Legal & General Investment Management (LGIM) has launched its core fixed income ETF range, offering investors access to sovereign and corporate bonds.
Each of the five funds has liquidity concerns built into the investment process, which includes minimum issuance thresholds and a balance between portfolio and bond liquidity versus performance trade-offs. Concerns around fixed income ETFs will 'never be put to rest' - Howie Li Alongside this, the funds are able to remain invested in fallen angel assets for up to six months following their downgrade to high yield status and will also reinvest cash generated from coupons immediately, rather than waiting until the end of the month. Both an exclusionary and weighted policy are applied...
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