View more on these topics

L&G joins stockpicking scrum

LEGAL & GENERAL

GROWTH TRUST

Aim: Growth by investing in UK equities.

Minimum investment: Lump sum £1,000, Isa – lump sum £500, monthly £30.

Investment split: 100 per cent in UK equities.

Isa link: Yes.

Pep transfers: Yes.

Charges: Annual 1.5 per cent.

Special offer: Commission – initial 5 per cent or initial 4 per cent, renewal 0.5 per cent.

Offer period: Until April 6, 2001.

Commission: Initial 4 per cent or initial 3 per cent, renewal 0.5 per cent.

Tel: 02920 448412

Luke Gibbon, Proprietor, Independent Personal Financial Management,

Anton Robinson, Director, City Asset Management,

Bruce MacFarlane, Partner, Capital Trust Financial Management,

John Holian, Certified financial planner, Maunby Investment Management.

Suitability to market 5.8

Investment strategy 6,5

Past performance 5,0

Company&#39s reputation 6.3

Charges 5.0

Commission 5.7

Product Literature 6.3

The Legal & General Growth trust is a unit trust that applies a stockpicking approach to the UK in the pursuit of capital growth.

Assessing how the fund fits into the market, MacFarlane says: “It is another one of many UK growth orientated funds. Its entry into the market is likely to be uneventful. The future success of the fund will depend on its investment returns in a very competitive sector of the market. The fund aims to take the best on offer out of each of Legal & General&#39s existing range of funds.”

Robinson thinks this market is well covered and slightly crowded. Holian says: “With 218 unit trust and Oeic funds in the UK All Companies sector and 74 in the UK Smaller Companies sector, the fund has to offer something different to justify itself. I would say it is trying to be different by taking a selective approach. But I should stress that its aim is to beat relevant UK indices – for example, the FTSE All share index.”

Gibbon says: “The fund is one of a number that could be described as thematic. This particular one is being marketed on the basis of a limited number of companies being selected that can be highly researched.

Identifying the types of clients the fund is suitable for, Holian says: “It appears to suit investors with a core portfolio already who would like to enhance their UK exposure. It is for the growth investor with some experience of unit trust investing which is more likely to appreciate a more specialist approach.”

Gibbon says: “As the fund invests in both large and small companies predominantly in the UK, it is therefore not suitable for the first time buyer. An experienced investor widening their portfolio may find this fund attractive.

Robinson says: “It is for medium risk UK orientated investor not wishing to choose any specific sector of the market.”

MacFarlane says: “The fund is deemed high risk and is therefore limited to those investors who are willing to accept a higher degree of investment risk in order to hopefully achieve greater capital return. The fund will be popular in the Isa market.”

Moving onto the marketing opportunities the fund is likely to provide, Robinson thinks it will provide no marketing opportunities for him. MacFarlane says: “With so many of the same types of fund on offer, marketing opportunities are limited. It may create some interest in the run up to the Isa season and if the future of performance proves strong.”

Gibbon feels the fund is widely attractive or unique enough to warrant marketing. Holian does not see any specific marketing opportunities for IFAs or investment managers, but does think the fund will have some appeal to the larger mailing houses.

Recommended

LibDem leader accuses FSA over debacles

Liberal Democrat leader Charles Kennedy has acc used the FSA of failing to act appropriately over the Axa orphan assets case and the Equitable Life debacle. In a speech to the Financial Markets Associationon Tuesday, Kennedy slammed the FSA&#39s performance in both instances and called upon the Government to force the regulator to take more […]

Legal & General – Growth Trust

Tuesday, 23rd January 2001.Aim: Growth by investing in UK equities.Minimum investment: Lump sum £1,000, Isa – lump sum £500, monthly £30.Investment split: 100 per cent in UK equities.Isa link: Yes.Pep transfers: Yes.Charges: Annual 1.5 per cent.Special offer: Commission – initial 5 per cent or initial 4 per cent, renewal 0.5 per cent.Offer period: Until April […]

ScotLife International launches fourth series of Income & Growth Bonus Bond

Scottish Life International is launching the fourth series of its Income & Growth Bonus Bond. Series 4 of the Income and Growth Bond offers a choice of growth income of 11.2 per cent a year or 2.7 per cent each quarter over three years or 35.6 per cent fixed gross growth. The bond is linked […]

Third AIM VCT for Singer & Friedlander

Singer & Friedlander is building on the success of its AIM venture capital trust (VCT) 1 and 2 with the introduction of AIM VCT3. This venture capital trust invests in growing companies that are listed on the FTSE alternative investment market (AIM). Stocks will be chosen according to their fulfilment of four criteria. The fund […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment