Legal & General Future World ESG UK Index added to Wealth Shortlist

Legal & General Future World ESG UK Index was added to the Wealth Shortlist of funds chosen by our analysts for their long-term performance potential on 14 February 2023.

The Legal & General Future World ESG UK Index provides broad exposure to the UK stock markets, while being mindful of environmental, social and governance (ESG) issues. Its benchmark, the Solactive L&G Enhanced ESG UK Index, is made up of around 340 companies spread across the whole of the UK market, including the consumer staples, financials and energy sectors.

The fund aims to track its benchmark by investing in all of the underlying shares, a process known as full replication. This helps the fund stay close to the performance of the benchmark. The fund also invests in smaller companies in line with the benchmark, which are usually subject to more extreme price movements, and this can increase risk.

Legal & General has been running index tracker funds longer than most. It’s also one of the largest providers of tracker funds and has the biggest index team in the UK. That means it’s got the resources and expertise to track indices as closely as possible, and the scale to keep charges to a minimum. Legal & General has continued to develop their passive fund range over the last 30 years. It has just over £470bn invested in this part of the business, allowing it to offer a wide range of index-tracking options.

Jason Forster is the primary manager responsible for this fund. Forster heads up the team responsible for the fund management of the UK. He was formerly responsible for the development of the in-house index fund management system before becoming a fund manager in 2002. The secondary manager for this fund is Konstantins Golovnovs. Golovnovs is responsible for managing a range funds with both UK and global equity mandates. He moved into his current role in Index Funds 2011. The team running this fund works closely with various risk departments across the business. We believe this provides support and adds challenge where appropriate.

We’ve monitored the Legal & General index team for several years and it’s currently one of the best for integrating ESG solutions into tracker funds. We hold the team in high regard and following a recent detailed review of the UK ESG passive sector and several meetings with the team, our conviction has grown stronger.

To find out more about the investment process and performance, please read our latest full fund update.

Past performance is not a guide to the future. *Source: Lipper IM to 31/01/2023. The period between 31 January 2020 and 31 January 2021 reflects the performance of the I Class version of the fund. Performance from 31 January 2021 onwards reflects the performance of the C class version of the fund. This is due to when each share class was launched.

**N/A= performance data for this period is not available due to when the fund or index was launched.

More on Legal & General Future World ESG UK Index, including charges

View Legal & General Future World ESG UK Index Key Investor Information