• subs-bellGet the latest news! Subscribe to the ifa bulletin

Legg Mason fund receives ‘highly recommended’ from Lonsec

A Legg Mason income fund has been upgraded by Lonsec to "highly recommended", the company has announced.

Lonsec said in a statement that the Legg Mason Martin Currie Equity Income Trust "is more diverse than most peers at both a stock and sector level".

"Lonsec believes the trust benefits from a well thought out philosophy and investment approach specifically targeting retirees," the statement said.

The fund, launched in 2010, invests in about 50 ASX-listed companies. It features a "fifth quarter distribution" that re-invests annual capital gains back to the fund as a way to grow the capital base and generate income over time.

Martin Currie Australia chief executive Reece Birtles said: "We built the fund to address retiree longevity risk and help avoid the need to draw down on capital through retirement.

"We believe that a well-diversified portfolio of quality companies that can grow their dividends best meets this objective, without the need for costly protective overlays which can potentially impact returns and duplicate the diversification benefits from other asset classes."

The equity income strategy forms part of Martin Currie Australia's $2.9 billion income solutions book, which also includes the real income and multi-asset retirement income funds that Legg Mason distributes to the retail market, the statement said.


Legg Mason Australia head of sales Beau Titchkosky said: "We are seeing stronger government support and increased demand for attractive income sources with sensible risk management and we believe the Lonsec rating is solid endorsement of our capabilities in this space."

The fund is available on the CFS and PowerWrap platforms (badged versions), mFund, SIV and SMA.