Press releases


Simon Ellis - Director of Legal & General Investments
Simon Ellis
Director of Legal & General Investments

01 February 2012

Simon Ellis - Director of Legal & General Investments
Simon Ellis
Director of Legal & General Investments

Legal & General Investments, the UK’s largest providers of index mutual funds¹, has reduced the fund charges on the institutional unit classes² of its index fund range, effective 1 February 2012.

UK, single market and regional index funds will now have an annual management charge (AMC) of 0.20% and global funds will have an AMC of 0.30%. The changes will also see additional expenses for all institutional unit classes reduced across our full range of active and passive funds³, which means that in some cases the Total Expense Ratio (TER) has been reduced by as much as 12 basis points.

Simon Ellis, Managing Director, Legal & General Investments, said: ‘“Over the last two to three years, Legal & General Investments has experienced a strong increase in demand for our passive investments, notably from fee-based advisers. This review of the pricing structure means advisers will get a better deal when using our simple, low cost and high quality index funds to construct client portfolios.

“We believe that the new fee structure offers great value to intermediary clients, further adding to the benefits of investing with a fund provider that has a proven long term commitment to passive investing.Ellis concluded: “This change will enable advisers to use passive strategies as part of their asset allocation and portfolio construction decisions more easily and cleanly, whilst supporting the move to a fee based advice market.”



Fund charges
Fund/Unit Class NamePrevious AMC %Previous TER %Revised AMC %Revised TER %*
 L&G UK Index Trust 1 Class (Acc/Inc)
 L&G All Stocks Gilt Index Trust (Acc/Inc)0.20
 L&G All Stocks Index Linked Gilt Index Trust (Acc/Inc)
 L&G UK 100 Index 1 Trust 1 Class (Acc/Inc)
L&G US Index Trust 1 Class (Acc/Inc) 0.300.350.200.23
 L&G Japan Index Trust 1 Class (Acc/Inc)0.30 0.360.200.24
 L&G European Index Trust 1 Class Class (Acc/Inc)0.300.370.200.25
 L&G Pacific Index Trust 1 Class (Acc/Inc) 0.300.390.200.27
 L&G Global 100 Index Trust 1 Class (Acc/Inc) 0.300.330.300.31
 L&G Health & Pharmaceutical Index Trust 1 Class (Acc/Inc) 0.300.330.300.31
 L&G Global Technology Index Trust 1 Class (Acc/Inc) 0.300.330.300.31
 L&G International Index Trust 1 Class (Acc/Inc) 0.350.420.300.35
 L&G Global Emerging Markets Index Fund 1 Class (Acc/Inc) 0.300.520.300.50


*The Total Expense Ratio (TER) figures disclosed reflect the reductions to annual management charges and additional expenses from 1 February 2012 and differ from the audited TER figure published prior to these changes

The nil-commission institutional unit classes are available to fee based advisers on a wide range of intermediary platforms, listed in the Notes to Editors.

Notes to editors

The information contained in this press release is intended solely for journalists and should not be relied upon by private investors or any other persons to make financial decisions.

¹ Legal & General Investments is the UK’s largest provider of index mutual funds with £9.54 billion under management according to IMA figures (as at 31 October 2011).

² Institutional fund charges cover I, G and X unit classes.

³The growth of Legal & General Investments’ intermediary business has enabled us t