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Legg Mason launches absolute return fund

Legg Mason Global Asset Management has confirmed the launch of a multi-asset absolute return fund.

The fund, which was first revealed by Money Marketing will be run out of investment subsidiary Permal and will target returns of 8 to 10 per cent over a market cycle of three to five years.

The Legg Mason Permal global absolute return fund is a daily liquidity Ucits III vehicle. The fund will invest 35 per cent in global fixed income at launch, with 20 per cent in both global equities and real asset strategies. There will also be a 14 per cent weighting in alternative strategies and 11 per cent in cash or equivalents.

Legg Mason head of European sales Justin Eede says: “The growing popularity of absolute return funds is inevitable because of the poor performance of some traditional benchmarks over the past decade and the recent high levels of market volatility.

“Given this, there is a growing demand for new solutions that can offer attractive returns in various market conditions, but with less volatility. We are confident our new absolute return fund can deliver this.”

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