Legal & General Investment Management
Disclaimer.
The content on this page is for Institutional Investors only. By viewing this page you are confirming you have read, understood and agree to be bound by the LGIM site terms and conditions.
Please accept cookies from this site to remove this wording.

Global Equity Income Strategy.

Some of the best-known and most successful funds in the UK are equity income portfolios. However, this group contains a multitude of approaches.

We aim to maximise the total return of our portfolios via a combination of dividend income growth and capital gains. We are determined not to sacrifice capital in order to manufacture income.

Quality and valuation

By focusing on companies that pay dividends, we believe we effectively apply a quality filter and a valuation filter to the potential investment universe. Most often, it is only those companies that are long-established, profitable and well-governed that can consistently pay and grow dividends, over the long term.

Added to this, yield is a key valuation metric and one that can link quality enterprises to attractive multiples.

Research process

With our income bias helping to narrow the investment universe, we focus the majority of our resources on detailed bottom-up, fundamental analysis. Together with the broad equity team, we aim to understand the components and drivers of potential investment candidates. A priority is to meet the management of the underlying companies, which helps to determine an appropriate valuation for the complete business. Most importantly, the emphasis is on relative positioning versus the company’s peers.

Portfolio construction

Key elements of the portfolio construction process are:

  • Low turnover
  • No hard yield floor, which helps to avoid arbitrary and non-optimised trading
  • Gradualist buy/sell discipline
StrategyInvestment style

AUM

(£)*

average No. of Holdings
Asian Income Valuation driven, total return strategy with a focus on providing income ahead of the market 772 78
UK Equity Income High conviction, concentrated strategy. All Cap with a focus on providing income ahead of the market 1034 55
Europe ex-UK Income Valuation driven, concentrated total return strategy with a focus on providing income ahead of the market 468 57

 *As at 28 June 2017

Risks

The strategies mentioned invest in equities (shares of companies), so there is a higher risk of the Funds value being volatile (ie going up and down) than with a Fund which invests in most other asset types, particularly in the short term.

Any objective or target will be treated as a target only and should not be considered as an assurance or guarantee of performance of the Fund or any part of it. Investors must refer to the Key Features Document and the Description of Funds prior to investment which carry full details of all pertinent risk warnings. Copies can be made available on request. There are no guarantees that objectives will be achieved. This document should not be taken as an invitation to deal in Legal & General investments or any of the stated stock markets. You may not get back the amount you originally invested.

The return from your investment is not guaranteed and therefore you may receive a lower or higher return than you anticipated. Past performance is no guarantee of future performance.

Contact us

Anna Walsh
Product Specialist
+44 (0)20 3124 3625
[email protected]

Key documents

Your recently viewed items...

You need javascript enabled for us to remember your Recently Viewed Items.

You might also be interested in...

Multi asset

Multi-asset investing is based on a simple principle: reducing risk or enhancing returns by investing in a range of assets.

Asset allocation

Find out more about LGIM's expertise across a full spectrum of asset classes.