Index

Investment approach

We provide clients with simple, high quality and low cost index funds offering a comprehensive suite of equity and bond market-cap index funds. Our approach to managing index funds is based on four key attributes:

  • Scale
  • Expertise
  • Simplicity
  • Responsibility

Scale

Legal & General Investment Management is one of the largest providers of index funds in the UK. The large, well-resourced and experienced team at Legal & General Investment Management (LGIM) manages more than £330 billion in index-tracking investments and more than £951 billion in assets under management. Our scale enables us to generate efficiencies, and pass back cost savings to our investors.

Having offered index funds for over 30 years, we are committed to delivering high-quality, cost-effective solutions for investors. Our sole focus is asset management, so when we leverage our scale to seek to minimise transaction costs those savings are passed back to our investors.

Expertise

At LGIM we have developed our own philosophy for the management of index funds that we call ‘pragmatic replication’, an approach that is focused on delivering the best value for our investors. The overarching objective is to track the benchmark index as tightly as possible, use our in-house expertise, resources and technology to undertake comprehensive research aimed at enhancing investor returns when managing index changes.

Simplicity

An index fund offers a cost-effective, diversified and straightforward way for investors to access market returns. We prefer to only invest in the physical underlying securities of an index and use derivatives sparingly. Our index funds are kept as transparent, cost-efficient and easy to understand as possible.

Active ownership

Our scale also gives us real influence to engage at company and market levels to promote long-term shareholder interests. Being an active owner in these companies represents a tangible way in which we can have a positive impact on the constituents of our index funds, effecting change and improving company performance.

Index funds

We offer a wide range of index funds to meet a variety of investment needs. This includes:

Emerging Markets Government Bond (Local Currency) Index Fund

Invest in local currency denominated bonds issued by a broad range of emerging market governments.

UK Index Trust

Our flagship index fund provides broad exposure to the UK equity market.

US Index Trust

Tracking the return of the FTSE USA Index, the fund provides broad exposure to the world’s largest equity market.

Global Real Estate Dividend Index Fund

Exposure to global developed market property companies and real estate investment trusts.

Expertise

Our experienced team and advanced systems seek to ensure effective portfolio management, low tracking error, and comprehensive risk oversight. The Index Fund Management team comprises 25 fund managers, supported by two analysts, with oversight provided by the Global head of Index Funds. The team has an average industry experience of 15 years.

*Source: LGIM internal data as at 30 June 2017. These figures include assets managed by LGIMA, an SEC Registered Investment Advisor. Data excludes derivative positions and includes Liability Driven Investments (LDI).

Insights

We publish a range of articles and publications on a regular basis covering key themes in financial markets and topical investment commentary. These include long-term investment themes, market insights and client solutions-based thinking. 

Market Insights

Sharpening your focus on what matters in markets.

Long-term Thinking

Our research on the most important trends affecting the future of the global economy.

Investment Foresight

Our thinking in action. Sharing the strategy behind our solutions and how we implement them.

Disclaimer

This is not a consumer advertisement. It’s intended for professional financial advisers and should not be relied upon by private investors or any other persons.

*Please check the Terms and conditions to see which funds are available from us directly as an ISA.

The value of investments and any income from them may fall as well as rise, and investors may get back less than they invest. Past performance is not a guide to future performance. Changes in exchange rates or medium to long-term interest rates may cause the value of an investment to fall. Where applicable, data source: Funds Library, unless stated otherwise.

Legal & General (Unit Trust Managers) Limited. Registered in England and Wales No. 1009418. Registered office: One Coleman Street, London EC2R 5AA. Authorised and regulated by the Financial Conduct Authority.