Legg Mason launches tactical high income fund

walletLegg Mason Global Asset Management has launched a dividend income fund that mixes dividend stocks and real estate investment trusts (REITs) for a 1.5% charge in the retail share class.

The Legg Mason ClearBridge Tactical Dividend Income Fund is managed by ClearBridge Investments, Legg Mason’s largest equity subsidiary with $68 billion (€52 billion) under management.

The fund will invest in income-producing equity and equity-related securities, including high dividend stocks, energy-oriented companies, master limited partnerships (MLPs), and REITs.

Each area is designed to provide investors with exposure to major income-producing themes, predominantly through exposure to the US. 

Legg Mason says the fund will gain exposure to the US energy boom through direct or indirect investment in MLPs, high-yielding publicly traded limited partnerships offering infrastructure support services, including pipelines, storage facilities and processing plants.

The inclusion of REITs means investors have exposure to the improving US economy, the firm says.

Domiciled in Dublin, the fund, managed by Mark McAllister and Peter Vanderlee, will be closely aligned to an existing US-based ClearBridge strategy which has $417 million in total assets (as of April 2013).

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