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Legal & General Global Inflation Lnk Bond Indx Class C - Income (GBP)

Sell:57.78p Buy:57.78p Change: 0.02p (0.04%)
Prices as at 7 May 2021
Change: 0.02p (0.04%)
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Prices as at 7 May 2021
Change: 0.02p (0.04%)
Prices as at 7 May 2021
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

Our view on this Fund

This fund does not feature on the Wealth Shortlist of funds our analysts believe have the potential to outperform their peers over the long term. This is not a recommendation to sell; however, if you are thinking of adding to your investments, we believe the Wealth Shortlist is a good place to start. View funds on the Wealth Shortlist »

We think this fund is a good way to access the global market of inflation-linked bonds. It could be used to diversify a portfolio focused on shares or more traditional bonds. It's invested across more than 110 investments and available at a competitively low cost.

Our view on the sector

Funds in this sector can invest in government and corporate bonds issued globally. And they can often be denominated in overseas currencies. Foreign currencies boost performance if sterling weakens, like it did after the UK voted to leave the European Union in 2016, but the reverse is true when sterling strengthens. These funds can be very different from each other. Some focus on generating income, others try to shelter investors' money during the bad times and might not generate any income. We think there are only a handful of investors with the skill to successfully manage a fund in this sector.

Performance Analysis

This fund aims to track the performance of the Barclays World Government ex UK Inflation Linked Bond Index. Since launch it's tracked the index closely. The fund's charges are low, but mean performance will always be slightly behind the index.

Investment Philosophy

Tracker funds are one of the simplest ways to invest. They aim to match the performance of an index, rather than beat it. They usually do this by investing in every company in the index. This means they don't need analysts to research individual companies, which keeps costs to a minimum. If the fund's costs are low it's likely to track the index more closely.

Process and Portfolio Construction

This fund invests in almost every bond in the index. This is known as partial replication, which could help the fund track the index closely without the cost of holding every stock in it. The managers use derivatives to reduce the impact of currency movements (known as hedging).

Legal & General is a fairly conservative tracker fund manager and they don't lend investments like some others do. They look for other opportunities to reduce costs though, like when they rebalance the fund to match the index, or by reinvesting interest payments.

Please note that significant amounts of the fund can be invested in bonds issued by one country which increases risk.

question mark Manager Track Record Based on HL Quantitative Research

  • Legal & General Global Inflation...
  • FTSE A (Index Linked) British...

Fund Track Record

07/05/16 to 07/05/17 07/05/17 to 07/05/18 07/05/18 to 07/05/19 07/05/19 to 07/05/20 07/05/20 to 07/05/21
Annual return 0.78% 1.52% 1.02% 5.12% 7.28%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Fund Management Group Comment

Originally a life insurance company, Legal & General have been involved in managing investors' money since 1836. They are now one of the UK's largest investment and insurance companies. They have a prominence in managing tracker funds- with over a dozen funds and many more investments managed on behalf of institutions and pension funds.

Legal & General are one of the best resourced teams in tracker fund management- with over 50 managers, analysts and traders. They have a conservative approach to funds with the scale to keep costs low for investors.

Information about the fund

Fund manager biography

manager photo
Manager Name: LGIM Index Fund Management Team
Manager start date: 30 September 2013
Manager located in: London

The Index Fund Management Team comprises 25 fund managers, supported by two analysts. Management oversight is provided by the Global Head of Index Funds. The Team has average industry experience of 15 years, of which seven ears has been at LGIM, and is focused on achieving the equally important objectives of close tracking and maximising returns

Data policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used. Benchmark data provided subject to this disclaimer.
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account