Legg Mason taps into fixed interest niche
Legg Mason Asset Management has launched a new global bond fund in response to investor demand to have such an offering in the market.
“We are launching this product due to client demand. We believe there is a niche for this offering because we don’t believe there are a lot of products in the marketplace that have good capabilities in emerging market debt, high yield and sector rotation,” Legg Mason Asset Management head of sales Kimon Kouyialas said.
The Legg Mason Global Multi Sector Bond Trust will be managed by the largest fixed income manager in the world, Western Asset Management.
Kouyialas said: “Most global fixed income funds today are focused on sovereign type securities, so the capability here with Western is that we even go down as far as sub-investment grade, corporate and sovereign debt and also have the capability, where we believe valuation signals warrant it, to invest in high yield and emerging market debt markets.”
He added that these extra capabilities would allow the fund to provide a greater level of yield for fixed interest investors and suggested it could be used in a portfolio to provide an alpha “kicker”.
“It’s trying to add alpha not only from stock selection but also from sector rotation and some currency management as well,” Kouyialas explained.
The fund is looking to attract both retail and wholesale investment dollars and will be available to retail investors via most of the major platforms in the market.
Initial funding for the product of around $20 million has already been provided.
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