L&G's Distribution Fund continues to lead the way

The largest fund in Legal & General's Distribution Fund range, the Linked Life Distribution Fund, was launched on 1 June 1994 and now has over £4.8 billion in assets under management (at 31 July 2009. It aims to generate and distribute stable, rising income and offer good growth prospects. An investment of £50,000 in this fund fifteen years ago would have returned 140 percent growth at 31 July 2009.

Jamie Vale, Business Development Director Legal & General commented: "Our first life Distribution Fund, available through our investment bond and Portfolio Bond since launch, has been tremendously popular over the last 15 years and our success led to the creation of a family of funds offering a choice of potential benefits to meet a wide range of investors' needs.

We introduced our first Distribution pension fund in September 1995 to offer good long-term growth potential for pension investment followed by an exempt version making it available to Stakeholder in April 2001 and SIPP in April 2006.

On the life fund, we introduced further life distribution funds in 2003 - a growth fund, for those seeking a diversified investment and capital growth and a rising income fund, for those who are looking for the potential of a modestly rising income (and some capital growth).

Later that year, in November 2003, we launched the Distribution Trust, for ISA investment and the Legal & General International Distribution Fund, available through our International Portfolio Bond, launched in 2007, completes the range.

Altogether the total distribution fund range boasts over £6.6 billion in assets under management. This range gives investors and their advisers a choice of multi asset class funds across all major tax wrappers that are managed to meet a variety of income and growth needs. The combination of choice, balance and performance has ensured that our overall distribution fund offering has remained attractive over time - a timeless classic."

David North, lead portfolio manager for the distribution fund range for nearly 10 years commented: "Diversification is crucial to reduce risk, and that is of course easier to achieve with a larger fund. Our Distribution Funds benefit from a clear asset allocation strategy, underpinned by the specialist teams that manage individual asset portfolios. In the past six years, we have expanded the funds' allocation tools by launching portfolios such as UK smaller companies, Far Eastern equities, European corporate bonds and absolute return strategies. Ever vigilant to changing asset values, our current strategy on the funds is overweight equities and high yield bonds, neutral investment grade bonds and underweight property."