“We are very proud to have worked alongside HSBC Pension Fund Trustees, LGIM and FTSE Russell on the development of the Legal & General Future World Fund. This fund provides a new option for savers and defined contribution (DC) scheme members who wish to tackle climate change and ESG concerns through their long-term investments,” says Gardner.
Assisting the transition to a low carbon economy
The Legal & General Future World Fund is a factor-weighted passive global equity strategy, which is positioned for the transition to the low carbon economy through a series of rule-based tilts. The new fund fits the HSBC DC default fund and is not a fringe product for HSBC beneficiaries.
“Scalable products, such as the Legal & General Future World Fund – which provides an improved risk/return profile, as well as a reduced carbon footprint, exposure to green revenues, and engagement to improve company behaviours – are crucial for the industry to move forward in this area. First movers such as LGIM and HSBC signal huge progress,” he adds.
Savers expect sustainable investment and strong returns
A recent Good Money Week YouGov survey reported almost 50% of millennials would like a fossil-fuel free option from their bank, pensions or saving provider. The fund is responding to this increasing demand for ESG and climate-aware products, Gardner explains:
“We are increasingly seeing rising expectations from savers that the ability to invest sustainably and strong investment performance should not be mutually exclusive. There is also a growing body of evidence showing investors expect asset managers to take account of ESG factors in the investment process.”
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