Legal & General Fund announcement

Legal & General Investment Management (LGIM) has announced changes to the portfolio construction of the Japanese Trust and the Pacific Growth Trust.

This follows the successful focused investment philosophy adopted by the UK and European teams.

From the beginning of September 2008, the typical number of stocks held within the Japanese Trust reduced from 80 to 60 whilst the number of stocks held within the Pacific Growth Trust reduced from approximately 95 to 60. This move is in line with LGIM's active equity philosophy that high conviction ‘best ideas' portfolios will outperform throughout the cycle.

Ben Waterhouse, Legal & General sales director, investments said: "The decision to reduce the number of stocks in each portfolio is in keeping with our overall focus fund philosophy. We believe that concentrating the portfolio, in line with our strong performing UK and European retail funds, will improve investment performance."

Commenting on the changes to the Pacific Growth Trust, Lloyd Branford, senior fund manager said: "Although the stock specific risks are increased with the stock concentration, the Asian performance of the Global Growth Trust, where 59 stocks are held, has generated better performance than Pacific Growth since it became a more focussed portfolio in August 2006."

Commenting on the changes to the Japanese Growth Trust, Alan Booker, senior fund manager said: "The Japanese market has been through some difficult times in recent years and our decision to concentrate the Japanese Trust is a consequence of recent declines in quality global companies, that represent the strength of Japan in the future. They now trade at attractive valuation discounts to the market and these companies now present some good opportunities for the fund going forward."