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Duration: 0:02:59

Presenters

• Robert Churchlow

About the Legal & General Growth Trust – what are its aims and objectives?

Robert Churchlow : The Legal & General Growth Trust is an actively managed fund. It is focused on our 25 best ideas and our aim is to beat the performance of the UK stock market. We have a universe of over 300 companies to select from so the 25 shares that we pick are our best ideas. It is very different to an index fund which would own shares in all those companies in the index.

What is the investment process?

Robert Churchlow : Our process is to focus on companies that we feel have a competitive advantage, companies that have something different that makes them special and really we want to get to understand those companies in depth. The way we do that is to utilise the fact that we are the biggest investor in the UK stock market, therefore we have very good access to senior management teams. We think that gives us an edge in terms of understanding and investing in those companies.

How is the fund constructed now and what are the success stories?

Robert Churchlow : The fund is constructed on a bottom up basis which means we focus on getting to understand the companies in great detail. We have over 100 company meetings each year with various potential investments. The fund is constructed by investing in companies in the blue chip FTSE 100 Index and that is roughly half the fund currently. We also invest in riskier stocks in the mid cap and also on the AIM market, which is a specialist market for smaller companies. We own shares in Cadbury Schweppes which is a blue-chip FTSE 100 name and in the mid-cap we own shares in Southern Cross Healthcare, which is the leading supplier of care homes for the elderly in the UK and the company is clearly benefiting from strong demographic trends. The fund is invested in the UK stock market which means that it is subject to the fluctuations in market levels but it also means that the capital and income on the fund cannot be guaranteed, which may mean that they fall.

What are the risks to think about?

Robert Churchlow : 'The fund is invested in a number of small and mid-cap companies. By virtue of the small number of holdings on the fund it may be subject to high risk.

Why might somebody consider investing in this fund?

Robert Churchlow : Legal & General Growth Trust has a competitive advantage being managed by one of the UK’s leading fund management groups. We have excellent access to company management. Since the fund was restructured in 2005 performance has been strong although past performance is no guide to future performance. We have a strong process and a strong team investing in our highest conviction ideas. Legal & General Growth Trust is a unit trust which is designed as a medium to long term investment and therefore you should be looking to invest for at least 5 years.

You can find out more and invest online today at www.legalandgeneral.com/growth or alternatively call 0800 092 0092 to request a pack. Please note that we might record and monitor calls. Thanks for downloading from Legal & General.