L&G Investments gives ‘better deal for IFAs’

Simon Ellis, managing director of L&GI, said the annual management charge for the UK, single market and regional index funds would be reduced to 0.20 per cent from 0.30 per cent and global funds will be reduced to 0.30 per cent from 0.35 per cent.

He said the change would enable advisers to use passive strategies as part of their asset allocation and portfolio construction while supporting the move to a fee-based advice market.

Mr Ellis said: “In the past two to three years, L&GI has experienced a strong increase in demand for our passive investments, notably from fee-based advisers. This review of the pricing structure means advisers will get a better deal when using our simple, low-cost and high-quality index funds to construct client portfolios.

“We believe that the new fee structure offers great value to intermediary clients, further adding to the benefits of investing with a fund provider that has a proven long-term commitment to passive investing.”

The changes will also see a reduction in additional expenses for institutional unit classes across L&GI’s range of active and passive funds. In some cases the total expense ratio has been reduced by as much as 12 basis points.

Andrew Elson, chartered financial planner for East Yorkshire-based Honister Partners, said: “The pricing does look really attractive and would warrant consideration in a client’s portfolio.

“It would be interesting to see how accessible the fund is to invest in, such as through a wrap, and if there is a minimum investment amount. Accessibility would be a factor in determining if this is a suitable fund.”