Franklin Brandywine Sustainable Global Income Optimiser Fund
Designed to smooth returns and dampen volatility

Income Optimiser

A nimble, all-weather global fixed income strategy that seeks attractive income generation and total return while guarding against downside risks.

Dual Approach

Combination of top-down macroeconomic research and bottom-up fundamental analysis provides a holistic view of global investment opportunities.

Dynamic Rotation

Active rotation across the global fixed income universe provides diversified sources of alpha and upside potential.

Downside Management

A responsive and risk-focused approach offers attractive downside management and can help to smooth returns.

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 fundamental research and top-down macro analysis.

Broad opportunity set

Geographic, quality, and sector flexibility enables important responsiveness and adaptability across different market environments.

Diverse drivers of return

Multiple alpha sources include local currency sovereign debt, global investment grade and high yield credit, duration management, and structured credit.

Active approach

Relative value approach to the portfolio is independent of sector allocations in fixed income benchmark and instead reflects tactical changes in response to the team’s fundamental and macro guidance.

Concentrated Holdings

Portfolio is constructed to hold a smaller number of high conviction ideas.

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 manage overall volatility of the portfolio. While not a key performance driver, the fund can take limited active currency positions for investment purposes. This could be done via unhedged cash bonds, currency forwards and/or other currency derivative instruments.

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.

Anujeet Sareen

Anujeet Sareen,

Portfolio Manager,
Years industry experience: 25

Brian Kloss

Brian Kloss, JD,

Portfolio Manager,
Years industry experience: 21

Jack P. McIntyre

Jack P. McIntyre,

Portfolio Manager
Years industry experience: 32

Tracy Chen

Tracy Chen,

Portfolio Manager
Years industry experience: 22

Michael Arno

Michael Arno,

Associate Portfolio Manager
Years industry experience: 16

Renato Latini

Renato Latini,

Associate Portfolio Manager
Years industry experience: 14