Unit Trust (UCITS compliant)

Legal & General UK Alpha Trust

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Important customer notice:

The extreme market uncertainty caused by COVID-19 meant that trading in the L&G UK Property Fund was suspended from 18th March 2020. We intend that the fund will reopen on 13th October 2020. Find out more

Fund facts

Fund size
£53.4m
Base currency
GBP
Launch date
27 May 2005
Domicile
UK
Share class launch

Statistics

Historical yield
0.1%

As at 31 Aug 2020

Fund aim

The objective of the Fund is to provide growth above that of the FTSE All Share TR Net Index, the “Benchmark Index”. The Fund aims to outperform the Benchmark Index by 5% per annum. This objective is before the deduction of any charges and measured over rolling three year periods.

Benchmark

FTSE All Share TR Net Index

  • What does it invest in? Invests at least 80% in shares of UK companies, including micro, small, medium and large companies which form part of the Fledgling, Alternative Investment Market (AIM) and FTSE All Share indices of shares
  • How does it invest? Actively managed, with holdings in between 30 and 60 companies on average over a typical market cycle of 3-5 years, which means the fund may be concentrated at times.

Further details

Costs

Price basis
Dual
Initial charge
0.00%
Ongoing charges figure
1.43%
Bid / Offer spread
0.72%

Codes

ISIN
GB00B079QX49
SEDOL
B079QX4
Bloomberg
LGUKALP
MEX
LGATR

Dealing information

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

Monthly commentary

As at

The steady march higher for equity markets continued in August despite government bond yields grinding higher. Policy support remains favourable for equity investors, though economic recovery momentum appears to have stalled and COVID-19 cases continue to intermittently spike and decline around the world. From a bottom-up perspective, encouragingly we’ve started to see a gradual stream of companies begin to recommence dividend payments, which suggests some improvement in underlying business confidence.

The FTSE All Share Index reported a gain of +2.4%, which reflected relative underperformance against global indices. UK equity valuations are undemanding, though Brexit worries persist and market bias towards value sectors has not been helpful year-to-date (YTD). For sector performance, consumer services, industrials and technology led returns. Utilities, healthcare and energy industries were all weak in the period.

The L&G Alpha Trust delivered a positive return of +5.1% in August. Stock selection and sector allocation both made positive contributions to performance. For allocation, the portfolio benefitted from its overweight positioning to consumer services and underweight in utilities and consumer goods. Stock selection within consumer services and financials made the most notable positive contribution. At the individual company level, ASOS, Aveva Group, Wizz Air, JD Sports and Ocado Group outperformed. Balfour Beatty and Network International were the noteworthy detractors. For trading activity, we introduced new positions in 3i Group and Coca Cola HBC. Holdings of Savannah Energy, Sigmaroc and Tatton Asset Management were all sold.

Performance

Source: Lipper

Performance (%)
Select period:
Change

    Performance summary (%)

    As at 31 Aug 2020

    CumulativeFundBenchmark
    1 month4.962.42
    6 months-11.38-7.59
    Year to date-24.20-18.54
    3 years-43.38-8.16
    5 years-29.7217.32
    Since launch108.60-
    AnnualisedFundBenchmark
    1 year-18.66-12.62
    3 years-17.26-2.80
    5 years-6.803.24
    Since launch4.93-

    As at 31 Aug 2020

    CumulativeFundBenchmark
    Quarterly2.960.27
    Year to date-24.20-18.54
    3 years-43.38-8.16
    5 years-29.7217.32
    Since launch108.60-
    AnnualisedFundBenchmark
    1 year-18.66-12.62
    3 years-17.26-2.80
    5 years-6.803.24
    Since launch4.93-
    Rolling 12-month performance
    Calendar year performance
    Monthly performance
    Annualised performance

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

    12 months to 30 June 2016 2017 2018 2019 2020
    Fund-7.3926.784.94-27.03-25.61
    Benchmark2.2118.129.020.57-12.99

    Calendar year performance (%)

    2015 2016 2017 2018 2019
    Fund-7.549.1625.62-25.61-3.51
    Benchmark0.9816.7513.10-9.4719.17

    Monthly performance (%)

    Annualised performance (%)

    1 year3 years5 yearsSince launch
    Fund-18.66-17.26-6.804.93
    Benchmark-12.62-2.803.24-

    Annualised performance (%)

    1 year3 years5 yearsSince launch
    Fund-18.66-17.26-6.804.93
    Benchmark-12.62-2.803.24-

    Performance for the C Acc unit class in GBP, launched on 28 February 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.

    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 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 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 27 May 2005. 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 29 October 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 Aug 2020. All data source LGIM unless otherwise stated. Totals may not sum due to rounding.

    Market capitalisation (%)

    Large53.8
    Mid37.8
    Small3.6
    Micro0.0
    Cash and Equivalents4.9
    Top 10 holdings32.5
    Rest of portfolio67.5
    No. of holdings47

    Top 10 holdings (%)

    Prudential3.7
    ASOS3.7
    Rio Tinto3.6
    Experian3.5
    Tesco3.5
    Integrafin Holdings3.1
    B&M European Value Retail2.9
    Associated British Foods2.9
    Aveva Group2.8
    Ocado Group2.8

    Country (%)

    United Kingdom100.0

    Top sector over/underweights (%)

    FundRelative
    Consumer Services21.18.8
    Technology3.72.4
    Unclassified2.42.4
    Industrials13.91.2
    Oil & Gas6.5-0.9
    Basic Materials6.2-2.6
    Consumer Goods12.6-2.8
    Utilities0.0-3.4
    Health Care7.0-4.1

    Top 5 stock over/underweights (%)

    FundRelative
    ASOS3.73.7
    Integrafin Holdings3.13.1
    B&M European Value Retail2.92.7
    Aveva Group2.82.6
    Genus2.72.6
    Diageo0.0-3.1
    British American Tobacco0.0-3.1
    HSBC Holdings0.0-3.5
    GlaxoSmithKline0.0-3.9
    AstraZeneca0.0-5.7

    Fund Manager

    Rod joined LGIM in 2000 and has been the Fund Manager for the UK Alpha Trust since January 2018. He focuses on UK small and mid-cap funds which are typically concentrated, conviction weighted, benchmark agnostic portfolios. In Q3 2016, he was appointed co-head of Active Equity alongside Nick Hartley. Rod joined LGIM from Hermes Investment Management where he specialised in small company research. Prior to this, Rod worked in the transport asset rental industry. He graduated from Cambridge University with an Honours degree in Economics.

    RodOscroft

    Literature

    Prices

    Name
    C GBP Acc
    Bid price
    28.88p
    Offer price
    29.08p
    Absolute change
    -0.0032
    Currency
    GBP
    Price time
    12:00 UK time
    Name
    F GBP Acc
    Bid price
    112.00p
    Offer price
    112.70p
    Absolute change
    -0.0124
    Currency
    GBP
    Price time
    12:00 UK time
    Name
    I GBP Acc
    Bid price
    115.90p
    Offer price
    116.60p
    Absolute change
    -0.0128
    Currency
    GBP
    Price time
    12:00 UK time
    Name
    L GBP Acc
    Bid price
    38.03p
    Offer price
    38.29p
    Absolute change
    -0.0042
    Currency
    GBP
    Price time
    12:00 UK time
    Name
    R GBP Acc
    Bid price
    103.80p
    Offer price
    104.40p
    Absolute change
    -0.0115
    Currency
    GBP
    Price time
    12:00 UK time

    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.

    The return from this fund is dependent on relatively few individual investments. This means that a fall in the value of an individual investment can have a major impact on the overall performance of the fund.

    The fund invests in smaller companies. Investments in smaller companies tend to be riskier than investments in larger companies because they can: be harder to buy and sell; or go up and down in value more often and by larger amounts, especially in the short term. In times of market uncertainty or if an exceptional amount of withdrawals are requested it may become less easy for your fund to sell investments and the Manager may defer withdrawals, or suspend dealing. The Manager can only delay paying out if it is in the interests of all investors and with the permission of the fund trustee or depositary.

    The fund could lose money if any institution providing services such as acting as counterparty to derivatives or other instruments, becomes unwilling or unable to meet its obligations to the fund.

    Derivatives are highly sensitive to changes in the value of the asset on which they are based and can increase the size of losses and gains.

    The fund may have underlying investments that are valued in currencies that are different from sterling (British pounds). Exchange rate fluctuations will impact the value of your investment. Currency hedging techniques may be applied to reduce this impact but may not entirely eliminate it.

    Index disclaimer

    Source: London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). © LSE Group 2020. 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.

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