The fund complements Legal & General Investments’ existing range of actively managed equity funds and aims to provide investors with income and capital growth over the long term by investing in UK equities.
The fund will be available for investment from 31 March 2011 and aims to achieve an income in excess of the FTSE All-Share Index yield and to provide capital growth over the longer term.
UK Equity Income Fund, the Fund Manager Richard Black said:
“The fund will aim to produce a sustainable income and capital growth through investment in UK equities by adopting a flexible investment approach, building on the UK equity team's proven and successful research and stock screening processes.
"The fund is also able to use a covered call strategy to boost the income potential of stocks with strong dividend yields but low capital growth potential.”
The fund will invest predominantly in the securities of companies domiciled in the UK or those which have a significant part of their activities in the UK but which are domiciled or quoted on a regulated market outside the UK.
Legal & General Investments Sales Director, Frank McGarry said:
“Under the leadership of Robert Churchlow, our UK team has built an enviable track record in equity fund management. The addition of the UK Equity Income Fund to the range provides investors with a fund that can fully capitalise on opportunities as they emerge.
“The Equity Income Fund has been developed to strengthen our existing range of equity funds. The fund aims to provide an income in excess of the FTSE All- Share index yield and is designed to sit as a core holding in a balanced portfolio.”
The fund may use depositary receipts and derivatives both for efficient portfolio management and investment purposes and at times may use derivatives to produce additional income for the fund.
Investment is available through Legal & General (Unit Trust Managers) Limited as a unit trust only. At the beginning of the next tax year it will also be available as an ISA through Legal & General (Portfolio Management Services) Limited.
The minimum investment is £500 and there is no maximum limit. Investment will also be available through all major IFA platforms as a unit trust or ISA.
The initial charge for retail investors is up to 5 per cent and the annual management charge is 1.5 per cent (deducted from capital). There is no initial charge for institutional investors with a minimum of £100,000 to invest and the annual management charge is 0.75 per cent.
