Legal & General’s Life Distribution Fund has passed its 15th anniversary this year.
Legal & General’s Life Distribution Fund has passed its 15th anniversary this year.
The largest fund in Legal & General’s Distribution Fund range, the Linked Life Distribution Fund was launched on 1 June 1994 and now has over GBP4.8bn in assets under management.
It aims to generate and distribute stable, rising income and offer good growth prospects. An investment of GBP50,000 in this fund 15 years ago would have returned 140 per cent growth at 31 July 2009.
Jamie Vale, business development director Legal & General, says: ‘Our first life Distribution Fund, available through our investment bond and Portfolio Bond since launch, has been tremendously popular over the last 15 years and our success led to the creation of a family of funds offering a choice of potential benefits to meet a wide range of investors’ needs.
‘We introduced our first Distribution pension fund in September 1995 to offer good long-term growth potential for pension investment followed by an exempt version making it available to stakeholder in April 2001 and Sipp in April 2006.’
David North, lead portfolio manager for the distribution fund range for nearly ten years, says: ‘Diversification is crucial to reduce risk, and that is of course easier to achieve with a larger fund. Our distribution funds benefit from a clear asset allocation strategy, underpinned by the specialist teams that manage individual asset portfolios. In the past six years, we have expanded the funds’ allocation tools by launching portfolios such as UK smaller companies, Far Eastern equities, European corporate bonds and absolute return strategies. Ever vigilant to changing asset values, our current strategy on the funds is overweight equities and high yield bonds, neutral investment grade bonds and underweight property.’
