Legg Mason has launched a fund that it believes will provide a new level of portfolio diversification across fixed income and liquid alternatives.
The global asset manager has now launched the globally successful Legg Mason Western Asset Macro Opportunities Bond Fund for Australian investors who are looking for fixed income exposure but are concerned about the limitations of traditional bond funds, particularly if interest rates rise.
By taking flexible, diversified positions that can include ‘negative duration’ (for a strong bet against interest rate rises), the Fund is positioned to take advantage of market dislocations that are typically out of reach for traditional fixed income strategies. It’s highly uncorrelated nature – even against traditional fixed income – means it can blend within a fixed income allocation or be used as a liquid alternative in a diversified portfolio.
The Fund’s underlying strategy has attracted A$10 billion worldwide in just four years, and has returned 13% p.a. since its March 2012 inception*. The Fund draws on the capabilities of Legg Mason’s multi-affiliate model, and is managed by its largest investment affiliate and global fixed income specialist, Western Asset.
Andy Sowerby, Head of Legg Mason Australia said “Legg Mason has nine specialist investment affiliates and my role is to ensure that we enable Australian investors to access the very best of what we do.”
The latest launch reflects Legg Mason’s broader strategy to build a world-class fund range in Australia. “The Macro Opportunities Bond Fund is a stand-out proposition that meets the needs of those investors who are absolute return orientated and are seeking a proven performer. We have been asked by existing clients to add this to our range and we now delighted to include this in our local offering.”
The Legg Mason Western Asset Macro Opportunities Bond Fund sits alongside other highly rated Legg Mason funds including Real Income, Equity Income, Australian Bond, Global Opportunistic Fixed Income and Multi Asset Retirement Income funds.
*Performance is for the Macro Opportunities underlying composite strategy from inception 21 March 2012 to July 31 2017, in AUD Hedged.
