A global bond fund “for all seasons” – a new fund launch from Legg Mason Brandywine Global


Andy Sowerby

Legg Mason, one of the world’s leading funds management groups, has announced that its highly-regarded fixed interest affiliate manager, Brandywine Global, will together launch a new fund for the Australian retail market designed to enhance income potential, manage volatility and preserve capital via a strategy of investing across global fixed income sectors.

The Legg Mason Brandywine Global Optimiser Fund will invest across countries and across debt sectors, including: sovereign, investment grade corporates, high yield corporates, structured credit, swaps, currency futures, and cash in pursuit of its investment objective and superior returns.
Gary Herbert, Portfolio Manager and Head of Global Credit, Brandywine Global said the timing of the launch reflects the “ongoing demand for attractive returns with minimal risk to capital in a world of increasing uncertainty”.

“We originally launched this strategy offshore back in 2013 and since then we have delivered attractive risk adjusted returns leading it to be extremely well received by investors in other markets.”

“Having discussed this with potential investors in Australia we believe that, given the ongoing uncertainty in fixed income markets, now is an ideal time to launch as we can offer a global solution designed for all seasons. The fund should have strong appeal for self-directed and advised individual investors including the SMSF market, as it offers predictable returns in all conditions and diversification away from the local staples of the ASX listed equities and term deposits.”

“A global strategy offers a much larger, more diversified opportunity set of return sources relative to a single country profile and this fund will use all the return levers available with a truly multi-sector approach. The ability to shift between sectors, and not be bound to only one, or even a limited few, significantly enhances the abilities to take advantage of the best opportunities in markets”.

“Regardless of market conditions our goal is to deliver a high, stable and attractive income stream allied to some potential for capital growth. The investment strategy is to shift actively and dynamically between fixed interest sectors to capture the best outcomes for our investors” he added.
Brandywine is a value oriented manager that utilises top down research in conjunction with bottom up fundamental research to identity the best pockets of value in credit, sovereign and currency. Downside risks are actively managed by rotating risk across different sectors of fixed income markets and through tactical hedging of credit, interest rate and currency risk.

Andy Sowerby, Managing Director and Head of Legg Mason Australia added “We have, over the past few months, added significantly to our local funds range launching the best of breed fixed income capabilities available from our investment affiliates. The Legg Mason Brandywine Global Income Optimiser is a proven strategy which is driven by a world class investment team and process and we are delighted to be able to introduce this to the Australian market”.

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