Legg Mason adds sterling-hedged share class to US small cap fund

Legg Mason is introducing a sterling-hedged share class on its offshore Legg Mason Royce US Small Cap Opportunity Fund in response to client demand in the UK.

The fund, run by Bill Hench of Royce & Associates (a US-based subsidiary of Legg Mason specialising in small caps) has enjoyed a successful spell over the last few years, outperforming peers. It has delivered a return of 14.4% in the last year alone, ahead of the offshore equity small cap US peer group which delivered 11.2%, according to FE. While US strategies have been popular in recent years, currency fluctuations in the last few months have made UK-based investors wary of losing out from currency exposure when investing in funds denominated in US dollars. The dollar has recentl...