Legal & General is targeting the pensions market with the introduction of the global equity fixed weights fund.
Global equity fixed weights is a pension fund that can be added to a Legal & General pension scheme. It is aimed at people who want to anchor the majority of their investment in a tracker fund, with the remainder invested in an actively managed fund.
Sixty per cent of the fund will be invested in the Legal & General equity index fund, which will track the FTSE all share index. The remaining 40 per cent will invest in a number of different Legal & General funds that invest in areas such as North America, Europe, the Pacific basin and Japan.
The addition of the fund brings the total number of internally managed Legal & General pension funds that are available up to 30. There are also 16 externally managed funds from Deutsche Asset Management, JP Morgan, Newton and SocGen.
The HSBC Asset Management active & passive investment strategies research finding update revealed that actively managed funds outperformed tracker funds over the year 2000. A total of 55 per cent of UK non-growth unit trusts out performed the FTSE all share index.
According to Standard & Poor's the Legal & General equity index fund is ranked 195 out of 228 funds, based on £1,000 invested on a bid-to-bid basis with net income reinvested over three years to March 27, 2001.