Legal & General Investment Management expands its alternative non-market cap index offering with the launch of innovative emerging market index fund.
12 August 2013
Legal & General Investment Management (LGIM) has launched a new index fund for pension fund investors seeking emerging market exposure. The LGIM Russell Developed Large Cap EM GeoExposure Index Fund is designed for investors who want to benefit from the economic growth expected in emerging markets, but without some of the risks involved in direct investment. LGIM is delighted that the Transport for London’s Pension Fund will be the first investor in the Fund, investing £150 million.
The Fund will track the Russell Developed Large Cap Emerging Market GeoExposure Index. This index
consists of large, developed market companies that either derive a material proportion of their revenues or generate significant total revenues from emerging markets. In this way, investors will gain a high exposure to emerging markets, but with the lower volatility and deeper liquidity typically associated with developed market investing.
The launch of this Fund demonstrates the ongoing interest LGIM is seeing from pension fund and
institutional investors in alternative non-market capitalisation weighted index strategies. After offering its first alternative strategy in 2006, LGIM is now a leading global provider of these products, managing over £5 billion on behalf of its clients.
Simon Midgen, Head of Index Funds Strategy, Legal & General Investment Management comments:
“This is the first fund that we have developed that tracks a Russell index and expands our range of
alternatively weighted index funds. We remain committed to developing funds and products to meet our
clients’ needs and are pleased to have Transport for London’s Pension Fund as seed investors. We are
confident that this fund will also appeal to many other clients.”
Scott Stark, Managing Director, Russell Indexes Europe said:
“We are delighted to be working with LGIM to introduce alternative index-based investment strategies to
European institutional investors. We believe this new mandate helps underscore the growing role that
alternative index-based investment strategies are playing alongside more traditional passive and active
investment strategies in institutional client portfolios.”
For further information on LGIM’s index capabilities please go to: http://www.lgim.com/capabilities/index
Notes to editors
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LEGAL & GENERAL INVESTMENT MANAGEMENT:
Legal & General Investment Management (LGIM) is one of the largest and fastest growing global asset
managers. LGIM manages £433 billion in assets for more than 3,000 clients*. Throughout the past 40 years we have built our business through understanding what matters most to our clients and transforming this insight into valuable, accessible investment products and solutions. We provide investment expertise across a full spectrum of asset classes including equities, fixed income, commercial property and cash. Our capabilities range from index-tracking and active strategies to liquidity management and liability-based risk management solutions.
*As at 30 June 2013
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