Legal & General UK Index R

Low cost, FTSE All-Share tracker.

  • 160.20p Price (Inc)
  • 302.80p Price (Acc)
  • 0.00% Initial charge
  • 0.40% Annual management charge
  • 0.56% Ongoing charges
  • 3.80% Yield

Prices as at 09 December 2019, 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 September, 1992
Size £6,410m
Yield 3.80%
Charging basis Income
Dividends paid 6 Jun, 6 Dec

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.40%
Ongoing charges figure 0.56%

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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

  • 14/15 0.10%
  • 15/16 -0.15%
  • 16/17 0.04%
  • 17/18 -0.04%
  • 18/19 0.04%

Bestinvest MRI

  • 3 years 0.01%
  • 5 years 0.00%
  • Career -0.01%
  • 3 years 62.60%
  • 5 years 56.40%
  • Career 69.50%

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 10.5 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 16%.

Periods of worst performance

Absolute -16.00% (April 2011 - September 2011)
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 31 July 2019

9% Royal Dutch Shell
5.7% Hsbc Hldgs
4.6% Bp
3.9% Astrazeneca Plc
3.6% Glaxosmithkline
3.4% Diageo
2.9% British American Tobacco
2.3% Unilever
2.2% Rio Tinto
1.9% Prudential Plc
Source: Trustnet

Sector breakdown

Financials 24.00%
Consumer Goods 14.00%
Oil & Gas 13.00%
Consumer Services 11.00%
Industrials 11.00%
Health Care 9.00%
Basic Materials 7.00%
Cash & Cash Equivalents 4.00%
Telecommunications 2.00%
Utilities 2.00%

Constraints

VP 12.00.

Key Investor Information - Income

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Key Investor Information - Accumulation

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