L&G 2% fee on market tracker fund

Legal & General is charging a 2% annual management fee on its UK stock market fund, despite it being...

Legal & General is charging a 2% annual management fee on its UK stock market fund, despite it being a passively-managed portfolio that tracks the FTSE 100. The fund, launched in 1993, initially charged the high fee because it contained a money-back guarantee. This meant if the FTSE 100 had fallen over five years from the initial purchase date, the investor would receive a refund cheque for the difference at that five-year point. The refund would also cover charges, so the investor would receive a cheque for the whole fall, even if they retained the units. However, in July 1998, L&G...