We believe Europe is an important market for investment. It has been a difficult period for European economies, which have struggled with European debt, currency weakness and political disruptions. In spite of this, European stock markets have grown strongly in the last three years. The region contains many strong global businesses with good international prospects and remains a key core region for investment.
Legal & General's fund is a low cost way to passively invest in European companies. It tracks the FTSE World Europe ex-UK Index. It covers over 400 stocks from across Europe, excluding the UK.
Percentage growth of the Legal & General European Index Fund over five years
Past performance is not a guide to future returns. Source: Lipper IM to 02/01/2015*. Class C units of Legal & General European Index fund were recently launched in late 2013. We have therefore shown the performance of the Class I units of Legal & General European Index (Ongoing Charge currently 0.12%).
|Annual percentage growth|
| Jan 10 -
| Jan 11 -
| Jan 12 -
| Jan 13 -
| Jan 14 -
|Legal & General European Index (C)||N/A||N/A||N/A||N/A||1.85%|
|Legal & General European Index (I)||6.02%||-14.97%||16.62%||21.97%||1.56%|
Past performance is not a guide to future returns.
Legal & General is one of our favourite managers of tracker funds and seven other funds in this range are currently represented on our Core Tracker list. Their funds are managed conservatively: this is fully physically replicated, meaning that it holds every stock in the index, allowing it to track precisely. Legal & General never lend stock, which can add risk to other funds. They do however try to be innovative in trading - for example Legal & General often look for opportunities to reduce costs when rebalancing the index or reinvesting dividends. Notably, their European fund has a 25 year track record, having been launched in 1989.
We have negotiated with Legal & General to reduce the costs on this fund. Legal & General cut charges on a number of their funds in November 2014 and the Class C units are available to our clients with a discounted annual ongoing charge of just 0.09%. There is also a 0.45% annual charge to hold funds with the Vantage Service. Find out more about charges.
The Core Tracker list contains our favourite tracker funds for new investment. Investors wishing to direct new money into a tracker fund may wish to refer to the Core Tracker list for our favourite funds.