L&G adds inflation-linked bond fund to tracker range

Legal & General Investments has launched a Global Inflation Linked Bond Index fund as it continues to roll out index trackers to the retail market.

The fund is run by Tim Beaven and has a 0.2 per cent annual management charge. It tracks the Barclays World Government ex UK Inflation Linked Bond index. Both the index and the fund are hedged to sterling.

Managing director Simon Pistell said: “Global inflation-linked bonds are a useful diversification tool for investors’ portfolios with a different return profile to conventional government bonds and a significantly lower duration than index-linked gilts, which will make up the majority of most investors’ inflation-linked allocation in the UK. They are also an excellent way for investors to provide part of their portfolio with a degree of inflation-proofing.”

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