Finance News: Investment fund 'will match FTSE'

Charities Aid Foundation and Legal & General have launched a new common investment fund that aims to match the performance of the FTSE All-Share Index.

The CAF UK Equitrack Fund will not pay stamp duty on the purchase of shares as it is registered as a charity with the Charity Commission.

Legal & General will manage the fund while CAF will promote it and liaise with investors.

The fund aims to replicate the return of the FSTE All-Share Index, which shows the results of the 700 largest companies on the London Stock Exchange.

It grew by 12.9 per cent in 2004.

Ron Green, senior manager for CAF Charity Financial Services, said: "Equitrack offers charities the opportunity to share in the UK stock market's potential growth."

KEY POINTS

- Legal & General is the largest manager of index funds in the UK, with portfolios valued at £111bn

- Fund will not be actively managed so annual management charge is kept low at 0.25 per cent per annum

- Minimum investment is £1,000

- Fund will have lower risk because of investment over a broad range of stocks.

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