The fund invests predominantly in European companies (excluding the UK) and L&G says its aim is to generate an “attractive yield” above the market, while maintaining a total return strategy over the longer term.

The fund is managed by Andrew Koch, who joined LGIM’s Global Equity Income team in 2014 from the in-house pension scheme at BAE Systems. He previously spent 10 years at Phillips & Drew managing European, UK and Japanese equities.

Mr Koch said: “We take a disciplined approach to portfolio construction, balancing an attractive current yield, the potential for dividend growth and the opportunity for attractive long-term total return. The portfolio is relatively concentrated with approximately fifty stock ideas.

“We invest in companies which represent the best examples of high quality enterprises and which in our opinion look attractively valued versus their peers, their history and the market overall.”

LGIM’s European income strategy is well established, says the firm, with approximately £450 million of assets under management, and has been managed by Mr Koch since September 2014. The fund extends LGIM’s  range of Equity Income funds to cover global, UK, European and Asian markets. The equity income fund range consists of L&G Real Income Builder Fund, L&G UK Equity Income Fund, L&G European Equity Income Fund and L&G Asian Income Trust.

Honor Solomon, head of retail distribution, EMEA at LGIM, said: “An income approach remains important to our clients in the low return environment and we are committed to providing our investors with a variety of income sources to suit their requirements.”