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


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 £403 billion* in index-tracking investments of £1.2 trillion* in assets under management. Our scale enables us to generate efficiencies, and pass back cost savings to our investor.

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.

*Source: LGIM internal data as at 31 December 2019.


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.


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.

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 32 fund managers, supported by 3 analysts, with oversight provided by the Global head of Index Funds. The team has an average industry experience of 16 years.

*Source: LGIM internal data as at 31 December 2019.

Introducing L&G ETF

The L&G ETF range initially includes 26 products listed on multiple European stock exchanges and licensed for distribution in 14 European countries.

We will capitalise on our strength in equity, fixed income and factor-based investing – as well as our Future World proposition – as we develop more products in the L&G ETF range.

*Source: LGIM internal data as at 31 December 2019.

Find out more


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.


Information about the MiFID II regulations that came into effect in January 2018, including how costs and charges are represented for LGIM funds.