microorganisms Article Novel Antifungal Activity of Lolium-Associated Epichloë Endophytes Krishni Fernando 1,2, Priyanka Reddy 1, Inoka K. Hettiarachchige 1, German C. Spangenberg 1,2, Simone J. Rochfort 1,2 and Kathryn M. Guthridge 1,* 1 Agriculture Victoria, AgriBio, Centre for AgriBioscience, Bundoora, 3083 Victoria, Australia;
[email protected] (K.F.);
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[email protected] (S.J.R.) 2 School of Applied Systems Biology, La Trobe University, Bundoora, 3083 Victoria, Australia * Correspondence:
[email protected]; Tel.: +61390327062 Received: 27 May 2020; Accepted: 19 June 2020; Published: 24 June 2020 Abstract: Asexual Epichloë spp. fungal endophytes have been extensively studied for their functional secondary metabolite production. Historically, research mostly focused on understanding toxicity of endophyte-derived compounds on grazing livestock. However, endophyte-derived compounds also provide protection against invertebrate pests, disease, and other environmental stresses, which is important for ensuring yield and persistence of pastures. A preliminary screen of 30 strains using an in vitro dual culture bioassay identified 18 endophyte strains with antifungal activity. The novel strains NEA12, NEA21, and NEA23 were selected for further investigation as they are also known to produce alkaloids associated with protection against insect pests. Antifungal activity of selected endophyte strains was confirmed against three grass pathogens, Ceratobasidium sp., Dreschlera sp., and Fusarium sp., using independent isolates in an in vitro bioassay. NEA21 and NEA23 showed potent activity against Ceratobasidium sp.