Legal & General Investment Management (LGIM) has today launched the L&G Real Capital Builder (RCB) fund for external investors.
25 Oct 2017
Legal & General Investment Management (LGIM) has today launched the L&G Real Capital Builder (RCB) fund for external investors.
RCB is an equity-led outcome oriented unit trust that aims to generate total returns of 4% above inflation per annum over a rolling five year period at two-thirds of the risk of an equity index. The strategy meets investor demand for a risk managed fund that aims to deliver consistent returns ahead of inflation.
Initiated in January 2016, RCB has to date outperformed its benchmark. Its launch follows that of the L&G Real Income Builder last year and further enhances the range of ‘medium capital risk’ products offered by LGIM, where assets for inflation plus strategies are now over £1bn.
RCB is managed by a dedicated team led by Nick Hartley, Co-Head of Active Equities, and Shaunak Mazumder, Fund Manager.
Nick said: “We have committed significant resources to the design of Real Capital Builder. The fund is managed by a dedicated team of fund managers and analysts, each of whom was hired specifically for the strategy.
“Targeting equity returns with two-thirds MSCI World volatility and a real return objective meets the investment objectives of many of our our clients for all market conditions. We are excited to bring Real Capital Builder to the market.”
Simon Hynes, Head of UK Retail Sales at LGIM, said: “Many investors we speak with are concerned about the spending power of their savings over the long term, and inflation is a rising risk.
“The Real Capital Builder strategy is relevant for a broad range of investors looking for positive real returns via equities, but in a fund where the drawdown risk and volatility of equities are actively managed down.”
LGIM is one of Europe’s largest asset managers and a major global investor, with total assets under management of £1.2 trillion1 ($1.5tn, €1.3tn, CHF 1.2tn). We work with a wide range of global clients, including pension schemes, sovereign wealth funds, fund distributors and retail investors.
For more than 50 years, we have built our business through understanding what matters most to our clients and transforming this insight into valuable, accessible investment products and solutions. We provide investment expertise across the full spectrum of asset classes including fixed income, equities, commercial property, and cash. Our capabilities range from index-tracking and active strategies to liquidity management and liability-based risk management solutions.
1Data as at 31 December 2023. Data combines assets under management by LGIM in the UK, LGIMA in the US and LGIM Asia in Hong Kong. Assets under management include securities and derivatives positions.