KINGSWOOD, England, February 3, 2011 /PRNewswire/ -- Legal & General Investments today launches the Global Emerging Markets (http://www.legalandgeneral.com/investments/global-emerging-markets/) Index Fund, managed by Robert Dowling.
The fund will aim to track the capital performance of global emerging equity markets through investment in a representative sample of stocks selected from all economic sectors and countries within the FTSE All-World Emerging Index.
Robert Dowling, fund manager of the Global Emerging Markets Index fund, said: "The fund will invest primarily in securities that make up the constituents of the Index, with an aim to efficiently track these markets with minimal tracking error."
The fund is currently one of only two emerging markets trackers domiciled in the UK and the only one retail investors can access directly.
Simon Ellis, Managing Director of Legal & General Investments, said: "Many advisers have asked us why there are so few options to invest in Global Emerging markets through passive funds in the UK. They want to capture the general growth in these markets, but without the costs and variability in performance of buying active funds. Legal & General Investments has designed a fund that aims to give good value access to the emerging market story, and creates a new tool for advisers to build multi-asset class portfolios.
"We anticipate that many fee-based advisers, including those who are using index funds more frequently to make themselves 'RDR ready', will support this fund from launch.
"As one of the biggest index fund providers in the country, we have the experience and skill to keep the costs and tracking error of the fund at reasonable levels - the annual management fee is just 0.65 per cent, and the Total Expense Ratio (TER) is expected to be 0.99 per cent."
IFAs who require more information on the fund should call 0845-070-8684. Lines are open from 9 am to 5 pm Monday to Friday. We may record and monitor calls. Call charges will vary.
Notes to Editors:
The information contained in this press release is intended solely for journalists and should not be relied upon by private investors or any other persons to make financial decisions.
1) Legal & General Investments offers a range of unit trusts, including equity, fixed income, index tracking, property, cash and asset allocation funds for professional advisers and wealth managers. Legal & General are one of the biggest providers of index-tracking investments in the UK, managing over GBP218 billion* as at 30 September 2010. *Index funds under management. Source: Legal & General Investment Management.
2) The FTSE (FTSE All-World Emerging Index) is calculated by FTSE International Limited ("FTSE"). FTSE does not sponsor, endorse or promote this product. All copyright in the index values and constituent list belongs to the FTSE. Legal & General has obtained full licence from FTSE to use such copyright in the creation of this product. "FTSE(TM)", "FT-SE(R)" and "Footsie(R)" are trade marks of the London Stock Exchange Plc and The Financial Times Limited and are used by FTSE International Limited ("FTSE") under licence. "All-World" is a trade mark of FTSE.
3) The value of investments may fall as well as rise and investors may not get back the amount originally invested.
4) There is no initial charge for retail investors and the annual management charge is 0.65% (deducted from income). There is no initial charge for institutional investors with a minimum GBP100,000 to invest and the annual management charge is 0.30%.
5) The fund holds assets in currencies that are not Sterling (British Pounds). If the value of these currencies falls compared to Sterling this may cause the value of the investment and the level of income to go down.
6) The fund invests in countries where investment markets are not as well developed as those in the UK. This means that investments are generally riskier than those in the UK.
7) The Global Emerging Markets Index Fund pays a commission to advisers of 0.25% trail. No commission is payable for investments made into the Institutional Unit Class.
The Global Emerging Markets Index Fund is provided by Legal & General (Unit Trust Managers) Limited http://www.legalandgeneral.com/.
Registered Office: One Coleman Street, London, EC2R 5AA Registered in England 1009418.
SOURCE Legal & General