Western Asset launches New Sustainable Global Corporate Bond Fund

Western Asset launches New Sustainable Global Corporate Bond Fund

• New Article 8 Fund Identifies Global Credit Value Opportunities to generate risk-adjusted returns with a transparent focus on sustainability

 

London, 10 March 2022 – Western Asset, a specialist investment manager of Franklin Templeton¹, is pleased to announce the launch of its Western Asset Sustainable Global Corporate Bond Fund² a sub-fund of the Dublin domiciled Legg Mason Global Funds PLC range. The fund will be registered for distribution in the UK, Germany, Switzerland, Austria, Greece and Cyprus.

This new Article 8 fund³ offers clients the ability to capitalize on opportunities in global credit markets with a vehicle that seeks to identify value and enhanced risk management whilst providing a transparent focus on sustainability and carbon reduction goals. It will be managed in line with the time-tested investment philosophy and process of Western Asset’s flagship Global Credit strategy while integrating a proprietary, transparent and rigorous sustainable investment framework.

“We’ve seen increasing demand for low carbon, sustainable solutions from clients and are delighted to offer the Sustainable Global Corporate Bond Fund, which uses Western Asset’s proprietary ESG framework and seeks to meet minimum thresholds for carbon reduction SDG alignment and portfolio ESG ratings. Our emphasis in achieving a lower portfolio carbon intensity is on identifying issuers with whom we regularly engage and have credible and quantifiable targets, and those with plans for reducing carbon intensity and increasing the use of renewables. In addition, the Fund prohibits investments in tobacco, civilian firearms, controversial weapons, nuclear weapons, thermal coal and issuers that do not uphold the principles outlined in the UN Global Compact,” Annabel Rudebeck, Head of Non-US Credit.

Mike Zelouf, Executive Director at Western Asset, commented, “The ongoing challenges of the pandemic and the increasingly tangible challenges of climate change have created a consensus in the regulatory, business and investment communities around the need to reduce carbon emissions and raise the standards for corporate social practices, further strengthening the case for ESG investing. Offering our clients responsible investment strategies that hold companies accountable for operating sustainably, while continuing to target attractive returns, is therefore more important than ever.”

Addressing Climate Change

The Western Asset Sustainable Global Corporate Bond Fund targets carbon reduction. The annual decrease in absolute portfolio weighted average carbon intensity⁴, in addition to the need to maintain a weighted average carbon intensity that is at least 20% below the benchmark⁵, gives the Fund the ability to achieve a positive impact and help meet key sustainable development goals such as SDG 13 on Climate Action⁶ and SDG 7⁷ on Affordable and Clean Energy. 

Bonnie Wongtrakool, Global Head of ESG Investments/Portfolio Manager at Western Asset, added, “Our aim is not to rely on sector and industry limits to achieve the lower carbon intensity. Instead, our focus is on fundamental value and engagement. This means identifying issuers that are committed to a low-carbon economy and regularly engaging with them. We seek to invest in issuers with credible and quantifiable targets including plans for reducing carbon intensity and increasing the use for renewables. This approach aligns with our firm’s ESG focus. In fact, Western Asset has a long and successful track record of ESG investing, and we’ve integrated ESG analysis across the firm’s $492.4 billion in assets under management as of December 31, 2021.”

The fund is managed by Annabel Rudebeck, Head of Non-US Credit, and Matt Jackson, Portfolio Manager, based in Western Asset’s London office. With more than 22 years of industry experience, Annabel Rudebeck leads Western Asset’s Global Credit team and is responsible for the daily management and strategic direction of the firm’s global credit portfolios. Matt Jackson joined Western Asset in 2003 and oversees its global, European and UK investment grade credit portfolios. Annabel Rudebeck and Matt Jackson are supported by Bonnie Wongtrakool and Ryan Brist, Head of Global Investment-Grade Credit/Portfolio Manager, both based in Western Asset’s Pasadena, California office.

About Western Asset

Western Asset is one of the world’s leading fixed-income managers with 50 years of experience and US$492.4 billion in assets under management (AUM) as of December 31, 2021. With a focus on long-term fundamental value investing that employs a top-down and bottom-up approach, the firm has nine offices around the globe and deep experience across the range of fixed-income sectors. Founded in 1971, Western Asset has been recognized for delivering superior levels of client service alongside its approach emphasizing team management and intensive proprietary research, supported by robust risk management. To learn more about Western Asset, please visit westernasset.com.
 

Contacts:

Rachel Cashmore Corporate Communications Manager Franklin Templeton Cannon Place, 78 Cannon Street London EC4N 6HL Tel: +44 7754968037 Email: [email protected]

Dorine Johnson Head of Corporate Communications EMEA Franklin Templeton Cannon Place, 78 Cannon Street London EC4N 6HL Tel: +44 7919532079 Email: [email protected]

 

This is a marketing communication. Please refer to the prospectus of the UCITS and to the KID before making any final investment decisions.

1. Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 155 countries. Franklin Templeton’s mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company offers boutique specialization on a global scale, bringing extensive capabilities in equity, fixed income, multi-asset solutions and alternatives. With offices in more than 30 countries and approximately 1,300 investment professionals, the company has 75 years of investment experience and approximately $1.5 trillion in assets under management as of February 28, 2022. For more information, please visit franklintempleton.co.uk and follow us on LinkedIn, Twitter and Facebook.
2. The Western Asset Sustainable Global Corporate Bond Fund is a sub-fund of the Dublin domiciled Legg Mason Global Funds PLC range.

3. Further information in relation to the sustainability-related aspects of the Fund can be found here.

4. Weighted Average Carbon Intensity: a portfolio’s exposure to carbon-intensive companies, calculated as metric tons CO2 /USD 1 million revenues.

5. Benchmark: Bloomberg Global Aggregate Corporate Index. Allocations or performance are not measured against the above benchmark. Western Asset defines carbon footprint as the weighted average of carbon emissions intensity of securities held within the portfolio. Carbon emissions intensity refers to the Greenhouse Gas (“GHG”) Protocol Scope 1 and Scope 2 carbon emitted by an issuer scaled by issuer size.
6. https: //sdgs.un.org/goals/goal13
7. https://sdgs.un.org/goals/goal7

This document is based on an update from Western Asset Management, a subsidiary of Franklin Templeton. The views expressed are opinions of the Portfolio Management team as of the date of this material and are subject to change based on market and other conditions without notice and may differ from other investment professionals or from those of the firm as a whole.

This material is intended to be of general interest only and should not be construed as individual investment advice or a recommendation or solicitation to buy, sell or hold any security, or fund, or to adopt any investment strategy. It does not constitute legal or tax advice. The information provided in this material is not intended as a complete analysis of every material fact regarding any country, region or market. Individual securities are examples only and are not recommendations to buy or sell an investment. Opinions expressed are subject to change without notice and do not consider the needs of investors. For the avoidance of doubt, if you make a decision to invest, you will be buying units/shares in the fund and will not be investing directly in the underlying assets of the fund.

This is a sub-fund of Legg Mason Global Funds plc ('LMGF'). LMGF is an open-ended investment company with variable capital, organised as an undertaking for collective investment in transferable securities ('UCITS'). LMGF is authorised in Ireland by the Central Bank of Ireland. Information has been prepared from sources believed reliable. It is not guaranteed in any way by any Franklin Resources, Inc. company or affiliate (together 'Franklin Templeton'). Before investing you should read the application form Prospectus and KID. The fund documents may be obtained free of charge in English, French, German, Italian and Spanish from LMGF's registered office at Riverside Two, Sir John Rogerson's Quay, Grand Canal Dock, Dublin 2, Ireland, from LMGF's administrator, BNY Mellon Fund Services (Ireland) Limited, or please visit www.franklintepleton.co.uk to be directed to your local Franklin Templeton website.

In addition, a summary of investor rights is available from franklintempleton.co.uk​. The summary is available in English.​​

​The sub-funds of LMGF are notified for marketing in multiple EU Member States under the UCITS Directive. LMGF can terminate such notifications for any share class and/or sub-fund at any time by using the process contained in Article 93a of the UCITS Directive.