Legal & General Investment Management has launched three regional active fixed income funds, using the investment approach from its Global High Yield Bond fund.
The strategies, which include the launched L&G Euro High Yield fund, L&G US High Yield fund and L&G Emerging Markets High Yield Bond fund, will invest in the “higher quality segment of the below investment grade market”. The funds are classified as Article 8 and available to retailers in the UK, Luxembourg, and Germany.
See also: LGIM to increase REIT exposure in UK property fund
The funds will be managed by head of global high yield Martin Reeves, who has been with LGIM since 2011 and manages the L&G Global High Yield Bond fund. In the past five years, the fund has returned 16.3% in comparison to a sector average of 16%, according to FE Fundinfo.
“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. Since inception in November 2015, the L&G Global High Yield Bond fund has proven popular with investors and has ranked in the top quartile compared to the Morningstar Global High Yield peer group,” Reeves said.
“Through these new strategies we’ll be able to offer the same established process as the successful 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.”
LGIM has also added 27 new share classes to its Luxembourg-domiciled range, and implemented fee reductions through the annual management charge to 26 share classes as of 16 February.
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. By launching new funds, share classes and making a number of fee adjustments, we are continuing to ensure that we offer a broad, cost effective fund proposition and deliver the best outcomes for our clients.”
