Brandywine Global Income Optimiser Fund Added To Macquarie Wrap

23 February 2021: The Legg Mason Brandywine Global Income Optimiser Fund*, which has delivered a sterling one-year return of 15% (net of fees, as of 31 December 2020), is now available on one of Australia’s leading investment platforms, Macquarie Wrap.

Managed by specialist investment manager Brandywine Global, part of Franklin Templeton, the Legg Mason Brandywine Global Income Optimiser Fund, launched in May 2017 in Australia, is designed to give investors access to the world’s most attractive fixed income opportunities with a strong focus on capital protection.

The Fund’s investable universe includes a broad mix of global fixed income securities including (but not limited to): sovereign, investment grade, high yield, structured credit and emerging market debt.

“In today’s challenging, low interest rate environment, searching for regular income sources requires flexibility,” says Brian Kloss, Portfolio Manager, Brandywine Global. “And this Fund has been providing Australian investors with a flexible approach to finding global income while managing risk. Income Optimiser sources income from areas where it is attractive and available while avoiding where it is not.”

As different asset classes, sectors, industries, and parts of the capital structure come in and out of favour, Income Optimiser generates income from the market sub-sectors with the most favourable income and risk/return profiles. The Fund combines Brandywine Global’s macroeconomic analysis and deep sector expertise to build a portfolio that dynamically manages downside risk while capturing attractive risk-adjusted return opportunities – all while preserving the diversification characteristics of a traditional global fixed income portfolio.

Looking ahead, Kloss notes: “While valuations are not as compelling as they were during most of 2020, the top-down support by governments and central banks provides the framework where asset prices continue to be supported until the underlying economy recovers.

“Global vaccinations have begun and now it is just a question of pace and location. The world will reopen, but who will have the solvency to reach the new normal?

“While federal programs for direct corporate support have ended, most corporate entities participated in the record-breaking 2020 issuance calendar and have built cash war chests to ride out the remainder of the pandemic. With rates still relatively low and capital markets fully open for business, corporate entities continue to term out debt and reduce overall costs of capital, while focusing on minimising cash expenditures and maximising cost reductions.

“The double-edge sword that corporations will have to navigate in 2021 is simple: inflation. While the Federal Reserve Board has failed to meet its 2% inflation target for over a decade, arguments can be made that the fiscal decision to deposit money directly into individual bank accounts rather than using quantitative easing to bolster bank reserves or corporate balance sheets will finally unleash the inflation potential of a reopening economy.

“The recent yield curve steepness in both the U.S. and Europe suggests that the market is already pricing in this potential threat. While inflation may be viewed as a way out of massive global debt increases, it will ultimately, if persistent enough, raise the cost of capital for everybody—a burden some entities may not be able to shoulder,” concludes Kloss. 

The Fund has a ‘Recommended’ Rating from Zenith and Lonsec research houses. 

Key Facts about Legg Mason Brandywine Global Income Optimiser Fund

Investment Objective: The Fund’s investment objective is to seek to generate a high and consistent level of income in all market conditions over a full market cycle with a secondary objective of capital preservation.

Fund Highlights:

• Aims to provide an attractive and stable income by investing across diverse sources of income in global fixed income markets
• Seeks the best global income opportunities, with a strong focus on protecting capital
• Seeks to limit downside risk by rotating risk across different sectors of the fixed income market and through tactical hedging of credit and interest rate risk

Acting with conviction and discipline, Brandywine Global looks beyond short-term, conventional thinking to rigorously pursue long-term value. Since 1986, Brandywine Global has provided a range of differentiated fixed income, equity and alternative solutions from its headquarters in Philadelphia, USA and offices around the globe.

*AUM as of 15/02/2021: 113.44M AUD

For all media queries, please contact Simrita Virk E: [email protected]

About Brandywine Global
Acting with conviction and discipline, Brandywine Global looks beyond short-term, conventional thinking to rigorously pursue long-term value. Since 1986, Brandywine Global has provided a range of differentiated fixed income, equity and alternative solutions from its headquarters in Philadelphia, USA and offices around the globe.

About Franklin Templeton

Franklin Resources, Inc. [NYSE:BEN] is a global investment management organisation with subsidiaries operating as Franklin Templeton and serving clients in over 165 countries. Franklin Templeton’s mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company brings extensive capabilities in equity, fixed income, alternatives and custom multi-asset solutions. With offices in over 30 countries and 1,300 investment professionals, the California-based company has more than 70 years of investment experience. In July 2020, Franklin Templeton completed the acquisition of Legg Mason, Inc. [NYSE:LM] and its specialist investment managers. The newly-combined organisation establishes Franklin Templeton as one of the world’s largest independent, specialised global investment managers with a combined approximately US$1.5 trillion in assets under management (AUM) across one of the broadest ranges of high-quality investment teams in the
industry as of 31 January 2021. 

For more information, please visit www.franklintempleton.com.au

Disclaimers
Legg Mason Asset Management Australia Ltd (ABN 76 004 835 849 AFSL 240827) is part of Franklin Resources, Inc. Any reference to Legg Mason Australia is a reference to Legg Mason Asset Management Australia Limited. Legg Mason Australia is the Responsible Entity of the Legg Mason Brandywine Global Income Optimiser Fund (ARSN 618 213 488). Before making an investment decision you should read the Product Disclosure Statement (PDS) for the Fund carefully and you need to consider, with or without the assistance of a financial advisor, whether such an investment is appropriate in light of your particular investment needs, objectives and financial circumstances. The PDS is available and can be obtained by
contacting Legg Mason Australia on 1800 679 541. This product has not been prepared to take into account the investment objectives, financial objectives or particular needs of any particular person. Neither Legg Mason Australia, nor any of its related parties guarantees any performance or the return of capital invested. Past performance is not necessarily indicative of future performance. Investments are subject to risks, including, but not limited to, possible delays in payments and loss of income or capital
invested. These opinions are subject to change without notice and do not constitute investment advice or recommendation. 

The rating issued 10/2020 is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec). Ratings are general advice only, and have been prepared without taking account of your objectives, financial situation or needs. Consider your personal circumstances, read the product disclosure statement and seek independent financial advice before investing. The rating is not a recommendation to purchase, sell or hold any product. Past performance information is not indicative of future performance. Ratings are subject to change without notice and Lonsec assumes no obligation to
update. Lonsec uses objective criteria and receives a fee from the Fund Manager. Visit lonsec.com.au for ratings information and to access the full report. © 2020 Lonsec. All rights reserved. 

The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating (assigned 03/2020) referred to in this piece is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek  independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at http://www.zenithpartners.com.au/RegulatoryGuidelines

Copyright © 2021. Franklin Templeton. All rights reserved.