Legg Mason ClearBridge
Tactical Dividend Income Fund

Looking for stable income stream? Not necessarily fixed income.
Investing across multiple income sources, Legg Mason ClearBridge Tactical Dividend Income Fund has no exposure in bonds,
benefitting you in a rising rates environment.

In a rising rates environment where bonds in general are likely to come under pressure, it’s time to look beyond the fixed income spectrum and search for other income sources. This Fund takes a tactical approach to income and aims to provide distribution regularly.

Latest Annualised Dividend Rate1 : 5.00%

(The share class aims to declare and pay dividend on a monthly basis. Dividend amount or dividend rate is not guaranteed. Dividends of Distributing (M) Plus share class may be paid out of the Fund’s capital. Please read the last point in the risk disclosure box.)

Source: Legg Mason, as at 30 September 2019. REITs = Real Estate Investment Trust.
1 Source: BNY Mellon, as of 25 October 2019. Annualised dividend rate = (Dividend per Unit / Fund NAV as of Ex-Date) x (365 Days / Days in distribution period) x 100%. Dividend rate is not indicative of fund performance.  A positive dividend yield does not imply a positive return. Past dividend rate is not indicative of future dividend rate. Net asset value of the funds may volatile subject to market factors. Any share class with “(H)” in its name will attempt to hedge the currency risk between the base currency of the Fund and the currency of the share class, although there can be no guarantee that it will be successful in doing so. In some cases, investors may be subject to additional risks.
Where are the income sources?
Real Estate Investment Trust (REITs)
  • Can hedge against potential inflation pressure via rent increment
  • Occupancy rate is supported by continued economic growth
  • New trend (such as aging and internet development) create new demand for REITs



Energy Infrastructure
  • Fees and charges could be raised alongside with inflation
  • Generally not required to pay corporate tax
  • Long-term contract (ranging from 5-50 years)



High Dividend Stocks
  • Dividend growth can hedge against potential inflation pressure
  • Smooth out volatility with the help from stock’s dividends payout
  • Enhance long-term total return
Dividend Paying Stocks Generate Healthy Returns Over Time

(Average Calendar Year Returns: 1990 – 2018)

Source: Bloomberg, as of 31 December 2018. Bull/Bear Market based on positive / negative calendar year performance of S&P 500 Total Return Index respectively. Past performance is no guarantee of future results. 

What is their income advantage? 

The 3 US asset classes provide higher income level
12-Month Gross Dividend Yield / Bond Yield

Source: Bloomberg, as at 31 October 2019. High Dividend Stocks=Dow Jones U.S. Select Dividend Index; Energy Infrastructure=Alerian MLP Total Return Index; REITs=MSCI US REITs Gross Return Index; US Investment Grade=Bloomberg Barclays US Aggregate Total Return value unhedged (USD) Index; High Yield Bonds: KDP High Yield Daily Yield Index. This information is provided for illustrative purposes only and does not reflect the performance of an actual investment.
Fund Managers
Peter Vanderlee, CFA
Managing Director,
Portfolio Manager

A member of ClearBridge Income Solutions team with over 19 years of investment management experience.

Mark McAllister, CFA
Managing Director,
Portfolio Manager

Specializing in Real Estate Investment Trusts with over 30 years of investment industry experience.

Quality-Focused Equity

With a legacy dating back over 50 years, ClearBridge Investments is a leading global equity manager committed to delivering differentiated long-term results through authentic active management.

Issued and approved by Legg Mason Asset Management Hong Kong Limited which is licensed by the Securities and Futures Commission in Hong Kong, and whose registered office is at Suites 1202-03, 12/F, York House, The Landmark, 15 Queen's Road Central, Hong Kong.