Following a review, Legal & General Investment Management (LGIM) has made changes to several funds in its active fixed income suite to provide greater clarity to its investors.

As part of this exercise, Legal & General Managed Monthly Income Trust was renamed Legal & General Active Sterling Corporate Bond Plus on 7 February 2022.

In addition, the fund’s outperformance target has been altered.  The fund’s benchmark is the Markit iBoxx Sterling Corporate Bond Total Return Index and the outperformance target has been lowered from 1.5% to 1%.  The new target is regarded as a more realistic reflection of the fund’s potential to outperform the benchmark, given the market backdrop and the fund’s approach.

Furthermore, LGIM has updated the fund’s investment policy to provide more detail on the permitted investment universe and additional clarity on the investment guidelines.

These changes do not represent a change to the way the fund is managed, or the risk profile of the fund. The fund remains in the IA Sterling Corporate Bond Sector.

As a reminder, the fund is a diversified portfolio of primarily investment grade bonds and is managed in a risk-aware manner.  The managers aim to deliver an attractive level of income compared to the prevailing environment, as well as generating incremental returns relative to the fund’s benchmark.

The fund remains on our Recommended list.