Legg Mason Brandywine fund added to Macquarie Wrap

Managed by specialist investment manager Brandywine Global, part of Franklin Templeton, the Legg Mason Brandywine Global Income Optimiser Fund has been added to investment platform Macquarie Wrap.

The fund, which launched in May 2017 in Australia and designed to give investors access to the world’s fixed income opportunities with a strong focus on capital protection, invested in a broad mix of global fixed income securities such as: 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. 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,” Brian Kloss, portfolio manager, Brandywine Global, said.

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The fund’s manager also said that as different asset classes, sectors, industries, and parts of the capital structure came in and out of favour, Income Optimiser generated income from the market sub-sectors with the most favourable income and risk/return profiles.

Looking ahead, Kloss noted: “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.

“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 Legg Mason Brandywine Global Income Optimiser fund delivered a one-year return of 15% (net of fees, as of 31 December 2020), the firm said.

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