Franklin Templeton's Brandywine Global launches new fund

Franklin Templeton investment manager Brandywine Global has expanded its product suite with the launch of a Global Opportunistic Equity Fund for Australian investors.

The $2.4 trillion asset manager said the fund will invest in 60 to 100 global companies and seek to outperform the MSCI ACWI Index.

Franklin Templeton managing director Felicity Walsh said the fund broadens its local suite of global equity strategies and caters to investors seeking differentiated active opportunities.

"Brandywine Global is well recognised in the Australian market for its global fixed income strategies. This fund extends Brandywine Global's capabilities for Australian investors, utilising the same analytical rigour and fundamental value framework along with the macroeconomic analysis for which the firm is well known," she said.

Brandywine Global portfolio manager Sorin Roibu said it has a long history of managing global equities, leveraging top-down macroeconomic insights to complement fundamental, value-driven research.

"Unlike traditional value strategies, our distinct investment process is premised on the philosophy that valuation alone is not a catalyst. The fund's approach helps us to avoid value traps and style drift while enhancing the strategy's ability to capture diversified sources of return," he said.

Brandywine Global uses macroeconomic insights to provide direction and bottom-up fundamental equity research to identify undervalued companies. On a micro level, it looks for companies with solid balance sheets and strong free cash flow in sectors poised to capitalise on key macro catalysts.

"Stocks in the portfolio span a diverse mix of sectors and industries. We're generally invested in larger-cap stocks and our risk metrics are aligned with our view that opportunities are not plentiful in the current environment," Roibu said.

"Market shifts can happen very quickly, and we're prepared to act opportunistically should investor fear arise in the US or elsewhere in the world."

Brandywine Global manages US$60 billion in assets under management as of March 31.