The dynamic bond trust will be managed by Richard Hodges, David North and Julian Garran and will use derivatives under Ucits III.
Hodges will be lead manager and will pick out the best ideas for the portfolio with assistance from North, who is head of high yield. Group head of asset allocation, Garran will make top-down calls for the portfolio.
The fund will launch on April 30 and L&G will exclusively offer the product to discretionary wealth managers and institutional clients.
This distribution could be widened according to demand but the firm says there are no imminent plans.
Sales director Ben Waterhouse says L&G is adding the fund to meet investor demand for competitive returns throughout the credit cycle.
BestInvest head of communications Justin Modray says: “This is an interesting launch as it looks as though the fund manager intends on taking the Ucits III powers to the limit. Hodges joined from Gartmore, so is no stranger to using Ucits III, but it may mean that advisers are initially cautious.”