Global firm cuts fund fees

A global asset manager shaved 10 basis points off the management fee of its global fixed income fund.

Legg Mason cut the management fee of its $45 million Legg Mason Brandywine Global Income Optimiser Fund to 0.65% per annum, as the offering approaches its three-year anniversary in the Australian market.

Legg Mason managing director Andy Sowerby said the current position and predicted direction of the cash rate gave the fund a "powerful" opportunity.

"This Fund has the dual aims of maximising income while preserving capital and achieves this through investing globally across the full range of fixed income markets," Sowerby said.

"In the current climate, with the cash rate at 0.75% and predicted to go lower, we believe an active fixed-income fund that can access diverse sources of income in global fixed income markets to secure a competitive yield while making every effort to protect investors' capital is a powerful investment option."

We understand that investors, especially if they are transitioning to, or are in, retirement, place a high priority of capital preservation, he added, saying this is why the fund also aims to limit downside risk by rotating risk across different sectors and through tactical hedging of credit and interest rate risk.

Separately, the asset manager recently broadened Sowerby's role, with the Legg Mason executive now serving as head of Asia Pacific (ex-Japan) in addition to running the Australian and New Zealand operations of the firm.

Read more: Legg MasonAndy SowerbyBrandywine
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