Legal & General Emerging Markets Government Bond Local Currency Index Fund

Select share classes

Legal & General Emerging Markets Government Bond (Local Currency) Index Fund I Class Accumulation

A Select 50 Fund - Fidelity insight
Category Global Emerging Markets Bond - Local Currency



star-filledstar-filled
This fund can be held in an Investment ISA, SIPP and Investment Account
Last buy/sell price

66.14p

arrow-down-0.13p (-0.20%)

Fund Code

LGEGA

B8L19S8

GB00B8L19S87

Prices updated as at 12 Nov 2024
|
Prices in GBX

Investment objective
The objective of the Fund is to track the performance of the JPMorgan GBI-EM Global Diversified Local Currency Index (the “Benchmark Index”) before fees and expenses are applied. Therefore, the Fund’s performance may differ from the Benchmark Index due to the deduction of fees and expenses and the impact of any tracking error factors. The Fund is a Replicating Fund as it seeks to replicate as closely as possible the constituents of the Benchmark Index by holding all, or substantially all, of the assets comprising the Benchmark Index in similar proportions to their weightings in the Benchmark Index. The Fund will have at least 90% exposure to assets that are included in the Benchmark Index.

Our view

person-circle-filled

Why we like the fund: This fund is an index tracking fund that lends money to governments within emerging markets. Examples of countries that make up reasonable amounts of the index are Thailand, Malaysia, Indonesia, China, Mexico, Brazil and South Africa. Governments will borrow in both local currency and US dollars but this fund only lends money in local currency. L&G has a strong index tracking capability and the fund is reasonably priced. How to use the fund: Because the fund operates in regions that are perceived to be riskier, the interest it receives on its loans is usually far higher than if it had lent money to developed market governments. This fund is a useful addition to an income portfolio, but the size of any allocation should reflect its more risky nature and investors should take a long-term view (five years plus). The local currency focus of the fund means it could blend well with M&G Emerging Markets Bond, which lends money mostly in US dollars.


Important Information

Please note the value of investments can go down as well as up so you may get back less than you invested. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to an authorised financial adviser. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and(3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.


Any ESG-related information, methodologies, tools, ratings, data and opinions contained or reflected herein are not directed to or intended for use or distribution to India-based clients or users and their distribution to Indian resident individuals or entities is not permitted, and Morningstar accepts no responsibility or liability whatsoever for the actions of third parties in this respect.
© Copyright 2024 Morningstar. All rights reserved.