LGIM launches diversified fund for long term savers

Investors in both defined contribution and defined benefit pension schemes are the target of a new diversified fund launched by Legal & General Investment Management (LGIM).

“The LGIM Diversified Fund aims to help pension fund investors who are looking for long-term growth in a fund designed to deliver less volatility than pure equity-only funds. The long-term expected annualised rate of return for the fund is broadly similar to that of a developed market equity fund, but the diversified nature of the fund means that it is expected to have less exposure than a pure equity fund to adverse equity market conditions,” the manager said.

Asset classes considered by the fund include:

   – Developed market and emerging market equities

   – Smaller company equities

   – Private equity (via listed private equity companies)

   – Developed market and emerging market government bonds (including inflation-linked)

   – Corporate bonds (both investment grade and high yield)

   – Direct property and real estate investment trusts

   – Infrastructure (via listed infrastructure companies)

   – Commodities (via the newly-launched LGIM Commodity Composite Fund, which gains its exposure using a blend of commodity derivatives

Most of the sub-funds that the fund will invest in are passive.

Long-term strategic asset allocation will typically be reviewed annually, for example, to ensure the fund incorporates any newly-available asset classes.

Because of its investment objectives, the fund will not take short-term tactical positions, meanign allocation is unlikely to change betweeen annual reviews.

 

 

 

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