Legg Mason is to launch two flexible fixed income funds to be managed by its subsidiary Western Asset Management.
The Multi-Asset Credit fund, which targets global high-income securities, will be managed by Christopher Orndorff from Western’s California office.
The fund already has €130 million in assets and will also use hedging strategies to protect investors in the event of credit market sell-off.
The second fund, the Asset Global Total Return Investment Grade Bond fund, will be managed by a London-based team led by Gordon Brown and Andrew Cormack.
The fund, which will invest in both developed and emerging markets high-rated bonds, aims to maximise returns from investment-grade rated bonds and currencies. It will have exposure to foreign currencies, with up to 25% in unhedged non-US dollar assets or currencies and will use derivatives where appropriate, the firm says.
Legg Mason head of UK sales Adam Gent said the firm was moved to launch the funds as fixed income investors find themselves at a “crossroads” in 2016, with US rate rises and the prospect of similar action by other central banks creating both opportunities and risks.
©2016 funds europe
