Legal & General UK Index R

  • 126.40p
    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.

  • 243.40p
    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!

  • 0.40%
    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).

  • 0.56%
    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.

  • 5.00%
    Yield

    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 07 April 2020, 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
Size £5,986m
Yield 5.00%
Charging basis Income
Dividends paid 6 Jun, 6 Dec

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Annual management charge 0.40%
Ongoing charges figure 0.56%

Allocation

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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

  • 15/16 0.00%
  • 16/17 0.00%
  • 17/18 0.00%
  • 18/19 0.00%
  • 19/20 0.00%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.00%
  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.00%

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

Track record

Periods of worst performance

Absolute 0.00% ()
Relative 0.00% ()

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.

Allocation

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Sector breakdown

Financials 27.00%
Consumer Goods 15.00%
Consumer Services 12.00%
Industrials 12.00%
Oil & Gas 11.00%
Health Care 10.00%
Basic Materials 7.00%
Utilities 3.00%
Telecommunications 2.00%
Technology 1.00%

Key Investor Information - Income

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Key Investor Information - Accumulation

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