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LGIM launches three new regional High Yield strategies amid Global Fixed Income push
Legal & General Investment Management (LGIM) has launched three new active fixed income funds to complement their existing Global High Yield offering.
22 Feb 2024
- New SICAV share classes and fee adjustments to cater to growing investor demand and seek to deliver value
- The expansion of regional High Yield building blocks will grow LGIM’s Global Fixed Income pooled fund offering, who currently manage EUR 195 bn across pooled and segregated mandates
Legal & General Investment Management (LGIM) has launched three new active fixed income funds to complement their existing Global High Yield offering. The newly launched L&G Euro High Yield Fund, L&G US High Yield Fund and L&G Emerging Markets High Yield Bond Fund will all employ the robust macro driven investment approach that has been embedded within LGIM’s 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. 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 Sustainable Finance Regulation Disclosure (SFDR)*.
The expansion of regional high yield building blocks will further strengthen LGIM’s Global Fixed Income pooled fund client proposition, with the team currently managing EUR 195 bn1across pooled and segregated mandates. The funds will be available to investors in Germany, Luxembourg and the UK, with registrations in additional markets expected imminently2. The funds will be managed by LGIM’s Global High Yield team led by Martin Reeves.
Martin Reeves, Head of Global High Yield at LGIM: “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 group3. 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.”
Alongside the new funds, LGIM has added additional share classes to funds in their Luxembourg-domiciled range. 27 new share classes are being added across 18 sub-funds to provide a more consistent offering for clients. LGIM has also implemented a number of fee reductions, with Annual Management Charge (AMC) amendments applicable to 26 share classes across 18 SICAV sub-funds. These changes are in response to evolving client demand across geographies and client types and have been implemented as of 16 February 2024.
Sarah Aitken, Head of Distribution at LGIM: "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.”
LGIM’s Global Fixed Income team are based in London, Hong Kong and Chicago, and are able to leverage the resource of 198 investment professionals from LGIM’s Global Research and Engagement Group, with nearly 40 portfolio managers and 39 credit research experts, alongside 55 macro, trading and responsible investment specialists. LGIM’s fixed Income team has over 50 years’ heritage in managing fixed income strategies and is today responsible for over EUR 195 bn in actively managed fixed income assets. LGIM’s Global Fixed Income product suite also continues to evolve, with over 30 funds available to a diverse range of investors across geographies. All products benefit from an innovative and scalable research and engagement platform4.
References
1£168.9 bn / €195bn, Source: LGIM, as of December 2023
2 Pending: Belgium, Denmark, Finland, Italy, Ireland, Netherlands, Norway, Spain Sweden and Switzerland
3Source: Lipper, Morning Stars as of 31 December 2023
4 LGIM, 2024
Further information
Verena Moench
Communications Manager
Asset Management
Notes to editors
Established in 1836, Legal & General is one of the UK's leading financial services groups and a major global investor, with £1.2 trillion in total assets under management (as at HY24) of which c40% (circa £0.5 trillion) is international.
We have a highly synergistic business model, which continues to drive strong returns. We are a leading international player in Institutional Retirement, in Retail Savings and Protection, and in both public and private markets through our Asset Management division. Across the Group, we are committed to responsible investing and dedicated to serving the long-term savings and investment needs of customers and society.
As at 11 December 2024, Legal & General has a market capitalisation of 13.7 billion.
LGIM is one of Europe’s largest asset managers and a major global investor, with total assets under management of £1.2 trillion1 ($1.5tn, €1.3tn, CHF 1.2tn). We work with a wide range of global clients, including pension schemes, sovereign wealth funds, fund distributors and retail investors.
For more than 50 years, we have built our business through understanding what matters most to our clients and transforming this insight into valuable, accessible investment products and solutions. We provide investment expertise across the full spectrum of asset classes including fixed income, equities, commercial property, and cash. Our capabilities range from index-tracking and active strategies to liquidity management and liability-based risk management solutions.
1Data as at 31 December 2023. Data combines assets under management by LGIM in the UK, LGIMA in the US and LGIM Asia in Hong Kong. Assets under management include securities and derivatives positions.