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.)
The Fund invests in innovative (REITs and energy infrastructure) as well as traditional income source (high dividend stocks)
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
- 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)
What is their income advantage?
The 3 US asset classes provide higher income level
12-Month Gross Dividend Yield / Bond Yield
A member of ClearBridge Income Solutions team with over 19 years of investment management experience.
Specializing in Real Estate Investment Trusts with over 30 years of investment industry experience.
More about the Fund
Sector Outlook (1)
Information Technology (Chinese)
Sector Outlook (2)
Energy Infrastructure (Chinese)
Sector Outlook (3)
Real Estate (Chinese)
3Q19 Review and Outlook
Can the Consumer Endure Mounting Headwinds?
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.