L&G launches Global Aggregate Bond Index Fund

Legal & General (L&G) has announced the launch of the L&G Global Aggregate Bond Index Fund, which aims to provide broad exposure to investment grade fixed income.

The fund, which is the first UK-domiciled of its kind, offers exposure to global fixed income securities by aiming to track the Bloomberg Global Aggregate 500MM Index.

It invests across security types including sovereign, Government-related, securitised and corporates and across developed and emerging markets to help provide investors with a diversified offering.

L&G said it is built on the 500MM minimum size standard to enhance tradability, and aims to deliver greater market depth, tighter transaction costs and smoother implementation across constituents.

The 500MM minimum size standard offers "significant global diversification" with over 23,000 bonds from around 2,300 issuers and 25 currencies currently included in the index.

The financial services provider said this methodology means the fund can operate as a "highly effective core fixed income building block" within a portfolio.

The fund is the latest addition to L&G’s extensive index fund range, which is used by clients worldwide seeking simple, high-quality and low-cost index funds across a comprehensive suite of equity and fixed income market-cap, and alternatively weighted index funds.

Head of index fixed income at L&G, Lee Collins, stated: "This launch reflects a clear demand from our clients for a product that provides access to a diversified set of investment grade bonds with a large-issue liquidity screen.

"As the first UK-domiciled Global Aggregate Index Fund, we are giving UK advisers a long-requested core fixed income building block in an ideal format. The launch of this fund, designed to offer a cost-effective solution for those seeking broad fixed income exposure, is just the latest example of our well-established approach to index investing with client preferences front and centre."

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