L&G makes deep cuts to tracker charges as price war continues

L&G is to reduce ongoing charges by up to 55% on selected retail index funds in the latest sign of price pressure in the passive investment space.

Effective from 1 November, L&G said reductions of up to 55% will apply to ongoing charges figures on the 'I' unit class and on platforms. The cuts, which also apply to direct intermediary deals that meet minimum investment levels, follow similar moves of late from Fidelity and Vanguard. As a result of L&G's changes, the L&G UK Index trust will see its ongoing charge cut from 0.17% to 0.1%. In total sixteen funds will see charges fall, including the L&G UK, L&G UK 100 , L&G US, L&G Japan, L&G Global Equity and L&G European index trusts. The largest reduction applies to the L&G In...