Legg Mason announces the Legg Mason IF Western Asset Retirement Income Bond Fund as a potential retirement solution for investors
Legg Mason has announced the Legg Mason IF Western Asset Retirement Income Bond Fund*. This is targeted towards investors seeking an investment vehicle for their retirement savings, which can provide them with a regular income stream in a low cost way.
With the increased options for retirement now available to individuals, retirees are seeking investment solutions that combine some of the attractive features of annuities, but with the greater flexibility afforded by a fund.
The Legg Mason IF Western Asset Retirement Income Bond Fund will seek to produce monthly income whilst also being structured in such a way as to provide capital preservation via strategic asset allocation, making it attractive for investors in the run up to retirement and, crucially, post retirement.
Structured as a UK domiciled open-ended investment company, the portfolio is made up of a fixed allocation to global investment grade corporate bonds, global high yield bonds and UK Government gilts. This fixed, strategic asset allocation aims to achieve an attractive monthly income, while maintaining a low risk profile.
The fund is also being delivered in a low cost way with a 0.3% annual management charge and prospective TER of 0.37% payable on the RDR share class.
Matt Jackson is lead portfolio manager and will work with Western Asset’s wider investment team to manage the fund.
Matt Jackson, portfolio manager, Western Asset commented:
“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, added:
“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.”