Defined Contribution

The Multi-Asset Fund is a globally diversified fund that seeks to help members grow their retirement savings in a cost-efficient way. The fund is designed to help DC pension scheme investors who are looking for long-term growth but with less volatility than a pure equity fund.

The Future World Multi-Asset Fund has been designed for DC pension investors who wish to go further in integrating environmental, social and corporate governance (ESG) factors into a genuinely diversified strategy. The fund aims to be straightforward and transparent in its approach, using our Corporate Governance team’s expertise by investing in Future World index funds that track LGIM-designed ESG indices or other index funds where relevant. The fund takes our approach to climate change one step further by incorporating LGIM’s innovative Climate Impact Pledge.

The Diversified Fund is designed for long-term DC pension investors seeking to grow their pension savings by accessing pure market exposure. The fund aims to provide a rate of return that’s broadly similar to that of developed market equities over the long term but with lower volatility.

The Diversified Multi-Factor Equity Fund is a global, strategic multi-factor equity fund that targets factors that aim to improve investor outcomes, and diversifies away from concentration risk. The fund aims to reduce risk versus the global equity market through a broad exposure across regions and sectors, and reduced stock-specific concentration.

The Retirement Income Multi-Asset Fund is designed for DC investors who would like to draw an income directly from their pension fund while remaining invested for future growth potential. The fund invests globally in a range of different asset classes and uses innovative cashflow thinking to help manage the risk of running out of capital for members redeeming fund units over time.

The FTSE TPI Global (ex. Fossil Fuels) Equity Index Fund was created to provide diversified exposure to companies that are aligned to the Paris Agreement and to reap the benefits of the climate transition, while going beyond a narrow focus on carbon emissions and fossil fuels.

Based on FTSE Russell’s FTSE Global Equity Index Series, the fund tracks a range of global, diversified securities, weighted according to the risks and opportunities arising from the global transition to a low carbon economy. The fund’s constituents are adjusted based on their fossil-fuel reserves, carbon emissions and green revenues, as well as on the Transition Pathway Initiative (TPI) analysis of how the world’s largest and most carbon-intensive public companies are managing the climate transition. Additionally, the fund excludes fossil fuel, tobacco, controversial weapons and UN Global Compact violators.

The managers of the Future World Fund invest in a way that integrates environmental, social and governance criteria and the principles of responsible investing.

The fund targets better risk-adjusted equity returns than a traditional index strategy by incorporating ‘factors’ into index design, while also seeking to address the investment risks associated with climate change.

LGIM has made a commitment to address climate change by engaging directly with the largest companies in the world who are critical to the shift to a low-carbon economy.

The fund managers refrain from investing in companies which hinder the global transition to a low-carbon economy. They also do not invest in pure coal mining companies, controversial weapons manufacturers or UN Global Compact violators, as well as companies that do not adhere to minimum globally accepted business practices.

Our new site for responsible investing hosts a range of educational and thought-provoking articles, blogs and videos as well as helpful information on our latest stewardship activity.