Unit-Linked Life Insurance

Diversified Fund

Fund codeMAAA

Fund aim

The investment objective of the fund is to provide long-term investment growth through exposure to a diversified range of asset classes.

Fund characteristics

The fund will hold between 20% and 50% in bonds, the remaining 50% to 80% will be held in a range of assets which may include equities, property, commodities, infrastructure, private equity, global real estate companies and other asset classes deemed by PMC to be relevant to the objective of the fund. Exposure to each asset class will primarily be through investing in passively managed funds, although active management may be used for some asset classes where LGIM believes there is an advantage in doing so. The asset allocation will be reviewed periodically (at least annually) and the fund will not take short term, tactical asset allocation positions. Derivatives may be used within the underlying funds for efficient portfolio management.

Fund facts

Fund size£11,284.4m
Base currencyGBP
DomicileUnited Kingdom
Share class launch10/01/12
As at 31 Dec 2023

Comparator

FTSE Developed World Index - 50% GBP Hedged

We show the fund's performance against the comparator indicated because the long-term expected rate of return of the fund is broadly similar to that of a developed market equity fund. The diversified nature of the fund means that it is expected to have less exposure than a pure equity fund to adverse equity market conditions. However, the fund may perform less strongly than a pure equity fund in benign or positive market conditions. The fund is additionally shown against a secondary comparator of the Bank of England Base Rate +3.75% per annum as our expected rate of return can also be illustrated using ‘risk-free returns’ plus an ‘equity risk premium’. The market consensus for the latter is accepted to be in the region of 3.5-4% per annum.

Performance

Source: LGIM. Performance is reported in GBP based on weekly mid-market prices before the deduction of fees.
Past performance is not a guide to future performance and the value of investments can go down as well as up.
Share class launch date:10 Jan 2012
Comparator:FTSE Developed World Index - 50% GBP Hedged
Share class launch date:10 Jan 2012
Comparator:FTSE Developed World Index - 50% GBP Hedged
    Share class launch date:10 Jan 2012
    Comparator:FTSE Developed World Index - 50% GBP Hedged

    Portfolio breakdown

    As at 31 Dec 2023

    Asset allocation (%)

    Equities
    35.3
    Developed Corporate Bonds
    16.7
    Developed Government Bonds
    5.7
    Alternatives
    22.3
    Alternative Credit
    20.1
    Cash
    -

    Equities (%)

    Emerging Market Equity6.1
    Europe ex UK Equity6.1
    North America Equity6.0
    Japan Equity5.2
    Developed Small Cap Equity4.2
    UK Equity3.7
    Asia Pacific ex Japan Equity2.8
    Frontier Market Equity0.9
    Middle East & African Equity0.2

    Developed Corporate Bonds (%)

    GBP Corporate Bonds6.8
    USD Corporate Bonds6.7
    EUR Corporate Bonds3.1

    Developed Government Bonds (%)

    Euro Inflation-Linked Bonds1.5
    US Inflation-Protected Bonds1.5
    Index-Linked Gilts1.3
    Developed (ex UK) Sovereign Debt1.3
    Conventional Gilts0.1

    Alternatives (%)

    Global Real Estate*6.2
    Global Infrastructure*5.0
    UK Physical Property4.9
    Global Private Equity*2.7
    Commodities**1.7
    Global Forestry*1.0
    Alternative Risk Premia****0.8

    Alternative Credit (%)

    Emerging Market Debt8.8
    Global High Yield6.5
    Private Market Credit2.1
    Insurance-Linked Securities2.0
    Money Market***0.7
    *Exposure through shares in listed infrastructure/global Real Estate Investment Trusts (REITs)/Private Equity management companies/Timberland companies.**Exposure through investing in funds that aim to provide a similar return to selected commodity indices. The underlying funds invest in derivatives to provide the return of the specified indices.***Invests in short-term assets which are issued by governments, high quality banks and companies.****Invests in rule-based strategies across asset classes. Asset allocations are subject to change.

    All data source LGIM unless otherwise stated. Totals may not sum due to rounding.

    Fund managers

    LGIM Asset Allocation Team

    The Fund is managed by LGIM's Asset Allocation team. The team has a wealth of experience in fund management, investment strategy and economics. They are responsible for a wide range of multi-asset funds and investment strategies across LGIM's client base. The Fund allows a broad range of pension fund investors to access this expertise.

    LGIM Allocation Strategy Management Team (ASM)

    The day-to-day implementation of the allocation of the fund is managed by the Allocation Strategy Management team.

    Literature

    Prices

    Units can be purchased, sold or switched on a designated dealing day. This fund is offered on a weekly close, daily close, or daily midday basis. Further information is available in the relevant operational procedures sheet and the Description of Funds.

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    Monthly price history

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    Please note that a maximum of 10 years price history is available.