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

This fund can be held in an Investment ISA, SIPP and Investment Account

Last buy/sell price

65.98p

arrow-up0.07p (+0.11%)

Fund Code

LGEGA

B8L19S8

GB00B8L19S87

Prices updated as at 02 May 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.

Important documents: Please ensure that you have read the Key Information Document/Technical Guide , Pre-sale Illustrations document & Doing Business with Fidelity document (incorporating the Fidelity Client Terms) and the fund information documents. These can be found within the Charges & documents section.

Our view

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 the M&G fund, 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.