Brandywine Global launches its first Global Equity Fund for Australian investors

Felicity Walsh

Brandywine Global, a specialist investment manager of Franklin Templeton and well-regarded in Australia for its fixed income capabilities, has announced the expansion of its suite of products with the launch of Brandywine Global Opportunistic Equity Fund for Australian investors.

“We are delighted to be able to launch this Fund in the Australian market as we believe there is a high demand for strong global value equity strategies such as ours,” Brandywine Global Investment Director Richard Rauch said.

Felicity Walsh, Managing Director, Franklin Templeton Australia said “The new Fund expands Franklin Templeton Australia’s suite of global equity strategies, catering to investors seeking differentiated active opportunities. Investors realise that having a more diversified global focus across their portfolios is not just about returns, but about managing risks and market volatility.

“Brandywine Global is well recognised in the Australian market for its global fixed income strategies. This Fund extends Brandywine Global’s capabilities for Australian investors, utilising the same analytical rigour and fundamental value framework along with the macroeconomic analysis for which the firm is well known,” said Walsh.

The Fund invests in 60 to 100 global companies, limiting stock position size to 5 percent at purchase, and aims to outperform the MSCI ACWI Index.

“We have a 10+ year track record in managing global equites where we leverage top-down macroeconomic insights to complement our comprehensive fundamental value-driven bottom-up research. Unlike traditional value strategies, our distinct investment process is premised on the philosophy that valuation alone is not a catalyst. The Fund’s approach helps us to avoid value traps and style drift while enhancing the strategy’s ability to capture diversified sources of return – through what we call ‘multiple ways to win,” Brandywine Global Portfolio Manager Sorin Roibu said.

“We use our macroeconomic insights to provide direction and bottom-up fundamental equity research to identify undervalued companies. On a micro level, we look for companies with solid balance sheets and strong free cash flow, favouring sectors believed to be well positioned to capitalise on key macro catalysts,” Roibu said.

“Stocks in the portfolio span a diverse mix of sectors and industries. We are generally invested in larger-cap stocks and our risk metrics are aligned with our view that opportunities are not plentiful in the current environment. As always, we are vigilant and awaiting new opportunities. Market shifts can happen very quickly, and we are prepared to act opportunistically should investor fear arise in the U.S. or elsewhere in the world,” Roibu said.

Brandywine Global also takes its commitment to social responsibility seriously, and the Fund has a number of sustainability screens in place.

Since 1986, Brandywine Global has provided a range of differentiated fixed income, equity, and alternative solutions to clients worldwide. Brandywine Global, a specialist investment manager of Franklin Resources, Inc., manages US$60 billion in assets under management as of 31 March 2024, with headquarters in Philadelphia and offices in Singapore and London.