View more on these topics

L&G joins stockpicking scrum

Turning to the main useful features and strong points of the fund, Robinson feels it is simple and straightforward with no frills. MacFarlane says: “It is a straightforward growth trust. The strong brand name associated with Legal & General should help initial sales. However, its performance within the sector will be critical to its longer term popularity and success within the IFA market.”

Gibbon says: “The fund does invest in both large and small caps which could provide a balance against similar funds. The charges for lump sums and higher regular investment are comparatively low if the investment is kept for the medium term.”

Holian says: “Its strengths lie in the fact that it concentrates on a smaller number of well researched stocks and it invests among both smaller emerging companies and larger companies. I would say this freedom could give it an advantage over some other UK growth type funds.”

Discussing the investment strategy, Holian says: “In principle, if the research is as good as the company says it is, then the fund should pick those shares that do well and leave out those that underperform against relevant indices. In particular, I like the concentrated number of stocks.”

Moving onto the disadvantages of the fund, Robinson thinks it makes sense in the current climate as a stockpicking fund. MacFarlane says: “I like stockpicking funds and this fund seeks to follow a clear stockpicking strategy from a concentrated portfolio of stocks. Good fund management has proven that these types of funds can provide excellent returns for investors should the right stocks be selected within the portfolio. Legal & General have a good management team and I am optimistic that the fund will perform well.”

Robinson suggests there will be a lot of competition in this area and that Gartmore&#39s previous performance has been mediocre.

MacFarlane says: “There are no disadvantages unless the fund underperforms against its peer groups. At this stage, the fund will not only become high risk for the investor but also for Legal & General&#39s investment reputation. The fund seems to be filling a rather grey area within the Legal & General UK fund range. It overlaps with many of the objectives of the UK recovery and UK smaller companies trusts.”

Assessing Legal & General&#39s reputation, Gibbon says: “It has a good reputation as an insurers and is developing a reputation in the investment world.”

Robinson says: “It had better performance in 2000, but most of its UK equity funds are mediocre over three to five years.”

MacFarlane sees it as a good brand name with a high degree of public awareness.

Turning their attention to Legal & General&#39s past performance, Holian says: “Although Legal & General do not spring to mind as first choice for unit trusts. I tend to think of them as a traditional type of life office more suited to providing personal pensions, low cost endowments and distribution bonds.”

MacFarlane thinks it is generally quite good across the range of funds but Gibbon has mixed feelings about it.

Identifying the likely competitors for the fund, MacFarlane says: “All funds in this highly competitive sector, but specifically in vogue funds managed by the likes of ABN Amro and Artemis. Many smaller fund management companies are keen to forge their reputation in this sector of the market and it may be difficult for a more traditional investment house like Legal & General to achieve the consistent top quartile performance required.”

Robinson thinks that Artemis UK growth, ABN Amro UK growth and CGNU UK growth will provide competitions for the fund. Holian opts for the new Axa UK opportunities fund and existing funds such as Invesco UK key trends and Liontrust first growth.


On Active service

First Active Financial chief executive Tony Ward sees the company&#39s takeover by the Britannic group as coming at just the right time for his plans for growth. Having won a string of awards and steadily increased its market share, First Active would not have been able to make the fullest use of its successful business […]

Protect and survive

During the next few months, there will be a focus on stakehol der pensions in much of the media. Such saturation coverage will raise public awareness about the importance of retirement planning. But the arrival of stakehol der will also affect the way IFAs transact their business. Decision trees could dilute the potential for giving […]

Britannic plugs into the world of technology

Britannic Asset Management is plugging into tomorrow’s world with the global technology fund. Global technology has been created with long term growth in mind and Britannic is aiming it at the experienced investor looking to add to an existing portfolio of investments. Global technology will benchmark the FTSE world information technology and FTSE world electronic […]

Clerical Medical has flexible features in mind for new bond

Clerical Medical has introduced the flexible bond. The product is a unit-linked bond aimed at experienced investors who are looking for income and growth and want an investment that offers a degree of flexibility. Investors have a wide range of 20 funds to choose from, ranging from the Clerical Medical with-profits fund, through to North […]

Healthcare regulation amalgamation predicted for Gulf states

While Dubai is leading the way in terms of legislating for expat healthcare in the Gulf, Qatar, Abu Dhabi and others are watching and learning – that’s according to Jelf International’s director of international services, Doug Rice. He believes the pace of change in the Gulf states will continue and that some level of unified healthcare system will be introduced across the region.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm