16 Oct 2019
LGIM updates Pathway Funds to integrate environmental, social and governance factors
Legal & General Investment Management (LGIM) has today announced enhancements to its L&G Pathway Funds (a range of Target Date Funds) that include further integration of environmental, social and governance (ESG) considerations, as well as better alignment with the Financial Conduct Authority’s retirement pathways and LGIM’s own ‘Four Pots for your retirement’ concept.
As well as integrating ESG considerations, LGIM will also be increasing the allocation to growth assets in the earlier retirement savings phase and de-risking at a more gradual pace. These changes are designed to help deliver an improved level of income in retirement.
The changes are in part a response to direct feedback from LGIM’s defined contribution pension-scheme members, who have shown increased interest in sustainable investments, as well as wider demographic research conducted as part of the funds’ governance process. Recent Government research has also found that more than half (56%) of UK savers would opt for a fully or partially sustainable pension given the choice.
Read the full press release via the link below
Our members are telling us that they want their investments aligned to long-term sustainability goals. In our most recent survey of scheme members, 53% said they would engage more with their pension and 57% would feel more positive about their employer if they knew their pension was making a positive impact - as one of the largest pension providers in the UK, we have a key role to play in giving savers this choice.
Emma Douglas, Head of Defined Contribution at Legal & General Investment Management