In an environment where market volatility persists, led by a worsening pandemic in the U.S. and Europe, key challenges facing investors are the ability to generate income in a low to negative rate environment, while avoiding structural biases to high yield bonds, structured credit and technology stocks in their portfolios.
Maximise your potential with the agility of our Legg Mason Brandywine Global Income Optimiser Fund. A solution that seeks to provide:
Downside protection
in adverse market events
Income generation in a low to negative rate environment
Agile rotation across sovereign bonds, investment grade/ high yield credit, emerging markets debt, structured credit with no structural biases
The strategy seeks to balance income with the pursuit of total return based on the prevailing market environment. It leverages Brandywine Global’s fundamental research and top-down macro analysis.
Broad opportunity set
Geographic, quality, and sector flexibility enables important responsiveness and adaptability across different market environments.
Diverse drivers of return
Multiple alpha sources include local currency sovereign debt, global investment grade and high yield credit, duration management, and structured credit.
Active approach
Relative value approach to the portfolio is independent of sector allocations in fixed income benchmark and instead reflects tactical changes in response to the team’s fundamental and macro guidance.
Concentrated Holdings
Portfolio is constructed to hold a smaller number of high conviction ideas.
The fund takes a holistic and responsive approach to risk, utilising the strategy’s flexibility to limit credit risk, interest rate risk, and currency risk.
Credit Risk
The managers seek to position the portfolio with the appropriate credit-quality bias while monitoring positive or negative political and economic developments. They vigilantly monitor the credit/default risk in the portfolio, both for individual credits and of sovereign bonds. Credit risk is managed through the use of derivatives, such as credit default swaps, interest-rate futures, and currency forwards during periods of volatility.
Interest Rate Risk
The managers take an active approach to managing interest rate risk and volatility by adjusting the interest rate exposure of the strategy based on the prevailing macro outlook and market conditions. The manager has made active use of the 0-10 year portfolio duration range.
Currency Risk
Currency is predominantly hedged to limit foreign currency exposure and help control volatility. The team also uses currency forwards and short-duration exposure to hedge systemic macro risk.
Internal Risk Reviews
The team reviews daily performance dispersion reports that explain any performance differentials between accounts, e.g. due to cash flows or client guidelines. In addition, attribution, value-at-risk, and tracking error reports are generated for internal risk oversight and compliance reporting.
Brandywine Global believes that relevant and material Environmental, Social and Corporate Governance (ESG) factors can affect investment performance. They are essential components towards identifying and evaluating risks and opportunities in the investment making process.
Environmental Factors
Unsustainable or controversial environmental policies may lead to financial penalties, compromised reputation, competitive disadvantage, and negative implications for growth.
Social Factors
Poor labour practices or human rights violations may put companies or countries at risk of unrest or upheaval, impairing economic progress.
Governance Factors
Insufficient governance may promote an environment that ignores investor rights and interests while enabling fraud or corruption, limiting investment returns and exacerbating risks.
Brandywine Global’s Global Fixed Income team shares expertise across the global fixed income universe, including macro conditions, sovereign bonds, currencies, corporate bonds, and structured credit. We incorporate cross-sector analysis and research, enabling managers to consider all risks and opportunities in our multi-sector positions and portfolios.
Anujeet Sareen,
CFA
Portfolio Manager,
Years industry experience: 25
Brian Kloss, JD,
CPA
Portfolio Manager,
Years industry experience: 21
Jack P. McIntyre,
CFA
Portfolio Manager
Years industry experience: 32
Tracy Chen,
CFA, CAIA
Portfolio Manager
Years industry experience: 22
Michael Arno,
CFA
Associate Portfolio Manager
Years industry experience: 16
Renato Latini,
CFA
Associate Portfolio Manager
Years industry experience: 14
Source: Brandywine Global as of 31 December 2020. JD: Juris Doctor; CPA: Certified Public Accountant; CFA: Chartered Financial Analyst; CAIA: Chartered Alternative Investment Analyst. CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.
The Fund may invest in certain types of derivative instruments for efficient portfolio management purposes and/or investment purposes. Please refer to the prospectus for more information.
Distributing Plus share classes may pay dividend out of capital. The payment of dividends out of capital effectively amounts to a return or withdrawal of an investor’s original capital investment or of capital gains attributable to that original investment. Such distribution will result in a corresponding immediate decrease in the Net Asset Value of these share classes.
Distributing Plus (e) Share Class may charge certain fees and expenses to capital rather than income which will result in income being increased for distribution and capital may be reduced. Shareholders should note that they may not receive back the full amount invested and may result in the erosion of investors capital investment.
The Fund is a sub-fund of Legg Mason Global Funds plc, an open-ended umbrella investment company constituted in Ireland.
This advertisement or publication has not been reviewed by the Monetary Authority of Singapore.
This document is for information only and does not constitute investment advice or a recommendation and was prepared without regard to the specific objectives, financial situation or needs of any particular person who may receive it. This document may not be reproduced, distributed or published without prior written permission from Franklin Templeton.
Any research and analysis contained in this document has been procured by Franklin Templeton for its own purposes and may be acted upon in that connection and, as such, is provided to you incidentally. Although information has been obtained from sources that Franklin Templeton believes to be reliable, no guarantee can be given as to its accuracy and such information may be incomplete or condensed and may be subject to change at any time without notice. Any views expressed are the views of the fund manager as of the date of this document and do not constitute investment advice. The underlying assumptions and these views are subject to change based on market and other conditions and may differ from other portfolio managers or of the firm as a whole.
There is no assurance that any prediction, projection or forecast on the economy, stock market, bond market or the economic trends of the markets will be realized. Franklin Templeton accepts no liability whatsoever for any direct or indirect consequential loss arising from the use of any information, opinion or estimate herein.
The value of investments and the income from them can go down as well as up and you may not get back the full amount that you invested.
Past performance is not necessarily indicative nor a guarantee of future performance of the Fund. Subscriptions may only be made on the basis of the most recent Prospectus and Product Highlights Sheet which is available at Templeton Asset Management Ltd or Legg Mason Asset Management Singapore Pte. Limited or authorised distributors of the Fund. Potential investors should read the details of the Prospectus and Product Highlights Sheet before deciding to subscribe for or purchase the Fund. This shall not be construed as the making of any offer or invitation to anyone in any jurisdiction in which such offer is not authorised or in which the person making such offer is not qualified to do so or to anyone to whom it is unlawful to make such an offer. In particular, the Fund is not available to U.S. citizens, residents or greencard holders.
Investors may wish to seek advice from a financial adviser before making a commitment to invest in shares of the Fund. In the event an investor chooses not to seek advice from a financial adviser, he/she should consider whether the Fund is suitable for him/her.
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Issued by Templeton Asset Management Ltd, Registration Number (UEN) 199205211E, and Legg Mason Asset Management Singapore Pte. Limited, Registration Number (UEN) 200007942R. Legg Mason Asset Management Singapore Pte. Limited is an indirect wholly owned subsidiary of Franklin Resources, Inc.
This advertisement or publication has not been reviewed by the Monetary Authority of Singapore.
Investments entail risks, the value of investments can go down as well as up and investors should be aware they might not get back the full value invested.
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