Equity index tracker fund
The Equity Index Tracker Fund (Equity ITF) is a simple and cost-effective means of investing in the stock market over the medium to long term. The fund invests directly in Legal & General unit trusts which track each of the world's major markets with 80% held in the UK and 20% held overseas. The Strategic Investment Board, which advises the Ministry of Justice (MoJ) on investment strategy and performance monitoring, has recommended the Equity ITF as a cost-effective way of investing in equities.
If you would like to find out the current unit value of the Equity ITF, please click here. (this is a link to the Financial Times (FT) Online website. It shows the previous day's unit price at close of trade - please note that the price can be read using the following example: Bid (GBX) 1,188.0000 - should be read as £11.88 per share).
Further Information
Index trackers invest in a representative sample of all the companies that make up the index they are tracking. The intention is simply to deliver the return of the index being tracked. Index trackers can be a cost effective way to achieve a well-diversified portfolio and:
- They provide the potential for reliable growth by closely mirroring stock market performance
- Independent studies have shown that, over the longer term, index funds have outperformed the majority of active equity funds the lower level of share trading compared with actively managed funds reduces costs
- Low fund management fees are charged as a result of greater efficiency
The Equity ITF has 80% of assets invested in UK companies, and 20% invested in overseas companies. This split achieves a broadly diversified investment with a heavier emphasis on the UK
- It is available exclusively to clients of the Ministry of Justice, and holdings may be retained by ex-clients
- The Equity ITF has a lower management charge than is generally available to private investors
- The investment strategy was adopted on the advice of the Strategic Investment Board
- The value of an investment and any income received from the Equity ITF can fall as well as rise, is not guaranteed and you may not get back the amount of your original investment
- Exchange rate variations may cause the value of an investment in this fund to increase or decrease.
Legal & General (Unit Trust Managers) Limited is authorised and regulated by the Financial Services Authority for the conduct of investment business and is authorised under FSMA 2000 for the establishment, operation and winding up of unregulated collective.