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Brandywine announces new global equity fund

By Rhea Nath
3 minute read

The specialist manager of Franklin Templeton has expanded its suite of products for Australian investors.

Brandywine Global has announced the launch of the Brandywine Global Opportunistic Equity Fund, which will invest in 60–100 global companies across a diverse mix of sectors and industries.

According to the firm, the launch comes amid high demand for strong global value equity strategies.

“Investors realise that having a more diversified global focus across their portfolios is not just about returns, but about managing risks and market volatility,” said Felicity Walsh, managing director for Franklin Templeton Australia.

“Brandywine Global is well recognised in the Australian market for its global fixed income strategies. This fund extends Brandywine Global’s capabilities for Australian investors, utilising the same analytical rigour and fundamental value framework along with the macroeconomic analysis for which the firm is well known.”

The fund will limit its stock position size to 5 per cent at purchase and aims to outperform the MSCI ACWI Index. Particularly, it will look for companies with solid balance sheets and strong free cash flow, favouring sectors believed to be well positioned to capitalise on key macro catalysts.

Brandywine portfolio manager Sorin Roibu, explained: “Stocks in the portfolio span a diverse mix of sectors and industries. We are generally invested in larger-cap stocks and our risk metrics are aligned with our view that opportunities are not plentiful in the current environment.

“As always, we are vigilant and awaiting new opportunities. Market shifts can happen very quickly, and we are prepared to act opportunistically should investor fear arise in the US or elsewhere in the world.

Roibu also highlighted the firm’s decade-long track record in managing global equities, which uses comprehensive fundamental value-driven bottom-up research alongside top-down macroeconomic insights.

“Unlike traditional value strategies, our distinct investment process is premised on the philosophy that valuation alone is not a catalyst,” he explained.

“The fund’s approach helps us to avoid value traps and style drift while enhancing the strategy’s ability to capture diversified sources of return – through what we call ‘multiple ways to win’.”

Brandywine Global, a specialist manager of Franklin Templeton, manages US$60 billion in assets under management as of 31 March 2024.

The fund announcement follows Franklin Templeton’s ETF expansion on the ASX last month, launching two managed funds – the Franklin Australian Absolute Return Bond Fund and the Franklin Global Growth Fund – as active ETFs.

According to the investment manager, the two funds will open new avenues for Australian investors to diversify their portfolios and gain access to global and domestic investment opportunities.

“We are delighted that these market-leading funds are now available to investors via the ASX,” said Walsh at the time.

“Listing on the ASX will mean that investors will now be able to access the investment expertise and differentiated performance attributes of these funds through intraday-traded vehicles.”