Legg Mason has unveiled a retirement income bond fund for investors looking for regular income from their retirement savings at low cost.
The Legg Mason IF Western Asset Retirement Income Bond fund aims to provide monthly income along with capital preservation through a fixed allocation to global investment grade corporate bonds, global high yield bonds and UK gilts.
Structured as an oeic, the fund was previously called the Legg Mason IF Western Asset Global Blue Chip Bond fund and had a different objective and investment policy. Prior to that it was the Legg Mason Global Blue Chip Bond fund.
Matt Jackson is managing the fund with the assistance of Western Asset’s investment team.
Jackson says: “We wanted to build a strategy that had the characteristics that investors both pre- and post retirement are looking for, providing a steady yield, low volatility and the flexibility to access their retirement savings if their circumstances or preferences change. This led us to create a new retirement income solution with capital preservation and liquidity at the core of the offering.”
Adam Gent, head of UK sales, adds: “For many of our clients, investment needs, such as income, capital preservation and liquidity are far more relevant than peer group rankings. To date, these requirements have not been well understood by the asset management industry. That is why we have designed this fund to target only the outcomes that matter and to do so in a way that is simple, transparent and easy to understand and at a low cost.”
The fund carries a 0.3 per cent annual management charge and an expected total expense ratio of 0.37 per cent for the RDR share class.