These funds are both in the IMA Absolute Return sector and will aim to achieve a positive absolute return in all market conditions on an annual basis. The funds join the Diversified Absolute Return Trust (DART), Legal & General’s global macro absolute return product which launched in 2008.
Robert Churchlow, Head of UK Equities and manager of the UK Absolute fund said:
“We have a strong track record in long only equity investing. This is based on a rigorous bottom up approach, supported by our access to UK plc through our 4.5% ownership of the FTSE All-Share. Launching long/short equity funds employing this same forensic approach to alpha generation was a logical next step.”
The funds will take full advantage of the ability to invest in the full suite of derivative instruments permitted by the UCITS rules, providing both long and synthetic short equity exposure.
Legal & General Sales Director, Ben Waterhouse said:
“There is clearly growing demand for absolute return products from the intermediary market. These two new products, which draw on our significant stock picking and risk management expertise, directly answer that demand and further strengthen our impressive active equities range.”
