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Legg Mason plans US equity income fund

Legg Mason is adding to its UK retail range with the launch of a US equity income fund managed by New York-based ClearBridge Advisors.

The fund, which is set for launch in mid-October, will mirror the £2.5bn strategy previously available to investors in the US.

ClearBridge Advisors is Legg Mason’s largest US equity subsidiary with the £36bn of assets. The fund will be managed by the Hersh Cohen, Peter Vanderlee and Michael Clarfeld. The team will focus on high quality companies that have that pay an attractive dividend yield.

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 become be a core part of investors portfolio and it makes sense to diversify overseas into places like the US.”

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