BALTIMORE, Jan. 5, 2016 /PRNewswire/ -- Legg Mason Inc.,
(NYSE: LM), today announced that it has launched four new
outcome-oriented index-based ETF funds in partnership with its
investment affiliate QS Investors. The four funds are
branded under the Legg Mason name and began trading on the Nasdaq
Stock Market® on December 29, 2015.
Increasing concerns about macroeconomic risks, equity volatility
and the continuing search for stable income are pressuring
investors to look beyond traditional market cap weighted
indices.
"We are excited to partner with Legg Mason to bring an
investment approach we developed for institutions over a decade ago
to retail investors in an ETF fund format. Many investors
think of ETFs only as market cap indexed vehicles, but our macro
diversification and sustainable income approaches target specific
investment outcomes in a cost-effective format. This launch
is part of our long-term focus on innovating to serve investor
needs and create better solutions," said James Norman, President of QS
Investors.
Three of the new funds take a macro approach to building
portfolios and balancing risk to deliver broad market exposure that
can complement core portfolios. Based upon QS Investors'
proprietary rules-based methodology, Diversification Based
Investing (DBI), the new funds are predicated on the understanding
that capitalization-weighted indices are not balanced across
opportunities and risks in the market place. Better
diversification across macro exposures, like geography and economic
sector can improve risk/return characteristics and mitigate
unintended bets and therefore potentially lower drawdowns during
macro-economic events. The funds are:
- Legg Mason Developed ex-US Diversified Core ETF (NASDAQ:
DDBI)
- Legg Mason Emerging Markets Diversified Core ETF (NASDAQ:
EDBI)
- Legg Mason US Diversified Core ETF (NASDAQ: UDBI)
Legg Mason is launching a fourth fund, the Legg Mason Low
Volatility High Dividend ETF (NASDAQ: LVHD), focused on income,
risk mitigation and capital appreciation. It is based
upon the idea that a stock's ability to sustain a strong dividend
payout is often associated with lower volatility, making these two
characteristics complementary. Using a disciplined,
rules-based methodology, the fund will screen for stocks with the
potential for sustainable high dividends, while simultaneously
screening out historically volatile stocks in the market.
"There are compelling opportunities to help investors achieve
their objectives, whether capital preservation, income, or growth
in an ETF format as the market grows and the ETF vehicle
evolves. These innovative, outcome-oriented products have the
potential to serve the needs of investors looking to better
diversify across risks in their portfolios. We are excited to
begin building our ETF offering and will continue to identify ways
in which we can capitalize on the investment strengths of the Legg
Mason investment affiliates," said Rick
Genoni, Head of the ETF business at Legg Mason.
The firm plans to launch additional ETF products in the coming
months.
About QS Investors
A wholly-owned,
independently-managed affiliate of Legg Mason, Inc., QS Investors,
LLC was formed in 1999 as the quantitative platform of a global
asset manager. As an investment firm providing asset management and
advisory services to a diverse array of institutional clients, QS
Investors delivers disciplined, systematic solutions that address
clients' complex challenges. The QS team has developed unique
approaches to integrating quantitative and behavioral investment
insights and dynamically weighting opportunities in response to
changing economic and market conditions. Risk identification,
assessment and management are intrinsic to their process. Based in
New York and Boston, QS Investors offers a broad spectrum
of strategies to clients worldwide, including actively managed U.S.
and global equities, liquid alternatives and customized
solutions.
About Legg Mason
Legg Mason is a global asset
management firm with $691 billion in
assets under management as of November 30,
2015. 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).
BEFORE INVESTING, CAREFULLY CONSIDER A FUND'S INVESTMENT
OBJECTIVES, RISKS, CHARGES AND EXPENSES. YOU CAN FIND THIS
AND OTHER INFORMATION IN EACH PROSPECTUS, AND SUMMARY PROSPECTUS,
IF AVAILABLE, AT WWW.LEGGMASON.COM/ETF. PLEASE READ THE PROSPECTUS
CAREFULLY.
Diversification does not assure a profit or protect against a
loss.
Authorized participants ("APs") may acquire shares in the
primary market directly from the ETFs and may tender their shares
for redemption directly to the ETFs, at net asset value per share
only in Creation Units or Creation Unit Aggregations. Once created,
shares of the funds generally trade in the secondary market in
amounts less than a Creation Unit.
Retail investors buy and sell shares of ETFs at market price
(not NAV) in the secondary market throughout the trading day. These
shares are not individually available for purchase or redemption
directly from the ETF. Market price returns shown are based upon
the National Best Bid and Offer (NBBO) at 4:00 p.m. Eastern time. These returns will not
represent your returns had you traded shares at other times.
© 2016 Legg Mason Investor Services, LLC. Member FINRA, SIPC.
Legg Mason Investor Services, LLC, QS Batterymarch, and QS
Investors, LLC are subsidiaries of Legg Mason Inc. QS Investors
investment platform is comprised of QS investors, LLC, QS
Batterymarch Financial Management, Inc. and QS Legg Mason Global
Asset Allocation (QS LMGAA) is a subsidiary of Legg Mason, Inc.
FN1515772
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/legg-mason-launches-first-suite-of-etf-products-300198694.html
SOURCE Legg Mason, Inc.
