LEGAL & GENERAL INVESTMENTS TO LAUNCH EMERGING MARKETS GOVERNMENT BOND INDEX FUND.
29 November 2012
Legal & General Investments, one of the UK's largest investment providers, has received FSA authorisation to launch the Legal & General Emerging Markets Government Bond (US$) Index Fund. At launch, this will be the only UK authorised emerging market government bond index mutual fund.
The Fund, scheduled for launch 11 December 2012, will provide passive exposure to emerging market government bonds by investing primarily in the constituents of the JPMorgan Emerging Markets Bond Index Plus (EMBI+). The Fund will invest in bonds issued by sovereign entities and denominated in US Dollars. The new fund will provide a cost efficient way to invest in these emerging market government bonds with an annual management charge of just 0.30%.
Legal & General Investment Management's Index Funds team will manage the Fund, with Lee Collins the named Fund Manager.
Simon Ellis, Managing Director, Legal & General Investments, said: "Emerging market government bond funds represent a significant opportunity for investor portfolios, with yields that typically outstrip those of developed market government bond funds. They also act as a diversifier in portfolios with concentrated holdings of conventional gilts or corporate bonds."
He continued: "The Emerging Markets Government Bond (US$) Index Fund will be a great addition to our highly rated* index fund range, providing investors with low cost exposure to an alternative asset class. We are well positioned, as one of the largest retail fund providers of trackers in the UK**, to support our customers in diversifying their portfolios in a risk managed and cost efficient way. We are planning to make the fund available through all major fund platforms."
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.
The fund is being launched with an I unit class with both accumulation and income units available. The minimum investment is £1 million (although this may be waived on fund platforms).
The I unit class will have an annual management charge (AMC) of 0.30%. The ongoing charge figure (OCF) is estimated to be 0.35%. There is no initial service charge.
* Nine of Legal & General's index funds are platinum graded by S&P Capital IQ, more than any other UK passive fund provider.
** Legal & General Investments has a proven track record as a provider of high quality, low cost index funds with £12.29bn under management in index funds as at end October 2012.
The value of investments and any income from them may fall as well as rise. Investors may get back less than they invest. Past performance is not a guide to future performance.
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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.
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PR Manager Legal & General Group
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