You are here: Home - Investing - Experienced Investor - News -

LGIM launches multi-index income range

0
Written by:
15/10/2015
Legal & General Investment Management (LGIM) has announced the launch of a Multi-Index Income fund range, consisting of three risk-targeted multi-asset funds designed to generate income while maintaining appropriate levels of risk for advisers and clients over time.

The new range follows LGIM’s risk-targeted Multi-Index fund range, which recently surpassed £600m in assets under management.

The L&G Multi-Index Income 4, 5 and 6 funds are also risk-targeted, but aim to produce a greater proportion of total return from income, in comparison to the original L&G Multi-Index range. Income will be distributed on a monthly basis in the income class; an accumulation class is also available.

The L&G Multi-Index Income funds offer exposure to equities, bonds and direct property with an asset allocation bias towards income producing assets.

The lowest risk profile fund, Multi-Index Income 4, will seek a greater proportion of its income from sources such as fixed income, while the higher risk Multi-Index Income 5 and 6 funds will generate a greater proportion of their income from equities.

The L&G Multi-Index Income funds will gain exposure to markets primarily via L&G’s index tracking funds, alongside investment in active L&G funds and external income-focused ETFs.

The L&G Multi-Index Income fund range will be managed by the same team as the L&G Multi-Index range, with lead fund managers being Justin Onuekwusi and Andrzej Pioch, working alongside co-managers Bruce White and Martin Dietz.

The L&G Multi-Index 4, 5 and 6 funds have returned 11.52 per cent, 10.82 per cent and 9.44 per cent respectively between launch on 21 August 2013 and 30 September 2015.

“In this low-interest rate world, the industry has seen increasing demand for multi-asset income funds targeting high-yield levels,” said Justin Onuekwusi, lead fund manager of the L&G Multi-Index Income fund range.

“However, there are clear dangers that come with chasing income. Advisers are looking for greater certainty of risk over time on behalf of their clients, as the success of our Multi-Index range has proved.

“Rather than maximising income, we believe the focus should be on maximising total return for a given level of risk. Therefore, our Multi-Index Income funds do not target a specific yield, but bias sources of total return towards income producing assets while maintaining the suitability of risk profiles.”

Related Posts

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Seven ways to get help with energy bills this winter

We knew today’s announcement was going to be painful, but it’s still a shock to the system. When this kick...

Flight cancelled or delayed? Your rights explained

With no sign of the problems in UK aviation easing over the peak summer period, many will worry whether holida...

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week