Maximum diversity, minimum cost: Our new multi-asset fund.

On 1 November, we introduced a new low-cost, multi-asset investment fund and an accompanying lifestyle profile.

The Legal & General (PMC) Multi-Asset Fund is a blended fund available across our WorkSave range of products including the new WorkSave Pension Trust and Mastertrust.

In readiness for the requirements of auto enrolment, the corresponding lifestyle profile has become our default investment option on the WorkSave range of pension products.

The Fund itself offers a highly diversified, low-cost investment strategy. It’s been designed to spread investors’ capital across multiple asset types and geographic regions.

Over 90% of this investment option is invested in funds which have selected from Legal & General Investment Management’s (LGIM’s) extensive range of index-linked funds. The Fund may also invest in actively managed funds to provide further diversification.

The target long-term return is Gilts + 2.5% (net of fees) over the economic cycle (5 to 10 years). The Fund will sit within the ABI Mixed Investment 40-85% Shares sector and will be aimed at customers with a moderate risk tolerance.

Asset allocation

LGIM’s trusted and extensive asset-allocation monitoring and implementation service will look to maintain an investment mix comprising 40% fixed income, 40% equities and 20% alternatives.

Rebalancing

The substantial regular cash flows into and out of LGIM’s pooled index funds create significant opportunities for minimising rebalancing costs, by crossing customers’ purchases with other customers’ sales at unit level based on the mid price. In order to help achieve the low FMC, the Fund will be rebalanced annually.

Governance

The Legal & General (PMC) Multi-Asset Fund sits within our Governed Fund range and is subject to ongoing due-diligence and monitoring as happens with the rest of the range. However, it will receive additional attention in the form of an annual review and evaluation to meet with good governance principles.

Lifestyle Profile

The corresponding lifestyle profile will offer a 10-year de-risking phase with monthly switching into a combination of gilts and cash. At selected retirement date, 75% of a member’s pension pot will be held in the Legal & General (PMC) Over 15 Year Gilts Index Fund and 25% in the Legal & General Cash Fund.

Charges

To find out more about the Fund management charge, please speak to your usual Legal & General contact or if you're new to us contact Neil Kempshall, Head of Corporate Sales: neil.kempshall@landg.com.