Legg Mason AM – Brandywine Global Opportunistic Fixed Income Fund Review
Fund objective
Legg Mason Asset Management – Brandywine Global Opportunistic Fixed Income Fund seeks to maximise total return, consisting of capital appreciation and income, by investing at least two-thirds of its Net Asset Value in debt securities that are listed or traded anywhere in the world, including Emerging Market Countries. At least 65% of the Fund’s Net Asset Value will be invested in debt securities with an Investment Grade credit quality rating. The manager follows a value approach to investing and will concentrate investments in undervalued markets that the manager believes will provide the best opportunity for declining interest rates and a return to lower real rates over time.
Investment Strategy
Legg Mason Asset Management – Brandywine Global Opportunistic Fixed Income Fund will invest at all times at least two-thirds of its net asset value in debt securities that are listed or traded on Regulated Markets located anywhere in the world, including Emerging Market Countries. The Fund’s investments may include: debt securities issued or guaranteed by national governments, their agencies or instrumentalities and political sub-divisions; debt securities of supranational organisations; o corporate debt securities of issuers located in or whose securities are listed or traded on Regulated Markets; and mortgage-backed securities and asset-backed securities; preferred shares and other open-ended collective investment schemes.
Legg Mason Asset Management – Brandywine Global Opportunistic Fixed Income Fund may purchase securities that at the time of purchase are rated below Investment Grade or if unrated deemed by the Sub-Investment Manager to be of comparable quality, so long as such purchase would not cause more than 35% of the Fund’s net asset value to be comprised of investments that are rated below Investment Grade or if unrated deemed by the Sub-Investment Manager to be of comparable credit quality. The Fund may invest in securities denominated in local or foreign currency. The Sub-Investment Manager follows a value approach to investing and therefore seeks to identify relative value in the global bond markets.
The Sub-Investment Manager defines as undervalued those markets where real interest rates are high and the currency is undervalued and stable or appreciating. The Sub-Investment Manager will concentrate investments in those undervalued markets where cyclical business conditions, as well as secular economic and political trends, provide the best opportunity for declining interest rates and a return to lower real rates over time.
Legg Mason Asset Management – Brandywine Global Opportunistic Fixed Income Fund will normally hold a portfolio of debt securities of issuers located in a minimum of 6 countries, and the average weighted duration of the Fund’s portfolio generally ranges from 1 to 10 years. The Fund may also invest in certain types of derivative instruments for efficient portfolio management purposes and/or investment purposes.
Who is Legg Mason AM – Brandywine Global Opportunistic Fixed Income Fund suitable for?
Legg Mason Asset Management – Brandywine Global Opportunistic Fixed Income Fund is only suitable for investors who:
- are looking to invest in a fund that is seeking total return over the long term through income and capital appreciation
- are willing to accept fluctuations (sometimes significant) in the net asset value per share of the Fund during the short term
Dividend or Income payout frequency: Monthly or Accumulation
For additional assessments on product suitability, please obtain professional advice from a qualified Financial Adviser.
What are the key risks of Legg Mason AM – Brandywine Global Opportunistic Fixed Income Fund?
The value of Legg Mason Asset Management – Brandywine Global Opportunistic Fixed Income Fund and its dividends and coupons (if any) may rise or fall. You may lose some or all of your investment depending on the performance of the underlying securities. Factors that may affect the performance of these securities include, without limitation, market risks, fluctuations in interest rates and foreign exchange rates, political instability, exchange controls, changes in taxation and foreign investment policies.
Some of the key risks associated with Legg Mason Asset Management – Brandywine Global Opportunistic Fixed Income Fund are described below:
Market and Credit Risks
- You are exposed to market risk
- You are exposed to emerging markets risks
- You are exposed to currency risks
Liquidity Risks
- Fund liquidity may be affected during exceptional circumstances
- The Fund is not listed
Product-Specific Risks
- You are exposed to the risks of debt securities as this is a fixed income fund
- You are exposed to risks of capital erosion if you invest in a Distributing Plus share class
- You are exposed to custody and settlement risks
- You are exposed to derivatives risks
Investment Fees and Charges
For a limited time (Until 31 Dec 2023), speak to a MAS licensed licensed financial adviser which has committed to offering our readers a flat 1% Subscription fee (Initial Sale Charge) for all Unit Trust Funds investment.
Learn more about the limited time offer on 1% Initial Sales Charge. Terms and conditions may apply.
Where can I get more details about Legg Mason AM – Brandywine Global Opportunistic Fixed Income Fund
- Legg Mason Asset Management – Brandywine Global Opportunistic Fixed Income Fund Fact Sheet (Open in New Window)
- Legg Mason Asset Management – Brandywine Global Opportunistic Fixed Income Fund Product Highlight Sheet (Open in New Window)
- Speak to a licensed licensed financial adviser
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