"The fund will direct investment towards carbon-efficient companies and reduce fund exposure to rising carbon costs. Passive investors in particular should be drawn to the Index due to its lower carbon risk combined with a fund designed to deliver very low tracking error, compared to its benchmark."
Legal & General Investment Management
Legal & General Investment Management (LGIM) is a leading provider of investment services and products, with £356 billion funds under management as at end March 2011.
Trucost provides data to drive LGIM's UK Equity Carbon Optimized Index Fund. LGIM launched the Fund in response to client demand for a carbon efficient tracker fund. They worked closely with the BT Pension Scheme Management, the executive arm of the BT Pension Scheme (BTPS) to develop a fund which meets the requirements of the Pension Scheme.
The objective of the Fund is to track the performance of the UK All-Share Carbon Optimized Index to within +/-0.5% p.a. for two years out of three. The Fund employs an index tracking strategy, aiming to replicate the performance of its benchmark. The fund is sector neutral weighted compared to the FTSE All-Share but is around 20% less carbon intensive.
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LGIM Launch Carbon Efficient Index Tracker Fund