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L&G plans passive switch for global equity fund

L&G plans passive switch for global equity fund

The 28-year-old Global Growth Trust is the latest active fund to face conversion to a tracker product by Legal & General.

‘Legal & General confirms its intention to change the investment objective and policy of the L&G Global Growth Trust,’ a spokesperson for the group told Wealth Manager.

‘It is intended, subject to unitholders’ approval at a forthcoming EGM on 11 September 2014, for the fund to seek to replicate the FTSE World index by holding the investments which make up that index in the appropriate proportions. The risk profile of the fund will not change as a result of these proposals.

‘We believe these changes to be in their best interests for the future. If the proposals are not supported at the EGM we will continue to manage the fund as at present aiming to maximise growth and income from the securities we invest in. We will then reconsider other available options for the best future for the fund and its unitholders.’

The £31 million Global Growth Trust is run by Kevin Chessum, who has been at Legal & General since 1982. It has returned 23.2% over the past three years, compared with a sector average of 24.8%.

In July the firm announced similar plans to merge its active £117 million North American Trust into its £2.5 billion US Index Trust.

North American’s former manager Nigel Holland subsequently left Legal & General, where he had worked for 17 years and was head of US equities.

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Kevin Chessum
Kevin Chessum
79/181 in Equity - Global Equities (Performance over 3 years) Average Total Return: 40.33%
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Nigel Holland
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