LGIM to launch emerging markets government bond index fund

Legal & General Investments is to launch an emerging markets government bond index fund under the management of Lee Collins.

The fund, which is set to launch on December 11, will offer exposure to emerging market government bonds through investment in the JPMorgan Emerging Markets Bond Index Plus.

The fund invests in bonds issued by sovereign entities and will be denominated in US dollars and has an annual management charge of 0.3 per cent.

Legal & General Investments managing director Simon Ellis (pictured) says: “Emerging market government bond funds represent a significant opportunity for investor portfolios, with yields that typically outstrip those of developed market government bond funds. They also act as a diversifier in portfolios with concentrated holdings of conventional gilts or corporate bonds.”