LEGAL & GENERAL INVESTMENTS TO LAUNCH STERLING CORPORATE BOND INDEX FUND.
21 August 2012
Legal & General Investments, one of the UK's largest investment providers, has announced plans to launch the Legal & General Sterling Corporate Bond Index Fund, subject to FSA approval.
The Fund will invest in the highest tiers of the sterling corporate bond market, those rated AAA, AA or A, which historically carry the lowest risk of default and the highest levels of liquidity. The Fund will provide investors with exposure to these high quality sterling corporate bonds with a low annual management charge of 0.20%.
Research* carried out earlier this year on behalf of Legal & General Investments found that amongst those advisers looking to increase their passive fund recommendations, half (49%) would recommend sterling corporate bond funds, demonstrating the appetite in the market for adopting an index approach in this asset class.
Frank McGarry, Sales Director, Legal & General Investments, said: "As the deadline for RDR implementation rapidly approaches there has been a significant shift to passive funds in the UK advisory market. Many portfolio constructors are opting to blend both active and passive funds within client portfolios and this is a trend that we expect to gather momentum."
He continued: "The Sterling Corporate Bond Index Fund will be a great addition to our award winning** index fund range, providing investors with low cost exposure to a core asset class which can be used as a portfolio building block or simply as a cost efficient means of accessing the highest rated sterling corporate bonds."
Legal & General has a proven track record of managing high quality, low cost index funds and already manages £35bn in UK fixed income index funds.
It is planned that the fund will be made available through all major fund platforms.
For more information please call the Legal & General Investments Broker Desk on 0845 070 8684 or email firstname.lastname@example.org.
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.
*NMG IFA Census: The results shown in this report are based on 294 IFAs. Fieldwork was undertaken in April 2012.
** Nine of Legal & General’s index funds are platinum graded by S&P Capital IQ, more than any other UK passive fund provider.
The fund will be managed by Helen Stuart, supported by the LGIM Index Funds team. The fund is planned to be launched on 28 August 2012.
The Legal & General Group, established in 1836, is one of the UK’s leading financial services companies. As at 30 June 2012, we were responsible for investing £388 billion worldwide on behalf of investors, policyholders and shareholders. We also had over seven million customers in the UK for our life assurance, pensions, investments and general insurance plans.
Legal & General is one of the biggest providers of index-tracking investments in the UK, managing £227 billion as at 30 June 2012.
The value of investments and any income from them may fall as well as rise and are not guaranteed. Investors may get back less than they invest. Past performance is not a guide to future performance.
For more information please contact:
PR Manager Legal & General Group
t: +44 (0) 203 124 2092