Shareholder Report
Dec. 31, 2025
USD ($)
$ / shares
This report describes changes to the Fund that occurred during the reporting period.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)
|
Class Name
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment*
|
|
Class A
|
$101
|
0.95%
|
HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?
For the twelve months ended December 31, 2025, Class A shares of BrandywineGLOBAL - Global Opportunities Bond Fund returned 13.17%. The Fund compares its performance to the FTSE World Government Bond Index, which returned 7.55% for the same period.
PERFORMANCE HIGHLIGHTS
|
Top contributors to performance:
|
|
|
↑
|
The euro was the largest contributor to performance, supported by improving European growth expectations and sentiment. Strong relative demand amid a weakening U.S. dollar drove gains in the first half of 2025, reinforced by continued euro area disinflation that reduced macro uncertainty and supported European risk assets and the currency.
|
|
↑
|
Local-currency Mexican bonds also contributed to performance, supported by elevated real yields and strong investor demand for higher-yielding assets during periods of contained volatility and improved risk appetite. Banxico delivered multiple rate cuts in 2025 as inflation moderated, allowing policy to become incrementally less restrictive.
|
|
↑
|
U.S. Treasury duration was additive, as the Fund tactically increased exposure when yields approached 5% and growth momentum and policy expectations began to shift. Signs of a softening labor market pushed yields lower as investors priced in additional rate cuts, helping offset the fiscal and tariff-related uncertainties that weighed on markets in the first half of the year.
|
|
Top detractors from performance:
|
|
|
↓
|
The Japanese yen was the largest detractor, weighed down by persistent yield differentials and its continued role as a funding currency for global carry trades during risk-on periods. Although the Bank of Japan raised its policy rate to the highest level in 30 years, cautious guidance on the future pace of hikes limited support for the currency.
|
|
↓
|
The South Korean won was a moderate detractor, reflecting a challenging mix of domestic political uncertainty, sensitivity to global trade conditions, and an unfavorable relative-rate backdrop at key points during the year. Political developments in particular weighed on sentiment.
|
Use of derivatives and the impact on performance:
The Fund utilized currency forwards for hedging and alpha purposes, which contributed to performance. Bond futures were used as a duration management, hedging, and alpha source, which detracted from period.
AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended December 31, 2025
|
|
1 Year
|
5 Year
|
10 Year
|
|
Class A
|
13.17
|
-2.86
|
1.62
|
|
Class A (with sales charge)
|
8.91
|
-3.70
|
1.18
|
|
Bloomberg Global Aggregate Index
|
8.17
|
-2.15
|
1.26
|
|
FTSE World Government Bond Index
|
7.55
|
-3.53
|
0.54
|
For current month-end performance, please call Franklin Templeton at 877-6LM-FUND/656-3863 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.
https://www.franklintempleton.com/investments/options/mutual-funds.
Important data provider notices and terms available at www.franklintempletondatasources.com.
KEY FUND STATISTICS (as of December 31, 2025)
|
Total Net Assets
|
$1,161,821,095
|
|
Total Number of Portfolio Holdings (excludes derivatives, except purchased options, if any)
|
35
|
|
Total Management Fee Paid
|
$6,491,276
|
|
Portfolio Turnover Rate
|
235%
|
WHAT DID THE FUND INVEST IN? (as of December 31, 2025)
Portfolio Composition* (% of Total Investments)
HOW HAS THE FUND CHANGED?
Effective 12/31/2025, David F. Hoffman, CFA stepped down as a member of the portfolio management team. Effective 7/31/2025, Paul Mielczarski joined the team.
This is a summary of a change and a planned change to the Fund since 1/1/2025. For more complete information, you may review the Fund’s current prospectus and any applicable supplements and the Fund’s next prospectus, which we expect to be available by 5/1/2026, at https://www.franklintempleton.com/regulatory-fund-documents or upon request at 877-6LM-FUND/656-3863 or prospectus.us.franklintempleton@fisglobal.com.
This report describes changes to the Fund that occurred during the reporting period.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)
|
Class Name
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment*
|
|
Class C
|
$181
|
1.71%
|
HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?
For the twelve months ended December 31, 2025, Class C shares of BrandywineGLOBAL - Global Opportunities Bond Fund returned 12.23%. The Fund compares its performance to the FTSE World Government Bond Index, which returned 7.55% for the same period.
PERFORMANCE HIGHLIGHTS
|
Top contributors to performance:
|
|
|
↑
|
The euro was the largest contributor to performance, supported by improving European growth expectations and sentiment. Strong relative demand amid a weakening U.S. dollar drove gains in the first half of 2025, reinforced by continued euro area disinflation that reduced macro uncertainty and supported European risk assets and the currency.
|
|
↑
|
Local-currency Mexican bonds also contributed to performance, supported by elevated real yields and strong investor demand for higher-yielding assets during periods of contained volatility and improved risk appetite. Banxico delivered multiple rate cuts in 2025 as inflation moderated, allowing policy to become incrementally less restrictive.
|
|
↑
|
U.S. Treasury duration was additive, as the Fund tactically increased exposure when yields approached 5% and growth momentum and policy expectations began to shift. Signs of a softening labor market pushed yields lower as investors priced in additional rate cuts, helping offset the fiscal and tariff-related uncertainties that weighed on markets in the first half of the year.
|
|
Top detractors from performance:
|
|
|
↓
|
The Japanese yen was the largest detractor, weighed down by persistent yield differentials and its continued role as a funding currency for global carry trades during risk-on periods. Although the Bank of Japan raised its policy rate to the highest level in 30 years, cautious guidance on the future pace of hikes limited support for the currency.
|
|
↓
|
The South Korean won was a moderate detractor, reflecting a challenging mix of domestic political uncertainty, sensitivity to global trade conditions, and an unfavorable relative-rate backdrop at key points during the year. Political developments in particular weighed on sentiment.
|
Use of derivatives and the impact on performance:
The Fund utilized currency forwards for hedging and alpha purposes, which contributed to performance. Bond futures were used as a duration management, hedging, and alpha source, which detracted from period.
AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended December 31, 2025
|
|
1 Year
|
5 Year
|
10 Year
|
|
Class C
|
12.23
|
-3.54
|
0.91
|
|
Class C (with sales charge)
|
11.23
|
-3.54
|
0.91
|
|
Bloomberg Global Aggregate Index
|
8.17
|
-2.15
|
1.26
|
|
FTSE World Government Bond Index
|
7.55
|
-3.53
|
0.54
|
For current month-end performance, please call Franklin Templeton at 877-6LM-FUND/656-3863 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.
https://www.franklintempleton.com/investments/options/mutual-funds.
Important data provider notices and terms available at www.franklintempletondatasources.com.
KEY FUND STATISTICS (as of December 31, 2025)
|
Total Net Assets
|
$1,161,821,095
|
|
Total Number of Portfolio Holdings (excludes derivatives, except purchased options, if any)
|
35
|
|
Total Management Fee Paid
|
$6,491,276
|
|
Portfolio Turnover Rate
|
235%
|
WHAT DID THE FUND INVEST IN? (as of December 31, 2025)
Portfolio Composition* (% of Total Investments)
HOW HAS THE FUND CHANGED?
Effective 12/31/2025, David F. Hoffman, CFA stepped down as a member of the portfolio management team. Effective 7/31/2025, Paul Mielczarski joined the team.
This is a summary of a change and a planned change to the Fund since 1/1/2025. For more complete information, you may review the Fund’s current prospectus and any applicable supplements and the Fund’s next prospectus, which we expect to be available by 5/1/2026, at https://www.franklintempleton.com/regulatory-fund-documents or upon request at 877-6LM-FUND/656-3863 or prospectus.us.franklintempleton@fisglobal.com.
This report describes changes to the Fund that occurred during the reporting period.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)
|
Class Name
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment*
|
|
Class C1
|
$154
|
1.45%
|
HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?
For the twelve months ended December 31, 2025, Class C1 shares of BrandywineGLOBAL - Global Opportunities Bond Fund returned 12.65%. The Fund compares its performance to the FTSE World Government Bond Index, which returned 7.55% for the same period.
PERFORMANCE HIGHLIGHTS
|
Top contributors to performance:
|
|
|
↑
|
The euro was the largest contributor to performance, supported by improving European growth expectations and sentiment. Strong relative demand amid a weakening U.S. dollar drove gains in the first half of 2025, reinforced by continued euro area disinflation that reduced macro uncertainty and supported European risk assets and the currency.
|
|
↑
|
Local-currency Mexican bonds also contributed to performance, supported by elevated real yields and strong investor demand for higher-yielding assets during periods of contained volatility and improved risk appetite. Banxico delivered multiple rate cuts in 2025 as inflation moderated, allowing policy to become incrementally less restrictive.
|
|
↑
|
U.S. Treasury duration was additive, as the Fund tactically increased exposure when yields approached 5% and growth momentum and policy expectations began to shift. Signs of a softening labor market pushed yields lower as investors priced in additional rate cuts, helping offset the fiscal and tariff-related uncertainties that weighed on markets in the first half of the year.
|
|
Top detractors from performance:
|
|
|
↓
|
The Japanese yen was the largest detractor, weighed down by persistent yield differentials and its continued role as a funding currency for global carry trades during risk-on periods. Although the Bank of Japan raised its policy rate to the highest level in 30 years, cautious guidance on the future pace of hikes limited support for the currency.
|
|
↓
|
The South Korean won was a moderate detractor, reflecting a challenging mix of domestic political uncertainty, sensitivity to global trade conditions, and an unfavorable relative-rate backdrop at key points during the year. Political developments in particular weighed on sentiment.
|
Use of derivatives and the impact on performance:
The Fund utilized currency forwards for hedging and alpha purposes, which contributed to performance. Bond futures were used as a duration management, hedging, and alpha source, which detracted from period.
AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended December 31, 2025
|
|
1 Year
|
5 Year
|
10 Year
|
|
Class C1
|
12.65
|
-2.81
|
1.45
|
|
Class C1 (with sales charge)
|
11.65
|
-2.81
|
1.45
|
|
Bloomberg Global Aggregate Index
|
8.17
|
-2.15
|
1.26
|
|
FTSE World Government Bond Index
|
7.55
|
-3.53
|
0.54
|
For current month-end performance, please call Franklin Templeton at 877-6LM-FUND/656-3863 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.
https://www.franklintempleton.com/investments/options/mutual-funds.
Important data provider notices and terms available at www.franklintempletondatasources.com.
KEY FUND STATISTICS (as of December 31, 2025)
|
Total Net Assets
|
$1,161,821,095
|
|
Total Number of Portfolio Holdings (excludes derivatives, except purchased options, if any)
|
35
|
|
Total Management Fee Paid
|
$6,491,276
|
|
Portfolio Turnover Rate
|
235%
|
WHAT DID THE FUND INVEST IN? (as of December 31, 2025)
Portfolio Composition* (% of Total Investments)
HOW HAS THE FUND CHANGED?
Effective 12/31/2025, David F. Hoffman, CFA stepped down as a member of the portfolio management team. Effective 7/31/2025, Paul Mielczarski joined the team.
This is a summary of a change and a planned change to the Fund since 1/1/2025. For more complete information, you may review the Fund’s current prospectus and any applicable supplements and the Fund’s next prospectus, which we expect to be available by 5/1/2026, at https://www.franklintempleton.com/regulatory-fund-documents or upon request at 877-6LM-FUND/656-3863 or prospectus.us.franklintempleton@fisglobal.com.
This report describes changes to the Fund that occurred during the reporting period.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)
|
Class Name
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment*
|
|
Class FI
|
$107
|
1.00%
|
HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?
For the twelve months ended December 31, 2025, Class FI shares of BrandywineGLOBAL - Global Opportunities Bond Fund returned 13.10%. The Fund compares its performance to the FTSE World Government Bond Index, which returned 7.55% for the same period.
PERFORMANCE HIGHLIGHTS
|
Top contributors to performance:
|
|
|
↑
|
The euro was the largest contributor to performance, supported by improving European growth expectations and sentiment. Strong relative demand amid a weakening U.S. dollar drove gains in the first half of 2025, reinforced by continued euro area disinflation that reduced macro uncertainty and supported European risk assets and the currency.
|
|
↑
|
Local-currency Mexican bonds also contributed to performance, supported by elevated real yields and strong investor demand for higher-yielding assets during periods of contained volatility and improved risk appetite. Banxico delivered multiple rate cuts in 2025 as inflation moderated, allowing policy to become incrementally less restrictive.
|
|
↑
|
U.S. Treasury duration was additive, as the Fund tactically increased exposure when yields approached 5% and growth momentum and policy expectations began to shift. Signs of a softening labor market pushed yields lower as investors priced in additional rate cuts, helping offset the fiscal and tariff-related uncertainties that weighed on markets in the first half of the year.
|
|
Top detractors from performance:
|
|
|
↓
|
The Japanese yen was the largest detractor, weighed down by persistent yield differentials and its continued role as a funding currency for global carry trades during risk-on periods. Although the Bank of Japan raised its policy rate to the highest level in 30 years, cautious guidance on the future pace of hikes limited support for the currency.
|
|
↓
|
The South Korean won was a moderate detractor, reflecting a challenging mix of domestic political uncertainty, sensitivity to global trade conditions, and an unfavorable relative-rate backdrop at key points during the year. Political developments in particular weighed on sentiment.
|
Use of derivatives and the impact on performance:
The Fund utilized currency forwards for hedging and alpha purposes, which contributed to performance. Bond futures were used as a duration management, hedging, and alpha source, which detracted from period.
AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended December 31, 2025
|
|
1 Year
|
5 Year
|
10 Year
|
|
Class FI
|
13.10
|
-2.86
|
1.63
|
|
Bloomberg Global Aggregate Index
|
8.17
|
-2.15
|
1.26
|
|
FTSE World Government Bond Index
|
7.55
|
-3.53
|
0.54
|
For current month-end performance, please call Franklin Templeton at 877-6LM-FUND/656-3863 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.
https://www.franklintempleton.com/investments/options/mutual-funds.
Important data provider notices and terms available at www.franklintempletondatasources.com.
KEY FUND STATISTICS (as of December 31, 2025)
|
Total Net Assets
|
$1,161,821,095
|
|
Total Number of Portfolio Holdings (excludes derivatives, except purchased options, if any)
|
35
|
|
Total Management Fee Paid
|
$6,491,276
|
|
Portfolio Turnover Rate
|
235%
|
WHAT DID THE FUND INVEST IN? (as of December 31, 2025)
Portfolio Composition* (% of Total Investments)
HOW HAS THE FUND CHANGED?
Effective 12/31/2025, David F. Hoffman, CFA stepped down as a member of the portfolio management team. Effective 7/31/2025, Paul Mielczarski joined the team.
This is a summary of a change and a planned change to the Fund since 1/1/2025. For more complete information, you may review the Fund’s current prospectus and any applicable supplements and the Fund’s next prospectus, which we expect to be available by 5/1/2026, at https://www.franklintempleton.com/regulatory-fund-documents or upon request at 877-6LM-FUND/656-3863 or prospectus.us.franklintempleton@fisglobal.com.
This report describes changes to the Fund that occurred during the reporting period.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)
|
Class Name
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment*
|
|
Class R
|
$133
|
1.25%
|
HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?
For the twelve months ended December 31, 2025, Class R shares of BrandywineGLOBAL - Global Opportunities Bond Fund returned 12.75%. The Fund compares its performance to the FTSE World Government Bond Index, which returned 7.55% for the same period.
PERFORMANCE HIGHLIGHTS
|
Top contributors to performance:
|
|
|
↑
|
The euro was the largest contributor to performance, supported by improving European growth expectations and sentiment. Strong relative demand amid a weakening U.S. dollar drove gains in the first half of 2025, reinforced by continued euro area disinflation that reduced macro uncertainty and supported European risk assets and the currency.
|
|
↑
|
Local-currency Mexican bonds also contributed to performance, supported by elevated real yields and strong investor demand for higher-yielding assets during periods of contained volatility and improved risk appetite. Banxico delivered multiple rate cuts in 2025 as inflation moderated, allowing policy to become incrementally less restrictive.
|
|
↑
|
U.S. Treasury duration was additive, as the Fund tactically increased exposure when yields approached 5% and growth momentum and policy expectations began to shift. Signs of a softening labor market pushed yields lower as investors priced in additional rate cuts, helping offset the fiscal and tariff-related uncertainties that weighed on markets in the first half of the year.
|
|
Top detractors from performance:
|
|
|
↓
|
The Japanese yen was the largest detractor, weighed down by persistent yield differentials and its continued role as a funding currency for global carry trades during risk-on periods. Although the Bank of Japan raised its policy rate to the highest level in 30 years, cautious guidance on the future pace of hikes limited support for the currency.
|
|
↓
|
The South Korean won was a moderate detractor, reflecting a challenging mix of domestic political uncertainty, sensitivity to global trade conditions, and an unfavorable relative-rate backdrop at key points during the year. Political developments in particular weighed on sentiment.
|
Use of derivatives and the impact on performance:
The Fund utilized currency forwards for hedging and alpha purposes, which contributed to performance. Bond futures were used as a duration management, hedging, and alpha source, which detracted from period.
AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended December 31, 2025
|
|
1 Year
|
5 Year
|
10 Year
|
|
Class R
|
12.75
|
-3.12
|
1.35
|
|
Bloomberg Global Aggregate Index
|
8.17
|
-2.15
|
1.26
|
|
FTSE World Government Bond Index
|
7.55
|
-3.53
|
0.54
|
For current month-end performance, please call Franklin Templeton at 877-6LM-FUND/656-3863 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.
https://www.franklintempleton.com/investments/options/mutual-funds.
Important data provider notices and terms available at www.franklintempletondatasources.com.
KEY FUND STATISTICS (as of December 31, 2025)
|
Total Net Assets
|
$1,161,821,095
|
|
Total Number of Portfolio Holdings (excludes derivatives, except purchased options, if any)
|
35
|
|
Total Management Fee Paid
|
$6,491,276
|
|
Portfolio Turnover Rate
|
235%
|
WHAT DID THE FUND INVEST IN? (as of December 31, 2025)
Portfolio Composition* (% of Total Investments)
HOW HAS THE FUND CHANGED?
Effective 12/31/2025, David F. Hoffman, CFA stepped down as a member of the portfolio management team. Effective 7/31/2025, Paul Mielczarski joined the team.
This is a summary of a change and a planned change to the Fund since 1/1/2025. For more complete information, you may review the Fund’s current prospectus and any applicable supplements and the Fund’s next prospectus, which we expect to be available by 5/1/2026, at https://www.franklintempleton.com/regulatory-fund-documents or upon request at 877-6LM-FUND/656-3863 or prospectus.us.franklintempleton@fisglobal.com.
This report describes changes to the Fund that occurred during the reporting period.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)
|
Class Name
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment*
|
|
Class I
|
$70
|
0.66%
|
HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?
For the twelve months ended December 31, 2025, Class I shares of BrandywineGLOBAL - Global Opportunities Bond Fund returned 13.51%. The Fund compares its performance to the FTSE World Government Bond Index, which returned 7.55% for the same period.
PERFORMANCE HIGHLIGHTS
|
Top contributors to performance:
|
|
|
↑
|
The euro was the largest contributor to performance, supported by improving European growth expectations and sentiment. Strong relative demand amid a weakening U.S. dollar drove gains in the first half of 2025, reinforced by continued euro area disinflation that reduced macro uncertainty and supported European risk assets and the currency.
|
|
↑
|
Local-currency Mexican bonds also contributed to performance, supported by elevated real yields and strong investor demand for higher-yielding assets during periods of contained volatility and improved risk appetite. Banxico delivered multiple rate cuts in 2025 as inflation moderated, allowing policy to become incrementally less restrictive.
|
|
↑
|
U.S. Treasury duration was additive, as the Fund tactically increased exposure when yields approached 5% and growth momentum and policy expectations began to shift. Signs of a softening labor market pushed yields lower as investors priced in additional rate cuts, helping offset the fiscal and tariff-related uncertainties that weighed on markets in the first half of the year.
|
|
Top detractors from performance:
|
|
|
↓
|
The Japanese yen was the largest detractor, weighed down by persistent yield differentials and its continued role as a funding currency for global carry trades during risk-on periods. Although the Bank of Japan raised its policy rate to the highest level in 30 years, cautious guidance on the future pace of hikes limited support for the currency.
|
|
↓
|
The South Korean won was a moderate detractor, reflecting a challenging mix of domestic political uncertainty, sensitivity to global trade conditions, and an unfavorable relative-rate backdrop at key points during the year. Political developments in particular weighed on sentiment.
|
Use of derivatives and the impact on performance:
The Fund utilized currency forwards for hedging and alpha purposes, which contributed to performance. Bond futures were used as a duration management, hedging, and alpha source, which detracted from period.
AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended December 31, 2025
|
|
1 Year
|
5 Year
|
10 Year
|
|
Class I
|
13.51
|
-2.56
|
1.94
|
|
Bloomberg Global Aggregate Index
|
8.17
|
-2.15
|
1.26
|
|
FTSE World Government Bond Index
|
7.55
|
-3.53
|
0.54
|
For current month-end performance, please call Franklin Templeton at 877-6LM-FUND/656-3863 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.
https://www.franklintempleton.com/investments/options/mutual-funds.
Important data provider notices and terms available at www.franklintempletondatasources.com.
KEY FUND STATISTICS (as of December 31, 2025)
|
Total Net Assets
|
$1,161,821,095
|
|
Total Number of Portfolio Holdings (excludes derivatives, except purchased options, if any)
|
35
|
|
Total Management Fee Paid
|
$6,491,276
|
|
Portfolio Turnover Rate
|
235%
|
WHAT DID THE FUND INVEST IN? (as of December 31, 2025)
Portfolio Composition* (% of Total Investments)
HOW HAS THE FUND CHANGED?
Effective 12/31/2025, David F. Hoffman, CFA stepped down as a member of the portfolio management team. Effective 7/31/2025, Paul Mielczarski joined the team.
This is a summary of a change and a planned change to the Fund since 1/1/2025. For more complete information, you may review the Fund’s current prospectus and any applicable supplements and the Fund’s next prospectus, which we expect to be available by 5/1/2026, at https://www.franklintempleton.com/regulatory-fund-documents or upon request at 877-6LM-FUND/656-3863 or prospectus.us.franklintempleton@fisglobal.com.
This report describes changes to the Fund that occurred during the reporting period.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)
|
Class Name
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment*
|
|
Class IS
|
$59
|
0.55%
|
HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?
For the twelve months ended December 31, 2025, Class IS shares of BrandywineGLOBAL - Global Opportunities Bond Fund returned 13.60%. The Fund compares its performance to the FTSE World Government Bond Index, which returned 7.55% for the same period.
PERFORMANCE HIGHLIGHTS
|
Top contributors to performance:
|
|
|
↑
|
The euro was the largest contributor to performance, supported by improving European growth expectations and sentiment. Strong relative demand amid a weakening U.S. dollar drove gains in the first half of 2025, reinforced by continued euro area disinflation that reduced macro uncertainty and supported European risk assets and the currency.
|
|
↑
|
Local-currency Mexican bonds also contributed to performance, supported by elevated real yields and strong investor demand for higher-yielding assets during periods of contained volatility and improved risk appetite. Banxico delivered multiple rate cuts in 2025 as inflation moderated, allowing policy to become incrementally less restrictive.
|
|
↑
|
U.S. Treasury duration was additive, as the Fund tactically increased exposure when yields approached 5% and growth momentum and policy expectations began to shift. Signs of a softening labor market pushed yields lower as investors priced in additional rate cuts, helping offset the fiscal and tariff-related uncertainties that weighed on markets in the first half of the year.
|
|
Top detractors from performance:
|
|
|
↓
|
The Japanese yen was the largest detractor, weighed down by persistent yield differentials and its continued role as a funding currency for global carry trades during risk-on periods. Although the Bank of Japan raised its policy rate to the highest level in 30 years, cautious guidance on the future pace of hikes limited support for the currency.
|
|
↓
|
The South Korean won was a moderate detractor, reflecting a challenging mix of domestic political uncertainty, sensitivity to global trade conditions, and an unfavorable relative-rate backdrop at key points during the year. Political developments in particular weighed on sentiment.
|
Use of derivatives and the impact on performance:
The Fund utilized currency forwards for hedging and alpha purposes, which contributed to performance. Bond futures were used as a duration management, hedging, and alpha source, which detracted from period.
AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended December 31, 2025
|
|
1 Year
|
5 Year
|
10 Year
|
|
Class IS
|
13.60
|
-2.45
|
2.05
|
|
Bloomberg Global Aggregate Index
|
8.17
|
-2.15
|
1.26
|
|
FTSE World Government Bond Index
|
7.55
|
-3.53
|
0.54
|
For current month-end performance, please call Franklin Templeton at 877-6LM-FUND/656-3863 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.
https://www.franklintempleton.com/investments/options/mutual-funds.
Important data provider notices and terms available at www.franklintempletondatasources.com.
KEY FUND STATISTICS (as of December 31, 2025)
|
Total Net Assets
|
$1,161,821,095
|
|
Total Number of Portfolio Holdings (excludes derivatives, except purchased options, if any)
|
35
|
|
Total Management Fee Paid
|
$6,491,276
|
|
Portfolio Turnover Rate
|
235%
|
WHAT DID THE FUND INVEST IN? (as of December 31, 2025)
Portfolio Composition* (% of Total Investments)
HOW HAS THE FUND CHANGED?
Effective 12/31/2025, David F. Hoffman, CFA stepped down as a member of the portfolio management team. Effective 7/31/2025, Paul Mielczarski joined the team.
This is a summary of a change and a planned change to the Fund since 1/1/2025. For more complete information, you may review the Fund’s current prospectus and any applicable supplements and the Fund’s next prospectus, which we expect to be available by 5/1/2026, at https://www.franklintempleton.com/regulatory-fund-documents or upon request at 877-6LM-FUND/656-3863 or prospectus.us.franklintempleton@fisglobal.com.
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