Legal & General Investment Management's Partnership with Trucost

Legal & General Investment Management (LGIM), a leading provider of investment services and products, with £356 billion funds under management as at end March 2011, and Trucost, the environmental data company, have launched a carbon efficient tracker fund.

LGIM UK Equity Carbon Optimised Index Fund is designed for pensions investors concerned about carbon risk, which in turn is a good proxy for energy risk. The fund aims to achieve returns close to the FTSE All-Share index while reducing exposure to financial risk from the transition to a low carbon economy and rising energy costs. The fund is sector neutral weighted compared to the FTSE All-Share but is around 20% less carbon intensive.

The Fund has been developed by Legal & General Investment Management using a custom index created by FTSE Group based on carbon data provided by Trucost.

Helene Winch, Director, Head of Policy, BT Pension Scheme Management Ltd said "As part of our ongoing analysis of the potential impacts of climate risk on our portfolio of assets, we have been actively exploring ways to efficiently allocate capital to investments that could outperform in times of higher carbon prices, particularly as a result of policy moves towards a low carbon economy. Alongside our partners of LGIM, Trucost and FTSE, the BT Pension Scheme is pleased to invest in this attractive, institutional-focused product."

 

View press release: LGIM launch carbon efficient Index Tracker Fund

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