Legg Mason US Equity Income Fund
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About the Fund
Investment Aim
The Fund seeks to provide a high level of income with a secondary investment objective of long-term capital appreciation. Given the income generation and long-term capital appreciation objectives of the Fund, the overall objective is that of total return.
Performance Benchmark
Russell 3000 Value Index
- Through fundamental analysis and stock selection, the fund aims to identify companies that offer high yields and sustainable dividends, combined with dividend growth and capital appreciation
- Aims to provide sector diversification so that it is not dependent on a few big players in a few sectors for income. Target yield: 1-1.5% higher than the historic yield of the Russell 3000 Value Index
About the Investment Strategy
- Universe is broadly defined as securities having an attractive and sustainable income stream
- Ideas sourced at both portfolio manager and analyst level
- Typically looks at investments of $3 billion market cap or higher
- Will look at non-equity securities to provide relative yield advantage to equities, especially during periods of market dislocation, or where common equities do not have an attractive enough yield (often to provide sector diversification)
About the Investment Team
ClearBridge Advisors' expertise lies in US equities with experience across a wide range of market capitalisations and disciplines. ClearBridge's seasoned portfolio managers pursue distinct investment styles but share a focus on primary research-driven fundamental investing.
Risk Factors: The Legg Mason US Equity Income Fund invests in companies concentrated solely within a single country. This means that it is subject to all risks of that country’s/region’s equity market environment and as a result these Funds carry more risk than other funds that diversify their investments across a broad range of countries/regions. This concentration can lead to increased volatility in the Fund’s share price.
Hedging risk (GBP hedged share classes only)
This Fund may use eligible derivatives to hedge their foreign currency exposure back to the base currency, pounds sterling. Hedging transactions can reduce the effects of currency and asset fluctuations but can expose additional risks, e.g. counterparty default.
Annual management charge from capital
This Fund has its annual management charge levied against capital, which may adversely affect the capital growth of the Fund.