Legal & General Fixed Interest R

A lower cost fund investing predominantly in quality corporate bonds.

  • 77.19p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • 159.90p
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 0.75%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 0.92%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 1.60%

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 11 June 2021, fund data last updated 14 June 2010

A quality corporate bond fund investing predominantly in sterling denominated investment grade credits and some UK gilts. Typically there is no exposure to high yield bonds. Relative returns are driven primarily by rotating between different quality of bonds and sectors, with yield curve and duration decisions of low importance. The funds reference benchmark is the iBoxx Sterling Collateralised & Corporate Index. Bonds issued by major governments and companies will be more stable than those issued by emerging markets or smaller corporate issuers; in the event of an issuer experiencing financial difficulty, there may be a risk to some or all of the capital invested. Any historical or current yields quoted should not be considered reliable indicators of future performance.

Fund summary

Sector £ Corporate Bond
Structure UNIT TRUST
Launched March, 1988
Size £1,209m
Yield 1.60%
Charging basis Income
Dividends paid 5 Feb, 5 May, 5 Aug, 5 Nov


Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.75%
Ongoing charges figure 0.92%


Proportion (%)

  • {{chartDataItem.text}}


Proportion (%)

  • {{chartDataItem.text}}


Proportion (%)

  • {{chartDataItem.text}}

Investment process

The fund adopts a sector and security diversified approach within investment grade corporate bonds, with the aim of outperforming the peer group and the reference benchmark on a rolling 3 year basis. Generally the fund will not take aggressive duration, credit quality and quasi equity positions. The fund‘s investment approach marries top down asset and sector allocation views with bottom up security selection. The portfolio manager's primary responsibilities include managing sector and credit quality exposure. Asset allocation between gilts, corporate bonds and cash is guided by team strategy meetings. Duration and yield curve positions are led by the sovereign debt team. Credit analysis is carried out by career analysts - approximately 95% of the portfolio credits are analyst recommendations. Up to 50% of the NAV maybe invested in non sterling securities hedged to £.

Manager research

Average monthly relative returns

  • 16/17 0.04%
  • 17/18 0.18%
  • 18/19 -0.07%
  • 19/20 -0.18%
  • 20/21 0.66%

Bestinvest MRI

  • 3 years 0.14%
  • 5 years 0.13%
  • Career 0.05%
  • 3 years 74.50%
  • 5 years 77.60%
  • Career 67.40%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Mark Benstead

Benstead is a senior UK investment grade portfolio manager with responsibility for LGIM’s retail funds. He joined LGIM in 2014 from AXA Investment Managers where he was Head of Credit, UK. Prior to that, he was at the Royal Bank of Canada in a variety of senior capital market roles, latterly as Managing Director, Head of Syndicate and European Debt Capital Markets. Benstead holds a BA (Hons) in Economics from the University College of North Wales and an MBA from the University of Bradford Management Centre.

Track record

Mark Benstead has 6.6 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.05%. During the worst period of relative performance (from June 2015 - October 2016) there was a decline of 11% relative to the index. The worst absolute loss has been 8%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 67%.

Periods of worst performance

Absolute -8.00% (January 2020 - March 2020)
Relative -11.00% (June 2015 - October 2016)

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.


Proportion (%)

  • {{chartDataItem.text}}


Proportion (%)

  • {{chartDataItem.text}}


Proportion (%)

  • {{chartDataItem.text}}

Top 10 holdings

Data accurate as at 31 July 2020

4.6% United Kingdom
3.9% Hsbc Holdings Plc
3% Lloyds Banking Group Plc
2.7% Edf Sa
2.4% Aviva Plc
2.3% National Grid Plc
2.3% Wells Fargo & Company
2.1% United Utilities Water Plc
2% At&T Inc
1.8% Ppl Corp
Source: Trustnet

Sector breakdown

Utilities 25.00%
Banks 17.00%
Others 12.00%
Insurance 8.00%
Consumer Goods 8.00%
Telecommunications 7.00%
Asset/Mortgage-Backed Securities 7.00%
Industrials 6.00%
Financial Services 5.00%
Consumer Services 5.00%


Typically 175 securities. Up to 20% of the fund maybe invested in gilts. Duration is typically within +/- 1.5 yrs of its reference benchmark.


The fund may only place 10% in any one issuer for AAA, 5% for AA, 2.5% A and 1.5% for BBB.

Key Investor Information - Income


Key Investor Information - Accumulation