With the escalating uncertainty globally, investors are looking for opportunities in US equities that have exhibited solid fundamentals and resilience amid tense trade talks, which received broad gains in the first half of 2018.

Legg Mason offers a suite of flagship US Equity funds

Why US Equities now

Icon Trade Concerns: Much lower than Fiscal Stimulus +

Fiscal stimulus boosting growth is likely to overwhelm the negative effects from any tariffs.

Tariffs vs. Incremental Fiscal Policy - 2018 Calendar Year

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Source: Strategas Research Partners. Data as of 30 June 2018 in US$ billions. EU: European Union.

 

Icon Midterm Election: Positive Effect +

The periods (1-year around elections) tend to be positive for US equities. This may be due to the pattern of stimulus policies that typically accompanies elections.

US Equities: 1-Year Performance around Elections (starting from month end of Aprils)

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Source: Bloomberg, as of 23 July 2018. Cumulative total returns of indices are based on month-end data: Period 1 (April 2010 - April 2011), Period 2 (April 2012 - April 2013), Period 3 (April 2014 - April 2015) and Period 4 (April 2016 - April 2017). Past performance is not indicative of future performance.

 

Icon Corporate Earnings: Steller Growth +

The market is expecting earnings growth of US companies to top the 1st quarter's record and the guidance for future quarters is also strong.

S&P 500 Index - Trailing 12 Month Earnings Per Share (US Dollar)

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Source: Bloomberg, as of 23 July 2018. Annual data for 2018 – 2020 (Orange Bars) are estimated. Past performance is not indicative of future performance.

 

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  • INVESTMENT INVOLVES RISKS. The value of the Fund can be volatile and investors may not get back the amount originally invested. Past performance is not indicative of future results.

  • Legg Mason Royce US Small Cap Opportunity Fund is a sub-fund of Legg Mason Global Funds plc, an open-ended umbrella investment company constituted in Ireland. The Fund seeks to achieve long-term capital appreciation by investing at least 70% of its Net Asset Value in a diversified portfolio of equity securities issued by small- and micro-cap U.S. companies (market capitalisations of less than US$3 billion). The Sub-Investment Manager attempts to take advantage of what it believes are opportunistic situations for undervalued securities. • Investors will be exposed to equity market, concentration, custody and settlement, US markets and currency risks. • Securities of smaller companies generally are less liquid and more volatile than those of larger companies; and smaller companies generally are more likely to be adversely affected by poor economic or market conditions. • In light of the investment style of the Fund, the Fund may face the risk of mis-estimation by the Sub-Investment Manager in its fundamental analysis regarding the companies in which the Fund invests. The performance of the Fund may not closely correlate to specific market indices over time and may include extended periods of underperformance as compared to the broader market.

  • Legg Mason ClearBridge US Aggressive Growth Fund is a sub-fund of Legg Mason Global Funds plc, an open-ended umbrella investment company constituted in Ireland. The Fund seeks to generate long-term capital appreciation by investing in the securities of U.S. companies of any market capitalisation that the Sub-Investment Manager believes are experiencing, or have potential to experience, above-average growth of earnings and/or cash flow. • Investors will be exposed to equity market, US markets, concentration, custody and settlement, currency and debt securities risks. • The Fund may use certain types of financial derivative instruments, which may involve a higher degree of risk including but not limited to counterparty, volatility, liquidity, leverage and valuation risks, and the Fund may suffer a substantial loss. • Securities of smaller companies generally are less liquid and more volatile than those of larger companies; and smaller companies generally are more likely to be adversely affected by poor economic or market conditions.

  • Legg Mason ClearBridge US Large Cap Growth Fund is a sub-fund of Legg Mason Global Funds plc, an open-ended umbrella investment company constituted in Ireland. The Fund seeks to generate long-term capital appreciation by investing at least 70% of its Net Asset Value in equity securities of a concentrated group of U.S. companies with large market capitalisations. The core holdings of the Fund will be companies that are dominant in their respective industries, global in scope and that have a long-term history of performance. • Investors will be exposed to equity market, US markets, concentration, custody and settlement, currency and debt securities risks. • The Fund may use certain types of financial derivative instruments, which may involve a higher degree of risk including but not limited to counterparty, volatility, liquidity, leverage and valuation risks, and the Fund may suffer a substantial loss.

  • Investors should not invest based on this marketing material alone. Offering documents should be read for further details, including the risk factors.