Press releases


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

31 August 2012

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

Research* from Legal & General Investments, one of the UK's largest investment providers, has shown that advisers are viewing passive investments far more favourably compared to 2011.

When asked into which asset classes they would be investingover the next 12 months, nearly two in five IFAs (38%) indicated they would be buying passive funds, an increase of 7% on 2011, when only three in 10 had passive investments in their sights.

The findings come from Legal & General Investments' annual What Matters Investment Index which aims to investigate the views of the IFA community, tracking how sentiment and behaviour changes over time.

While there has been an increase in the number of IFAs taking up passive investments on behalf of their clients there was little change in the number of advisers likely to invest in active funds over the coming 12 months, remaining steady at 80%.

Simon Ellis, Managing Director, Legal& General Investments, said: "In anticipation of RDR, and from talking to advisers in the marketplace, we believe passive investments will occupy an increasingly prominent position in the market and this research provides further evidence of this view. It will be fascinating to see how this develops into 2013 and beyond as advisers become used to operating in a fee based environment."

He continued: "Legal & General Investments firmly believes that a mixture of active and passive funds is appropriate but of course individual risk appetite should be the guiding force when advisers are constructing portfolios for their clients."

Notes to editors

* Figures from YouGov Plc.  Total sample size was 203 IFAs. Fieldwork was undertaken between 1-10 March 2012.  The survey was carried out online.

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. The Legal & General Group, established in 1836, is one of the UK's leading financial services companies. As at 31 December 2011, we were responsible for investing £378 billion worldwide on behalf of investors, policyholders and shareholders. We also have over seven million customers in the UK for our life assurance, pensions, investments and general insurance plans.

For more information please contact:

Kimberley Robinson

Kimberley Robinson
PR Manager Legal & General Group

t: +44 (0) 203 124 2092