Gerd Kommer and LGIM launch an All-Cap-All-Market Multifactor-Equity ETF

Legal & General Investment Management (LGIM) and German asset manager Gerd Kommer Invest (GKI) today announced the launch of the L&G Gerd Kommer Multifactor Equity UCITS ETF, which aims to give investors access to a diversified investment strategy whose underlying index was developed in close collaboration between the two companies.

Sign up for our weekly Newsletter and receive the latest ETF and ETC news. Click here to register for your free copy

By ETFWorld.co.uk

Aanand Venkatramanan, Head of ETFs, EMEA, at LGIM

ETF aims to provide investors with simplified access to Gerd Kommer’s ‘world portfolio concept’

The launch of this ETF represents a further step in LGIM’s expansion strategy in Europe and internationally.

The ETF will be listed on Deutsche Börse Xetra starting today, 21 June, and will be available on Scalable Capital’s Broker, one of Europe’s leading investment platforms. For those investors who intend to invest in an accumulation plan via Scalable, no commission will be charged on this specific ETF (subject to special terms and conditions). Furthermore, LGIM will in the coming days also make it available to residents of Germany, Austria and Switzerland via all trading platforms and online brokers for both accumulation plan investments and lump sum solutions.

The ETF has the following features

Innovative approach for the inclusion of various nations: The weighting of individual nations is determined by the average of their market capitalisation and other economic parameters such as gross domestic product. This allows the advantages of these two methods to be combined, especially as it reduces the risk of excessive concentration on the United States. To date, this is the only ETF listed in the DACH region that takes GDP into account when including the various markets.
“All-Cap-All-Market: The ETF invests in both developed and emerging markets; covering the entire spectrum through investments in small, mid and large caps.
Multi-factor investment: Increased exposure to five specific factors: size, value, quality, investment and growth momentum.

The underlying Solactive index encompasses approximately 5,000 companies and is rebalanced on a quarterly basis.

The L&G Gerd Kommer Multifactor Equity UCITS ETF is based on Gerd Kommer’s ‘world portfolio concept’ philosophy, developed during his 30 years in the financial services industry. This involves minimising the influence of emotional reactions on investment decisions in favour of a scientific approach based on objective rules derived from economic theory and empirical analysis.

Investors will be able to choose from various share classes for asset accumulation and quarterly redistribution in an ETF classified as Article 8 according to the SFDR.

Gerd Kommer, CEO of Gerd Kommer Invest, commented: “We are very happy with the cooperation with LGIM, a leading partner when it comes to developing, launching and implementing ETFs in the market. This partnership has allowed us to propose a strategy that encompasses our more than 30 years of experience in capital markets, research, client satisfaction and scientific knowledge on how to create value. We believe that this solution could enable certain investors to achieve their equity allocation through a single product. To date, this is a unique opportunity in Germany, Austria and Switzerland.”

Aanand Venkatramanan, Head of ETFs, EMEA, at LGIM, added: “Through this partnership, we are merging our capabilities in creating investment solutions through ETFs to create one that does not yet exist in the German-speaking markets and will benefit from the prestige that the Gerd Kommer brand enjoys locally. It will also combine the investment philosophy of the world portfolio concept with our experience in developing and issuing ETFs. This product is based on an active bottom-up approach and the active development of investment strategies that will allow us to meet clients’ evolving needs and differentiate our offering.”

Source: ETFWorld.co.uk