New Listing

LGIM expands Paris-Aligned range with emerging markets ETF launch

Takes its PAB range to five

Theo Andrew

Aanand Venkatramanan LGIM

Legal & General Investment Management (LGIM) has expanded its range of Paris-Aligned Benchmark (PAB) strategies with the launch of an emerging markets ETF, ETF Stream can reveal.

The L&G Emerging Markets ESG Exclusions Paris Aligned UCITS ETF (RIEM) is listed on the London Stock Exchange with a total expense ratio (TER) of 0.25%.

RIEM will track the Foxberry Sustainable Consensus Emerging Markets Total Return index, implementing PAB and ESG exclusion metrics with the ambition to limit global temperature increases to below 2°C.

Under the PAB requirements, the indices will represent a 50% initial greenhouse gas emission reduction relative to their parent indices and will target an additional 7% decarbonisation annually.

The ETF is classified as Article 9 under the Sustainable Finance Disclosure Regulation (SFDR).

Aanand Venkatramanan (pictured), head of ETFs for EMEA at LGIM, said: “The launch of this new PAB ETF is a demonstration of our continued commitment to providing investors with access to a range of strategies that account for ESG risk, an aspect that has become increasingly important for clients.

“We are pleased to bring this unique investment proposition to the market, which combines our ETF expertise and our leadership on climate and responsible investing.”

It takes the total number of ETFs in LGIM’s PAB range to five, following the launch of the L&G Asia Pacific ex Japan ESG Exclusions Paris Aligned UCITS ETF (RIAG) and the L&G Japan ESG Exclusions Paris Aligned UCITS ETF (RIJG) in October last year.

In June 2022, the group turned its Europe and US responsible inclusions ETFs into PAB strategies following changes by the index provider.

In September, the UK asset manager launched the L&G Global Brands UCITS ETF (LABL).

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