LGIM launches Real Capital Builder

Legal & General Investment Management (LGIM) has today launched the L&G Real Capital Builder (RCB) fund for external investors.

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.”

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Notes to editors

Legal & General Investment Management:

Legal & General Investment Management is one of Europe’s largest asset managers and a major global investor, with total assets of £902 billion*. We work with a wide range of global clients, including pension schemes, sovereign wealth funds, fund distributors and retail investors.

Throughout the past 40 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.

* LGIM internal data as at 31 December 2016. These figures include assets managed by LGIMA, an SEC Registered Investment Advisor. Data includes derivative positions and advisory assets.

The Legal & General Real Capital Builder Fund is managed by Legal & General (Unit Trust Managers) Limited.

Past performance is not a guide to future performance. Real Capital Builder’s objective is not guaranteed and capital is at risk.