L&G Net Zero Global Corporate Bond Fund Z USD Acc

The objective of the Fund is to provide a combination of growth and income by outperforming the Bloomberg USD/EUR/GBP Corporates 1% issuer capped Index, the "Benchmark Index", before the deduction of any charges and measured over rolling five-year periods. The Fund aims to deliver this whilst investing in line with the Investment Manager's Net Zero Framework. The Investment Manager has broad discretion over the composition of the Fund’s portfolio. The degree to which the composition of the Fund's portfolio may deviate from the Benchmark Index will vary over time and the Fund's performance may be meaningfully different from that of the Benchmark Index. The Fund will seek to achieve its objective by investing in a broad range of bonds and bond-related instruments denominated predominantly in USD, Euro and GBP. The Fund will invest at least 70% in corporate bonds. The Fund will invest primarily in debt rated by a recognised rating agency as investment grade (rated as lower risk). The Fund may also invest in unrated bonds which have not been rated by a credit rating agency. The Fund may also invest in other transferable securities, including but not limited to, depository receipts, permitted deposits, warrants, money market instruments, cash, near cash and units in collective investment schemes. To evaluate the investments held in the Fund, the Investment Manager uses “in house” credit research, combined with both external and internal ESG (environmental, social and governance) research, to form an investment view in line with the net zero, UN Sustainable Development Goals (“SDGs”) and exclusionary parameters. Accordingly, the Fund will follow the ESG investment strategies below: (i) Excludes investments in issuers in the Future World Protection List; and in accordance with the Investment Manager’s Climate Impact Pledge; (ii) Systematically applies ESG factor evaluation as part of the investment decision-making process; (iii) Utilises the Investment Manager’s SDG framework through its proprietary scoring process to assess the extent to which companies or sovereigns positively contribute to, or detract from, the SDGs. Companies and/or sovereigns that demonstrate a negative alignment to one or more of the SDGs are excluded, including companies generating a certain level of their revenues from tobacco production; and; (iv) Applies the Investment Manager’s net zero framework by targeting: (i) an implied temperature alignment of 1.5⁰C by 31 December 2030 onwards, and (ii) a weighted average carbon emissions intensity that is at least 50% lower by 31 Derivatives may also be used to protect or enhance the value of the Fund or to seek to reduce the risks of certain investments. Derivatives are financial instruments whose values are based upon the price of one or more other asset(s). Other information: The Fund is actively managed as the Manager uses their expertise to select investments to achieve the Fund’s objectives. Your shares will be accumulation shares. Income from the Fund’s investments will be reinvested back into the value of your shares. This Fund is designed for investors looking for income or growth from an investment in fixed income securities. Although investors can take their money out at any time, this Fund may not be appropriate for those who plan to withdraw their money within five years. This Fund is not designed for investors who cannot afford more than a minimal loss of their investment. If you do not understand this document we recommend you seek additional information to help you decide if this Fund is right for you. Shares can be bought, sold or switched on any business day. Orders received by 2.00pm (CET) will be processed as at the valuation point on the same business day. Orders received after 2.00pm (CET) will be processed as at valuation point on the next business day. The Fund's base currency is denominated in US dollar (USD). December 2030 than the base-line level of the Benchmark Index as at 31 December 2019. The Fund will target net zero carbon emissions intensity by 2050. In addition to the exclusions above, the Fund will also exclude investments in issuers that are assessed as making investments in new thermal coal or oil sands. The Fund may invest up to 20% of its assets in asset-backed securities (ABS) and mortgage-backed securities (MBS). The Fund may invest up to 20% of its assets in contingent convertible debt securities. A summary of the manager’s Climate Impact Pledge is available at: www.lgim.com/climate-impact-pledge. A summary of the FWPL methodology is available at: www.lgim.com | FWPL Methodology.