Press Release

STOXX And L&G Collaborate On Launch Of Three L&G Developed World Factor-Based Index Funds

ZUG, Switzerland (September 11, 2025) – STOXX Ltd., part of the ISS STOXX group of companies, today announced its expanding collaboration with L&G, with L&G’s launch of three developed world factor-based index funds tracking customized iSTOXX indices. These funds, built on customized iSTOXX indices, reflect L&G’s proprietary factor research and aim to bring institutional-grade strategies to the UK wholesale market.

This launch follows the recent announcement that L&G’s factor framework, developed in collaboration with STOXX, has surpassed £6 billion1 in assets under management, a testament to the growing demand for differentiated, research-driven index solutions. The L&G Developed World Single Factor Designed range consists of three funds: the L&G Developed World Momentum Factor Index Fund, the L&G Developed World Quality Factor Index Fund and the L&G Developed World Value Factor Index Fund.

While established amongst institutional investors, factor investing is less present in the wholesale market due to the more common use of traditional active products. These funds have been designed with evolving client needs in mind. They will enable investors to access specific ‘factor’ exposure across developed market equities. To provide this exposure, L&G has performed extensive research in developing proprietary factor scores across value, quality and momentum that are integrated into customised iSTOXX indices.

  • The L&G Developed World Momentum Factor Index Fund tracks the iSTOXX L&G Developed World Momentum Index NTR and aims to deliver exposure to companies that have shown strong recent performance or rapid growth in a short period.
  • The L&G Developed World Quality Factor Index Fund tracks the iSTOXX L&G Developed World Quality Index NTR and seeks exposure to companies with characteristics such as positive income, high profitability and low leverage, generally indicating lower financial risk, more stable earnings, and durable business models.
  • The L&G Developed World Value Factor Index Fund tracks the iSTOXX L&G Developed World Value Index NTR and provides exposure to companies that appear undervalued compared to comparable companies.

Each of the indices has also been designed to incorporate practical considerations such as transaction costs and turnover, which are seen as a key advantage of the strategies.

We are delighted to introduce this range of funds to our wholesale investors in the UK. Factor investing has been underrepresented in wholesale portfolios, and so we have pooled our internal expertise to develop something that is differentiated while meeting the distinct requirements of our end-investors.

Ben Cherrington

Head of UK Wholesale, Asset Management, L&G

With the market environment remaining volatile and uncertain, the role for factor strategies is highly relevant given their ability to enhance diversification, manage risk, and capture persistent sources of return. The funds incorporate L&G’s factor framework which offers a modernised approach to factor investing and enhances factor definitions through the integration of investment manager insights, supporting a more dynamic and informed investment approach.

Stefan Bilby

Head of Index Distribution, Asset Management, L&G

As a leading provider of innovative custom index solutions, we are delighted to deepen our collaboration with L&G by enabling the seamless integration of L&G’s own extensive research in developing proprietary factor scores across value, quality and momentum into customized iSTOXX indices.

Axel Lomholt

General Manager, STOXX

The funds will be managed by L&G’s Index team, which collectively manages over £517bn2 in assets and has over 35 years in experience. The Index Solutions team that developed these strategies has expertise across global equities, fixed income, and alternatives, working alongside investors to deliver flexible and differentiated index solutions on behalf of our global client base.

Notes

1 Source: L&G as at 30 June 2025
2 Source: L&G’s Asset Management business internal data as at 31 December 2024. Includes assets from associates and is based on managed AUM, including £1.5bn from multi-asset strategies

About STOXX
STOXX® and DAX® indices comprise a global and comprehensive family of more than 18,000 strictly rules-based and transparent indices. Best known for the leading European equity indices EURO STOXX 50®, STOXX® Europe 600 and DAX®, the portfolio of index solutions consists of total market, benchmark, blue-chip, sustainability, thematic and factor-based indices covering a complete set of world, regional and country markets. STOXX and DAX indices are licensed to more than 550 companies around the world for benchmarking purposes and as underlyings for ETFs, futures and options, structured products, and passively managed investment funds. STOXX Ltd., part of the ISS STOXX group of companies, is the administrator of the STOXX and DAX indices under the European Benchmark Regulation. stoxx.com

About ISS STOXX
ISS STOXX GmbH, through its group companies, is a leading provider of comprehensive and data-centric research and technology solutions that help capital market participants identify investment opportunities, detect qualitative and quantitative portfolio company risks, and meet evolving regulatory requirements. With roots dating back to 1985, we today deliver world-class benchmark and custom indices across asset classes and geographies and serve as a premier source of independent corporate governance, sustainability, cyber risk, and fund intelligence research, data, and related offerings. Our products and services give clients the scale and leverage they need to grow their business more effectively and efficiently. ISS STOXX, which is majority owned by Deutsche Börse Group, is comprised of more than 3,800 professionals operating across 30 global locations in 20 countries. Its approximately 5,500 clients include many of the world’s leading institutional investors who turn to ISS STOXX for its objective and varied offerings, as well as companies focused on ESG, cyber, and governance risk mitigation as a shareholder value enhancing measure. Clients rely on ISS STOXX’s expertise to help them make informed decisions to benefit their stakeholders.

About L&G
Established in 1836, L&G is one of the UK’s leading financial services groups and a major global investor, with £1.1 trillion in total assets under management (as at HY25) of which c. 43% (c. £0.5 trillion) is international. L&G has a highly synergistic business model, which continues to drive strong returns. L&G is a leading player in Institutional Retirement, in Retail Savings and Protection, and in Asset Management through both public and private markets. Across the L&G Group, L&G is committed to responsible investing and dedicated to serving the long-term savings and investment needs of customers and society.

Legal disclaimer:
STOXX Ltd., ISS STOXX GmbH, ISS STOXX Index GmbH, Deutsche Börse Group and their licensors, research partners or data providers do not make any warranties or representations, express or implied, with respect to the timeliness, sequence, accuracy, completeness, currentness, merchantability, quality or fitness for any particular purpose of its index data and exclude any liability in connection therewith. STOXX Ltd., ISS STOXX GmbH, ISS STOXX Index GmbH, Deutsche Börse Group and their licensors, research partners or data providers are not providing investment advice through the publication of indices or in connection therewith. None of their products or services recommends, endorses, approves or otherwise expresses any opinion regarding any issuer, securities, financial products or trading strategies. In particular, the inclusion of a company in an index, its weighting, or the exclusion of a company from an index, does not in any way reflect an opinion of STOXX Ltd., ISS STOXX GmbH, ISS STOXX Index GmbH, Deutsche Börse Group or their licensors, research partners or data providers on the merits of that company and may not be relied on as such. Financial instruments based on the STOXX® indices, DAX® indices or on any other indices supported by STOXX are in no way sponsored, endorsed, sold or promoted by STOXX Ltd., ISS STOXX GmbH, ISS STOXX Index GmbH, Deutsche Börse Group or their licensors, research partners or data providers.

Media Contact

Sarah Ball, Communications
press@iss-stoxx.com

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