Introduction
to
Legg Mason
Legg Mason Global Funds plc
August 2013
Page 1
Investment Driven
Source: Legg Mason as at 30 June 2013 *Source: Pensions & Investments, as at 31 December 2012.
Dedicated to money management
•
US$ $645 billion under management and singularly focused on
managing money
•
19
th
largest asset management firm in the world*
•
38% of assets from clients domiciled outside of the US
•
Founded in 1899
Global presence with local capabilties
•
Approximately 3,100 employees with 31 offices around the world
including New York, Miami, London, Dubai, Tokyo, Singapore, Hong Kong
and Australia
•
On-the-ground presence in key locations with a global product set that
spans cross border and local fund ranges
Our vision is to be a proven leader in global asset management, by delivering specialised
investment solutions that meet our clients’ objectives
Equity
26%
Fixed
Income
54%
Liquidity
20%
Page 2
Strength Across Multiple Perspectives
Unique structure around wholly owned, specialist investment management companies
•
Legg Mason houses a network of leading investment management subsidiaries with time-tested
experience and investment independence
•
They focus on the opportunities that best reflect their individual expertise and specialisation
Focus on active management
•
We are passionate about the power of active management to generate value
•
Each of our investment management companies has a focus on active investing
Global depth across the investment spectrum
•
Investment capabilities that span global markets
•
Expertise across equity, fixed income, alternatives and money market investments
Global presence with local capabilities
•
On-the-ground presence in key locations with a global product set that spans cross border and
local fund ranges
•
31 offices worldwide
Client centric focus
•
On-the-ground presence worldwide drives a deep understanding of our clients’ needs
1
2
3
4
Page 3
Source: Legg Mason, as at 30 June 2013.Each of the above investment management companies is affiliated with Legg Mason Investments through common control and ownership by Legg Mason.
Independent Expertise. Singular Focus.
One of the world’s largest global asset managers, Legg Mason combines expertise in a wide range of investment
disciplines with a singular focus on delivering powerful financial solutions for both individuals and institutions. Our
network of independent investment managers currently manages over $645bn* for clients in six continents
Page 4
Global Connectivity
Global Presence in Key Markets
New York
Baltimore
Miami
Singapore
Taipei
Hong Kong
Tokyo
Warsaw
Frankfurt
Luxembourg
London
Paris
Santiago
Sydney
Melbourne
Kitchener
Toronto
Montreal
São Paulo
San Francisco
Pasadena
Boston
Philadelphia
Madrid
Milan
Nassau
Dubai
Naples
Chicago
Cincinnati
Stamford
Wilmington
Investment Centre/
affiliate office
Distribution Location
Zurich
Page 5
Global Scale and Breadth
Managers by Worldwide Assets
Rank
Firm
AUM ($bn)
1
BlackRock
3,792
2
Vanguard Group
2,215
3
State Street Global
2,086
4
Fidelity Investments
1,888
5
PIMCO
1,624
6
JPMorgan Asset Mgmt
1,426
7
BNY Mellon Asset Mgmt
1,386
8
Deutsche Asset
1,244
9
Prudential
1,060
10
Capital Research
1,046
11
Amundi
960
12
Goldman Sachs
854
13
Franklin Templeton
782
14
Northern Trust
759
15
Wellington
758
16
AXA Investment
730
17
MetLife
721
18
Invesco
688
20
Legg Mason
649
Source: Pensions & Investments, as at 31 December 2012
Rank
Firm
AUM ($bn)
1
BlackRock
2,593
2
State Street Global
1,671
3
PIMCO
1,428
4
Vanguard Group
1,331
5
BNY Mellon Asset Mgmt
1,254
6
Fidelity Investments
971
7
JPMorgan Asset Mgmt
792
8
Prudential
791
9
Amundi
788
10
Wellington
757
11
AXA Investment
636
12
Legal & General Invst
635
13
Capital Research
580
14
Northern Trust
561
15
Legg Mason
553
Page 6
Page 7
Each of the above investment management companies is affiliated with Legg Mason Investments through common control and ownership by Legg Mason, LeggMason provides its clients with access to such affiliates primarily through its Dublin domiciled and Luxembourg domiciled funds, in which such affiliates serve as investment manager or sub-investment manager. * Legg Mason Hong Kong (operating under both Legg Mason Asset Management Hong Kong Limited and Legg Mason International Equities (Hong Kong) Limited.
LEGG MASON HONG KONG*
HONG KONG & CHINA EQUITY
KEY COMPETITIVE STRENGTHS
An active, non-style biased, bottom-up fundamental research manager
that primarily invests in mid- to large-cap Hong Kong and China stocks.
A long track record since 1994 managing assets in the Hong Kong
markets.
Legg Mason’s Investment Managers
A dedicated Hong Kong and China equities investment
manager committed to the generation and delivery of
alpha.
Permal's value add is derived from its well-honed manager
selection and risk management processes, and its creative
product engineering and ongoing asset allocation combined
with a top down world view.
PERMAL
ONE OF THE LONGEST TRACK RECORDS IN THE FUND OF HEDGE
FUNDS INDUSTRY
KEY COMPETITIVE STRENGTHS
•
The Permal Group was a pioneer in the use of hedge-style managers
within multi-manager funds offering investors global investment.
•
The goal of the multi-manager portfolios is to create and maintain
diversified portfolios of quality managers that provide safety of capital,
excellent investor liquidity and above average returns with below
average volatility when compared to traditional investments.
Consistent capital appreciation for investors through
a value-oriented investment approach that is
grounded in focus and consistency.
PRIVATE CAPITAL MANAGEMENT
VALUE
ORIENTATED US ALL CAP APPROACH
KEY COMPETITIVE STRENGTHS
With over 20 years of experience PCM achieves consistent capital
appreciation for investors through a unique investment approach that
emphasises preservation of capital and appreciation; thereby
significantly increasing the value of clients' portfolios.
PCM seeks to invest in companies that generate substantial cash flows
– discretionary cash flow.
PCM concentrates on industries where the investment team has either
operating experience or domain expertise.
One of the world’s leading fixed income managers, with
experience across a wide variety of fixed income
strategies with on-the-ground presence in US, UK, Japan,
Singapore, Hong Kong, Australia and Brazil. Headquarter
in Pasadena.
WESTERN ASSET MANAGEMENT
GLOBAL SPECIALIST IN FIXED INCOME MANAGEMENT
KEY COMPETITIVE STRENGTHS
One of the world’s leading fixed income investment managers.
Focus on fixed income management.
Seeks to identify undervalued sectors and issuers that will outperform
over the longer term.
Long standing experience dating back to 1971, with expertise that
Page 8
Legg Mason’s Investment Managers
Each of the above investment management companies is affiliated with Legg Mason Investments through common control and ownership by Legg Mason, Inc. Legg Mason provides its clients with access to such affiliates primarily through its Dublin domiciled and Luxembourg domiciled funds, in which such affiliates serve as investment manager or sub-investment manager.
A global investment manager using innovative strategies
to invest across the world’s markets. Founded in 1969 and
headquarter in Boston.
BATTERYMARCH FINANCIAL MANAGEMENT
GLOBAL EQUITY MANAGER INVESTING IN OVER 50 COUNTRIES
KEY COMPETITIVE STRENGTHS
Equity specialists managing US, International, Emerging Markets and
Global portfolios.
Combines the best of both quantitative approach – that can evaluate a
large number of stocks on a daily basis – with the insights provided by
the fundamental work of experienced portfolio managers.
A flexible process is applied to all markets, customising its approach to
reflect each market's stage of development.
Emerging market equity experience goes back to 1987.
Over 25 years’ experience in managing European equities.
A value oriented equity and fixed-income manager – with a
long term track record in global fixed income, and with
expertise in US equities. Founded in 1986 and headquarter
in Philadelphia.
BRANDYWINE GLOBAL
CLASSIC VALUE INVESTMENT MANAGER
KEY COMPETITIVE STRENGTHS
Global fixed income
Focus on “classic value” investing including the management of value
based global fixed income strategies.
A long term focus on government bonds, investing in those securities
with the highest real yields.
Page 9
Legg Mason’s Investment Managers
Legg Mason’s largest equity manager, known for its
research-driven approach in a broad range of market capitalisations
and investing styles. Headquartered in New York.
CLEARBRIDGE ADVISORS
EXPERTISE ACROSS A DIVERSE ARRAY OF US EQUITY STYLES
KEY COMPETITIVE STRENGTHS
Established in May 2006 from the former Citigroup Asset Management
US Equity Group.
Offers a bottom-up, primary research intensive and fundamental
approach to security selection.
Offers exposure to an assortment of investment styles, capitalisation
and disciplines.
* Esemplia Emerging Markets, the trading name of Legg Mason International Equities Limited.
Each of the above investment management companies is affiliated with Legg Mason Investments through common control and ownership by Legg Mason, Inc. Legg Mason provides its clients with access to such affiliates primarily through its Dublin domiciled and Luxembourg domiciled funds, in which such affiliates serve as investment manager or sub-investment manager.
40 years’ experience in US small-cap portfolios, managed
through a disciplined value approach. Based in New York.
ROYCE & ASSOCIATES
SMALL-CAP SPECIALIST
KEY COMPETITIVE STRENGTHS
Dedicated small-cap manager (US, Europe, Global).
Chuck Royce is considered one of the pioneers of small-cap investing,
with 49 years of investment experience and almost 40 years as a small
cap value portfolio manager at Royce & Associates.
Core philosophy is oriented toward understanding value, seeking
valuation discrepancies, not just statistically inexpensive stocks, and
seeking the right mix of financial characteristics versus price.
Companies are selected on a rigorous analysis of fundamental
company characteristics centering on strong balance sheets, high
internal rates of return, and the ability to create cash flow.
Page 10
EUROPE
AMERICAS
ASIA
LEGG MASON
INTERNATIONAL
DISTRIBUTION
LOCATIONS
COUNTRIES OF
CLIENT COVERAGE
Austria, Belgium, Denmark, Finland,
France, Germany, Greece, Iceland,
Italy, Luxembourg, Netherlands,
Norway, Poland, Portugal, Spain,
Sweden, Switzerland, UAE and UK
Mexico, Costa Rica, Panama,
Guatemala, Colombia, Venezuela, Brazil,
Peru, Chile, Argentina, Uruguay,
Cayman Islands, Bermuda, Puerto Rico,
Canada, USA and Ecuador
Hong Kong, Singapore, Taiwan,
Australia and Japan
PRODUCTS SOLD
Local Funds (UK, Poland)
Cross-Border Funds
Local Funds (Canada)
Cross-Border Funds
Cross-Border Funds
Local Funds (Singapore, Hong
Kong, Japan and Australia)
The Scope of International Distribution
Germany
UK
Spain
France
DISTRIBUTION CHANNELS
Insurance • Private Banks • Retail Sales • Asset Managers • Fund of Funds • IFAs • Platforms
Chile
USA
Hong
Kong
Singapore
Taiwan
Japan
Poland
Canada
Australia
Italy
Switzerland
Page 11
Our Global Distribution Footprint
Source: Legg Mason as at 31 December 2012. *Non-Resident American Accounts.
•
Fully aligned to local
client requirements
given location and
focus
•
Full understanding
of local market
dynamics and
trends impacting
distribution at local
level
•
International offices
staffed by local
professionals
Specialists and locations worldwide
Sales
Client
Service
Marketing
Product
US
●
●
●
●
UK
●
●
●
●
France
(Including French speaking countries)
●
●
Spain
●
●
Italy
●
●
Germany
●
●
Switzerland
●
Luxembourg
●
●
●
Hong Kong
●
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●
●
Singapore
●
●
●
●
Taiwan
●
●
●
Japan
●
●
●
●
Australia
●
●
●
●
Canada
●
●
●
Miami
(covers NRA* and Latin America)
●
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Page 12
Legg Mason: Marketing Support
Webcasts & video - interactive content
•
Access to technology and preferred vendors to
provide online events and webcasts
•
Utilised to provide product updates and training
and to push out important content
•
Ability to track interactions
Thought leadership
•
Thought Leadership
Website launched in
January 2012
•
Four specialists dedicated
to the production of
thought leadership
content
•
Strong thought leadership
ethos at Legg Mason
Su
p
p
o
rti
n
g
Fac
t
she
ets,
pro
du
ct
comment
ar
ie
s,
s
a
le
s
a
ids
,
roa
dshow
s
T
ech
n
o
lo
g
y
/
i
n
ter
acti
v
e
Public
w
ebs
ites
,
v
ideo
and
e
ma
il
ma
rk
e
ting
Recent
examples of
value added
activities
New technologies
•
Legg Mason App
Internet:
www.leggmason.com
Informationsmaterialien (Beispiele)
•
Monthly fund commentries
•
Perspectives
•
Flash Email
•
Global Bond Review
•
Alpha Edge
Events
•
Legg Mason Investment Conference
•
Legg Mason Think Symposium
•
Portfolio Manager Roadshows
•
Value Dagen
•
Honister Capital- Annual Conference
•
Il Salone Del Risparmio
•
FONDS professionell Kongress
•
Citywire Berlin
•
PIP Investor Geneva
Page 13
Page 14
Global Scale and Breadth
Largest Small Cap Mutual Fund Managers
Rank
Firm
AUM ($bn)
1
Fidelity
63.2
2
Vanguard
58.6
3
DFA
40.8
4
T Rowe Price
31.5
5
Royce & Associates
30.2
6
Columbia
29.5
7
Neuberger Berman
12.9
8
Baron Cap Mgmt
11.8
9
Invesco
9.4
10
Allianz Global Inv
7.7
Source: Pensions & Investments, as at 31 December 2012, US institutional tax-exempt assets
Rank
Firm
AUM ($bn)
1
Blackstone
39.0
2
HSBC
29.7
3
UBS
27.0
4
Goldman Sachs
22.8
5
Grosvenor
22.7
6
Permal
20.0
7
BlackRock
16.8
8
Pacific Alternative Asset
15.1
9
Mesirow
14.3
10
Morgan Stanley
13.4
Largest Hedge Fund of Funds
Top US Based Fixed Income Managers
Rank
Firm
AUM ($bn)
1
BlackRock
1,368
2
Allianz/PIMCO
1,174
3
Prudential
545
4
Vanguard Group
478
5
BNY Mellon Asset Mgmt
441
6
Legg Mason
356
7
Goldman Sachs
340
8
JP Morgan
336
9
State Street Global
315
10
Wellington
315
Rank
Firm
AUM ($bn)
1
PIMCO
364.4
2
Prudential
164.0
3
TIAA-CREF
143.1
4
Legg Mason
131.3
5
Loomis, Sayles & Co.
113.8
6
BlackRock
111.9
7
JP Morgan Asset Mgmt
91.9
8
Fidelity Investments
81.7
9
Wellington
75.9
10
ING US Invst Advisors
74.7
Top Active US Domestic Fixed Income Managers
Source: Institutional Investor US Money Managers Ranking, 31 December 2011
Page 15
Global Scale and Breadth
Top Closed End Fund Managers – US Domestic
Rank
Firm
AUM ($bn)
1
State Street
$393.9
2
Legg Mason
85.0
3
BlackRock
83.7
4
BNY Mellon Asset Mgmt
76.4
5
Northern Trust
52.6
6
Goldman Sachs
42.0
7
JPMorgan Asset Mgmt
41.7
8
PIMCO
36.5
9
HSBC Global Asset
24.9
10
Morgan Stanley
20.6
Source: Strategic Insights, 30 June 2013.
Rank
Firm
AUM ($bn)
1
Nuveen Investments
$49.9
2
BlackRock
38.6
3
Eaton Vance
23.1
4
Allianz Global Inv
18.5
5
Legg Mason
15.3
6
Invesco
12.4
7
Cohen & Steers
9.2
8
First Tr Adv
6.7
9
Virtus Invst Ptnrs
6.4
10
Gabelli
6.3
Largest Retail SMA Managers
Legg Mason: Selected Fixed Income Funds
. All information as at 31 March 2013. NOT ALL SHARE CLASSES ARE AVAILABLE IN ALL JURISDICTIONS. CONTACT YOUR LEGG MASON REPRESENTATIVE FOR
Page 16
FURTHER DETAILS ON FUND AND SHARE CLASS REGISTRATIONS. Please refer to the important information section in the back of this presentation for further information.* This is a guideline only and is subject to change. ** Not all share classes are available in all combinations - see prospectus for a full list of share classes available. *** Delta adjusted exposure 1Attempt to hedge all
non-USD. 2At the time of purchase any such security must be rated Investment Grade, and the long-term sovereign debt of the Emerging Market Country in which the security’s issuer is located must also be rated Investment
Legg Mason: Selected Total/Absolute Return Funds
All information as at 31 March 2013. 1Class A Distr (M) USD. 2Class A Distr (D) USD. 3Class A Distr (A) USD. NOT ALL SHARE CLASSES ARE AVAILABLE IN ALL
JURISDICTIONS. CONTACT YOUR LEGG MASON REPRESENTATIVE FOR FURTHER DETAILS ON FUND AND SHARE CLASS REGISTRATIONS. Please refer to the important information section in the back of this presentation for further information.
Legg Mason: Selected US Equity Funds
All information as at 31 March 2013. Please refer to the important information section in the back of this presentation.. *Bill Miller is the portfolio manager of the Opportunity Trust and Same Peters is the portfolio manager of the Value Trust. Both are US mutual funds that serve as master portfolios for the value and opportunity equity strategies styles, including the Legg Mason Capital Management Value Fund and Legg Mason Capital Management Opportunity Fund. ** As at 31 December 2011. The Funds mentioned are offered solely to non-US investors under the terms and conditions of the relevant prospectus.
International Product Range: Legg Mason Global Funds plc
Page 19
All information as at 31 March 2013. This is not a complete list of funds or share classes, for a full list of our funds and share classes please read the Prospectus. Not allof the share types included in this document are active. Please contact your local sales representative for further information. This information has been prepared from sources believed reliable but is not guaranteed by Legg Mason and is not a complete summary or statement of all available data. Individual securities mentioned are intended as examples of portfolio holdings and are not intended as buy or sell recommendations. Opinions expressed are subject to change without notice and do not take into account the particular investment objectives, financial situation or needs of individual investors. Please refer to the important information section in the back of this presentation for further information.
International Product Range: Legg Mason Global Funds plc
Page 20
All information as at 31 March 2013. This is not a complete list of funds or share classes, for a full list of our funds and share classes please read the Prospectus. Not allof the share types included in this document are active. Please contact your local sales representative for further information. This information has been prepared from sources believed reliable but is not guaranteed by Legg Mason and is not a complete summary or statement of all available data. Individual securities mentioned are intended as examples of portfolio holdings and are not intended as buy or sell recommendations. Opinions expressed are subject to change without notice and do not take into account the particular investment objectives, financial situation or needs of individual investors. Please refer to the important information section in the back of this presentation for further information.
International Product Range: Legg Mason Global Funds plc
Page 21
All information as at 31 March 2013. This is not a complete list of funds or share classes, for a full list of our funds and share classes please read the Prospectus. Not allof the share types included in this document are active. Please contact your local sales representative for further information. This information has been prepared from sources believed reliable but is not guaranteed by Legg Mason and is not a complete summary or statement of all available data. Individual securities mentioned are intended as examples of portfolio holdings and are not intended as buy or sell recommendations. Opinions expressed are subject to change without notice and do not take into account the particular investment objectives, financial situation or needs of individual investors. Please refer to the important information section in the back of this presentation for further information.
International Product Range: Legg Mason Global Funds plc
Page 22
All information as at 31 March 2013. This is not a complete list of funds or share classes, for a full list of our funds and share classes please read the Prospectus. Not allof the share types included in this document are active. Please contact your local sales representative for further information. This information has been prepared from sources believed reliable but is not guaranteed by Legg Mason and is not a complete summary or statement of all available data. Individual securities mentioned are intended as examples of portfolio holdings and are not intended as buy or sell recommendations. Opinions expressed are subject to change without notice and do not take into account the particular investment objectives, financial situation or needs of individual investors. Please refer to the important information section in the back of this presentation for further information.
Institutional Product Range: Legg Mason Global Funds plc
Page 23
All information as at 31 January 2012. This is not a complete list of funds or share classes, for a full list of our funds and share classes please read the Prospectus. Not all of the share types included in this document are active. Please contact your local sales representative for further information..
Institutional Product Range: Legg Mason Global Funds plc
Page 24
This is not a complete list of funds or share classes, for a full list of our funds and share classes please read the Prospectus. Not all of the shre types included in this document are active. Please contact your local salesrepresentative for further information. This information has been prepared from sources believed reliable but is not guaranteed by Legg Mason and is not a complete summary or statement of all available data. Individual securities mentioned are intended as examples of portfolio holdings and are not intended as buy or sell recommendations. Opinions expressed are subject to change without notice and do not take into account the particular investment objectives, financial situation or needs of individual investors.
TER refers to latest data available after reports and accounts have been audited for the fiscal year ended 28 February 2011.
Minimum Initial Investment 10.000.000,00 USD (or currency equivalent)
All information as at 31 January 2012. This is not a complete list of funds or share classes, for a full list of our funds and share classes please read the Prospectus. Not all of the share types included in this document are active. Please contact your local sales representative for further information..
Page 25
International Product Overview (Cross Border Dublin)
Extensive share class options and broad based country registrations create a truly global product set
•
The Legg Mason Global Funds (“LMGF”) umbrella offers a multitude of funds of varied strategies and asset
classes
•
Accumulating and distributing share classes of varied frequencies
•
Retail and institutional share classes
•
Currency hedged share classes are currently available for many of the fixed income products and we are
working towards a solution to offer hedging capabilities for our suite of equity funds
Currency share classes
•
AUD – Australian Dollar
•
CAS – Canadian Dollar
•
CHF – Swiss Franc
•
Euro
•
GBP – British Pound
•
JPY – Japanese Yen
•
KRW – Korean Won
•
NOK – Norwegian Krone
•
RMB – Chinese Yuan
•
SEK – Swedish Krona
•
SGD – Singapore Dollar
•
USD – US Dollar
Countries of registration - LMGF*
•
Austria
•
Belgium
•
Canada**
•
Denmark
•
Finland
•
France
•
Germany
•
Great Britain
•
Greece
•
Hong Kong
•
Ireland
•
Italy
•
Japan
•
Luxembourg
•
Netherlands
•
Norway
•
Singapore**
•
Spain
•
Sweden
•
Switzerland
•
Taiwan
* This is not a complete list of countries. Not all funds or share classes are available in each country. Please refer to Legg Mason for the latest list of fund registrations. **Country restricted offer – not public registration.
International Product Overview (Cross Border Luxembourg)
Legg Mason Managed Solutions SICAV and Legg Mason Global Funds FCP (Luxembourg) are Luxembourg-domiciled umbrella funds that have been established as open-ended investment companies with variable capital and are recognized by the FSA. Please note that these funds might not be registered in your jurisdiction. Please contact your local sales representative for more information.
