Legal & General Investments has launched a new index tracking fund, Legal & General Short Dated Sterling Corporate Bond Index Fund, to cater to shorter maturity fixed income products demand.
To be managed by Index Funds team of the company, the fund will track the Markit iBoxx Sterling Corporates 1-5 Index, which consists of investment-grade corporate bonds with maturity period ranging between one and five years.
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Legal & General Investments managing director Simon Pistell said that the new fund affirms company’s commitment towards offering simple, high quality and low cost index funds to the retail market.
"L&GI has made it a priority to listen closely to customers and their advisers and expand our range of market-leading index funds in order to offer the necessary building blocks with which they can construct diversified portfolios for their clients," added Pistell.
"Investors are understandably concerned about the impact of rising interest rates on fixed income holdings and shorter maturity sterling corporate bonds can be used to reduce portfolio duration, providing a useful tool in managing the interest rate sensitivity of client holdings."
The Legal & General Short Dated Sterling Corporate Bond Index Fund will have an annual management charge of just 0.15% and will be available through all major intermediary platforms.
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