Following the news that Stephen Smith will transition from a portfolio manager role into an advisory role in the Brandywine Global business at the end of 2020, we are retaining our ratings at AA and A respectively for the Legg Mason Global Fixed Income and the Legg Mason Global Fixed Income Absolute Return funds.

Brandywine Global, a Legg Mason affiliate, has built a strong, value orientated, investment process and it is our expectation that this remain unchanged by Mr Smith’s departure. The fund’s three remaining co-managers will continue to run the fund, whilst David Hoffman will assume the role of head of Global Fixed Income, a position he has previously shared with Mr Smith. Therefore, in our opinion, the Brandywine Global fixed income team has both the strength and depth to accommodate this departure.

We will however continue to monitor these changes through our quarterly review meetings and provide an update if there is a change to our view.