Legg Mason Diversified Global Credit Fixed Maturity Bond Fund
Total Page:16
File Type:pdf, Size:1020Kb
Legg Mason Diversified Global Credit Fixed Maturity Bond Fund 2023 and selected funds from Legg Mason Global Asset Management are available for direct offshore distribution at Citibank Thailand and are exclusively for Citigold clients. For More information, please contact Citigold Hotline Service at 02-081-0999. Legg Mason Diversified Global Credit Exclusivity: Fixed Maturity Bond Fund 2023 Only available to Citibank IOP: 29 May to 27 June 2019 GO GLOBAL, GROW YOUR INCOME KEY FUND FEATURES REGULAR KNOWN DIVERSIFICATION CASH FLOWS MATURITY DATE Invest into diversified portfolio of global fixed income Quarterly dividend payouts debt securities 1 • Developed and emerging Portfolio Yield : market countries 4 years investment • Minimise single issuer and horizon, ending in concentration risk 4.2% p.a. June 2023* DIVIDEND PAYMENT DEFINED PORTFOLIO AIM2 CYCLE5 STRUCTURE6 Diversified across countries, Maturity Date: June 2023** ~54 companies & Securities sectors Per Calendar Year Coupons BBB January Investment Grade 3 Cashflow Credit Quality April July Principal DM : Coupons Coupons Coupons 32% Globally EM : October 68% diversified across Year 1 Year 2 Year 3 Year 4 EM and DM region Principal 100% No Currency Risk 4 USD Denominated InitialInvestment Year 0 Source: Legg Mason, Brandywine, as of 21 May 2019. IOP: Initial offer period. *The Fund may invest up to 20% of its assets in debt securities maturing beyond the Maturity Date, subject to no individual debt security having a maturity falling after 12 months from the Maturity Date. The Maturity Date will be on or around 28 June 2023 or such other later date as the Directors shall notify to Shareholders. On the Maturity Date, the Fund will be liquidated and Shares in the Fund will be compulsorily redeemed at the prevailing Net Asset Value per Share. In the event that any of the Fund’s investments become less liquid on the Maturity Date, an investor will receive the available proceeds of the prevailing Net Asset Value per Share in respect of the liquidation of the Fund on or around the Maturity Date. The portion of the proceeds related to any such less liquid investments will be paid to investors in one payment at a later date upon realisation of the sale or maturity of such investments. 1. Portfolio Yield is calculated based on Gross Yield to Worst (YTW) less Total Expense Ratio of 0.6% p.a. for Class A. Gross YTW and Portfolio Yield shown in this illustration are based on the model portfolio as of 21 May 2019 and are not indicative of the actual dividend payout. Gross YTW is based on the underlying portfolio and not on the dividends paid by the fund, which may differ. Gross YTW and Portfolio Yields are not guaranteed and are subject to change. Total Expense Ratio (TER) in this illustration is assumed to be capped at 0.6% p.a.. Note that TER of Share Class A will only be capped at a rate of 0.60% p.a., for each month whereby the AUM of the Fund on the last business day of the prior month is at least USD100mm and above. The cap will be place on the first business day of the month until reassessed. 2. The assumptions made are based upon proprietary data and risk analytics. Results do not reflect the deduction of advisory fees or other expenses and do not reflect the impact that material economic and market factors might have on adviser’s decision-making if the adviser were actually managing client assets. Results illustrated should not be considered an indicator or guarantee of future results and should not constitute the sole basis for an investment decision. These are targets and subject to change. 3. Weighted Average. Credit Quality: Nationally Recognised Statistical Rating Organisation’s (NRSRO’s) assess the likelihood of bond issuers defaulting on a bond’s coupon and principal payments. The credit quality allocation by Brandywine Global Investment Management assigns each security the middle rating from three NRSRO’s (Standard & Poor’s,Moody’s Investor Services and Fitch Ratings, Ltd.). If only one NRSRO assigns a rating, that rating will be used. Securities that are not rated by all three NRSRO’s are reflected as such. The lower the overall credit rating, the riskier the portfolio. The credit rating is expressed as a regular letter rating (from high to low quality): AAA, AA, A, BBB, BB, ...D. 4. Base Currency of the fund is USD. 5. For Illustration purposes only. Actual dividend payout date is based on the date that is announced by fund administrator, BNY Mellon. Note that Dividend payouts in quarterly distributing share classes are typically made only when there is at least one full quarter of Income Accrual 6. For Illustration purposes only, based on a typical fixed maturity product. FOR CITIBANK N.A BANGKOK BRANCH ONLY AND MAY ONLY BE PROVIDED TO CITIBANK’S CLIENTS IN THAILAND IN ACCORDANCE WITH THE APPLICABLE LAWS OR REGULATIONS IN THAILAND. PLEASE REFER TO IMPORTANT NOTE ON FINAL PAGE WHY GLOBAL BONDS AND WHY NOW? Accommodative Emerging Central Banks and Markets (EM) Credit Markets Policy Makers poised to benefit ▪ US Fed reduced ▪ EM Growth Engine – ▪ Corporate fundamentals monetary tightening, China – Is Up And generally strong pausing its hiking cycle Running ▪ Default rates continue to ▪ Global fiscal policy to be ▪ EM Valuations Look be low in the US, Europe somewhat more Relatively Compelling and emerging markets stimulative to support growth INDICATIVE PORTFOLIO1 Average weighted duration 3.22 years Average weighted years to maturity 3.65 years Country Allocation China 15% DM United States 20% Russia 10% 32% Australia 3% Saudi Arabia 10% Canada 2% Mexico 8% EM Guernsey 2% Chile 7% 68% Supranational 2% Indonesia 5% Others 3% South Africa 5% Brazil 3% Colombia 3% Others 2% Sector Allocation Sovereign 26% Financial 16% Sovereigns Quasi-Sovereign 16% Real Estate 11% 42% Energy 10% Consumer, 8% Non-cyclical Corporates Consumer, Cyclical 4% 58% Basic Materials 3% Communications 2% Industrials 2% Technology 1% Utilities 1% Source: Brandywine Global, as of 21 May 2019. Opinions expressed are subject to change without notice and do not take into account the particular investment objectives, financial situation or needs of individual investors. DM: Developed Markets; EM: Emerging Markets. 1. The assumptions made are based upon proprietary data and risk analytics. Results do not reflect the deduction of advisory fees or other expenses and do not reflect the impact that material economic and market factors might have on adviser’s decision-making if the adviser were actually managing client assets. Results illustrated should not be considered an indicator or guarantee of future results and should not constitute the sole basis for an investment decision. These are targets and subject to change. For illustration purpose only. FOR CITIBANK N.A BANGKOK BRANCH ONLY AND MAY ONLY BE PROVIDED TO CITIBANK’S CLIENTS IN THAILAND IN ACCORDANCE WITH THE APPLICABLE LAWS OR REGULATIONS IN THAILAND. PLEASE REFER TO IMPORTANT NOTE ON FINAL PAGE Designed around nine independent Brandywine Global is a value-focused global fixed income investment managers, Legg Mason bring and equity specialist providing a range of solutions for our investors expertise across equities, institutional and retail clients worldwide. Wholly owned fixed income and alternatives. subsidiary of Legg Mason, Inc. since 1998. AUM Global bond specialist USD 758 billion years of experience in Global Fixed Income Partnership of 28 9 AFFILATES Managed 259 institutional portfolios Zero defaults in global credit portfolios Fund Details Fund Name Legg Mason Global Solutions (LMGS) - Legg Mason Diversified Global Credit Fixed Maturity Bond Fund 2023 Domicile/ Structure Dublin, Ireland / UCITS Fund Manager/Investment Legg Mason Investments (Ireland) Limited/ Brandywine Global Investment Management LLC. Manager The Fund’s investment objective is to generate income. The Fund will invest in a diversified portfolio of developed Investment Objective and Emerging Market Country fixed income debt securities, issued by sovereign, quasi-sovereign, supranational and corporate issuers. The strategy seeks to generate income over a defined period whilst minimizing single credit issuer risk by building a well-diversified portfolio. Initial Offer Period (IOP) 29 May to 27 June 2019 Tenor 4 years1 Expected Maturity Date On or around 28 June 2023 or such other later date as the Directors shall notify to Shareholders1 Base currency USD NAV frequency Daily Dealing Frequency Daily dealing, only open for redemptions after IOP period Subscriptions Amount USD1,000 / EUR 1,000 / SGD 1,500 / HKD 8,000 Launch Price USD 100 / EUR 100 / SGD 1.00 / HKD 100 Dividend Distribution Quarterly Management Fee 0.55% p.a. for Class A Initial Charge Up to 3% for Class A Capped at a rate of 0.60% p.a., for each month whereby the AUM of the Fund on the last business day of the prior Total Expense Ratio month is at least USD 100mm. The cap will be placed on the first business day of the month until reassessed. Class A US$ Distributing Class A Euro Distributing Class A SGD Distributing Class A HKD Distributing ISINs (Q) (Q)(Hedged) (Q)(Hedged) (Q) IE00BK6S5T15 IE00BK6S5P76 IE00BK6S5R90 IE00BK6S5Q83 Estimated Cost of Carry for Not Applicable 2.9% p.a. 0.55% p.a. Not Applicable Hedged share classes2 Other than the general UCITS investment parameters: ▪ Diversified portfolio of developed and emerging market countries fixed income debt securities ▪ Up to 70% of its Net Asset Value in debt securities issued by Emerging Market Countries. ▪ Up to 30% of its Net Asset Value in debt