BrandywineGLOBAL Fund Posts Modest Gain Amid Choppiness in Global Fixed Income Market

The global fixed income market experienced a choppy second quarter, but still posted a modest gain. In the US, yields moved higher over the quarter, contributing to performance in the BrandywineGLOBAL - Global Opportunities Bond Fund (undefined:GOBSX). Interest rate and currency positioning both played a role during this period.

The fund's underweight to eurozone government bonds was the primary detractor over the quarter. However, Mexican government bonds were additive, with high carry more than offsetting increased fiscal and inflation concerns.

Lower energy prices have helped temper inflation concerns in bond markets. The market sentiment was impacted by the war in Iran and falling oil prices due to the partial closure of the Strait of Hormuz.