Legal & General Investment Management (LGIM) has bolstered its multi-index income range by launching three risk-targeted multi-asset funds.
The L&G Multi-Index Income Funds, which offer exposure to equities, bonds and direct property with a bias towards income-producing assets, will be led by fund managers Justin Onuekwusi and Andrzej Pioch alongside co-managers Bruce White and Martin Dietz.
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The new range includes: the L&G Multi-Index Income 4, 5 and 6 portfolios, which are risk-targeted but will generate a greater proportion of total return from income, in comparison to the original L&G Multi-Index range.
LGIM will use data from Distribution Technology to confirm that the funds maintain the desired risk profile.
The funds, which will have ongoing charges of 0.36%, 0.38% and 0.39% respectively, are expected to generate yields of 3.8%, 4.1% and 4.2% respectively.
The lowest risk fund, the Income 4 fund, will produce a large proportion of its income from fixed income assets, while 5 and 6 will generate a greater proportion of their income from equities.
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By GlobalDataThe three funds will invest in L&G’s index tracking funds, L&G’s active funds and some external income-focused ETFs.
The asset allocation of the Funds will be managed via the 32-strong asset allocation team at LGIM, which manages over £30bn in multi-asset funds.
Onuekwusi said: "In this low-interest rate world, the industry has seen increasing demand for multi-asset income funds targeting high-yield levels.
"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."
