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What's New In Investments, Funds? – LGIM

Editorial Staff 19 April 2024

What's New In Investments, Funds? – LGIM

The latest news in investment offerings, financial products and other services relative to wealth advisors and their clients.

Legal & General Investment Management
Legal & General Investment Management (LGIM) has just announced the expansion of its exchange-traded fund (ETF) range with the launch of the L&G Energy Transition Commodities UCITS ETF. 

The fund aims to provide exposure to the three supporting pillars of the energy transition through commodity futures, harnessing the growth potential embedded within the next chapter of the global energy story.

The fund, which is a first to market, offers investors liquid and diversified exposure to a combination of commodities central to the energy transition, the firm said in a statement. It provides access to three commodity groups with supportive demand side dynamics. These include transition metals that are needed to produce, store and distribute clean energy; lower carbon transition energy sources such as natural gas and ethanol which can help overcome peak energy demand and the challenge of ‘hard-to-abate’ sectors; and carbon pricing that increases the cost of polluting activities, incentivising the switch to low- and no-carbon activities.

The fund provides access to 18 liquid commodities in a diversified and liquid manner, including an allocation to carbon markets. It builds on LGIM’s broader range of commodities ETFs – including the L&G All Commodities UCITS ETF, the L&G Longer Dated All Commodities UCITS ETF and the L&G Enhanced Commodities UCITS ETF. The expansion of the range reflects the demand for investment solutions with low correlation to other asset classes, allowing clients to tap into potential growth opportunities across the real economy, the firm said.

It will be available to both wholesale and institutional investors, registered in the UK, France, Germany, Italy, the Netherlands, Norway, Denmark, Sweden, Finland, Austria, Luxembourg, Switzerland and Spain, as well institutional investors in Singapore. It has been categorised as Article 6 under the EU’s Sustainable Finance Disclosure Regulation and will be managed by LGIM’s ETF team.

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