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LGIM eyes benchmark caps amid tech stocks’ concentration

UK’s largest fund group says big investors are growing wary about the dominance of tech stocks in market benchmarks

Tech company Nvidia has grown explosively in recent months Long Wei/VCG via Getty Images
Tech company Nvidia has grown explosively in recent months Long Wei/VCG via Getty Images Photo: VCG via Getty Images

Legal and General Investment Management, the UK’s largest fund group, will introduce caps across some of its new custom benchmarks in response to mounting concerns from investors over the concentration risks posed by large US tech companies.

“It is one of the most frequently asked questions from clients over the past four or five months,” Fadi Zaher, head of index solutions at LGIM, told Financial News.

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