Legg Mason’s Global Fixed Income Fund cuts fees

From

Andy Sowerby

Legg Mason has reduced the Management Cost for the Legg Mason Brandywine Global Income Optimiser Fund, by 10 basis points to 0.65% per annum, effective immediately.

The Legg Mason Brandywine Global Income Optimiser Fund is managed by Brandywine Global, a highly rated and awarded specialist in global fixed income with proven expertise over multiple investment cycles. The Fund, which has $45 million (as at 30 September 2019) in funds under management since being launched in the Australian market in May 2017, has had a 10% net return in the past year to 31 October 2019.

Andy Sowerby, Managing Director, Legg Mason Australia & New Zealand, says: “This Fund has the dual aims of maximising income while preserving capital and achieves this through investing globally across the full range of fixed income markets.

“In the current climate, with the cash rate at 0.75% and predicted to go lower, we believe an active fixed-income Fund that can access diverse sources of income in global fixed income markets to secure a competitive yield while making every effort to protect investors’ capital is a powerful investment option.

“We understand that investors, especially if they are transitioning to, or are in, retirement, place a high priority of capital preservation, which is why this Fund also aims to limit downside risk by rotating risk across different sectors and through tactical hedging of credit and interest rate risk.”

The Legg Mason Brandywine Global Income Optimiser Fund investable universe includes a broad mix of global securities including but not limited to; sovereign debt, emerging markets debt, global high yield or investment grade credit, structured credit, convertible securities, preferred or common stock and currencies.  This flexibility allows Income Optimiser to source income from areas where it is attractive and available while avoiding where it is not. As different asset class, sectors, industries, and parts of the capital structure come in, and out of favour, Income Optimiser seeks income from the market-sub-sectors with the most favourable income profiles.

Sowerby says the research houses Lonsec and Zenith have given the Fund ratings of “Investment Grade” and “Recommended”, respectively, reflecting its growing status among its peers in this asset class.

“With the Fund approaching its three-year anniversary in May 2020, we believe its track record to date, when coupled with a lower and competitive fee, make this a compelling investment opportunity, especially for those investors for whom both attractive regular income and capital security are paramount.”

Key facts

The table below shows net returns:

Objective: Seeks to provide attractive levels of income relative to the market, over a full market cycle, while reducing volatility through actively managed strategies.

Key Benefits:

  • Systematic and disciplined approach
  • Top down macro & valuation driven   research
  • Strong focus on income stream remaining stable
  • Seeks to limit downside risks through sector rotation

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