Legal & General Investments Reduces Fund Charges
Legal & General Investments, the largest retail index mutual fund provider in the UK
1, is pleased to announce a
reduction in fund charges for its institutional unit classes2 across its award winning
3 range of unit trusts. The registration fee element of the institutional units' additional expenses is being reduced from 0.03% to 0.01%, to reflect economies of scale generated by our growing intermediated business.
In addition, as part of an ongoing review, Legal & General Investments has also lowered the annual management charge (AMC) on institutional unit classes for a number of its index funds. Through a combination of reducing the additional expenses and the AMCs, some funds will see fees reduced by as much as 12 basis points.
UK, single market and regional index funds will have an AMC of 0.20% and global funds will have an AMC of 0.30%. The revised charges are effective from 1 February 2012:
Fund Name
|
Previous AMC (%) |
Revised AMC (%)
|
| Legal & General UK Index Trust I Class (Acc / Inc) |
0.20 |
0.20 |
| Legal & General All Stocks Gilt Index Trust (Acc / Inc) |
0.20 |
0.20 |
| Legal & General All Stocks Index Linked Gilt Index Trust (Acc / Inc) |
0.20 |
0.20 |
| Legal & General UK 100 Index I Trust I Class (Acc / Inc) |
0.20 |
0.20 |
| Legal & General US Index Trust I Class (Acc / Inc) |
0.30 |
0.20 |
| Legal & General Japan Index Trust I Class (Acc / Inc) |
0.30 |
0.20 |
| Legal & General European Index Trust I Class (Acc / Inc) |
0.30 |
0.20 |
| Legal & General Pacific Index Trust I Class (Acc / Inc) |
0.30 |
0.20 |
| Legal & General Global 100 Index Trust I Class (Acc / Inc) |
0.30 |
0.30 |
| Legal & General Global Health & Pharmaceuticals Index Trust I Class (Acc / Inc) |
0.30 |
0.30 |
| Legal & General Global Technology Index Trust I Class (Acc / Inc) |
0.30 |
0.30 |
| Legal & General International Index Trust I Class (Acc / Inc) |
0.35 |
0.30 |
| Legal & General Global Emerging Markets Index Fund I Class (Acc / Inc) |
0.30 |
0.30 |
The nil-commission institutional unit classes are available to fee based advisers on a wide range of intermediary platforms, listed in the notes below.
  The success of our growing business gives us the opportunity to pass cost savings onto our clients, so we're reducing the additional expenses for all of our institutional unit classes. By sharing the benefits of our scale, we're doing the right thing for our clients.
Over the last 2 to 3 years Legal & General Investments has experienced a strong increase in demand for our passive investments, notably from fee-based advisers. This review of the pricing structure means advisers will get a better deal when using our simple, low cost and high quality index funds to construct client portfolios. We believe that the new fee structure offers great value to Intermediary clients, further adding to the benefits of investing with a fund provider that has a proven long term commitment to passive investing. |
Notes
1 Legal & General Investments is the UK's largest retail index mutual fund provider with £9.54bn under management according to Investment Management Association (IMA) figures (as at 31/10/2011).
2 Institutional unit classes includes I, G and X units
3 Legal & General Investments funds have won the following awards:
- Money Observer Award: Best UK Growth Fund for UK Alpha in 2011 and 2010.
- 2011 Moneywise fund awards - UK All Companies: UK Alpha
- Lipper - Legal & General UK Alpha Trust, Best UK Equity Fund over 5 years
- Investment Week - Richard Hodges, Sterling Strategic fund manager of the year 2011
- Investment Week - Climate Change
Investment Awards 2011 - Winner Best New Entrant
Legal & General Investments' Intermediary assets under administration (AUM) grew from £2,380m at 31 December 2008 to £6,288m as at 31 December 2011.
Legal & General Investments' Intermediary assets under administration (AUM) in passive funds grew from £1,518m at 31 December 2008 to £3,373m as at 31 December 2011.
The nil-commission institutional unit classes are available to fee based advisers on a wide range of intermediary platforms, including: James Hay, Nucleus, Novia, Ascentric, Transact, Standard Life, Cofunds Institutional, Nexus, Allfunds, SEI, 7IM, Wealthtime, Alliance Trust, Elevate, Sanlam, Aegon (new CSP)