View more on these topics

Legg Mason launches Global Blue Chip fund

Legg Mason has launched a Global Blue Chip Bond fund for its fixed income affiliate Western Asset Management.

Dipankar Shewaram and Mike Buchanan will run the fund from their office in Pasadena. It will invest in what the managers deem to be pure investment grade, high quality companies which they say are trading at historically high credit spreads.

In a release, Shewaram says: “Spreads have reached historic highs, which reflect both the illiquidity in credit markets and investors’ extremely pessimistic outlook for the global economy and corporate defaults. There is a substantial amount of incremental yield that is reflective of neither market technicals nor credit fundamentals.”

He adds spreads are also implying a 20% default rate which they do not think will materialise.

The Western Asset Global Blue Chip Bond fund is benchmarked against Merrill Lynch US Treasuries 1-10 year Index. There are no sector or country restrictions but as part of the fund’s risk controls, exposure to senior debt of insurance, financial or real estate issuers is capped at 10%.

The fund was launched on June 2.


Related Articles:
Legg Mason switches manager
Legg Mason sales head made redundant

Recommended

Raise the red flag issues

In 1865, Britain introduced the Locomotives on Highways Act, better known as the Red Flag Act. Among other things, the act stipulated that all mechanically powered road vehicles must be preceded by a man on foot waving a red flag to warn the public.

People on the move: Investment

Armstrong Investment Managers has hired Simon Ellis as a consultant to drive its business strategy. As well as heading up the review of the Financial Services Skills Council’s restructure, Ellis began work on business development at the newly formed multi-asset investment house at the start of June.

Trouble ahead - thumbnail

Pensions: trouble ahead?

The pace of change in the pension’s space has been little short of astonishing, and has left thousands of employers struggling to keep their pension policy compliant, and also on the right side of current best practice and governance. Many employers, and indeed many in the pensions industry itself, would like to see a period of no change during the next term of government. This would give all sides a chance to catch up and draw breath. 

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment