Combination of broad macroeconomic analysis and detailed security-specific research provides a holistic view of global investment opportunities.
Income Optimizer
A nimble, all-weather global fixed income strategy that seeks attractive income generation while guarding against downside risks.
Dual Approach
Dynamic Rotation
Active rotation across the global fixed income universe provides diversified sources of return potential.
Downside Management
A responsive and risk-focused approach offers attractive downside management and can help to smooth returns.
Why Now
- Fund is dynamic in sector and quality management with diverse sources of alpha.
- The current environment makes a strong case in support of the fund’s positioning. We have advocated caution, taking advantage of value but staying up in quality, and relying on developed market government bonds, specifically USTs, to provide value and protection.
- Remain confident about bond markets for the remainder of the year because of the optionality they offer from different economic scenarios.
- PMs actively manage interest rate risk as the market environment changes. Fund is more dynamic in duration management than many peers. Can and does take advantage of its typical 0-10 years portfolio duration range.
- High quality government bonds utilized during heightened market volatility. Risks of recession justifies ballast through safe-haven duration in the portfolio.
Learn more about the Fund
Philosophy and Process
The strategy seeks to balance income with the pursuit of total return based on the prevailing market environment. It leverages Brandywine Global’s detailed security-specific analysis and broad macroeconomic research.
Broad Opportunity Set
Geographic, quality, and sector flexibility enables important responsiveness and adaptability across different market environments.
Diverse Drivers of Return
Multiple return drivers include local currency sovereign debt, global investment grade and high yield credit, duration management, and structured credit.
Active Approach
Seeks opportunities with both attractive valuations with durable fundamentals that are independent of fixed income benchmark sector allocations and instead reflect tactical changes in response to the team’s security specific and broad macroeconomic guidance.
Concentrated Holdings
Portfolio is constructed to hold a smaller number of high conviction ideas.
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Commitment to ESG
Brandywine Global believes that relevant and material ESG factors can affect investment performance. They are essential components towards identifying and evaluating risks and opportunities in the investment making process.
Environmental Factors
Unsustainable or controversial environmental policies may lead to financial penalties, compromised reputation, competitive disadvantage, and negative implications for growth.
Social Factors
Poor labor practices or human rights violations may put companies or countries at risk of unrest or upheaval, impairing economic progress.
Governance Factors
Insufficient governance may promote an environment that ignores investor rights and interests while enabling fraud or corruption, limiting investment returns and exacerbating risks.
Holistic Risk Management
The Fund takes a holistic and responsive approach to risk, utilising the strategy’s flexibility to limit credit risk, interest rate risk, and currency risk.
Credit Risk
The managers seek to position the portfolio with the appropriate credit-quality bias while monitoring positive or negative political and economic developments. They vigilantly monitor the credit/default risk in the portfolio, both for individual credits and of sovereign bonds. Credit risk is managed through the use of derivatives, such as credit default swaps, interest-rate futures, and currency forwards during periods of volatility.
Interest Rate Risk
The managers take an active approach to managing interest rate risk and volatility by adjusting the interest rate exposure of the strategy based on the prevailing macro outlook and market conditions. The manager has made active use of the 0-10 year portfolio duration range.
Currency Risk
Currency is predominantly hedged to limit foreign currency exposure and help control volatility. The team also uses currency forwards and short-duration exposure to hedge systemic macro risk.
Internal Risk Reviews
The team reviews daily performance dispersion reports that explain any performance differentials between accounts, e.g., due to cash flows or client guidelines. In addition, attribution, value-at-risk, and tracking error reports are generated for internal risk oversight and compliance reporting.
Meet the Team
Brandywine Global’s Global Fixed Income team shares expertise across the global fixed income universe, including macro conditions, sovereign bonds, currencies, corporate bonds, and structured credit. We incorporate cross-sector analysis and research, enabling managers to consider all risks and opportunities in our multi-sector positions and portfolios.
Jack P. McIntyre, CFA
Portfolio Manager, Years of industry experience: 35
Anujeet Sareen, CFA
Portfolio Manager, Years of industry experience: 28
Brian Kloss, JD, CPA
Portfolio Manager, Years of industry experience: 26
Tracy Chen, CFA, CAIA
Portfolio Manager
Michael Arno, CFA
Associate Portfolio Manager, Years of industry experience: 18
Renato Latini, CFA
Associate Portfolio Manager, Years of industry experience: 17
