At Legal & General Investments (L&GI), we understand that passive investing, or index-tracking, is likely to become an increasingly important part of a retail client's portfolio in a post-RDR world.
L&GI is at the forefront of passive investing in the UK, and we are actively diversifying our highly-rated range of tracker funds and actively managed products to provide you with an ever- greater choice of products to suit your clients' specific needs.
L&GI is one of the UK's largest managers of retail passive investment funds* (as at 31 December 2012). L&GI's strength in index tracking is highlighted by having nine index funds platinum graded by S&P Capital IQ, more than any other UK provider, in fields as diverse as FTSE 100, sector and region specific funds and index-linked gilts.
We focus on quality and employ a straightforward and practical approach to passive fund management, based around market leading products, low management fees and investor value. For instance, our managers use skill and judgement to match or improve upon prices at which securities leave or join the index, whereas some other investment groups execute all trades at closing prices.
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We have recently launched new funds to address investors' needs, including the Sterling Corporate Bond Index Fund and the Emerging Markets Government Bond (US$) Fund. These provide investors with low cost exposure to core asset classes and can be used as portfolio building blocks. By continuing to innovate and expand our highly-rated product line we continue to strengthen our market- leading position.
In the post-RDR world we believe that low cost passive funds are an excellent way of providing a diversified portfolio. Further diversification is offered by funds such as our award-winning UK Property Trust (a 'bricks and mortar' UK commercial property fund) and the top-performing Dynamic Bond Trust.
We are constantly developing our range to meet our investors' needs, creating products that are of real value to both investors and Financial Planners. Our key priority is to use the scale of our operations and depth of our expertise to provide products that are simple to understand and provide great value to investors.