LVAM launches gross income share classes across two funds

LV= Asset Management (LVAM), the fund management arm of insurance, investment and retirement group LV=, has launched gross institutional income share classes for two of its investment funds.

The LV= UK Corporate Bond and LV= UK Fixed Interest Fund both now offer eligible investors the opportunity to receive income distributions gross of tax. The LV= UK Corporate Bond Fund is managed by Citywire AAA-rated manager John Hampton and is ranked top quartile since launch. The LV= UK Fixed Interest Fund is also top quartile since launch and is managed by Michael Wright who heads up the LVAM fixed interest team.

LVAM has taken this step in order to satisfy increasing demand from institutional and discretionary investors for its income-generating products. The new gross classes will be complementary to the existing institutional net class within each Fund and the annual management charge for the new share classes will be the same at 0.4%.

Matthew Wright, Head of Sales at LVAM, commented: "At LVAM we put our customers' needs at the forefront of everything we do. The new gross share classes will allow eligible investors to receive income distributions without tax being deducted. This provides a cash flow benefit and reduces the administrative burden of reclaiming the tax from the HMRC."

"We anticipate ongoing demand for both funds from institutional investors seeking to maximise income returns in the current low interest rate environment."