Legg Mason Brandywine Global Fund tops the ratings in NZ

31 January 2019

Legg Mason Brandywine Global Fund tops the ratings in New Zealand

Key points
• Legg Mason Brandywine Global Opportunistic Fixed Income Fund rated AAA by FundSource
• FundSource says the Fund performed strongly compared with peers
• Brandywine Global investment team has strong industry experience and manager tenure
• Report recognises the funds competitive fee structure
• PIE fund has NZ$251 million of assets under management as at 31 December 2018
Leading global investment manager Legg Mason’s decision to launch its first PIE (Portfolio Investment Entity) fund in New Zealand has been strongly endorsed with the fixed interest fund being rated as AAA by FundSource – the research house’s highest rating.

New Zealand managed fund research house FundSource, in its first rating of the Legg Mason Brandywine Global Opportunistic Fixed Income Fund (the Fund) since its launch in March last year, says “it had performed strongly against the peer sector funds and is attracting keen support in the market despite its short history”.

Noting there is an absence of global fixed interest funds in the New Zealand market, FundSource says: “The Brandywine investment team of Steve Smith, David Hoffman, Jack McIntyre and Anujeet Sareen has strong industry experience and manager tenure, with three of the four having worked together for more than 20 years.

“The team is well resourced and has been structured along core responsibilities. We also view Legg Mason and Brandywine Global having a strong alignment with investors with the investment team having significant personal investment in the Fund.”

The Fund, which has a top down macro-focussed strategy, primarily invests in government securities in eight to 16 developing countries and up to six emerging markets, although when the economic environment is favourable and the market signals value, it can invest in corporate debt and mortgage-backed securities.

“While the Fund’s mandate is broad, the investment team is relatively conservative, viewing risk as a permanent loss of capital. As such, the Fund will have a minimum average portfolio rating of A-. This assists in managing portfolio risk that is driven by the macro-focussed process.

The PDS shows annual fees at 0.82 per cent. FundSource says: “Compared with the FE Analytics NZMI Fixed Interest Global sector, the fee for this Fund is well below its 52 sector peers.”

Legg Mason Australia and New Zealand Managing Director, Andy Sowerby, noted: “To receive a ‘AAA’ rating so soon after launch speaks volumes for the quality of the Brandywine Global investment team and process. It also justifies our decision to launch the Fund in the wake of the keen interest shown by New Zealand clients in having a local PIE structure.”

Legg Mason Director of Sales, Colin Taylor, added: “We are deeply committed to the New Zealand market investing significant resources to continue to expand. To get this top rating from FundSource is an enormous fillip for the team and further underpins our business development plans.”

Highlights of Legg Mason Brandywine Global Opportunistic Fixed Income Fund:
• Unconstrained, high conviction global fixed income strategy with a ‘go anywhere’ style
• Targets investment in markets offering the highest real yields
• Employs active currency management to protect capital and enhance returns
• PIE structure issued by fund host Implemented Investment Solutions to meet strong demand from NZ clients
• Total assets in Legg Mason Brandywine Global Opportunistic Fixed Income (PIE) Fund: NZD $251 million (as at 31 December 2018)
About Legg Mason
Guided by a mission of ‘Investing to Improve Lives™’, Legg Mason helps investors globally achieve better financial outcomes by expanding choice across investment strategies, vehicles and investor access through independent investment managers with diverse expertise in equity, fixed income, alternative and liquidity investments. Legg Mason’s assets under management are AUD $1 trillion as at 31 December 2018.

Legg Mason provides a global platform and centralised business and distribution support for its nine affiliated fund managers that include: Brandywine Global, Clarion Partners, ClearBridge, EntrustPermal, Martin Currie, RARE Infrastructure, Royce & Associates, QS Investors and Western Asset. Each affiliate operates independently under its own brand and investment process and is considered an industry expert in its asset class.

To learn more, please visit: leggmason.com.au

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