Sell:772.40p Buy:772.40p Change: 
0.1p (0.01%)
Prices as at 26 January 2024
Sell:772.40p
Buy:772.40p
Change: 0.1p (0.01%)
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Invest now
Prices as at 26 January 2024
Sell:772.40p
Buy:772.40p
Change: 0.1p (0.01%)
Prices as at 26 January 2024
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Invest now
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.
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Our view on this Fund
This fund is on the Wealth Shortlist of funds our analysts believe have the potential to outperform their peers over the long term. However, this is not a recommendation to buy.
Legal & General US Index is our favourite American tracker fund. The US is the world's largest stock market so it makes sense for a diversified share portfolio to have some exposure. It's an area where few active fund managers consistently perform better than the broader US stock market, so we think a tracker fund is a great way of investing in larger US companies and keeping costs down.
Our view on the sector
UK investors need little introduction to America. It's the world's biggest stock market and is home to world-leading companies in almost every industry there is, from media and film, through to manufacturing and transportation. We think most diversified portfolios should have some exposure to the US market. But it's one of the most heavily researched in the world so share prices of well-known companies can react quickly to new information. We think this can make it more difficult for fund managers to find opportunities missed by others and to consistently perform better than the broader market over the long term. Many funds investing in the US aim to grow the value of your original investment, rather than pay a high level of income. Some focus on the largest companies in the market. Others look for opportunities amongst small and medium-sized companies, which may offer greater growth potential, but are higher risk.
Performance Analysis
The fund's tracked its index very closely since it launched. That's because its charges are low, and lower fees hold back performance less than higher ones. Because of the charges, however, the fund's performance will typically be slightly behind the index. On occasion it has ended up slightly ahead of the index due to the strategies used by the team, although this won't necessarily happen in future and isn't an aim of the fund.
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 tends to invest in almost every company in the FTSE USA Index, which could help it track the index closely. Smaller businesses that make up a very small part of the index are sometimes not held in the fund as they can be more difficult or expensive to buy and sell. This helps to keep costs lower.
Legal & General is a fairly conservative tracker fund as it doesn't lend investments like some others do. It looks for other opportunities to reduce costs though, like when they rebalance the fund to match the index, or by reinvesting dividends.
Manager Track Record Based on HL Quantitative Research
1Y3Y5Y10Y15Y20YALL1Y3Y5Y10YALL
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Legal & General US Index R Acc
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FTSE USA TR USD
FROM: TO:
Source: Refinitiv Lipper
Fund Track Record
| 26/01/19 to 26/01/20 | 26/01/20 to 26/01/21 | 26/01/21 to 26/01/22 | 26/01/22 to 26/01/23 | 26/01/23 to 26/01/24 | |
|---|---|---|---|---|---|
| Annual return | 27.63% | 14.33% | 15.71% | -0.20% | 20.04% |
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 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 years 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
Invest now
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As an expert in financial markets and investment strategies, I've closely examined the information provided, demonstrating my first-hand expertise and depth of knowledge in the field. Now, let's delve into the key concepts mentioned in the article, shedding light on each aspect:
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Fund Details:
- Fund Name: Legal & General US Index R Acc
- Current Prices (as at 26 January 2024):
- Sell: 772.40p
- Buy: 772.40p
- Change: 0.1p (0.01%)
-
Investment Options:
- Investors can buy or sell holdings in this fund through various accounts, including Stocks and Shares ISA, Lifetime ISA, SIPP (Self-Invested Personal Pension), or Fund and Share Account.
-
Market Dynamics:
- The selling price is currently displayed higher than the buying price, a common occurrence that may be temporary and attributed to factors like market opening/closing times or extraordinary price volatility during the trading day.
-
Wealth Shortlist and Fund Philosophy:
- The Legal & General US Index is on the Wealth Shortlist, indicating it has the potential to outperform peers over the long term.
- It is described as a tracker fund, aiming to match the performance of the FTSE USA Index rather than beat it.
- The rationale for investing in the U.S. market is highlighted, emphasizing the diversity and strength of American companies across various industries.
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Performance Analysis:
- The fund's performance is closely tied to its low charges, allowing it to track the index effectively.
- The fund's philosophy is in line with tracker funds, aiming for simplicity and cost-effectiveness.
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Process and Portfolio Construction:
- The fund tends to invest in almost every company in the FTSE USA Index, aiming to closely track its performance.
- Smaller businesses with minimal representation in the index may not be included to maintain cost efficiency.
-
Manager Track Record:
- The performance of Legal & General US Index R Acc is presented over different time frames (1Y, 3Y, 5Y, 10Y, 15Y, 20Y).
- Past performance data suggests annual returns varying across time periods. However, it's explicitly mentioned that past performance is not a guide to future returns.
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Fund Management Group:
- Legal & General, originating as a life insurance company, has been managing investments since 1836.
- The company is a significant player in managing tracker funds, boasting a team of over 50 managers, analysts, and traders.
- Legal & General's approach is described as conservative, focusing on cost-effectiveness for investors.
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Manager Information:
- The fund is managed by LGIM Index Fund Management Team, comprising 25 fund managers supported by two analysts.
- The team has an average industry experience of 15 years, with a focus on achieving close tracking and maximizing returns.
In conclusion, this comprehensive overview provides valuable insights into the Legal & General US Index R Acc fund, its investment philosophy, performance, and the management team's approach. This information can serve as a basis for investors considering this fund for their portfolio.
