The assets of the Legg Mason Global Equity Trust are managed on a sub-advisory basis by Batterymarch Financial Management, Inc. ("Batterymarch"), a subsidiary of Legg Mason, Inc. and an affiliate of Legg Mason Australia.
The global equity investment process is based on rigorous stock selection, which incorporates fundamental and quantitative analysis combined with effective risk controls. Bottom-up stock selection is the primary source of value added. A proprietary process ranks the relative attractiveness of stocks across dimensions typically considered by fundamental investors: cash flow, earnings growth, expectations, value and technical. Portfolio managers include fundamental opinions on stocks that are substantial benchmark components if information about such companies has not been captured within the stock selection.
Regional allocations are determined using a proprietary model that ranks each market's investment outlook based on bottom-up stock analysis. Currency is considered as part of the fundamental inputs to the regional allocation process. Similarly, a proprietary sector model ranks the relative attractiveness of sectors within each major region using bottom-up stock analysis. A risk model optimises the portfolio.