Swedish pension giant and LGIM launch sustainable EM equity fund
Swedish pension fund AP1 and LGIM have collaborated to launch a new EM equity fund.
The L&G Emerging Market Equity Future Core fund will link the allocation of capital to clear sustainability requirements for companies it will invest in.
The rationale behind the launch is to meet institutional investors’ need for index-linked funds with an extended sustainability profile.
According to AP1, the need for this kind of product has increased as more investors choose passive or index-linked management models.
The allocation of the fund will be based on an index, with exposure to each company based on how well it performs on a number of sustainability criteria.
The index consists of large and mid-cap companies across 26 emerging markets.
All names have to live up to basic sustainability requirements. The fund is completely fossil-free, which is in line with the AP1’s decision to divest from fossil fuels in order to limit exposure to climate risks.
Read more @City Wire Selector
