New fund launch: Sterling Corporate Bond Index Fund.Legal & General Investments, one of the UK’s largest investment providers, has received FSA approval to launch the Legal & General Sterling Corporate Bond Index Fund on 28 August 2012.
The Fund will invest in the highest tiers of the sterling corporate bond market, those rated AAA, AA or A, which historically carry the lowest risk of default and the highest levels of liquidity. The Fund will provide investors with exposure to these high quality sterling corporate bonds with a low annual management charge (AMC) of 0.20% and an ongoing charge figure (OCF) of just 0.23%.
Frank McGarry, Sales Director, Legal & General Investments, said: “As the deadline for RDR implementation rapidly approaches there has been a significant shift to passive funds in the UK advisory market. Many portfolio constructors are opting to blend both active and passive funds within client portfolios and this is a trend that we expect to gather momentum.”
He continued: “The Sterling Corporate Bond Index Fund will be a great addition to our award winning** index fund range, providing investors with low cost exposure to a core asset class which can be used as a portfolio building block or simply as a cost efficient means of accessing the highest rated sterling corporate bonds.” Legal & General has a proven track record of managing high quality, low cost index funds and already manages £35bn in UK fixed income index funds.
It is planned that the fund will be made available through all major fund platforms.
* NMG IFA Census: The results show in this report are based on 294 IFAs. Fieldword was undertaken in April 2012.
** 9 of Legal & General's index funds are platinum graded by S&P Capital IQ, more than any other UK passive fund provider.