Legal & General UK Index I

Low cost, FTSE All-Share tracker.

  • 152.00p
    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.

  • 313.30p
    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!

  • 0.08%
    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).

  • 0.10%
    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.

  • 4.00%

    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 15 January 2021, fund data last updated 13 April 2012

The fund’s aim is to track the performance of the UK equity market as represented by the FTSE All-Share index. This index comprises over 600 of the largest UK equities which together make up around 97% of the UK equity market by value. The fund invests in the physical shares in the index using a process known as “pragmatic replication” – typically all index constituents are held, but some illiquid stocks may occasionally be omitted.

Fund summary

Sector UK All Companies
Structure UNIT TRUST
Launched October, 2005
Size £6,188m
Yield 4.00%
Charging basis
Dividends paid 6 Jun, 6 Dec


Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.08%
Ongoing charges figure 0.10%


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Investment process

Passive management (ie index tracking) is a core part of Legal & General's business and hence there is a well resourced and structured team in place. This fund tracks the FTSE All-Share Index, which consists of over 600 companies from the FTSE 100, FTSE 250 and FTSE Small Cap indices. L&G use a tracking method they call “pragmatic replication”, meaning they will typically hold all the shares in the index, but may sometimes omit companies on liquidity grounds. Where this happens they will buy a basket of similar shares as an interim measure, aiming to buy the stock itself when the market becomes more liquid. Much share trading can be crossed within L&G, i.e. stocks are swapped between L&G’s funds without transaction costs. Other transactions are carried out via trading platforms. Where trades have to be carried out via external brokers, L&G believe their size gives them buying power and hence reduces costs.

Legal & General are regarded as one of the industry leaders for tracker funds and this fund is suitable for investors seeking low cost passive exposure to the UK equity market. The FTSE All-Share gives investors substantial diversification including some international exposure, though it can be concentrated by company size - the multinationals of the FTSE 100 make up around 85% of the index. The main advantages of the fund relative to competitor products are reasonably low charges and a low tracking error.

Manager research

Average monthly relative returns

  • 16/17 -0.16%
  • 17/18 -0.03%
  • 18/19 0.03%
  • 19/20 0.12%
  • 20/21 0.18%

Bestinvest MRI

  • 3 years 0.11%
  • 5 years 0.03%
  • Career 0.01%
  • 3 years 80.20%
  • 5 years 64.10%
  • Career 75.50%

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

Jason Forster

Forster is a fund manager in Legal & General's Index Funds team, responsible for Pacific and UK funds from 2002. He joined the company in 1999, initially working on the development of the in-house index fund management system. He previously worked at Hermes Fund Management, where he was involved in portfolio performance measurement. He began his career in 1992 with Financial Times Information, later spending two years at FTSE International as an indices analyst. Forster studied Business Studies at Southampton Solent University and is a member of the FTSE EMEA Regional Committee.

Track record

Jason Forster has 11.8 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.01%. During the worst period of relative performance (from October 2009 - November 2011) there was a decline of 6% relative to the index. The worst absolute loss has been 26%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 76%.

Periods of worst performance

Absolute -26.00% (December 2019 - March 2020)
Relative -6.00% (October 2009 - November 2011)

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.


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Top 10 holdings

Data accurate as at 30 June 2020

5.7% Astrazeneca Plc
5.1% Royal Dutch Shell Plc
4.2% Glaxosmithkline
4% Hsbc Hldgs
3.7% British American Tobacco
3.2% Diageo
3.1% Bp
2.5% Unilever
2.5% Rio Tinto
2.4% Reckitt Benckiser Group Plc
Source: Trustnet

Sector breakdown

Financials 25.00%
Consumer Goods 16.00%
Industrials 12.00%
Consumer Services 12.00%
Health Care 11.00%
Oil & Gas 8.00%
Basic Materials 8.00%
Utilities 4.00%
Telecommunications 2.00%
Technology 1.00%


VP 12.00.

Key Investor Information - Income


Key Investor Information - Accumulation