Unit Trust (UCITS compliant)

Legal & General UK Equity Income Fund

Open or transfer a stocks and shares ISA

Apply now

The extreme market uncertainty caused by COVID-19 meant that trading in the L&G UK Property Fund was suspended from 18th March 2020. The LGUTM Board has now decided that the exceptional circumstances which caused the Funds’ continued suspension no longer apply and we have reopened the fund on 13th October 2020.

Find out more

Fund facts

Fund size
£187.8m
Base currency
GBP
Launch date
31 Mar 2011
Domicile
UK
Share class launch

Statistics

Historical yield
5.8%

As at 30 Sep 2020

Fund aim

The objective of the Fund is to provide income and growth above those of the FTSE All Share TR Net Index, the “Benchmark Index". The Fund aims to outperform the Benchmark Index by 2% 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 the shares of UK companies.
  • How does it invest? Actively managed, with holdings in between 40 and 60 companies on average over a typical market cycle of 3-5 years.

Further details

Costs

Price basis
Dual
Initial charge
0.00%
Ongoing charges figure
1.43%
Bid / Offer spread
0.78%

Codes

ISIN
GB00B5VZFY75
SEDOL
B5VZFY7
Bloomberg
LGUEIRA
MEX
LGAACP

Dealing information

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

Monthly commentary

As at

It was a difficult month for investors as rising coronavirus cases increased the potential of a second nationwide lockdown in the UK. Concerns over the likely impact on economic recovery and the ongoing Brexit discussions further impacted sentiment. Elsewhere, US politics has been another factor behind recent volatility.

In terms of equity markets, the wide performance disparity between winners and loser continues. On this basis, growth continues to outperform value at the style level as it increased its YTD relative return. By sector, we saw oil & gas, telecoms and financial industries underperform. Consumer goods, utilities and industrials fared strongest.

The fund delivered a disappointing return of -5.6% in the period. This compared unfavourably against the FTSE All Share Index and IA peer group. Stock selection and sector allocation both made a negative relative return. For selection, our exposure to consumer services, notably within travel & leisure, and financials was detrimental. On allocation, the overweight in banks and insurers detracted from performance, while the underweight in consumer goods was also unhelpful.

At the stock level, the top performers included gaming business GVC Holdings, tobacco company Imperial Brands, general industrial Melrose and packaging manufacturer DS Smith. Conversely, the biggest drag on relative performance were our positions in financial services provider TP ICAP, airline EasyJet, leisure caterer SSP Group and hotel business Whitbread.

In terms of trading there was no new activity in the period.

Performance

Source: Lipper

Performance (%)
Select period:
Change

    Performance summary (%)

    As at 30 Sep 2020

    CumulativeFundBenchmark
    1 month-5.66-1.69
    6 months1.216.95
    Year to date-31.67-19.92
    3 years-29.78-9.33
    5 years-16.0418.57
    Since launch13.30-
    AnnualisedFundBenchmark
    1 year-26.03-16.55
    3 years-11.11-3.21
    5 years-3.433.46
    Since launch1.32-

    As at 30 Sep 2020

    CumulativeFundBenchmark
    Quarterly-7.09-2.92
    Year to date-31.67-19.92
    3 years-29.78-9.33
    5 years-16.0418.57
    Since launch13.30-
    AnnualisedFundBenchmark
    1 year-26.03-16.55
    3 years-11.11-3.21
    5 years-3.433.46
    Since launch1.32-
    Rolling 12-month performance
    Calendar year performance
    Monthly performance
    Annualised performance

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

    12 months to 30 September 2016 2017 2018 2019 2020
    Fund8.2110.51-0.63-4.39-26.09
    Benchmark16.8211.945.872.68-16.59

    Calendar year performance (%)

    2015 2016 2017 2018 2019
    Fund5.406.949.74-16.6820.32
    Benchmark0.9816.7513.10-9.4719.17

    Monthly performance (%)

    Annualised performance (%)

    1 year3 years5 yearsSince launch
    Fund-26.03-11.11-3.431.32
    Benchmark-16.55-3.213.46-

    Annualised performance (%)

    1 year3 years5 yearsSince launch
    Fund-26.03-11.11-3.431.32
    Benchmark-16.55-3.213.46-

    Performance for the unit class in GBP, launched on . 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 18 April 2013. 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 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 C Inc 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 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 31 March 2011. 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 31 March 2011. 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 L Inc unit class in GBP, launched on 31 March 2011. 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 31 March 2011. 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 31 March 2011. 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 30 Sep 2020. All data source LGIM unless otherwise stated. Totals may not sum due to rounding.

    Market capitalisation (%)

    Large67.2
    Mid28.0
    Small4.4
    Micro0.0
    Cash and Equivalents0.5
    Top 10 holdings35.1
    Rest of portfolio64.9
    No. of holdings46

    Top 10 holdings (%)

    Rio Tinto4.3
    BHP Group Plc4.0
    Phoenix Group Holdings3.7
    Imperial Brands3.6
    British American Tobacco3.5
    Next3.5
    Direct Line Insurance3.5
    GlaxoSmithKline3.1
    Prudential3.0
    Goco Group2.9

    Country (%)

    United Kingdom100.0

    Top sector over/underweights (%)

    FundRelative
    Financials34.39.4
    Consumer Services19.36.8
    Telecommunications3.51.4
    Basic Materials10.21.2
    Oil & Gas5.6-1.0
    Industrials10.4-2.8
    Consumer Goods13.2-2.8
    Utilities0.0-3.4
    Health Care3.1-8.1

    Top 5 stock over/underweights (%)

    FundRelative
    Phoenix Group Holdings3.73.5
    Direct Line Insurance3.53.3
    Next3.53.1
    Imperial Brands3.62.9
    Goco Group2.92.9
    RELX Group0.0-1.7
    Reckitt Benckiser Group0.0-2.5
    Diageo0.0-3.2
    HSBC Holdings0.0-3.3
    AstraZeneca0.0-5.9

    Fund Manager

    Stephen joined LGIM in 2017 as a Fund Manager for the UK Equity Income portfolios. He has been managing the UK Equity Income Trust since November 2017. Stephen joined from Old Mutual where he was responsible for the management of the Old Mutual UK Equity Income fund from 2009 until 2016. Prior to that, he was a Fund Manager at Bessemer Trust from 2006 until 2008. Stephen graduated from Imperial College London with a MEng in Aeronautical Engineering. He is also a CFA charterholder.

    StephenMessage

    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
    C GBP Acc
    Bid price
    34.93p
    Offer price
    35.20p
    Absolute change
    -0.0002
    Currency
    GBP
    Price time
    12:00 UK time
    Name
    C GBP Inc
    Bid price
    30.70p
    Offer price
    30.93p
    Absolute change
    -0.0002
    Currency
    GBP
    Price time
    12:00 UK time
    Name
    F GBP Acc
    Bid price
    56.85p
    Offer price
    57.28p
    Absolute change
    -0.0003
    Currency
    GBP
    Price time
    12:00 UK time
    Name
    F GBP Inc
    Bid price
    37.70p
    Offer price
    37.99p
    Absolute change
    -0.0002
    Currency
    GBP
    Price time
    12:00 UK time
    Name
    I GBP Acc
    Bid price
    58.81p
    Offer price
    59.25p
    Absolute change
    -0.0003
    Currency
    GBP
    Price time
    12:00 UK time
    Name
    I GBP Inc
    Bid price
    38.99p
    Offer price
    39.28p
    Absolute change
    -0.0002
    Currency
    GBP
    Price time
    12:00 UK time
    Name
    L GBP Acc
    Bid price
    34.69p
    Offer price
    34.95p
    Absolute change
    -0.0002
    Currency
    GBP
    Price time
    12:00 UK time
    Name
    L GBP Inc
    Bid price
    41.86p
    Offer price
    42.17p
    Absolute change
    -0.0002
    Currency
    GBP
    Price time
    12:00 UK time
    Name
    R GBP Acc
    Bid price
    54.34p
    Offer price
    54.75p
    Absolute change
    -0.0003
    Currency
    GBP
    Price time
    12:00 UK time
    Name
    R GBP Inc
    Bid price
    36.02p
    Offer price
    36.29p
    Absolute change
    -0.0002
    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 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 impact to the fund can be greater where derivatives are used in an extensive or complex way.

    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.

    We may take some or all of the ongoing charges from the fund's capital rather than the fund's income. This increases the amount of income, but it reduces the growth potential and may lead to a fall in the value of the fund.

    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.

    Start investing today

    Our range of funds has all the options to help you achieve your goals

    Get started

    Compare funds

    Compare features and performance of all Legal & General funds

    Find out more

    Learn the basics

    The investment world can seem complicated, but it doesn’t have to be

    Find out more