LGIM launches Buy and Maintain Credit Fund
Legal & General Investment Management (LGIM) is adding to its range of credit funds with the launch of The LGIM Buy and Maintain Credit Fund.
The new fund offers institutional investors diversified exposure to investment grade credit markets, with low turnover, the benefits of fundamental security selection, and without the potential drawbacks of market-value weighted benchmarks.
The LGIM Buy and Maintain Credit Fund draws upon the skills of a large and experienced team of specialists. LGIM’s Active Fixed Income team manages over GBP70 billion in active credit strategies, with approximately half of this in buy and maintain style portfolios.
The fund seeks to capture the risk premium available in credit markets over the medium to longer term, and builds on the considerable internal expertise used in running the Legal & General Annuity Fund. The ‘buy’ process uses the global credit markets to achieve a broad diversification of risks through its sector allocation. It also focuses on issuers and sectors identified as offering long-term fundamental value. The ‘maintain’ part of the process is concerned with exiting securities where the team sees severe downside risks developing and replacing these to preserve and enhance long-term returns.
The lead portfolio manager for the LGIM Buy and Maintain Credit Fund is Maurice Browne, who has over 12 years’ credit market experience.
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