Legg Mason adds ClearBridge US income fund to UK range

Legg Mason is expanding its retail range for UK investors with the launch of a US equity income fund, previously only available to US investors and run by New York-based subsidiary ClearBridge Advisors.

The product will be the asset manager’s first investment company with variable capital (ICVC) launch in three years and is part of a drive to expand its retail fund range in the UK.

The Legg Mason US Equity Income fund will launch in mid-October this year and will mirror the $4bn strategy, US Equity Income Builder, run for US investors by Hersh Cohen, Peter Vanderlee and Michael Clarfeld. They look for high quality companies, paying attractive dividend yields with the capacity to grow their income stream over the long term.

A significant increase in the number of US companies paying dividends has prompted the launch, said Legg Mason. It highlights US dividend payouts so far this year have already surpassed full-year payouts in 2010, an increase of $26.5bn.

“UK investors have typically shied away from the US for income, but US companies have never been in better health and are sitting on approximately $2trn of cash, much of which will be returned to shareholders as domestic demand for income continues to grow,” said Adam Gent, head of UK sales at Legg Mason.

“Moreover, investing in US equity income provides a far more diverse income stream and less stock-specific risk than most UK equity income strategies,” he added.

Gent said the UK retail market will be a strong focus for the company in the near term: “The launch of this fund on our onshore ICVC platform demonstrates our commitment to offering UK investors access to our leading strategies in the format they demand.”