Legg Mason is adding to its retail range with a US equity income fund managed by New York-based ClearBridge Advisors.
The fund is set for launch in mid-October and will mirror the £2.5bn strategy offering already available to investors in the US.
ClearBridge Advisors is Legg Mason’s biggest US equity subsidiary, with £36bn of assets.
The fund will be managed by Hersh Cohen, Peter Vanderlee and Michael Clarfeld. The team will focus on high quality companies that pay an attractive dividend.
Legg Mason head of UK sales Adam Gent says: “UK investors have typically shied away from the US for income but US companies have never been in better health and are currently sitting on approximately £1.22trn of cash, much of which will be returned to shareholders as domestic demand for income continues to grow. Moreover, investing in US equity income provides a far more diverse income stream and less stock-specific risk than most UK equity income strategies.”
Whitechurch Securities managing director Gavin Haynes says: “Equity income will continue to be a core part of investors’ portfolios and it makes sense to diversify overseas into places like the US.”