ownership / stewardship strategy that focuses on biodiversity and nature issues relating to the assets they invest the aim of which will be to reduce harm and or deliver improvement. Strategies vary. https://tnfd.global

Engaging to encourage a Just Transition

Asset manager has a responsible ownership / stewardship strategy which means they are working to encourage the shift to more sustainable business practices in ways that respect and are sensitive to social issues and the impact change has on people effected by the changes that are taking place. https://www.transitionpathwayinitiative.org/ https://transitiontaskforce.net/

Engaging on human rights issues

Asset manager has responsible ownership / stewardship strategy in place which aims to address human rights issues in investee companies (and potentially their suppliers) with the aim of raising standards

Engaging on labour / employment issues

Asset manager has responsible ownership / stewardship strategy in place that aims to improve labour standards for the benefit of employees in investee companies (and potentially their suppliers)

Engaging on diversity, equality and / or inclusion issues

Asset management company has a stewardship strategy in place which involves working to raise diversity, equality and inclusion standards across investee assets

Engaging to stop modern slavery

working with the assets they hold to help stamp out modern slavery - where direct or indirect company employees are exploited for business benefits.

Engaging on governance issues

Fund managers have stewardship strategies in place that focus on improving governance standards across investee assets

Stewardship escalation policy

Escalation policies describe how a manager will proceed if stewardship / engagement activity is not successful in the short term.

Company Wide Exclusions
Controversial weapons avoidance policy (AFM company wide)

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Review(ing) carbon / fossil fuel exposure for all funds (AFM company wide)

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Coal exclusion policy (group wide coal mining exclusion policy)

This asset manager excludes direct investment in the coal mining industry. Managers ability to do this may depend on the geographic regions in which they invest.

Climate & Net Zero Transition
Net Zero commitment (AFM company wide)

Fund management organisations that have pledged to reduce their greenhouse gas emissions to ‘net zero’. Strategies vary - this area is changing rapidly.

Net Zero - have set a Net Zero target date (AFM company wide)

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Encourage carbon / greenhouse gas reduction (AFM company wide)

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Carbon transition plan published (AFM company wide)

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Carbon offsetting – do NOT offset carbon as part of net zero plan (AFM company wide)

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In-house carbon / GHG reduction policy (AFM company wide)

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Working towards a ‘Net Zero’ commitment (AFM company wide)

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Committed to SBTi / Science Based Targets Initiative

See https://sciencebasedtargets.org/

Transparency
Publish responsible ownership / stewardship report (AFM company wide)

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Full SRI / responsible ownership policy information on company website

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Full SRI / responsible ownership policy information available on request

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Publish full voting record (AFM company wide)

Fund management companies that publish a full record of how they vote their shares at AGMs (annual general meetings) and EGMs (extraordinary general meetings). Voting strategies have an important role to play encouraging higher environmental, social and governance standards.

Net Zero transition plan publicly available (AFM company wide)

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Dialshifter statement

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Sustainable, Responsible &/or ESG Policy:

The Sub-fund is a Replicating Sub-fund as it seeks to replicate as closely as possible the constituents of the Benchmark Index by holding all, or substantially all, of the assets comprising the Benchmark Index in similar proportions to their weightings in the Benchmark Index.

The Sub-fund will have at least 90% exposure to assets that are included in the Benchmark Index.

The Benchmark Index is comprised of shares in large and middle capitalisation companies globally, based on four risk factors: Value, Low Volatility, High Momentum and Quality in accordance with the index provider’s methodology.

The Sub-fund may also invest in money market instruments (such as treasury bills), cash, permitted deposits, shares in companies which are reasonably expected to become part of the Benchmark Index in the near future or are an alternative to a constituent of the Benchmark Index and collective investment schemes, including those managed or operated by the ACS Manager or an Associate of the ACS Manager.  

The Sub-fund may only use derivatives and stock lending for the purposes of Efficient Portfolio Management.  

Environmental, Social and Governance ("ESG") considerations:

The Benchmark Index provider applies the following ESG criteria to the Benchmark Index:

  1. Exclusions:
  • Exclusion of controversial weapons, which are weapons that are either prohibited under international conventions or deemed inhumane due to their disproportionate or indiscriminate impact. Exclusion focuses on companies with potential involvement in Anti-Personnel Landmines and Cluster munitions, producers of nuclear weapons and their key components in violation of the Nuclear Non-Proliferation Treaty.
  • Exclusion of companies violating fundamental ethical norms, using the UN Global Compact as the main reference for fundamental ethical norms of corporate behaviour.
  • Exclusion of certain tobacco companies and manufacturers of tobacco and tobacco products
  • Exclusion of coal companies, companies deriving turnover from thermal coal mining, companies that make significant use of coal in their power generation fuel mix exceeding their coal exit pathways to phase out coal, companies with significant coal power generation capacity, companies that own coal reserves, and companies deriving significant turnover from Tar Sands.

The Benchmark Index Provider’s methodology uses various assessment criteria, including revenue thresholds to identify companies that are excluded. Only companies that meet the criteria are excluded, consequently the Benchmark Index may hold companies involved in the above activities which do not meet the Index Provider’s criteria.

  1. Application of a Carbon Footprint filter:
  • The carbon filter applied by the Benchmark Index provider excludes certain companies with higher Carbon Footprint compared to other companies. The Benchmark Index provider limits these exclusions to avoid excluding too high a proportion of any given sector. Carbon Footprint is the amount of greenhouse gases emitted by companies in relation to their value as measured by market capitalisation. A company may be excluded if its Carbon Footprint ranks within the highest 10% of Carbon Footprints across the Benchmark Index’s investment universe. Companies with the highest Carbon Footprint are excluded across all economic or business sectors up to a maximum of 50% of companies within each economic or business sector. Once an economic or business sector reaches this limit, exclusions continue in other economic or business sectors where fewer than 50% of companies have been excluded.
  • The Benchmark Index provider uses data from a range of the different types of greenhouse gas emissions:
    • Scope 1: direct emissions from company-owned resources, like fuel combustion in vehicles.
    • Scope 2: indirect emissions from purchased energy, such as electricity for buildings.

The Benchmark Index does not currently include other indirect greenhouse gas emissions, such as those from a company's 112 supply chain or product use (Scope 3). The inclusion of scope 3 emissions may provide a more complete analysis of the Benchmark Index’s Greenhouse Gas Emissions, should the Benchmark Index provider determine the Scope 3 data reported by companies and estimated by data providers to be sufficiently available and reliable.

Sustainability Metrics:

The Manager has identified the following metrics which may be useful when considering the sustainability characteristics of the Fund:

  1. The Carbon Footprint of the Benchmark Index compared to the Carbon Footprint of the relevant comparator index; and
  2. The proportion of the relevant comparator index excluded through the application of the exclusionary criteria.

Process:

The Sub-fund is a Replicating Sub-fund as it seeks to replicate as closely as possible the constituents of the Benchmark Index by holding all, or substantially all, of the assets comprising the Benchmark Index in similar proportions to their weightings in the Benchmark Index.

Research is an integral part of our portfolio management process and is performed on an ongoing basis to capture all elements that could affect the risk profile of benchmark indices. It is, therefore, most effective if it is carried out by the same professionals who are involved in managing portfolios as they have a thorough knowledge of index products and market conditions.

We also conduct ad hoc research for clients who wish to achieve a non-conventional index exposure and request professional opinions about associated practical portfolio management issues.

Moreover, we have long-standing relationships with major index providers. We provide guidance regarding index composition and construction, participate in index consultations, and serve on many advisory committees with the aim of improving the quality and investability of indices.

The majority of research is carried out in-house and is a function specific to the asset class. We receive research from external sources, including from major investment bank index research teams, however, L&G does not place any reliance on research by a third party.

Resources, Affiliations & Corporate Strategies:

As of December 2024, there are c.100 L&G - Asset Management (L&G) employees with roles dedicated to ESG, some of which are outlined in more detail below.

 Responsible Investment and Investment Stewardship team

  • Amelia Tan was appointed Head of Responsible Investment & Stewardship for Legal and General’s Asset Management division in January 2025, having joined in 2022 as Head of Responsible Investment Strategy. In this role, she is responsible for engagement with publicly listed investee companies globally across all of the firm’s assets under management as well as responsible investment processes and products of the public market’s investment teams. She coordinates the strategy for responsible investing in the Asset Management division and is responsible for regulatory and policy engagement regarding environmental, social, governance and responsible investment matters.
  • The Investment Stewardship team is responsible for developing and carrying out L&G’s investment stewardship and active ownership activities. The team comprises subject matter experts across our global investment stewardship themes and is organised in a matrix of thematic and sector coverage.
  • There are 24 people in our global Investment Stewardship team (as at 31 December 2024). The team includes those located in the US, Japan and Singapore, the latter two led by Aina Fukuda and Trista Chen, respectively.
  • The Responsible Investing Strategy team, comprising three colleagues, works with investment teams to integrate responsible investing insights into investment process across asset classes and investment styles. Additionally, the team also looks to innovate on responsible investing products and solutions, with the focus on positioning and ensuring that we are market-leading, credible and consistent.

 Climate Solutions team

  • Nick Stansbury, Head of Climate Solutions, leads our energy transition approach and is one of our most prominent spokespeople on this topic.
  • The Climate Solutions team, which has a total of eight team members, has created a bespoke, detailed and investor-focused model to facilitate construction of fully independent energy scenarios. The framework uses in excess of 10 million data variables to model the energy system. The model, L&G’s Destination@Risk, is now helping to inform our long-term investment decisions and develop dynamic pathways for the energy system.

 ESG Distribution

  • Laura Brown, Head of Public Markets Distribution, is supported by two further colleagues who are dedicated to ESG and supporting clients in meeting their sustainability and responsible investing objectives.

 Real Assets

  • L&G’s Real Assets teamhas 11 dedicated ESG experts working across the range of private credit and real estate strategies that we manage. This team is led Shuen Chan, Head of Responsible Investment and Sustainability.

 Product Development and Strategy

  • Rachel Ahlquistis focused on developing and shaping the strategic direction of the pooled product range with respect to Responsible Investment features. This includes specific focus on product launch or amendment work with more advanced ESG features.

 Global Research and Engagement Group (GREGs)

Further to those with roles dedicated to ESG, our Global Research and Engagement Groups (GREGs) bring together representatives from the Investment and Investment Stewardship teams across regions and asset classes. The GREGs enable L&G to connect top-down macro and thematic views with bottom-up analysis of corporate and sector fundamentals to understand the materiality of sustainability risks and opportunities and prioritise them accordingly. Combining the capabilities of the Investment and Investment Stewardship teams also enables L&G to scale and coordinate our engagement efforts with companies at board and executive management levels, across all asset class and investment styles. C.40 research analysts contribute to our GREGs, researching into structural industry changes and risks, and identifying key themes and engagement topics across nine sectors.

 Please see L&G Attachment 1 - ESG Memberships and Collaboration for details on list of related affiliations and memberships.

Please find the team organisation chart below.

L&G corp.png

 

See also: L&G ESG Memberships & Collaborations.docx

 

Dialshifter

 

 

SDR Labelling:

Unlabelled with sustainable characteristics

Key Performance Indicators:

The Manager has identified the following metrics which may be useful when considering the sustainability characteristics of the Fund:

  1. The Carbon Footprint of the Benchmark Index compared to the Carbon Footprint of the relevant comparator index; and
  2. The proportion of the relevant comparator index excluded through the application of the exclusionary criteria.

 Further information can be found in the Fund Details set out in the Consumer Facing Disclosure.

Disclaimer

This communication is not a financial promotion and is intended for Professional Clients, Qualified Investors, companies and pension trustees and should not be relied upon by retail customers, pension scheme members, employees, or any other persons.

This document has been prepared by Legal & General Investment Management Limited and/or its affiliates ('L&G', ‘we’ or ‘us’). The information in this document is the property and/or confidential information of L&G and may not be reproduced in whole or in part or distributed or disclosed by you to any other person without the prior written consent of L&G.  Not for distribution to any person resident in any jurisdiction where such distribution would be contrary to local law or regulation.

No party shall have any right of action against L&G in relation to the accuracy or completeness of the information in this document.  The information and views expressed in this document are believed to be accurate and complete as at the date of publication, but they should not be relied upon and may be subject to change without notice. We are under no obligation to update or amend the information in this document.  Where this document contains third party data, we cannot guarantee the accuracy, completeness or reliability of such data and we accept no responsibility or liability whatsoever in respect of such data.

No part of this document should be construed as providing investment advice, and L&G does not accept any liability for any decisions based on this document.

Legal and General Assurance (Pensions Management) Limited. Registered in England and Wales No. 01006112. Registered Office: One Coleman Street, London, EC2R 5AA. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, No. 202202.

LGIM Real Assets (Operator) Limited. Registered in England and Wales, No. 05522016. Registered Office: One Coleman Street, London, EC2R 5AA. Authorised and regulated by the Financial Conduct Authority, No. 447041. Please note that while LGIM Real Assets (Operator) Limited is regulated by the Financial Conduct Authority, it may conduct certain activities that are unregulated.

Legal & General (Unit Trust Managers) Limited. Registered in England and Wales No. 01009418. Registered Office: One Coleman Street, London, EC2R 5AA. Authorised and regulated by the Financial Conduct Authority, No. 119273.

Issued by Legal & General Investment Management Ltd in the UK. Registered in England and Wales No. 02091894. Registered office: One Coleman Street, London EC2R 5AA. Authorised and regulated by the Financial Conduct Authority.

Fund Name SRI Style SDR Labelling Product Region Asset Type Launch Date Last Amended

L&G Global Developed Four Factor Index Fund

Environmental Style Unlabelled with sustainable characteristics OEIC Global Passive Equity 07/08/2018 Aug 2025

Objectives

The objective of the Fund is to track the performance of the SciBeta Developed Low-Carbon & ESG High-Factor-Intensity Multi-Beta (vol, val, mom, pro/inv) Maximum Deconcentration Index, the "Benchmark Index" on a net total return basis before fees and expenses are applied.

Sustainability investment labels help investors find products that have a specific sustainability goal. This product does not have a UK sustainability investment label in accordance with the FCA’s Sustainability Disclosure Requirements as it does not have a specific sustainability objective in its investment objective, which is a requirement for a sustainability investment label. However, this Fund and the benchmark index that the Fund replicates apply environmental, social and governance criteria.

Further information on the Fund’s sustainability characteristics can be found in the Fund Details set out in the Prospectus.

Fund Size: £3209.70m

(as at: 30/04/2025)

Total Screened Themed SRI Assets: £424600.00m

(as at: 31/12/2024)

Total Responsible Ownership Assets: £1117672.56m

(as at: 31/12/2024)

Total Assets Under Management: £1117672.56m

(as at: 31/12/2024)

ISIN: GB00BF18NR50, GB00BF18NT74, GB00BD904M12, GB00BL4PNZ39, GB00BJXTNG32, GB00BKTPDF16, GB00BMDH1756

Contact Us: fundsales@lgim.com

Sustainable, Responsible &/or ESG Overview

The fund aims to help deliver positive impacts by:

  • Exclusions: controversial weapons, companies violating fundamental ethical norms, tobacco companies and coal companies
  • Application of a Carbon Footprint filter: the carbon filter applied by the Benchmark Index provider excludes certain companies with higher Carbon Footprint compared to other companies.

Primary fund last amended: Aug 2025

Information received directly from Fund Manager

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Fund Filters

Sustainability - General
Sustainability policy

Funds that have policies that consider (environmental and social) sustainability issues. Strategies vary but are likely to consider environmental issues like climate change, carbon emissions, biodiversity loss, resource management, environmental impacts; and social issues like equal opportunities, human rights, labour standards, diversity and adherence to internationally recognised codes. See fund information.

Sustainability focus

Find funds which substantially focus on sustainability issues

UN Global Compact linked exclusion policy

Find funds that use the UN Global Compact to inform or help direct where they can or cannot invest and will typically not invest in companies with significant breaches (low standards) - although strategies vary. (The UNGC covers a wide range of issues - search 'UNGC'). See https://unglobalcompact.org/

Report against sustainability objectives

Find funds that publicly report their performance against specifically named sustainability objectives (in addition to reporting their financial performance)

Environmental - General
Environmental policy

Funds that have policies which relate to environmental issues. These will typically set out the fund's stance on issues such as pollution, climate change, resource management, biodiversity loss, carbon emissions, plastics and/or additional environmental impacts. Strategies vary. See fund information for further information.

Limits exposure to carbon intensive industries

Funds that limit or 'reduce' their exposure to carbon intensive industries (ie sectors which are major contributors to climate change. Funds vary - some funds may be 'underweight' in this area which means they may have some investment in highly carbon intensive areas. Funds of this kind may choose companies they consider to be 'best in sector' and encourage ever higher standards. Strategies vary. See fund information for further details.

Favours cleaner, greener companies

Funds that aim to invest in companies with strong or market leading environmental policies and practices. Strategies vary - in particular the balance between 'financial' aspects and environmental benefits. Some may invest substantially in solutions or 'positive impact' companies - others may invest in more conventional companies providing certain environmental criteria are met. See fund information for further detail.

Climate Change & Energy
Coal, oil & / or gas majors excluded

Funds that avoid investing in major coal, oil and/or gas (extraction) companies. Funds vary: some may exclude all companies that extract oil. Others may have exposure to oil extraction via more diversified energy companies. See fund literature to confirm details.

Fracking and tar sands excluded

Funds that avoid companies involved in fracking and tar sands - which are widely regarded as controversial methods of oil and gas extraction. Strategies vary. See fund information for further information.

Fossil fuel reserves exclusion

Funds that avoid investing in companies with coal, oil and gas reserves. See fund information for further details.

Encourage transition to low carbon through stewardship activity

A core element of these funds will aim to encourage the transition to lower carbon activities through responsible ownership / stewardship / engagement / voting activity

Social / Employment
Social policy

Find funds that have policies which set out their approach to social issues (e.g. human rights, labour standards, equal opportunities, child labour and adherence to internationally recognised codes such as the UN Global Compact). Funds with social policies typically avoid companies with low standards or work to encourage higher standards. See fund information for detail.

Ethical Values Led Exclusions
Ethical policies

Find funds that have policies that set out their position on ethical or 'personal values' based issues. Strategies vary. See fund information for further detail.

Tobacco and related product manufacturers excluded

Companies are excluded if they are involved in any aspect of the production chain for tobacco products, including cigarettes, vaping, e-cigarettes, chewing tobacco and cigars.

Tobacco and related products - avoid where revenue > 5%

Companies are excluded if they make more than 5% of their revenue from the manufacture, sale or distribution of tobacco products including cigarettes, vaping, e-cigarettes, chewing tobacco and cigars.

Controversial weapons exclusion

Find funds that exclude companies which make controversial weapons such as landmines, cluster munitions and chemical weapons. See fund literature for further information.

Armaments manufacturers avoided

Find funds that avoid companies that manufacture products intended specifically for military use. Fund strategies vary - particularly with regard to non-strategic military products. See fund literature for fund specific details.

Civilian firearms production exclusion

Find funds with a written civilian firearms exclusion policy - meaning that they will not invest in companies that make (or perhaps also sell) handguns made for non-military users.

Gilts & Sovereigns
Does not invest in sovereigns

Find funds that do not invest in / exclude 'sovereigns' - debt issued by governments. See eg https://www.investopedia.com/terms/s/sovereign-debt.asp

Banking & Financials
Invests in banks

Find funds that include banks as part of their holdings / portfolio.

Invests in insurers

Funds that do or may invest in insurance companies.

Governance & Management
Governance policy

Find fund options that have policies that relate to corporate governance issues such as board structure, executive remuneration, bribery and/or corporate corruption. These funds will typically avoid companies with poor practices. Strategies vary. See fund literature for further information.

Avoids companies with poor governance

Find funds that aim to avoid investing in companies with poor governance practices.(e.g. board structure, management practices etc.) Views may however vary on what counts as 'poor' practices - and funds may not immediately divest as they may prefer to work to encourage higher standards. See fund literature for further information.

Asset Size
Invests in small, mid and large cap companies / assets

Find a fund that invests in a combination of small, medium and larger (potentially multinational)companies.

Impact Methodologies
Aims to generate positive impacts (or 'outcomes')

Funds that aim to help or support the delivery of positive social or environmental impacts (or societal/real world outcomes) by investing in companies they regard as beneficial to people and / or the planet. Strategies vary. See fund literature for further information.

Positive environmental impact theme

Find funds that specifically set out to help deliver positive environmental impacts, benefits or 'real world' outcomes.

Invests in sustainability / ESG disruptors

Find funds that specifically set out to invest in companies that are regarded as 'disrupting' existing business practices - typically through the development of innovative (sustainability aware) products and/or practices.

How The Fund Works
Positive selection bias

Find funds that focus on finding and investing in companies with positive / beneficial attributes. This strategy can be applied in addition to exclusion criteria and engagement/stewardship activity.

Negative selection bias

Find funds where their main 'ethical approach' is to avoid companies by using negative screening criteria. Read fund literature for further information.

ESG weighted / tilt

Find funds that invest more heavily in those that have higher ESG ratings/standards or scores and less heavily in companies with lower ESG ratings. Where this is central to a fund's strategy you should expect it to invest in most sectors. Strategies vary.

Passive / index driven strategy

Find funds that use an investment index to direct where they can invest. Fund strategies and indices vary. See fund details and index used.

SRI / ESG / Ethical policies explained on website

Find funds that have published explanations of their ethical, social and/or environmental policies online (i.e. fund decision making strategies/ buy/sell &/or asset management strategies).

Do not use stock / securities lending

This fund does not use stock lending for performance or risk purposes.

Intended Clients & Product Options
Intended for investors interested in sustainability

Finds funds designed to meet the needs of individual investors with an interest in sustainability issues.

Fund Management Company Information

About The Business
Responsible ownership / stewardship policy or strategy (AFM company wide)

Finds fund management companies that have a published company wide stewardship, engagement and / or responsible ownership policy or strategy that covers all investments. Stewardship typically involves encouraging higher ESG standards through voting and dialogue.

ESG / SRI engagement (AFM company wide)

Find fund management companies that actively encourage higher 'environmental, social and governance' and/or 'sustainable and responsible investment' practices across investee companies - typically where the aim is to encourage positive change that is aligned with the best interests of investors. Strategies vary. See additional information and options.

Vote all* shares at AGMs / EGMs (AFM company wide)

Find fund managers that vote all* the shares they own at Annual General Meetings and Extraordinary General Meetings. A commitment to voting shares is a key indicator of 'responsible share ownership' demonstrating their support for or disagreement with management policy. (*situations can legitimately, occasionally occur where voting proves impossible, but in principle all shares should be voted.)

Responsible ownership / ESG a key differentiator (AFM company wide)

Find fund managers that consider responsible ownership and ESG to be a key differentiator for their business.

Sustainable property strategy (AFM company wide)

Find fund management companies that take sustainability criteria into account when selecting and/or managing all of their property / real estate investments.

Senior management KPIs include environmental goals (AFM company wide)

The leadership team of this asset manager have performance targets linked to environmental goals.

Responsible ownership policy for non SRI funds (AFM company wide)

Find funds run by fund managers that apply Responsible ownership or 'Stewardship' policies to all or most of their investment assets. This means active involvement (e.g. voting, dialogue) with the companies they invest in across funds (not normally limited to ethical or SRI options.) Read fund literature for further information.

Integrates ESG factors into all / most (AFM) fund research

Find fund management companies that consider environmental, social and governance (ESG) issues when deciding whether or not to invest in a company for all / almost all of their funds and other assets. This is increasingly seen as part of sound risk management.

In-house diversity improvement programme (AFM company wide)

Finds organisations / fund managers that have an in-house (company wide) diversity improvement programme - meaning that they are working to ensure that within their own businesses they employ people from diverse backgrounds - often typically focused on ethnicity and/or sex.

Diversity, equality & inclusion engagement policy (AFM company wide)

Find fund management companies that encourage the companies they invest in to have strong diversity, race, gender and other equality policies across all assets held, not simply screened or themed SRI/ESG funds. (ie Asset Management company wide).

Invests in newly listed companies (AFM company wide)

This asset management company invests in companies which have recently listed on a stock exchange (which is important as it can help grow new businesses).

Invests in new sustainability linked bond issuances (AFM company wide)

Asset management company has investments in bonds designed to meet sustainability requirements - however these assets may not be 'ringfenced' for this purpose. See fund manager website for details.

Collaborations & Affiliations
PRI signatory

Find fund management companies that have signed up to the UN backed 'Principles of Responsible Investment'.

TNFD forum member (AFM company wide)

A member of the Taskforce for Nature Related Financial Disclosures group which aims to aid risk management and shift money towards nature-positive outcomes.

Investment Association (IA) member

Fund management entity is a member of the Investment Association https://www.theia.org/

Resources
In-house responsible ownership / voting expertise

Find fund management companies that employ people to steer and support fund managers in voting shares at company AGM's and EGMs in ways that are consistent with encouraging higher ESG/sustainability standards.

Employ specialist ESG / SRI / sustainability researchers

Find a fund management company that directly employs specialist ESG/SRI/sustainability researchers or analysts. This allows asset managers to discuss environmental, social and governance risks and opportunities directly with companies.

Use specialist ESG / SRI / sustainability research companies

Find fund management companies that makes use of expert external research companies. This can help deliver specialist expertise and means resources are pooled with other investors.

ESG specialists on all investment desks (AFM company wide)

Finds organisations / fund managers that have one or more ESG/sustainability experts on all investment teams or 'desks' (all asset types)

Accreditations
UK Stewardship Code signatory (AFM company wide)

Find fund managers that are signatories to the FRC UK Stewardship Code, which sets out a framework for constructive investor / investee relations where fund managers are encouraged to behave like responsible, typically longer term 'company owners'.

Engagement Approach
Regularly lead collaborative ESG initiatives (AFM company wide)

Find fund management companies that regularly initiate or run industry wide (collaborative) investor projects aimed at raising environmental, social and governance standards amongst investee companies.

Engaging on climate change issues

Fund manager has stewardship /responsible ownership strategy that is focused on addressing climate change with investee assets.

Engaging with fossil fuel companies on climate change

Asset manager has a stewardship /responsible ownership strategy that involves working with fossil fuel companies on climate change related issues. See fund manager website for details.

Engaging to reduce plastics pollution / waste

Asset manager has stewardship /responsible ownership strategy with involves encouraging investee asset to reduce plastic waste and pollution.

Engaging to encourage responsible mining practices

Asset manager has a stewardship / responsible ownership policy that means they are working to encourage more responsible mining practices - where environmental and social issues are properly dealt with by the companies they invest in.

Engaging on biodiversity / nature issues

The asset manager has a responsible ownership / stewardship strategy that focuses on biodiversity and nature issues relating to the assets they invest the aim of which will be to reduce harm and or deliver improvement. Strategies vary. https://tnfd.global

Engaging to encourage a Just Transition

Asset manager has a responsible ownership / stewardship strategy which means they are working to encourage the shift to more sustainable business practices in ways that respect and are sensitive to social issues and the impact change has on people effected by the changes that are taking place. https://www.transitionpathwayinitiative.org/ https://transitiontaskforce.net/

Engaging on human rights issues

Asset manager has responsible ownership / stewardship strategy in place which aims to address human rights issues in investee companies (and potentially their suppliers) with the aim of raising standards

Engaging on labour / employment issues

Asset manager has responsible ownership / stewardship strategy in place that aims to improve labour standards for the benefit of employees in investee companies (and potentially their suppliers)

Engaging on diversity, equality and / or inclusion issues

Asset management company has a stewardship strategy in place which involves working to raise diversity, equality and inclusion standards across investee assets

Engaging to stop modern slavery

working with the assets they hold to help stamp out modern slavery - where direct or indirect company employees are exploited for business benefits.

Engaging on governance issues

Fund managers have stewardship strategies in place that focus on improving governance standards across investee assets

Stewardship escalation policy

Escalation policies describe how a manager will proceed if stewardship / engagement activity is not successful in the short term.

Company Wide Exclusions
Controversial weapons avoidance policy (AFM company wide)

Find fund management companies (not funds) that avoid investment in 'controversial weapons' across all of their funds and other investment vehicles.

Review(ing) carbon / fossil fuel exposure for all funds (AFM company wide)

Find funds / fund managers that are reviewing, or have reviewed, their exposure to carbon intensive industries including (but not only) mining, oil and gas companies. (Typically with reference to climate change.)

Coal exclusion policy (group wide coal mining exclusion policy)

This asset manager excludes direct investment in the coal mining industry. Managers ability to do this may depend on the geographic regions in which they invest.

Climate & Net Zero Transition
Net Zero commitment (AFM company wide)

Fund management organisations that have pledged to reduce their greenhouse gas emissions to ‘net zero’. Strategies vary - this area is changing rapidly.

Net Zero - have set a Net Zero target date (AFM company wide)

This asset management company has set a date by which they plan to achieve net zero greenhouse gas / CO2e emissions.

Encourage carbon / greenhouse gas reduction (AFM company wide)

Find fund management companies that are working with the companies they invest in to encourage reductions in carbon dioxide and other greenhouse gas emissions.

Carbon transition plan published (AFM company wide)

Finds organisations / fund managers that have a company wide carbon transition plan - meaning that they have plotted a path to how they will move away from activities that produce or use carbon based energy sources (that emit greenhouse gases) towards clean, alternative, renewable energy sources.

Carbon offsetting – do NOT offset carbon as part of net zero plan (AFM company wide)

This asset management company plans to achieve net zero greenhouse gas (CO2e) emissions by reducing their emissions. Calculations and scope vary.

In-house carbon / GHG reduction policy (AFM company wide)

Find fund management companies that are working to reduce their own (fund management company) carbon/greenhouse gas emissions.

Working towards a ‘Net Zero’ commitment (AFM company wide)

Finds organisations / fund management companies that are in the process of working out how to make a ‘net zero commitment’ - meaning that when that is finalised they will have started the process of reducing their total greenhouse gas emissions to'zero'.

Committed to SBTi / Science Based Targets Initiative

See https://sciencebasedtargets.org/

Transparency
Publish responsible ownership / stewardship report (AFM company wide)

Find fund management companies that publish a report detailing their responsible investment ownership - also known as 'Stewardship' - activity.

Full SRI / responsible ownership policy information on company website

Find companies that publish information about their sustainable and responsible investment strategies on their company website.

Full SRI / responsible ownership policy information available on request

Find fund management companies that will supply information about their sustainable and responsible investment activity on request.

Publish full voting record (AFM company wide)

Fund management companies that publish a full record of how they vote their shares at AGMs (annual general meetings) and EGMs (extraordinary general meetings). Voting strategies have an important role to play encouraging higher environmental, social and governance standards.

Net Zero transition plan publicly available (AFM company wide)

This asset management company has published a plan that explains how they are going to achieve net zero greenhouse gas / CO2e emissions.

Dialshifter statement

Find fund management companies that have supplied Dialshifter information. See Dialshifter tab within record for more information.

Sustainable, Responsible &/or ESG Policy:

The Sub-fund is a Replicating Sub-fund as it seeks to replicate as closely as possible the constituents of the Benchmark Index by holding all, or substantially all, of the assets comprising the Benchmark Index in similar proportions to their weightings in the Benchmark Index.

The Sub-fund will have at least 90% exposure to assets that are included in the Benchmark Index.

The Benchmark Index is comprised of shares in large and middle capitalisation companies globally, based on four risk factors: Value, Low Volatility, High Momentum and Quality in accordance with the index provider’s methodology.

The Sub-fund may also invest in money market instruments (such as treasury bills), cash, permitted deposits, shares in companies which are reasonably expected to become part of the Benchmark Index in the near future or are an alternative to a constituent of the Benchmark Index and collective investment schemes, including those managed or operated by the ACS Manager or an Associate of the ACS Manager.  

The Sub-fund may only use derivatives and stock lending for the purposes of Efficient Portfolio Management.  

Environmental, Social and Governance ("ESG") considerations:

The Benchmark Index provider applies the following ESG criteria to the Benchmark Index:

  1. Exclusions:
  • Exclusion of controversial weapons, which are weapons that are either prohibited under international conventions or deemed inhumane due to their disproportionate or indiscriminate impact. Exclusion focuses on companies with potential involvement in Anti-Personnel Landmines and Cluster munitions, producers of nuclear weapons and their key components in violation of the Nuclear Non-Proliferation Treaty.
  • Exclusion of companies violating fundamental ethical norms, using the UN Global Compact as the main reference for fundamental ethical norms of corporate behaviour.
  • Exclusion of certain tobacco companies and manufacturers of tobacco and tobacco products
  • Exclusion of coal companies, companies deriving turnover from thermal coal mining, companies that make significant use of coal in their power generation fuel mix exceeding their coal exit pathways to phase out coal, companies with significant coal power generation capacity, companies that own coal reserves, and companies deriving significant turnover from Tar Sands.

The Benchmark Index Provider’s methodology uses various assessment criteria, including revenue thresholds to identify companies that are excluded. Only companies that meet the criteria are excluded, consequently the Benchmark Index may hold companies involved in the above activities which do not meet the Index Provider’s criteria.

  1. Application of a Carbon Footprint filter:
  • The carbon filter applied by the Benchmark Index provider excludes certain companies with higher Carbon Footprint compared to other companies. The Benchmark Index provider limits these exclusions to avoid excluding too high a proportion of any given sector. Carbon Footprint is the amount of greenhouse gases emitted by companies in relation to their value as measured by market capitalisation. A company may be excluded if its Carbon Footprint ranks within the highest 10% of Carbon Footprints across the Benchmark Index’s investment universe. Companies with the highest Carbon Footprint are excluded across all economic or business sectors up to a maximum of 50% of companies within each economic or business sector. Once an economic or business sector reaches this limit, exclusions continue in other economic or business sectors where fewer than 50% of companies have been excluded.
  • The Benchmark Index provider uses data from a range of the different types of greenhouse gas emissions:
    • Scope 1: direct emissions from company-owned resources, like fuel combustion in vehicles.
    • Scope 2: indirect emissions from purchased energy, such as electricity for buildings.

The Benchmark Index does not currently include other indirect greenhouse gas emissions, such as those from a company's 112 supply chain or product use (Scope 3). The inclusion of scope 3 emissions may provide a more complete analysis of the Benchmark Index’s Greenhouse Gas Emissions, should the Benchmark Index provider determine the Scope 3 data reported by companies and estimated by data providers to be sufficiently available and reliable.

Sustainability Metrics:

The Manager has identified the following metrics which may be useful when considering the sustainability characteristics of the Fund:

  1. The Carbon Footprint of the Benchmark Index compared to the Carbon Footprint of the relevant comparator index; and
  2. The proportion of the relevant comparator index excluded through the application of the exclusionary criteria.

Process:

The Sub-fund is a Replicating Sub-fund as it seeks to replicate as closely as possible the constituents of the Benchmark Index by holding all, or substantially all, of the assets comprising the Benchmark Index in similar proportions to their weightings in the Benchmark Index.

Research is an integral part of our portfolio management process and is performed on an ongoing basis to capture all elements that could affect the risk profile of benchmark indices. It is, therefore, most effective if it is carried out by the same professionals who are involved in managing portfolios as they have a thorough knowledge of index products and market conditions.

We also conduct ad hoc research for clients who wish to achieve a non-conventional index exposure and request professional opinions about associated practical portfolio management issues.

Moreover, we have long-standing relationships with major index providers. We provide guidance regarding index composition and construction, participate in index consultations, and serve on many advisory committees with the aim of improving the quality and investability of indices.

The majority of research is carried out in-house and is a function specific to the asset class. We receive research from external sources, including from major investment bank index research teams, however, L&G does not place any reliance on research by a third party.

Resources, Affiliations & Corporate Strategies:

As of December 2024, there are c.100 L&G - Asset Management (L&G) employees with roles dedicated to ESG, some of which are outlined in more detail below.

 Responsible Investment and Investment Stewardship team

  • Amelia Tan was appointed Head of Responsible Investment & Stewardship for Legal and General’s Asset Management division in January 2025, having joined in 2022 as Head of Responsible Investment Strategy. In this role, she is responsible for engagement with publicly listed investee companies globally across all of the firm’s assets under management as well as responsible investment processes and products of the public market’s investment teams. She coordinates the strategy for responsible investing in the Asset Management division and is responsible for regulatory and policy engagement regarding environmental, social, governance and responsible investment matters.
  • The Investment Stewardship team is responsible for developing and carrying out L&G’s investment stewardship and active ownership activities. The team comprises subject matter experts across our global investment stewardship themes and is organised in a matrix of thematic and sector coverage.
  • There are 24 people in our global Investment Stewardship team (as at 31 December 2024). The team includes those located in the US, Japan and Singapore, the latter two led by Aina Fukuda and Trista Chen, respectively.
  • The Responsible Investing Strategy team, comprising three colleagues, works with investment teams to integrate responsible investing insights into investment process across asset classes and investment styles. Additionally, the team also looks to innovate on responsible investing products and solutions, with the focus on positioning and ensuring that we are market-leading, credible and consistent.

 Climate Solutions team

  • Nick Stansbury, Head of Climate Solutions, leads our energy transition approach and is one of our most prominent spokespeople on this topic.
  • The Climate Solutions team, which has a total of eight team members, has created a bespoke, detailed and investor-focused model to facilitate construction of fully independent energy scenarios. The framework uses in excess of 10 million data variables to model the energy system. The model, L&G’s Destination@Risk, is now helping to inform our long-term investment decisions and develop dynamic pathways for the energy system.

 ESG Distribution

  • Laura Brown, Head of Public Markets Distribution, is supported by two further colleagues who are dedicated to ESG and supporting clients in meeting their sustainability and responsible investing objectives.

 Real Assets

  • L&G’s Real Assets teamhas 11 dedicated ESG experts working across the range of private credit and real estate strategies that we manage. This team is led Shuen Chan, Head of Responsible Investment and Sustainability.

 Product Development and Strategy

  • Rachel Ahlquistis focused on developing and shaping the strategic direction of the pooled product range with respect to Responsible Investment features. This includes specific focus on product launch or amendment work with more advanced ESG features.

 Global Research and Engagement Group (GREGs)

Further to those with roles dedicated to ESG, our Global Research and Engagement Groups (GREGs) bring together representatives from the Investment and Investment Stewardship teams across regions and asset classes. The GREGs enable L&G to connect top-down macro and thematic views with bottom-up analysis of corporate and sector fundamentals to understand the materiality of sustainability risks and opportunities and prioritise them accordingly. Combining the capabilities of the Investment and Investment Stewardship teams also enables L&G to scale and coordinate our engagement efforts with companies at board and executive management levels, across all asset class and investment styles. C.40 research analysts contribute to our GREGs, researching into structural industry changes and risks, and identifying key themes and engagement topics across nine sectors.

 Please see L&G Attachment 1 - ESG Memberships and Collaboration for details on list of related affiliations and memberships.

Please find the team organisation chart below.

L&G corp.png

 

See also: L&G ESG Memberships & Collaborations.docx

 

Dialshifter (Fund)

 

 

Dialshifter (Corporate)

Our organisation is helping to support the Paris Climate Agreement and the Race to Net Zero by…

At L&G’s Asset Management division, we take our role in addressing climate change very seriously. We have a duty of looking to mitigate long-term risks and seize emerging opportunities and are a company that is acting today in our clients’ long-term interests. As a founding signatory to the Net Zero Asset Manager Initiative (NZAMI), we have committed to support the goal of net zero greenhouse gas (GHG) emissions by 2050, in line with global efforts to limit warming to 1.5°C. We have committed to work in partnership with our clients to reach net-zero GHG emissions by 2050 or sooner across all assets under management (AUM). 

SDR Labelling:

Unlabelled with sustainable characteristics

Key Performance Indicators:

The Manager has identified the following metrics which may be useful when considering the sustainability characteristics of the Fund:

  1. The Carbon Footprint of the Benchmark Index compared to the Carbon Footprint of the relevant comparator index; and
  2. The proportion of the relevant comparator index excluded through the application of the exclusionary criteria.

 Further information can be found in the Fund Details set out in the Consumer Facing Disclosure.

Disclaimer

This communication is not a financial promotion and is intended for Professional Clients, Qualified Investors, companies and pension trustees and should not be relied upon by retail customers, pension scheme members, employees, or any other persons.

This document has been prepared by Legal & General Investment Management Limited and/or its affiliates ('L&G', ‘we’ or ‘us’). The information in this document is the property and/or confidential information of L&G and may not be reproduced in whole or in part or distributed or disclosed by you to any other person without the prior written consent of L&G.  Not for distribution to any person resident in any jurisdiction where such distribution would be contrary to local law or regulation.

No party shall have any right of action against L&G in relation to the accuracy or completeness of the information in this document.  The information and views expressed in this document are believed to be accurate and complete as at the date of publication, but they should not be relied upon and may be subject to change without notice. We are under no obligation to update or amend the information in this document.  Where this document contains third party data, we cannot guarantee the accuracy, completeness or reliability of such data and we accept no responsibility or liability whatsoever in respect of such data.

No part of this document should be construed as providing investment advice, and L&G does not accept any liability for any decisions based on this document.

Legal and General Assurance (Pensions Management) Limited. Registered in England and Wales No. 01006112. Registered Office: One Coleman Street, London, EC2R 5AA. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, No. 202202.

LGIM Real Assets (Operator) Limited. Registered in England and Wales, No. 05522016. Registered Office: One Coleman Street, London, EC2R 5AA. Authorised and regulated by the Financial Conduct Authority, No. 447041. Please note that while LGIM Real Assets (Operator) Limited is regulated by the Financial Conduct Authority, it may conduct certain activities that are unregulated.

Legal & General (Unit Trust Managers) Limited. Registered in England and Wales No. 01009418. Registered Office: One Coleman Street, London, EC2R 5AA. Authorised and regulated by the Financial Conduct Authority, No. 119273.

Issued by Legal & General Investment Management Ltd in the UK. Registered in England and Wales No. 02091894. Registered office: One Coleman Street, London EC2R 5AA. Authorised and regulated by the Financial Conduct Authority.