Permal Group Launches Alternative Multi-Manager Mutual Fund - KMPH FOX 26 | Central San Joaquin Valley News Source

Permal Group Launches Alternative Multi-Manager Mutual Fund

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SOURCE Legg Mason Inc.

NEW YORK, Feb. 10, 2014 /PRNewswire/ -- Legg Mason, Inc. (NYSE: LM) announced today that its affiliate Permal Group ("Permal"), one of the largest alternative asset managers in the world, has launched Permal Alternative Select Fund ("the Fund"; ticker PASWX), its first open end alternative mutual fund. The multi-strategy fund, which offers investors daily liquidity, is sub-advised by a selection of leading hedge fund managers ("subadvisers") and has a minimum investment of $1,000.

By means of a tactical asset allocation program, the Fund is seeking to produce positive returns across a full market cycle, allocating assets to strategies that historically have had a low correlation to each other. These strategies may include Equity Hedge, Event Driven, Global Macro and Relative Value.

The initial investment strategies and subadvisers are:

  • Equity Hedge: Apex Capital, LLC
  • Event-Driven: River Canyon Fund Management LLC, a wholly-owned subsidiary of Canyon Capital Advisors
  • Global Macro (Discretionary): TT International
  • Global Macro (Systematic): BH-DG Systematic Trading LLP, part of a joint venture arrangement between David Gorton and Brevan Howard

"Clients today are far more interested in accessing a range of liquidity solutions covering the spectrum from daily to quarterly and beyond. Through Permal Alternative Select Fund, we are offering an alternative daily liquid multi-manager fund with a select group of leading managers and a core focus on diversification by manager and strategy," said Maxwell Osborne, Head of U.S. Distribution for Permal.

Tom Hoops, Head of Business Development for Legg Mason, who oversees M&A activity and new product development, said, "As investor needs evolve, Legg Mason has the resources to tap into the expertise of its investment affiliates and bring to market new products through our global distribution channels. For over 40 years Permal has been a leader in the alternative investment space and is the ideal partner to launch a liquid alternative product. This is also a great example of industry convergence, where the offshore world meets the onshore market. Retail investors today are looking beyond the more traditional products and with Permal Alternative Select Fund we have a daily liquid product that offers diversification across a range of hedge fund strategies and managers."

The Fund, which is registered with the SEC under both the Securities Act of 1933 and Investment Company Act of 1940, is managed by Permal Asset Management LLC, a member of Permal Group.  It has been structured to provide investors with 1099 tax reporting and is available to U.S. retail and institutional investors.

The Fund will price daily.  However, investment return and principal value of an investment in the Fund will fluctuate.  Shares when redeemed may be worth more or less than the original cost.

About Legg Mason

Legg Mason is a global asset management firm with $680 billion in assets under management as of December 31, 2013. The Company provides active asset management in many major investment centers throughout the world. Legg Mason is headquartered in Baltimore, Maryland, and its common stock is listed on the New York Stock Exchange (symbol: LM).

About Permal Group

Permal Group is a leading global alternative asset manager offering investment solutions through established funds and customized portfolios. Today, Permal manages approximately $22 billion with a global investment team based in New York and London, and additional investment resources in Singapore and Paris. Clients include sovereign wealth funds, pension funds, endowments, foundations, insurance companies, family offices, private banks and high net worth individuals. Permal has established offices in Europe, America and Asia, and has extensive networks of experienced managers and relationships around the globe.

All investments are subject to risk, including the possible loss of principal.  The Fund is a newly organized open-end investment company with no history of operations. The Fund employs leverage, which increases the volatility of investment returns and subjects the Fund to magnified losses if the Fund's investments decline in value.  The Fund may use derivatives, such as options and futures, which can be illiquid, may disproportionately increase losses, and have a potentially large impact on Fund performance.  The Fund may employ short selling, a speculative strategy.  Unlike the possible loss on a security that is purchases, there is no limit on the amount of loss on an appreciating security that is sold short.  The Fund may engage in active and frequent trading, resulting in higher portfolio turnover and transaction costs.  There is no assurance that these and other strategies used by the Fund will be successful.  Equity securities are subject to price fluctuation, International investments are subject to special risks including currency fluctuations, social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. Small-and mid-cap stocks involve greater risks and volatility than large-cap stocks.  Fixed income securities involve interest rate, credit, inflation, and reinvestment risks.  As interest rates rise, the value of fixed income securities fall. High-yield bonds possess greater  price volatility, illiquidity, and possibility of default. 

A registration statement relating to these securities has been filed with the Securities and Exchange Commission.  This material is not an offer to sell these securities and is not soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.

Before investing, carefully consider a fund's investment objectives, risks, charges and expenses.  You can find this or other information in each prospectus and summary prospectus.  A preliminary prospectus for the Fund can be accessed by clicking on the following link: www.leggmason.com/individualinvestor.

@2014 Legg Mason Investor Services, LLC, member FINRA, SIPC.  Legg Mason Investor Services, LLC and Permal Group are subsidiaries of Legg Mason, Inc

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