FTSE Russell unveils Target Exposure indices

Already deployed by LGIM on behalf of a UK-based pension fund

FTSE Russell has announced the launch of its FTSE Target Exposure Indexes, which are designed to enable investors to target explicit exposure objectives.

The new indices will enable investors to calibrate exposure to risk factors such as value, quality, low volatility, size and momentum, while also targeting larger themes such as industries, countries and sustainability goals. Ethical indices outperform traditional ones amid 'huge' evolution of sector Legal and General Investment Management (LGIM) has already employed the new Target Exposure methodology on behalf of a UK-based defined benefit pension fund, moving the scheme's entire equity allocation to a multi-factor strategy to limit drawdowns, while applying specific risk parameters...