Legg Mason has announced the launch of the Legg Mason Permal Tactical Allocation Fund, a global multi-asset tactical allocation mutual fund managed by its fund-of-hedge-funds affiliate,
Legg Mason has announced the launch of the Legg Mason Permal Tactical Allocation Fund, a global multi-asset tactical allocation mutual fund managed by its fund-of-hedge-funds affiliate, Permal Asset Management.
Targeting institutional and retail taxable and tax-exempt investors, this will be the first Legg Mason 40-Act open-end mutual fund to be managed by Permal.
The fund is an opportunistic and diversified product which seeks to benefit from any market condition and to outperform a traditional 60/30/10 (equity/fixed income/cash) portfolio over a medium-term time frame. The asset allocation strategy seeks to exploit perceived inefficiencies or imbalances in equity, fixed-income or other asset classes in any region or country.
The fund incorporates the top-down and bottom-up investment practices of Permal’s investment committee and its associated portfolio managers, alongside rigorous quantitative and qualitative analysis, in its asset allocation. It is designed to be forward-looking and flexible, reflecting the relative value opportunities in a constantly changing environment, and will not be constrained by geography or investment style.
The fund invests primarily in both passive and actively managed investment funds, to include specifically, affiliated and unaffiliated open-end mutual funds, unaffiliated closed-end mutual funds and exchange traded funds and notes, as well as cash equivalents and alternative investments.
Jim Hodge, Permal Asset Management’s chief investment officer, says: "By being both tactical and opportunistic, the Legg Mason Permal Tactical Allocation Fund is designed for these times. We are not only looking to generate alpha from today’s volatility, but also to be positioned to benefit from the recovery, which, perhaps still in the distance, will eventually occur. These are fundamental traders’ markets, where insight needs to be matched by analysis and self-belief, and the fund looks to incorporate these attitudes.
"We believe that Permal brings to the table a virtually unparalleled view of global markets and the asset management industry, in both traditional and alternative asset classes, together with extensive quantitative and qualitative risk management practices. The fund incorporates all these traits, which we believe will result in optimum fund positioning and allocation."
Matt Schiffman, head of Americas retail at Legg Mason, adds: "Permal has an expertise in asset allocation and a deep global perspective and we believe they can find opportunities in these markets to deliver value to our clients. This is an innovative way to bring their fund of hedge fund expertise to traditional asset classes in a mutual fund offering. We remain focused on leveraging the expertise of our affiliates to deliver new investment solutions that are responsive to the market environment."
