Unit Trust (UCITS compliant)

Legal & General Growth Trust

It’s a stock eat stock world

It’s survival of the fittest. A Growth Trust with a high conviction portfolio of just 25 stocks governed by a strict rule of thumb: one in, one out. Through extensive bottom-up fundamental analysis and the application of GARP style investing. Gavin Launder and his team analyse the growth potential of each of their 25 stocks to make sure they’re worthy of survival. If a stronger stock comes along, we wave goodbye to the weak performers. It’s cut-throat, but it’s effective and our track record proves it.

Reasons to invest

  • A high-conviction, growth fund consisting of 25, broadly equally weighted positions
  • Extensive bottom-up analysis assesses the long-term growth potential of each position
  • A ‘one in, one out’ approach to stock selection, focuses on only the highest conviction ideas and promotes a strong sell-discipline

The tech disruption has only just begun

Gavin Launder, Senior Fund Manager

Performance snapshot (%)

1 year 3 years 5 years
Return -8.55 27.34 51.18
Quartile rank 4 2 1

Source: Lipper. Net of fees and tax C Acc unit class, data as at 31 May 2019. Past performance is no guide to future performance.

Source: Lipper. Net of fees and tax C Inc unit class, data as at 31 May 2019. Past performance is no guide to future performance.

Source: Lipper. Net of fees and tax E Acc unit class, data as at 31 May 2019. Past performance is no guide to future performance.

Source: Lipper. Net of fees and tax E Inc unit class, data as at 31 May 2019. Past performance is no guide to future performance.

Source: Lipper. Net of fees and tax F Acc unit class, data as at 31 May 2019. Past performance is no guide to future performance.

Source: Lipper. Net of fees and tax F Inc unit class, data as at 31 May 2019. Past performance is no guide to future performance.

Source: Lipper. Net of fees and tax I Acc unit class, data as at 31 May 2019. Past performance is no guide to future performance.

Source: Lipper. Net of fees and tax I Inc unit class, data as at 31 May 2019. Past performance is no guide to future performance.

Source: Lipper. Net of fees and tax L Acc unit class, data as at 31 May 2019. Past performance is no guide to future performance.

Source: Lipper. Net of fees and tax R Acc unit class, data as at 31 May 2019. Past performance is no guide to future performance.

Source: Lipper. Net of fees and tax R Inc unit class, data as at 31 May 2019. Past performance is no guide to future performance.

Source: Lipper. Net of fees and tax unit class, data as at 31 May 2019. Past performance is no guide to future performance.

Source: Lipper. Net of fees and tax unit class, data as at 31 May 2019. Past performance is no guide to future performance.

Fund facts

Fund size
£203.8m
Base currency
GBP
Launch date
1 Nov 2000
Domicile
UK
Share class launch

Statistics

Historical yield
0.6%

As at 31 May 2019

Fund aim

The objective of this fund is to provide growth. The fund will typically invest between 80% and 100% in company shares from the UK. The fund will invest in shares of companies which, in the manager's view, have strong growth prospects.

Benchmark

Sector

IA UK All Companies

  • We actively manage a portfolio of 25, broadly equally weighted UK names, where we seek companies that display strong secular and structural growth trends
  • The fund adopts a ‘one in, one out’ approach to stock selection. This forces us to regular review each position and promotes a strong sell discipline
  • As part of our idea generation, we combine fundamental bottom-up analysis and access to corporate management, to assess the long-term potential growth rates of a business

Further details

Costs

Price basis
Dual
Initial charge
0.00%
Ongoing charges figure
0.78%
Bid / Offer spread
0.68%

Codes

ISIN
GB00B28PVN01
SEDOL
B28PVN0
Bloomberg
LGGROIA
MEX
LGGTAI

Dealing information

Valuation frequencyDaily, 12pm (UK time)
Dealing frequencyDaily
Settlement periodT+4

Find out more about price basis methodologies: View Guide to investing with us

Country registration

This share class is registered for sale in the following countries:

Fund updates

Monthly commentary

As at

After a strong start to the year, there was a dramatic turn of fortunes during May in what proved a very difficult month for global equity markets. The FTSE All Share index broke its four month winning streak, as the unfolding economic conflict led to a return of recession fears as global tensions spread.

Elsewhere, oil prices slumped to a 3-month low as trade wars and high inventories in the U.S. continue to overshadow supply disruptions in Iran and Venezuela. Finally, a solid Q1 reporting season has resulted in an improvement in the earnings revision ratios across most markets.

For markets, there were few hiding places as the majority of sectors fell during the month. Cyclical industries were hit especially hard, though with some exceptions at the stock level. Defensives fared better, which extended to other safe haven assets. From a style view, value stocks underperformed, while low beta and quality stood out. UK domestic names and sterling were firmly out of favour. Yet, small caps outperformed large-caps.

The L&G Growth Trust recorded a disappointing return of -7.6% in May. This was primarily driven by stock selection in consumer cyclicals. Our exposure in industrials and healthcare also detracted value. Sector allocation was positive, helped by our zero weighting to banks, insurers and tobacco. This was offset slightly by our overweight in mid-caps, which found performance tough going as a number of companies now price in both growth and Brexit risks.

Performance

Source: Lipper

Performance (%)
Select period:
Change

    Performance summary (%)

    As at 31 May 2019

    Cumulative Fund IA Sector
    1 month -7.55 -3.17
    6 months 6.04 5.11
    Year to date 14.73 10.30
    3 years 27.34 23.88
    5 years 51.18 28.71
    Since launch - -
    Annualised Fund IA Sector
    1 year -8.55 -4.70
    3 years 8.39 7.40
    5 years 8.61 5.17
    Since launch - -

    As at 31 Mar 2019

    Cumulative Fund IA Sector
    Quarterly 11.61 8.90
    Year to date 11.61 8.90
    3 years 28.89 24.74
    5 years 45.51 28.65
    Since launch - -
    Annualised Fund IA Sector
    1 year 0.79 2.79
    3 years 8.83 7.65
    5 years 7.79 5.17
    Since launch - -
    Rolling 12-month performance
    Calendar year performance
    Monthly performance
    Annualised performance

    Rolling 12-month performance to last quarter end (%)

    12 months to 31 March 2015 2016 2017 2018 2019
    Fund 7.96 4.57 24.94 2.34 0.79
    IA Sector 5.76 -2.48 18.13 2.74 2.79

    Calendar year performance (%)

    2014 2015 2016 2017 2018
    Fund -1.12 15.20 15.21 13.22 -14.51
    IA Sector 0.58 4.57 11.19 14.03 -11.12

    Monthly performance (%)

    Annualised performance (%)

    1 year 3 years 5 years Since launch
    Fund -8.55 8.39 8.61 -
    IA Sector -4.70 7.40 5.17 -

    Annualised performance (%)

    1 year 3 years 5 years Since launch
    Fund 0.79 8.83 7.79 -
    IA Sector 2.79 7.65 5.17 -

    Performance for the C Acc unit class in GBP, launched on 12 December 2017. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the C Inc unit class in GBP, launched on 12 December 2017. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the E Acc unit class in GBP, launched on 24 December 2004. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the E Inc unit class in GBP, launched on 24 December 2004. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the F Acc unit class in GBP, launched on 20 December 2012. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the F Inc unit class in GBP, launched on 20 December 2012. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the I Acc unit class in GBP, launched on 13 November 2007. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the I Inc unit class in GBP, launched on 13 November 2007. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the L Acc unit class in GBP, launched on 25 April 2019. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the R Acc unit class in GBP, launched on 24 December 2004. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the R Inc unit class in GBP, launched on 24 December 2004. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the unit class in GBP, launched on 31 July 2007. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the unit class in GBP, launched on 26 October 2018. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Portfolio

    As at 31 May 2019. All data source LGIM unless otherwise stated. Totals may not sum due to rounding.

    Market capitalisation (%)

    Large 50.4
    Mid 46.6
    Small 0.0
    Micro 0.0
    Cash and Equivalents 3.0

    Cash positions are held as collateral on futures

    Top 10 holdings 43.4
    Rest of portfolio 56.6
    No. of holdings 26

    Top 10 holdings (%)

    Network International Holdings 4.7
    Aveva Group 4.6
    Sophos Group 4.4
    VIVO Energy 4.4
    3I Group 4.3
    Rentokil Initial 4.3
    JD Sports Fashion 4.3
    Coca-Cola HBC AG 4.2
    Cineworld Group 4.1
    Boohoo Group Plc 4.1

    Country (%)

    United Kingdom 97.2
    Germany 2.8

    Top sector over/underweights (%)

    Fund Relative
    Consumer Services 43.7 32.1
    Industrials 22.7 11.5
    Technology 9.0 7.8
    Utilities 0.0 -2.6
    Health Care 3.5 -4.7
    Basic Materials 0.0 -7.7
    Oil & Gas 0.0 -14.3
    Financials 9.0 -17.3

    Top 5 stock over/underweights (%)

    Fund Relative
    Network International Holdings 4.7 4.7
    Aveva Group 4.6 4.5
    VIVO Energy 4.4 4.4
    Sophos Group 4.4 4.3
    JD Sports Fashion 4.3 4.2
    AstraZeneca 0.0 -3.4
    Diageo 0.0 -3.5
    BP 0.0 -4.8
    HSBC Holdings 0.0 -5.8
    Royal Dutch Shell 0.0 -9.1

    Fund Manager

    Gavin joined LGIM in 2007 and has been the Fund Manager for the UK Growth Trust since September 2014. Previously, he was a Global Equities Analyst at BlueBay Asset Management. Gavin spent the majority of his buy-side career as a Portfolio Manager with UBS O’Connor. Prior to this, he was a top-rated, sell-side analyst covering the Autos, Capital Goods and Conglomerates sectors at investment banks including SG Warburg (now part of UBS) and Goldman Sachs. Gavin holds a degree in Philosophy and Economics from University College, London.

    Gavin Launder

    Literature

    Income

    Latest dividends

    The latest dividends are shown below. The historic level of income generated by this fund may go down as well up and will vary over time.

    of

    Dividend history

    Total dividends paid in each financial year of the fund.

    Prices

    Name
    I GBP Acc
    Bid price
    121.70p
    Offer price
    122.40p
    Absolute change
    0.017
    Currency
    GBP
    Price time
    12:00 UK time
    Name
    I GBP Inc
    Bid price
    92.22p
    Offer price
    92.84p
    Absolute change
    0.0129
    Currency
    GBP
    Price time
    12:00 UK time
    Name
    F GBP Acc
    Bid price
    114.70p
    Offer price
    115.40p
    Absolute change
    0.016
    Currency
    GBP
    Price time
    12:00 UK time
    Name
    F GBP Inc
    Bid price
    92.94p
    Offer price
    93.56p
    Absolute change
    0.0131
    Currency
    GBP
    Price time
    12:00 UK time
    Name
    R GBP Acc
    Bid price
    110.10p
    Offer price
    110.80p
    Absolute change
    0.0154
    Currency
    GBP
    Price time
    12:00 UK time
    Name
    R GBP Inc
    Bid price
    91.89p
    Offer price
    92.51p
    Absolute change
    0.0128
    Currency
    GBP
    Price time
    12:00 UK time
    Name
    C GBP Acc
    Bid price
    52.81p
    Offer price
    53.16p
    Absolute change
    0.0074
    Currency
    GBP
    Price time
    12:00 UK time
    Name
    C GBP Inc
    Bid price
    52.02p
    Offer price
    52.36p
    Absolute change
    0.0073
    Currency
    GBP
    Price time
    12:00 UK time
    Name
    n/a
    Bid price
    n/a
    Offer price
    n/a
    Absolute change
    n/a
    Currency
    n/a
    Price time
    n/a
    Name
    L GBP Acc
    Bid price
    47.86p
    Offer price
    48.18p
    Absolute change
    0.0067
    Currency
    GBP
    Price time
    12:00 UK time
    Name
    GBP
    Bid price
    -
    Offer price
    -
    Absolute change
    -
    Currency
    GBP
    Price time
    12:00 UK time
    Name
    GBP
    Bid price
    -
    Offer price
    -
    Absolute change
    -
    Currency
    GBP
    Price time
    12:00 UK time

    For valuations and account queries contact:

    Legal & General (Unit Trust Managers) Limited
    PO Box 6080
    Wolverhampton
    WV1 9RB
    Tel : 0370 050 0955
    Email: [email protected]

    Legal & General ICAV
    LGIM Liquidity Funds Plc

    Northern Trust International Fund Administration Services (Ireland) Limited
    George’s Court, 54-62 Townsend Street
    Dublin 2, Ireland.
    Fax: +353 1 434 5293
    Telephone: +353 1 434 5080
    Email: [email protected]

    Legal & General SICAV
    Northern Trust Global Services SE
    6 rue Lou Hemmer
    L-1748 Senningerberg
    Grand-Duché de Luxembourg
    Facsimile: +352 276 222 150
    Telephone: +352 276 222 514
    Email: [email protected]

    Key risks

    The value of an investment and any income taken from it is not guaranteed and can go down as well as up, you may not get back the amount you originally invested.

    Past performance is no guarantee of future results.

    Important information

    This information is intended for investment professionals only and is for information purposes only. It should not be distributed without our permission.

    No investment decisions should be made without first reviewing the key investor information document and prospectus (and any supplements thereto) of the relevant product which includes information on certain risks associated with an investment.

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    This information is only directed at investors resident in jurisdictions where each fund is registered for sale. It is not an offer or invitation to persons outside of those jurisdictions. We reserve the right to reject any applications from outside of such jurisdictions.

    All information detailed on this website is current at the time of publication and may be changed in the future.

    Source and third party data

    Source: Unless otherwise indicated all data contained on this website is sourced from Legal & General Investment Management Limited.

    Where this document contains third party data ('Third Party Data’), we cannot guarantee the accuracy, completeness or reliability of such Third Party Data and accept no responsibility or liability whatsoever in respect of such Third Party Data

    Issuer

    Information for all Collectives is issued by Legal & General Investment Management Limited (‘LGIM’). It is a MiFID II compliant investment management firm that acts as Promoter and Distributor to a range of EU domiciled UCITS umbrella companies and a range of UK domiciled UCITS and Non UCITS Retail Schemes. LGIM also acts has been appointed as the Investment Manager of these funds.

    Legal & General Investment Management Limited is Registered in England and Wales No. 02091894. Registered Office: One Coleman Street, London, EC2R 5AA, United Kingdom. Authorised and regulated by the Financial Conduct Authority, No. 119272

    Index disclaimer

    Source: London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). ©LSE Group 2019. FTSE Russell is a trading name of certain of the LSE Group companies. FTSE® is a trade mark of the relevant LSE Group companies and is used by any other LSE Group company under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company which owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company’s express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication.