Legal & General Investment Management (LGIM) has launched three new active fixed income funds to complement its existing global high yield offering.
The new launches – L&G Euro High Yield Fund, L&G US High Yield Fund and L&G Emerging Markets High Yield Bond Fund – will employ the firm’s macro-driven investment approach embedded within the LGIM Global High Yield Bond fund over the past 12 years while offering investors “more granular geographic exposure through regional, single strategies”.
The new funds will focus on the higher quality segment of the below investment grade market, monitored against BB and B-rated non-financial indices.
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According to the firm: “All high yield strategies are underpinned by a shared macro-thematic philosophy, culture of constructive debate across experienced specialists, and a consideration of ESG principles (classified as Article 8 under the EU’s Sustainable Finance Regulation Disclosure).”
Managed by LGIM’s Global High Yield team led by Martin Reeves, the funds will be available to investors in Germany, Luxembourg and the UK, with registrations in additional markets expected imminently.
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Reeves commented: “As we reach a critical phase of the market cycle, we believe a nimble approach to fixed income portfolio selection will be essential in navigating and capitalising on opportunities across the bond market.
Through these new strategies, we’ll be able to offer the same established process as the L&G Global High Yield Bond Fund, but with the option for investors to select the regional high yield exposures aligned to their investment objectives.”
Sarah Aitken, head of distribution at LGIM, said: “The expansion of our high yield strategies reflects growing fixed income demand from a range of investors.”
