L&G Slash Price On Tracker Funds

October 30, 2014

Legal and General have announced that they will lower the annual ongoing charge on their tracker funds from 1st November and fund platform Hargreaves Lansdown has gone one better reducing the price on the trackers even further making them the lowest priced in the market.

In total there are seven L&G funds on the Hargreaves Lansdown Core Tracker list. The ongoing charge on each fund is at least one third lower than on other platforms.

It will offer the Legal & General UK Index fund with an ongoing charge of just 0.06% per annum, the Legal & General US Index with an ongoing charge of just 0.06% per annum, the Legal & General UK 100 Index Trust with an ongoing charge of just 0.06% per annum, and the Legal & General International Index Trust with an ongoing charge of just 0.09% per annum.

Adam Laird, Head of Passive Investing, Hargreaves Lansdown, said: “Lower charges are great news for investors. This is the latest in a string of price cuts and investors are benefitting from lower costs for passive fund management. Passive investing is a growing market in the UK. Assets have grown 25% in the last year, and over half of September’s retail fund sales went into index trackers.”

Legal and General is one of Europe’s largest passive managers and uses its size to investors’ advantage. The majority of its funds are fully replicated, holding every stock in its index, which means it can track the index more precisely, explains Laird.

Hargreaves Lansdown’s  core tracker list now looks like this:

  • Legal & General UK Index (£4.584 billion) 0.06% compared to 0.10% on other platforms
  • Legal & General UK 100 Index Trust (£265 million) 0.06% compared to 0.10% on other platforms
  • Legal & General US Index (£2.668 billion) 0.06% compared to 0.10% on other platforms
  • Legal & General International Index Trust (£456 million) 0.09% compared to 0.14% on other platforms
  • Legal & General All Stocks Gilt Index Trust (£745 million) 0.10% compared to 0.15% on other platforms
  • Legal & General All Stocks Index-Linked Gilt Index (£1.213 billion) 0.10% compared to 0.15% on other platforms
  • Legal & General Global Inflation Linked Bond Index (£76 million) 0.17% compared to 0.27% on other platforms
  • BlackRock Continental Euro Equity Tracker (£2.650 billion) 0.12% compared to 0.17% on other platforms
  • BlackRock Corporate Bond Tracker (£834 million) 0.12% compared to 0.17% on other platforms
  • BlackRock Japan Equity Tracker (£754 million) 0.12% compared to 0.17% on other platforms
  • BlackRock Pacific ex Japan Equity Tracker (£776 million) 0.14% compared to 0.19% on other platforms
  • BlackRock Emerging Markets Equity Tracker (£785 million) 0.25% compared to 0.27% on other platforms
 

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