The fund is a UK domiciled unit trust investing primarily in European companies (excluding the UK). The firm said it aims to generate an attractive yield above the market, while maintaining a total return over the longer term.
Andrew Koch, who joined LGIM’s Global Equity Income team in 2014, will manage the fund. Prior to joining LGIM, he worked as a senior European fund manager for the in-house pension scheme at BAE Systems. Before that, Koch spent 10 years at Phillips & Drew managing European, UK and Japanese equities.
He said: “We take a disciplined approach to portfolio construction, balancing an attractive current yield, the potential for dividend growth and the opportunity for attractive long-term total return.
“The portfolio is relatively concentrated with approximately 50 stock ideas. We invest in companies which represent the best examples of high quality enterprises and which in our opinion look attractively valued versus their peers, their history and the market overall.”
LGIM’s European income strategy has approximately £450m of assets under management, and has been managed by Koch since September 2014. The latest fund extends LGIM’s range of Equity Income funds to cover global, UK, European and Asian markets.
Honor Solomon, head of retail distribution, EMEA, at LGIM, said: “An income approach remains important to our clients in the low return environment and we are committed to providing our investors with a variety of income sources to suit their requirements.”
The firm also launched a Real Capital Builder (RCB) fund in October last year, in a bid to beat the inflation rise.
