The UK Mid Cap Index Fund will track the FTSE 250 ex Investment Trust Index.
LGIM said the FTSE 250 Index houses a number of investment trusts that can be invested in a wide range of different asset classes, geographies and adopt a variety of investment strategies, therefore in removing these from the tracker, a focus on UK listed businesses is ensured.
The fund will be available on all major intermediary platforms and has an ongoing charges figure of 0.14%.
Simon Hynes, head of UK retail distribution at LGIM, said: “We are committed to offering our investors broad, low-cost exposure across a broad range of asset classes, and we are pleased to expand our market-leading range of high-quality index funds.”
He added: “Medium-sized UK listed companies have significant potential for capital growth over the long term, and this fund is a useful tool for investors and advisers to diversify and tailor their UK equity exposure.
“Index funds make up 13.4% of all IA retail mutual funds under management, up from 11.5% in November 2015 and Hynes said LGIM was seeing “increasing demand from advisers and wealth managers in particular, who are looking to build diversified, cost-efficient portfolios for their clients.”
