LGIM launches best ideas UK Equity Income fund

Legal & General Investment Management's (LGIM) has today launched its UK Equity Income fund, the first offering to be run by former analyst Richard Black.

Black says the fund will employ a focused 30-40 stock ‘best ideas' approach. At launch it will have 70% in the FTSE 100, 20% in the FTSE 250 and the remaining 10% in small caps. The Oeic, which LGIM has seeded with £20m, will pay out dividends quarterly. The fund is targeting a yield of 10% above the dividend yield of the FTSE All Share on a rolling three-year basis, equivalent today to about 3.3%, which is the minimum required for inclusion in the UK Equity Income sector. "We think it is the perfect time to launch a UK equity income fund as interest rates are at rock bottom low...