Legg Mason has launched an offshore version of its Legg Mason Income Optimiser fund, also to be managed by Regina Borromeo.
The newly launched Ireland-domiciled Legg Mason Brandywine Global Income Optimiser is a mirror version of the onshore fund.
The only difference is the onshore vehicle's obligation to have at least 80% of the fund in sterling under the rules of the IMA £ Strategic Bond sector, which the offshore fund does not have to follow.
The two funds have a total return focus and aim to preserve capital as well as achieve a high level of income.
The strategy invests in a diverse range of fixed income and uses derivatives and currency swaps to hedge against various market conditions.
In recent months, the manager has been buying back into US high yield, which she reduced dramatically before the May sell-off as risk premiums compressed.
"We are reversing our shift out of US and high yield bonds, particularly with some high yield names trading above 7% again," Borromeo said.
"Equity-like assets in the US should benefit from the improving economic conditions. We also continue to allocate 6%-7% to US mortgages to play the housing market recovery."
The manager has also increased exposure to the US dollar from as low as 2.5% at the end of April to 15% at the end of June in the onshore fund.
The move was offset by currency shorts in Australian, New Zealand and Canadian dollars and the yen, the latter being the fund's largest currency underweight.
Borromeo said: "The Bank of Japan will have to continue to aggressive expand its balance sheet to fight deflationary pressures, which will weaken the currency further."
The onshore fund has been running since December 2011 and has recently crossed the $100m threshold, but the newly launched offshore vehicle is still only $5m.
Legg Mason Income Optimiser has returned 9.4% over one year to 28 June, according to Morningstar, beating the sector average return of 7.9% for the period.
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