ETFs
LGIM outflows rise as Paris-aligned ETFs bleed assets
Legal and General Investment Management (LGIM) ETF outflows have continued to rise this year as investors turn their backs on ESG.
The asset manager has seen outflows of $2.5 billion since the start of the year, with investors buying back $1.7 billion of L&G US ESG Exclusions Paris Aligned UCITS ETF (RIUS) alone, as of May 21, according to Bloomberg Intelligence data.
This was followed by the L&G Europe ESG Exclusions Emerging Markets Paris Aligned UCITS ETF (RIEU) which recorded outflows of $365 million.
RIUS and RIEU are now home to $458 million and $532 million in assets, respectively. This brings the total number of assets in LGIM’s ETFs to $13.9 billion in assets under management.
It’s a tough start to the year for the British giant and follows a dismal quarter for funds classified under Article 9 of the Sustainable Finance Disclosure Regulation (SFDR).
Article 9 funds — both passive and active — saw outflows of $4.3 billion in the first quarter, according to Morningstar data, but passive flows were actually positive during the quarter.
While LGIM’s Paris-Aligned Benchmark (PAB) ETFs bore the brunt of capital outflows, LGIM’s thematic range also saw an exodus of assets.
The 2.3 billion dollars L&G Cybersecurity UCITS ETF (ISPY) – its largest ETF – saw outflows of $293 million.
Meanwhile, investors withdrew $140 million and $124 million from the market. L&G ROBO Global Robotics and Automation UCITS ETF (ROBO) and the L&G Battery Value-Chain UCITS ETF (BATT), respectively.
Highlights of LGIM’s ETF range include L&G India INR Government Bond UCITS ETF (TIGR), with a collection of 65 million dollars.
The AI boom also helped L&G’s artificial intelligence UCITS EFT (AIAI) record inflows of $113 million, while the L&G Gerd Kommer Multifactor Equity UCITS ETF (GERD) recorded a collection of $94 million.
The ETF has now amassed $222 million in assets since its inception. launched in June last year as it seeks to become a staple of German ETF savings plans.
The recent rise in commodities saw investors invest $167 million in the commodities sector. L&G Multi-Strategy Enhanced Commodities UCITS ETF (ENCO).
The group has continued to expand its range of ETFs this year, by launching the L&G Multi-Strategy Enhanced Commodities ex-Agriculture & Livestock UCITS ETF (XAGR) and the L&G Energy Transition Commodities UCITS ETF (ENTR) last month.