UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED
SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-22491
BrandywineGLOBAL - Global Income Opportunities Fund Inc.
(Exact name of registrant as specified in charter)
620 Eighth
Avenue, 47th Floor, New York, NY 10018
(Address of principal executive offices)
(Zip code)
George P. Hoyt.
Franklin Templeton
100
First Stamford Place
Stamford, CT 06902
(Name and address of agent for service)
Registrant’s telephone number, including area code: 1-888-777-0102
Date of fiscal year end: October 31
Date of reporting period: April 30, 2023
| ITEM 1. |
REPORT TO STOCKHOLDERS. |
The Semi-Annual Report to Stockholders is filed herewith.
|
|
|
| Semi-Annual Report |
|
April 30, 2023 |
BrandywineGLOBAL —
GLOBAL INCOME OPPORTUNITIES FUND
INC. (BWG)
|
| INVESTMENT PRODUCTS: NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE |
Managed Distribution Policy: The Fund’s Board of Directors (the “Board”) has authorized a
managed distribution plan pursuant to which the Fund makes monthly distributions to shareholders at a fixed rate of $0.0800 per common share, which rate may be adjusted from time to time by the Fund’s Board (the “Plan”). The Plan is
intended to provide shareholders with a constant, but not guaranteed, fixed minimum rate of distribution each month. The Fund is managed with a goal of generating as much of the distribution as possible from net ordinary income and short-term
capital gains that is consistent with the Fund’s investment strategy and risk profile. To the extent that sufficient distributable income is not available on a monthly basis, the Fund will distribute long-term capital gains and/or return of
capital in order to maintain its managed distribution rate. A return of capital may occur, for example, when some or all of the money that was invested in the Fund is paid back to shareholders. A return of capital distribution does not necessarily
reflect the Fund’s investment performance and should not be confused with “yield” or “income”. Even though the Fund may realize current year capital gains, such gains may be offset, in whole or in part, by the Fund’s
capital loss carryovers from prior years.
The Board may amend the terms of the Plan or terminate the Plan at any time without prior notice to the Fund’s
shareholders, however, at this time there are no reasonably foreseeable circumstances that might cause the termination of the Plan. The amendment or termination of the Plan could have an adverse effect on the market price of the Fund’s common
shares. The Plan is subject to the periodic review by the Board to determine if an adjustment should be made.
Shareholders should not draw any conclusions about the
Fund’s investment performance from the amount of the current distribution or from the terms of the Fund’s Plan. The Fund will send a Form 1099-DIV to shareholders for the calendar year that will
describe how to report the Fund’s distributions for federal income tax purposes.
Fund objectives
The Fund’s primary investment objective is to provide current income. As a secondary investment objective, the Fund will seek capital appreciation.
The Fund seeks to achieve its investment objectives by investing, under normal market conditions, at least 80% of its assets in global fixed income securities.
Letter from the chairman
Dear Shareholder,
We are pleased to provide the semi-annual report of BrandywineGLOBAL — Global Income Opportunities Fund Inc. for the
six-month reporting period ended April 30, 2023. Please read on for Fund performance information during the Fund’s reporting period.
As always, we remain committed to providing you with excellent service and a full spectrum of investment choices. We also remain committed to supplementing the support
you receive from your financial advisor. One way we accomplish this is through our website, www.franklintempleton.com. Here you can gain immediate access to market and investment information, including:
| • |
|
Fund prices and performance, |
| • |
|
Market insights and commentaries from our portfolio managers, and |
| • |
|
A host of educational resources. |
We look forward to helping you meet your financial goals.
Sincerely,
Jane Trust, CFA
Chairman, President and Chief Executive Officer
May 31, 2023
|
|
|
| II |
|
BrandywineGLOBAL—Global Income Opportunities Fund Inc. |
Performance review
For the six months ended April 30, 2023, BrandywineGLOBAL — Global Income Opportunities
Fund Inc. returned 8.62% based on its net asset value (“NAV”)i and 6.51% based on its New York Stock Exchange (“NYSE”) market price per share. The Fund’s unmanaged
benchmark, the Bloomberg Global Aggregate Indexii, returned 8.92% for the same period.
The Fund has adopted a
managed distribution policy (the “Managed Distribution Policy”). Pursuant to this policy, the Fund intends to make regular monthly distributions to common shareholders at a fixed rate per common share, which rate may be adjusted from time
to time by the Fund’s Board of Directors. This policy has no impact on the Fund’s investment strategy and may reduce the Fund’s NAV. The Fund’s investment manager believes the policy helps maintain the Fund’s competitiveness
and may benefit the Fund’s market price and premium/discount to the Fund’s NAV.
During this six-month period, the
Fund made distributions to shareholders totaling $0.52 per share. As of April 30, 2023, the Fund estimates that all of the distributions during the period constituted a return of capital.* The performance table shows the Fund’s six-month total return based on its NAV and market price as of April 30, 2023. Past performance is no guarantee of future results.
|
|
|
|
|
| Performance Snapshot as of April 30, 2023 (unaudited) |
|
| Price Per Share |
|
6-Month
Total Return** |
|
| $9.18 (NAV) |
|
|
8.62 |
%† |
| $7.83 (Market Price) |
|
|
6.51 |
%‡ |
All figures represent past performance and are not a guarantee of future results. Performance figures for periods shorter than one year
represent cumulative figures and are not annualized.
** Total returns are based on changes in NAV or market price, respectively. Returns reflect the deduction
of all Fund expenses, including management fees, operating expenses, and other Fund expenses. Returns do not reflect the deduction of brokerage commissions or taxes that investors may pay on distributions or the sale of shares.
† Total return assumes the reinvestment of all distributions, including returns of capital, if any, at NAV.
‡ Total return assumes the reinvestment of all distributions, including returns of capital, if any, in additional shares in accordance with the Fund’s
Dividend Reinvestment Plan.
Looking for additional information?
The Fund is traded under the symbol “BWG” and its closing market price is available in most newspapers under the NYSE listings. The daily NAV is available
online under the
| * |
These estimates are not for tax purposes. The Fund will issue a Form 1099 with final composition of the distributions for
tax purposes after year-end. A return of capital is not taxable and results in a reduction in the tax basis of a shareholder’s investment. For more information about a distribution’s composition,
please refer to the Fund’s distribution press release or, if applicable, the Section 19 notice located in the press release section of our website, www.franklintempleton.com. |
|
|
|
| BrandywineGLOBAL—Global Income Opportunities Fund Inc. |
|
III |
symbol “XBWGX” on most financial websites. Barron’s and The Wall Street Journal’s Monday edition both carry closed-end
fund tables that provide additional information. In addition, the Fund issues a quarterly press release that can be found on most major financial websites as well as www.franklintempleton.com.
In a continuing effort to provide information concerning the Fund, shareholders may call 1-888-777-0102 (toll free), Monday through Friday from 8:00 a.m. to 5:30 p.m. Eastern Time, for the Fund’s current NAV, market price and other information.
Thank you for your investment in BrandywineGLOBAL — Global Income Opportunities Fund Inc. As always, we appreciate that you have chosen us to manage your assets and
we remain focused on achieving the Fund’s investment goals.
Sincerely,
Jane Trust, CFA
Chairman, President and Chief Executive Officer
May 31, 2023
RISKS: The Fund is a non-diversified,
closed-end management investment company designed primarily as a long-term investment and not as a trading vehicle. The Fund is not intended to be a complete investment program and, due to the uncertainty
inherent in all investments, there can be no assurance that the Fund will achieve its investment objective. The Fund’s common stock is traded on the New York Stock Exchange. Similar to stocks, the Fund’s share price will fluctuate with
market conditions and, at the time of sale, may be worth more or less than the original investment. Shares of closed-end funds often trade at a discount to their net asset value. Because the Fund is non-diversified, it may be more susceptible to economic, political or regulatory events than a diversified fund.
The
Fund’s investments are subject to various risks, including but not limited to, credit, inflation, income, prepayment and interest rate risks. As interest rates increase, the value of fixed income securities decreases. Fixed income securities
rated below investment grade are commonly referred to as “high yield” securities or “junk” bonds and are subject to greater liquidity and credit risks (risk of default) than higher-rated securities. Fixed income securities rated
C or lower by Moody’s Investor Service, Inc., CCC or lower by Standard & Poor’s Corporation Ratings Group or CC or lower by Fitch Ratings, Inc. or comparably rated by another NRSRO or, if unrated, determined by Brandywine Global
Investment Management, LLC to be of comparable quality are considered to have extremely poor prospects of ever attaining any real investment standing, to have a current identifiable vulnerability to default, to be unlikely to have the capacity to
pay interest and repay principal when due in the event of adverse business, financial or economic conditions and/or to be in default or not current in the payment of interest or principal. Ratings
|
|
|
| IV |
|
BrandywineGLOBAL—Global Income Opportunities Fund Inc. |
Performance review (cont’d)
may not accurately reflect the actual credit risk associated with a corporate security.
International investments involve certain risks not associated with domestic investing, such as currency fluctuations, and changes in political, social and
economic conditions which could increase volatility. These risks are magnified in emerging or developing markets. Emerging market countries tend to have economic, political, and legal systems that are less developed and are less stable than those of
more developed countries. Mortgage-backed securities are subject to additional risks, including prepayment risk, which can limit the potential gains in a declining interest rate environment. The Fund may invest in foreign currencies or currency
derivatives which may increase the risk and volatility of the Fund.
The Fund may invest in illiquid securities and securities/investments that have a
leveraging effect on the portfolio which will increase the risks of the Fund. The Fund’s use of leverage may result in greater volatility of NAV and the market price of common shares and increases a shareholder’s risk of loss. The Fund may
make significant investments in derivative instruments. Derivative instruments can be illiquid, may disproportionately increase losses and have a potentially large impact on Fund performance. The use by the Fund of derivatives such as options,
forwards or futures contracts for investment and/or risk management purposes may subject the Fund to risks associated with short economic exposure through such derivatives. Taking a short economic position through derivatives exposes the Fund to the
risk that it will be obligated to make payments to its counterparty if the underlying asset appreciates in value, thus resulting in a loss to the Fund. The Fund’s loss on a short position, whether caused by the use of derivatives or otherwise,
theoretically could be unlimited.
The Fund may invest in contingent convertible securities (“CoCos”). CoCos are a form of hybrid debt security
that are intended to either convert into equity or have their principal written down upon the occurrence of certain “triggers.” The triggers are generally linked to regulatory capital thresholds or regulatory actions calling into question
the issuing banking institution’s continued viability as a going-concern. CoCos are subject to risks, such as loss absorption risk (the risk that CoCos’ fully discretionary coupons can potentially be cancelled at the banking
institution’s discretion or at the request of the relevant regulatory authority in order to help the bank absorb losses) and subordination risk (the risk that (i) in the event of liquidation, dissolution or
winding-up of an issuer prior to a conversion having occurred, the rights and claims of the holders of the CoCos will generally rank junior to the claims of all holders of unsubordinated obligations of the
issuer; and (ii) if the CoCos are converted into the issuer’s underlying equity securities following a conversion event (i.e., a “trigger”), each holder will be subordinated due to their conversion from being the holder of a debt
instrument to being the holder of an equity instrument). The market values of securities or other assets will fluctuate, sometimes sharply and unpredictably, due to changes in general market conditions, overall economic trends or events,
governmental actions or intervention, actions taken by the U.S. Federal Reserve or foreign central banks, market disruptions caused by trade disputes or other factors, political developments, armed conflicts, economic sanctions and countermeasures
in response to sanctions, major cybersecurity events, investor sentiment, the global and domestic effects of a pandemic, and other factors that may or may not be related to the issuer of the security or other
|
|
|
| BrandywineGLOBAL—Global Income Opportunities Fund Inc. |
|
V |
asset. The Fund may also invest in money market funds, including funds affiliated with the Fund’s manager and
subadviser.
All investments are subject to risk including the possible loss of principal. Past performance is no guarantee of future results. All index
performance reflects no deduction for fees, expenses or taxes. Please note that an investor cannot invest directly in an index.
| i |
Net asset value (“NAV”) is calculated by subtracting total liabilities, including liabilities associated with
financial leverage (if any), from the closing value of all securities held by the Fund (plus all other assets) and dividing the result (total net assets) by the total number of the common shares outstanding. The NAV fluctuates with changes in the
market prices of securities in which the Fund has invested. However, the price at which an investor may buy or sell shares of the Fund is the Fund’s market price as determined by supply of and demand for the Fund’s shares.
|
| ii |
The Bloomberg Global Aggregate Index is a market-weighted index of global government, government-related agencies,
corporate and securitized fixed income investments. |
|
|
|
| VI |
|
BrandywineGLOBAL—Global Income Opportunities Fund Inc. |
Fund at a glance†
(unaudited)
Investment breakdown (%) as a percent of total investments
| † |
The bar graph above represents the composition of the Fund’s investments as of April 30, 2023 and
October 31, 2022 and does not include derivatives, such as futures contracts, forward foreign currency contracts and swap contracts. The Fund is actively managed. As a result, the composition of the Fund’s investments is subject to change
at any time. |
|
|
|
|
|
|
|
| BrandywineGLOBAL—Global Income Opportunities Fund Inc. 2023 Semi-Annual Report |
|
|
|
|
1 |
|
Schedule of investments (unaudited)
April 30, 2023
BrandywineGLOBAL—Global
Income Opportunities Fund Inc.
(Percentages shown based on Fund net assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Security |
|
Rate |
|
|
Maturity
Date |
|
|
Face
Amount† |
|
|
Value |
|
| Corporate Bonds & Notes — 89.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Communication Services — 10.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Diversified Telecommunication Services
— 2.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Altice France Holding SA, Senior Notes |
|
|
6.000 |
% |
|
|
2/15/28 |
|
|
|
1,515,000 |
|
|
$ |
934,499 |
(a)(b) |
| Altice France SA, Senior Secured Notes |
|
|
3.375 |
% |
|
|
1/15/28 |
|
|
|
1,190,000 |
EUR |
|
|
1,006,846 |
(a) |
| Consolidated Communications Inc., Senior Secured Notes |
|
|
5.000 |
% |
|
|
10/1/28 |
|
|
|
890,000 |
|
|
|
653,349 |
(a)(b) |
| Hughes Satellite Systems Corp., Senior Notes |
|
|
6.625 |
% |
|
|
8/1/26 |
|
|
|
200,000 |
|
|
|
189,199 |
(b) |
| Level 3 Financing Inc., Senior Notes |
|
|
4.625 |
% |
|
|
9/15/27 |
|
|
|
1,300,000 |
|
|
|
804,283 |
(a)(b) |
| Total Diversified Telecommunication
Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,588,176 |
|
| Interactive Media & Services —
2.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ANGI Group LLC, Senior Notes |
|
|
3.875 |
% |
|
|
8/15/28 |
|
|
|
2,200,000 |
|
|
|
1,724,217 |
(a)(b) |
| Rackspace Technology Global Inc., Senior Secured Notes |
|
|
3.500 |
% |
|
|
2/15/28 |
|
|
|
555,000 |
|
|
|
230,916 |
(a)(b) |
| Tencent Holdings Ltd., Senior Notes |
|
|
2.880 |
% |
|
|
4/22/31 |
|
|
|
1,500,000 |
|
|
|
1,301,778 |
(c) |
| Total Interactive Media &
Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,256,911 |
|
| Media — 1.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Colombia Telecomunicaciones SA ESP, Senior Notes |
|
|
4.950 |
% |
|
|
7/17/30 |
|
|
|
775,000 |
|
|
|
579,041 |
(a)(b) |
| DISH Network Corp., Senior Secured Notes |
|
|
11.750 |
% |
|
|
11/15/27 |
|
|
|
1,000,000 |
|
|
|
945,749 |
(a)(b) |
| Liberty Interactive LLC, Senior Notes |
|
|
8.250 |
% |
|
|
2/1/30 |
|
|
|
725,000 |
|
|
|
219,394 |
(b) |
| Total Media |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,744,184 |
|
| Wireless Telecommunication Services —
4.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Sprint Spectrum Co. LLC/Sprint Spectrum Co. II LLC/Sprint Spectrum Co. III LLC, Senior
Secured Notes |
|
|
4.738 |
% |
|
|
3/20/25 |
|
|
|
3,975,000 |
|
|
|
3,949,708 |
(a)(b) |
| United States Cellular Corp., Senior Notes |
|
|
6.700 |
% |
|
|
12/15/33 |
|
|
|
2,000,000 |
|
|
|
1,822,660 |
(b) |
| Xiaomi Best Time International Ltd., Senior Notes |
|
|
3.375 |
% |
|
|
4/29/30 |
|
|
|
1,600,000 |
|
|
|
1,300,148 |
(a) |
| Total Wireless Telecommunication
Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,072,516 |
|
| Total Communication Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15,661,787 |
|
| Consumer Discretionary — 9.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Automobiles — 0.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Nissan Motor Co. Ltd., Senior Notes |
|
|
4.345 |
% |
|
|
9/17/27 |
|
|
|
1,500,000 |
|
|
|
1,375,417 |
(a)(b) |
| Broadline Retail —
1.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Alibaba Group Holding Ltd., Senior Notes |
|
|
2.125 |
% |
|
|
2/9/31 |
|
|
|
1,600,000 |
|
|
|
1,329,788 |
|
| JD.com Inc., Senior Notes |
|
|
3.375 |
% |
|
|
1/14/30 |
|
|
|
1,450,000 |
|
|
|
1,308,988 |
|
| Total Broadline Retail |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,638,776 |
|
| Hotels, Restaurants & Leisure
— 4.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Affinity Interactive, Senior Secured Notes |
|
|
6.875 |
% |
|
|
12/15/27 |
|
|
|
1,500,000 |
|
|
|
1,350,701 |
(a)(b) |
See Notes to Financial
Statements.
|
|
|
|
|
| 2 |
|
|
|
BrandywineGLOBAL—Global Income Opportunities Fund Inc. 2023 Semi-Annual Report |
BrandywineGLOBAL—Global
Income Opportunities Fund Inc.
(Percentages shown based on Fund net assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Security |
|
Rate |
|
|
Maturity
Date |
|
|
Face
Amount† |
|
|
Value |
|
| Hotels, Restaurants & Leisure
— continued |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Carrols Restaurant Group Inc., Senior Notes |
|
|
5.875 |
% |
|
|
7/1/29 |
|
|
|
605,000 |
|
|
$ |
501,321 |
(a)(b) |
| GPS Hospitality Holding Co. LLC/GPS Finco Inc., Senior Secured Notes |
|
|
7.000 |
% |
|
|
8/15/28 |
|
|
|
1,225,000 |
|
|
|
726,921 |
(a)(b) |
| Marriott Ownership Resorts Inc., Senior Notes |
|
|
4.500 |
% |
|
|
6/15/29 |
|
|
|
580,000 |
|
|
|
506,978 |
(a)(b) |
| Mohegan Tribal Gaming Authority, Secured Notes |
|
|
8.000 |
% |
|
|
2/1/26 |
|
|
|
1,450,000 |
|
|
|
1,299,280 |
(a)(b) |
| Travel + Leisure Co., Senior Secured Notes |
|
|
6.000 |
% |
|
|
4/1/27 |
|
|
|
1,475,000 |
|
|
|
1,452,794 |
(b) |
| Viking Cruises Ltd., Senior Notes |
|
|
6.250 |
% |
|
|
5/15/25 |
|
|
|
645,000 |
|
|
|
613,109 |
(a)(b) |
| Total Hotels, Restaurants &
Leisure |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,451,104 |
|
| Household Durables —
0.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| KB Home, Senior Notes |
|
|
4.000 |
% |
|
|
6/15/31 |
|
|
|
565,000 |
|
|
|
489,493 |
(b) |
| Leisure Products —
0.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Vista Outdoor Inc., Senior Notes |
|
|
4.500 |
% |
|
|
3/15/29 |
|
|
|
730,000 |
|
|
|
575,182 |
(a)(b) |
| Specialty Retail —
2.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Bath & Body Works Inc., Senior Notes |
|
|
6.625 |
% |
|
|
10/1/30 |
|
|
|
370,000 |
|
|
|
355,611 |
(a)(b) |
| Gap Inc., Senior Notes |
|
|
3.875 |
% |
|
|
10/1/31 |
|
|
|
1,395,000 |
|
|
|
976,068 |
(a)(b) |
| Grupo Axo SAPI de CV, Senior Notes |
|
|
5.750 |
% |
|
|
6/8/26 |
|
|
|
690,000 |
|
|
|
606,627 |
(a)(b) |
| Michaels Cos. Inc., Senior Secured Notes |
|
|
5.250 |
% |
|
|
5/1/28 |
|
|
|
1,400,000 |
|
|
|
1,154,720 |
(a)(b) |
| Total Specialty Retail |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,093,026 |
|
| Total Consumer Discretionary |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14,622,998 |
|
| Consumer Staples — 3.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Food Products —
2.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Minerva Luxembourg SA, Senior Notes |
|
|
4.375 |
% |
|
|
3/18/31 |
|
|
|
630,000 |
|
|
|
495,896 |
(a)(b) |
| Pilgrim’s Pride Corp., Senior Notes |
|
|
5.875 |
% |
|
|
9/30/27 |
|
|
|
3,000,000 |
|
|
|
2,988,496 |
(a)(b) |
| Simmons Foods Inc./Simmons Prepared Foods Inc./Simmons Pet Food Inc./ Simmons Feed
Ingredients Inc., Secured Notes |
|
|
4.625 |
% |
|
|
3/1/29 |
|
|
|
1,115,000 |
|
|
|
922,395 |
(a)(b) |
| Total Food Products |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,406,787 |
|
| Tobacco — 0.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Turning Point Brands Inc., Senior Secured Notes |
|
|
5.625 |
% |
|
|
2/15/26 |
|
|
|
1,480,000 |
|
|
|
1,360,971 |
(a)(b) |
| Total Consumer Staples |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,767,758 |
|
| Energy — 21.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Oil, Gas & Consumable Fuels —
21.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| CITGO Petroleum Corp., Senior Secured Notes |
|
|
6.375 |
% |
|
|
6/15/26 |
|
|
|
1,425,000 |
|
|
|
1,389,539 |
(a) |
| CNX Resources Corp., Senior Notes |
|
|
6.000 |
% |
|
|
1/15/29 |
|
|
|
1,310,000 |
|
|
|
1,213,307 |
(a)(b) |
See Notes to Financial
Statements.
|
|
|
|
|
|
|
| BrandywineGLOBAL—Global Income Opportunities Fund Inc. 2023 Semi-Annual Report |
|
|
|
|
3 |
|
Schedule of investments
(unaudited) (cont’d)
April 30, 2023
BrandywineGLOBAL—Global Income Opportunities Fund Inc.
(Percentages shown based on Fund net assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Security |
|
Rate |
|
|
Maturity
Date |
|
|
Face
Amount† |
|
|
Value |
|
| Oil, Gas & Consumable Fuels —
continued |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Diamondback Energy Inc., Senior Notes |
|
|
6.250 |
% |
|
|
3/15/33 |
|
|
|
2,740,000 |
|
|
$ |
2,924,032 |
(b) |
| Diamondback Energy Inc., Senior Notes |
|
|
6.250 |
% |
|
|
3/15/53 |
|
|
|
1,000,000 |
|
|
|
1,046,683 |
(b) |
| Energean Israel Finance Ltd., Senior Secured Notes |
|
|
5.375 |
% |
|
|
3/30/28 |
|
|
|
2,500,000 |
|
|
|
2,241,462 |
(c) |
| Energean Israel Finance Ltd., Senior Secured Notes |
|
|
5.875 |
% |
|
|
3/30/31 |
|
|
|
1,710,000 |
|
|
|
1,494,112 |
(c) |
| Geopark Ltd., Senior Notes |
|
|
5.500 |
% |
|
|
1/17/27 |
|
|
|
1,620,000 |
|
|
|
1,347,073 |
(a)(b) |
| Hess Corp., Senior Notes |
|
|
5.600 |
% |
|
|
2/15/41 |
|
|
|
3,000,000 |
|
|
|
2,920,656 |
(b) |
| Leviathan Bond Ltd., Senior Secured Notes |
|
|
6.500 |
% |
|
|
6/30/27 |
|
|
|
1,000,000 |
|
|
|
950,000 |
(c) |
| Magnolia Oil & Gas Operating LLC/ Magnolia Oil & Gas Finance Corp.,
Senior Notes |
|
|
6.000 |
% |
|
|
8/1/26 |
|
|
|
2,315,000 |
|
|
|
2,249,972 |
(a)(b) |
| Marathon Oil Corp., Senior Notes |
|
|
6.600 |
% |
|
|
10/1/37 |
|
|
|
2,445,000 |
|
|
|
2,520,597 |
(b) |
| New Fortress Energy Inc., Senior Secured Notes |
|
|
6.750 |
% |
|
|
9/15/25 |
|
|
|
445,000 |
|
|
|
424,386 |
(a)(b) |
| New Fortress Energy Inc., Senior Secured Notes |
|
|
6.500 |
% |
|
|
9/30/26 |
|
|
|
2,500,000 |
|
|
|
2,305,276 |
(a)(b) |
| Petroleos Mexicanos, Senior Notes |
|
|
4.500 |
% |
|
|
1/23/26 |
|
|
|
1,420,000 |
|
|
|
1,295,077 |
|
| Petroleos Mexicanos, Senior Notes |
|
|
5.350 |
% |
|
|
2/12/28 |
|
|
|
3,730,000 |
|
|
|
3,101,158 |
(b) |
| SierraCol Energy Andina LLC, Senior Notes |
|
|
6.000 |
% |
|
|
6/15/28 |
|
|
|
1,420,000 |
|
|
|
1,052,788 |
(a)(b) |
| Talos Production Inc., Secured Notes |
|
|
12.000 |
% |
|
|
1/15/26 |
|
|
|
1,375,000 |
|
|
|
1,455,376 |
(b) |
| Teine Energy Ltd., Senior Notes |
|
|
6.875 |
% |
|
|
4/15/29 |
|
|
|
4,000,000 |
|
|
|
3,663,690 |
(a)(b) |
| Total Energy |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
33,595,184 |
|
| Financials — 20.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Banks — 7.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Banco Santander SA, Junior Subordinated Notes (7.500% to 2/8/24 then USD 5 year ICE Swap
Rate + 4.989%) |
|
|
7.500 |
% |
|
|
2/8/24 |
|
|
|
1,400,000 |
|
|
|
1,351,609 |
(c)(d)(e) |
| Bank of America Corp., Subordinated Notes |
|
|
7.750 |
% |
|
|
5/14/38 |
|
|
|
6,345,000 |
|
|
|
7,707,975 |
(b) |
| NatWest Group PLC, Junior Subordinated Notes (4.600% to 12/28/31 then 5 year Treasury
Constant Maturity Rate + 3.100%) |
|
|
4.600 |
% |
|
|
6/28/31 |
|
|
|
1,840,000 |
|
|
|
1,301,598 |
(b)(d)(e) |
| Texas Capital Bancshares Inc., Subordinated Notes (4.000% to 5/6/26 then 5 year Treasury
Constant Maturity Rate + 3.150%) |
|
|
4.000 |
% |
|
|
5/6/31 |
|
|
|
1,000,000 |
|
|
|
808,808 |
(b)(e) |
| Total Banks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,169,990 |
|
See Notes to Financial
Statements.
|
|
|
|
|
| 4 |
|
|
|
BrandywineGLOBAL—Global Income Opportunities Fund Inc. 2023 Semi-Annual Report |
BrandywineGLOBAL—Global
Income Opportunities Fund Inc.
(Percentages shown based on Fund net assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Security |
|
Rate |
|
|
Maturity
Date |
|
|
Face
Amount† |
|
|
Value |
|
| Capital Markets —
8.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Blackstone Secured Lending Fund, Senior Notes |
|
|
3.625 |
% |
|
|
1/15/26 |
|
|
|
1,745,000 |
|
|
$ |
1,605,367 |
(b) |
| Goldman Sachs Group Inc., Subordinated Notes |
|
|
6.750 |
% |
|
|
10/1/37 |
|
|
|
7,000,000 |
|
|
|
7,670,896 |
(b) |
| Owl Rock Capital Corp., Senior Notes |
|
|
4.000 |
% |
|
|
3/30/25 |
|
|
|
1,085,000 |
|
|
|
1,023,561 |
(b) |
| Owl Rock Technology Finance Corp., Senior Notes |
|
|
4.750 |
% |
|
|
12/15/25 |
|
|
|
3,385,000 |
|
|
|
3,084,175 |
(a)(b) |
| Total Capital Markets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13,383,999 |
|
| Consumer Finance —
3.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Credit Acceptance Corp., Senior Notes |
|
|
6.625 |
% |
|
|
3/15/26 |
|
|
|
1,920,000 |
|
|
|
1,837,427 |
(b) |
| World Acceptance Corp., Senior Notes |
|
|
7.000 |
% |
|
|
11/1/26 |
|
|
|
3,800,000 |
|
|
|
3,096,164 |
(a)(b) |
| Total Consumer Finance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,933,591 |
|
| Financial Services —
1.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| AerCap Ireland Capital DAC/AerCap Global Aviation Trust, Senior Notes |
|
|
3.000 |
% |
|
|
10/29/28 |
|
|
|
2,970,000 |
|
|
|
2,587,763 |
(b) |
| Total Financials |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
32,075,343 |
|
| Health Care — 0.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Health Care Providers & Services
— 0.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ModivCare Escrow Issuer Inc., Senior Notes |
|
|
5.000 |
% |
|
|
10/1/29 |
|
|
|
345,000 |
|
|
|
278,587 |
(a)(b) |
| Select Medical Corp., Senior Notes |
|
|
6.250 |
% |
|
|
8/15/26 |
|
|
|
560,000 |
|
|
|
549,102 |
(a)(b) |
| Total Health Care |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
827,689 |
|
| Industrials — 6.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Aerospace & Defense —
1.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Avolon Holdings Funding Ltd., Senior Notes |
|
|
2.750 |
% |
|
|
2/21/28 |
|
|
|
3,120,000 |
|
|
|
2,628,229 |
(a)(b) |
| Building Products —
1.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| IEA Energy Services LLC, Senior Notes |
|
|
6.625 |
% |
|
|
8/15/29 |
|
|
|
1,880,000 |
|
|
|
1,782,120 |
(a) |
| Commercial Services & Supplies
— 0.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Deluxe Corp., Senior Notes |
|
|
8.000 |
% |
|
|
6/1/29 |
|
|
|
565,000 |
|
|
|
436,987 |
(a)(b) |
| Construction & Engineering —
0.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ATP Tower Holdings LLC/Andean Tower Partners Colombia SAS/Andean Telecom Par, Senior
Secured Notes |
|
|
4.050 |
% |
|
|
4/27/26 |
|
|
|
300,000 |
|
|
|
256,624 |
(a)(b) |
| Marine Transportation —
0.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Navios South American Logistics Inc./ Navios Logistics Finance U.S. Inc., Senior Secured
Notes |
|
|
10.750 |
% |
|
|
7/1/25 |
|
|
|
1,140,000 |
|
|
|
1,122,160 |
(a)(b) |
See Notes to Financial
Statements.
|
|
|
|
|
|
|
| BrandywineGLOBAL—Global Income Opportunities Fund Inc. 2023 Semi-Annual Report |
|
|
|
|
5 |
|
Schedule of investments
(unaudited) (cont’d)
April 30, 2023
BrandywineGLOBAL—Global Income Opportunities Fund Inc.
(Percentages shown based on Fund net assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Security |
|
Rate |
|
|
Maturity
Date |
|
|
Face
Amount† |
|
|
Value |
|
| Passenger Airlines —
1.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Air Canada Pass-Through Trust |
|
|
5.250 |
% |
|
|
4/1/29 |
|
|
|
155,675 |
|
|
$ |
152,672 |
(a)(b) |
| Allegiant Travel Co., Senior Secured Notes |
|
|
7.250 |
% |
|
|
8/15/27 |
|
|
|
2,000,000 |
|
|
|
1,977,201 |
(a)(b) |
| Total Passenger Airlines |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,129,873 |
|
| Trading Companies & Distributors
— 1.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| BOC Aviation USA Corp., Senior Notes |
|
|
4.875 |
% |
|
|
5/3/33 |
|
|
|
2,300,000 |
|
|
|
2,287,224 |
(a)(f) |
| Total Industrials |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,643,217 |
|
| Information Technology — 6.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Communications Equipment —
3.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| CommScope Inc., Senior Notes |
|
|
8.250 |
% |
|
|
3/1/27 |
|
|
|
1,350,000 |
|
|
|
1,045,091 |
(a)(b) |
| CommScope Inc., Senior Notes |
|
|
7.125 |
% |
|
|
7/1/28 |
|
|
|
495,000 |
|
|
|
355,719 |
(a)(b) |
| CommScope Inc., Senior Secured Notes |
|
|
6.000 |
% |
|
|
3/1/26 |
|
|
|
1,370,000 |
|
|
|
1,310,472 |
(a)(b) |
| Connect Finco SARL/Connect US Finco LLC, Senior Secured Notes |
|
|
6.750 |
% |
|
|
10/1/26 |
|
|
|
2,200,000 |
|
|
|
2,099,621 |
(a)(b) |
| Viasat Inc., Senior Secured Notes |
|
|
5.625 |
% |
|
|
4/15/27 |
|
|
|
1,300,000 |
|
|
|
1,207,070 |
(a)(b) |
| Total Communications
Equipment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,017,973 |
|
| IT Services — 1.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Sabre GLBL Inc., Senior Secured Notes |
|
|
9.250 |
% |
|
|
4/15/25 |
|
|
|
2,000,000 |
|
|
|
1,846,990 |
(a)(b) |
| Semiconductors &
Semiconductor Equipment — 0.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Entegris Inc., Senior Notes |
|
|
4.375 |
% |
|
|
4/15/28 |
|
|
|
750,000 |
|
|
|
687,433 |
(a)(b) |
| Entegris Inc., Senior Notes |
|
|
3.625 |
% |
|
|
5/1/29 |
|
|
|
330,000 |
|
|
|
282,983 |
(a)(b) |
| Synaptics Inc., Senior Notes |
|
|
4.000 |
% |
|
|
6/15/29 |
|
|
|
285,000 |
|
|
|
241,135 |
(a)(b) |
| Total Semiconductors &
Semiconductor Equipment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,211,551 |
|
| Software — 1.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Elastic NV, Senior Notes |
|
|
4.125 |
% |
|
|
7/15/29 |
|
|
|
335,000 |
|
|
|
290,148 |
(a)(b) |
| MicroStrategy Inc., Senior Secured Notes |
|
|
6.125 |
% |
|
|
6/15/28 |
|
|
|
1,410,000 |
|
|
|
1,275,853 |
(a)(b) |
| Total Software |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,566,001 |
|
| Total Information Technology |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,642,515 |
|
| Materials — 5.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Chemicals — 0.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Braskem Idesa SAPI, Senior Secured Notes |
|
|
7.450 |
% |
|
|
11/15/29 |
|
|
|
1,340,000 |
|
|
|
1,061,466 |
(a)(b) |
| Metals & Mining —
4.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Alcoa Nederland Holding BV, Senior Notes |
|
|
4.125 |
% |
|
|
3/31/29 |
|
|
|
1,645,000 |
|
|
|
1,495,552 |
(a)(b) |
| First Quantum Minerals Ltd., Senior Notes |
|
|
6.875 |
% |
|
|
10/15/27 |
|
|
|
2,920,000 |
|
|
|
2,837,582 |
(a) |
| New Gold Inc., Senior Notes |
|
|
7.500 |
% |
|
|
7/15/27 |
|
|
|
100,000 |
|
|
|
96,489 |
(a)(b) |
| Taseko Mines Ltd., Senior Secured Notes |
|
|
7.000 |
% |
|
|
2/15/26 |
|
|
|
3,000,000 |
|
|
|
2,770,465 |
(a)(b) |
| Total Metals &
Mining |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,200,088 |
|
| Total Materials |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,261,554 |
|
See Notes to Financial
Statements.
|
|
|
|
|
| 6 |
|
|
|
BrandywineGLOBAL—Global Income Opportunities Fund Inc. 2023 Semi-Annual Report |
BrandywineGLOBAL—Global
Income Opportunities Fund Inc.
(Percentages shown based on Fund net assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Security |
|
Rate |
|
|
Maturity
Date |
|
|
Face
Amount† |
|
|
Value |
|
| Real Estate — 0.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Hotel & Resort REITs —
0.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| XHR LP, Senior Secured Notes |
|
|
4.875 |
% |
|
|
6/1/29 |
|
|
|
850,000 |
|
|
$ |
738,488 |
(a)(b) |
| Real Estate Management &
Development — 0.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Realogy Group LLC/Realogy Co-Issuer Corp., Senior
Notes |
|
|
5.750 |
% |
|
|
1/15/29 |
|
|
|
575,000 |
|
|
|
427,570 |
(a)(b) |
| Total Real Estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,166,058 |
|
| Utilities — 2.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Electric Utilities —
0.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| AES Panama Generation Holdings SRL, Senior Secured Notes |
|
|
4.375 |
% |
|
|
5/31/30 |
|
|
|
1,195,000 |
|
|
|
1,037,750 |
(a)(b) |
| Gas Utilities —
0.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| AmeriGas Partners LP/AmeriGas Finance Corp., Senior Notes |
|
|
5.875 |
% |
|
|
8/20/26 |
|
|
|
625,000 |
|
|
|
603,525 |
(b) |
| Independent Power and Renewable
Electricity Producers — 0.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
| AES Corp., Senior Notes |
|
|
3.300 |
% |
|
|
7/15/25 |
|
|
|
685,000 |
|
|
|
651,480 |
(a)(b) |
| Water Utilities —
1.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Solaris Midstream Holdings LLC, Senior |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Notes |
|
|
7.625 |
% |
|
|
4/1/26 |
|
|
|
2,000,000 |
|
|
|
1,921,970 |
(a)(b) |
| Total Utilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,214,725 |
|
| Total Corporate Bonds & Notes (Cost —
$145,681,556) |
|
|
|
|
|
|
|
|
|
|
|
137,478,828 |
|
| Sovereign Bonds — 50.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Brazil — 15.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Brazil Notas do Tesouro Nacional Serie F, Notes |
|
|
10.000 |
% |
|
|
1/1/27 |
|
|
|
55,800,000 |
BRL |
|
|
10,612,276 |
|
| Brazil Notas do Tesouro Nacional Serie F, Notes |
|
|
10.000 |
% |
|
|
1/1/31 |
|
|
|
70,715,000 |
BRL |
|
|
12,711,396 |
|
| Total Brazil |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
23,323,672 |
|
| Colombia — 13.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Colombian TES, Bonds |
|
|
7.000 |
% |
|
|
3/26/31 |
|
|
|
43,770,000,000 |
COP |
|
|
7,144,446 |
|
| Colombian TES, Bonds |
|
|
7.250 |
% |
|
|
10/26/50 |
|
|
|
98,120,000,000 |
COP |
|
|
12,935,471 |
|
| Total Colombia |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20,079,917 |
|
| Mexico — 13.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Mexican Bonos, Bonds |
|
|
8.000 |
% |
|
|
11/7/47 |
|
|
|
170,400,000 |
MXN |
|
|
8,432,760 |
|
| Mexican Bonos, Bonds |
|
|
8.000 |
% |
|
|
7/31/53 |
|
|
|
146,000,000 |
MXN |
|
|
7,181,727 |
|
| Mexican Bonos, Senior Notes |
|
|
7.750 |
% |
|
|
11/13/42 |
|
|
|
94,100,000 |
MXN |
|
|
4,574,146 |
|
| Total Mexico |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20,188,633 |
|
See Notes to Financial
Statements.
|
|
|
|
|
|
|
| BrandywineGLOBAL—Global Income Opportunities Fund Inc. 2023 Semi-Annual Report |
|
|
|
|
7 |
|
Schedule of investments
(unaudited) (cont’d)
April 30, 2023
BrandywineGLOBAL—Global Income Opportunities Fund Inc.
(Percentages shown based on Fund net assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Security |
|
Rate |
|
|
Maturity
Date |
|
|
Face
Amount† |
|
|
Value |
|
| South Africa — 9.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Republic of South Africa Government Bond, Senior Notes |
|
|
8.750 |
% |
|
|
2/28/48 |
|
|
|
349,800,000 |
ZAR |
|
$ |
14,406,004 |
|
| Total Sovereign Bonds (Cost —
$90,479,953) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
77,998,226 |
|
| Collateralized Mortgage Obligations (g) — 21.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Banc of America Commercial Mortgage Trust, 2017-BNK3 XA, IO |
|
|
1.159 |
% |
|
|
2/15/50 |
|
|
|
38,742,994 |
|
|
|
1,191,475 |
(e) |
| BANK, 2017-BNK4 XA, IO |
|
|
1.501 |
% |
|
|
5/15/50 |
|
|
|
3,854,394 |
|
|
|
158,979 |
(e) |
| BBVA RMBS 2 FTA, 2007-2 C (3 mo. EURIBOR +
0.540%) |
|
|
3.355 |
% |
|
|
9/17/50 |
|
|
|
871,973 |
EUR |
|
|
871,906 |
(c)(e) |
| Bellemeade RE Ltd., 2020-2A M2 (1 mo. USD LIBOR +
6.000%) |
|
|
11.020 |
% |
|
|
8/26/30 |
|
|
|
1,579,249 |
|
|
|
1,611,688 |
(a)(e) |
| Bellemeade RE Ltd., 2020-3A M1C (1 mo. USD LIBOR +
3.700%) |
|
|
8.720 |
% |
|
|
10/25/30 |
|
|
|
913,265 |
|
|
|
924,889 |
(a)(e) |
| Eagle RE Ltd., 2021-2 M1B (30 Day Average SOFR +
2.050%) |
|
|
6.865 |
% |
|
|
4/25/34 |
|
|
|
2,500,000 |
|
|
|
2,488,799 |
(a)(e) |
| Federal Home Loan Mortgage Corp. (FHLMC) REMIC, Structured Agency Credit Risk Debt Notes,
2022-DNA2 M1B (30 Day Average SOFR + 2.400%) |
|
|
7.215 |
% |
|
|
2/25/42 |
|
|
|
1,800,000 |
|
|
|
1,775,008 |
(a)(b)(e) |
| Federal Home Loan Mortgage Corp. (FHLMC) Structured Agency Credit Risk Debt Notes,
2018-DNA1 M2 (1 mo. USD LIBOR + 1.800%) |
|
|
6.820 |
% |
|
|
7/25/30 |
|
|
|
1,303,497 |
|
|
|
1,296,430 |
(e) |
| Federal Home Loan Mortgage Corp. (FHLMC) Structured Agency Credit Risk Debt Notes,
2018-HRP2 M3 (1 mo. USD LIBOR + 2.400%) |
|
|
7.420 |
% |
|
|
2/25/47 |
|
|
|
1,832,068 |
|
|
|
1,830,923 |
(a)(b)(e) |
| Federal Home Loan Mortgage Corp. (FHLMC) Structured Agency Credit Risk Debt Notes,
2019-DNA2 M2 (1 mo. USD LIBOR + 2.450%) |
|
|
7.470 |
% |
|
|
3/25/49 |
|
|
|
1,000,665 |
|
|
|
1,010,431 |
(a)(e) |
| Federal National Mortgage Association (FNMA) — CAS,
2018-C01 1B1 (1 mo. USD LIBOR + 3.550%) |
|
|
8.570 |
% |
|
|
7/25/30 |
|
|
|
1,200,000 |
|
|
|
1,281,039 |
(b)(e) |
| Federal National Mortgage Association (FNMA) — CAS,
2018-C06 2B1 (1 mo. USD LIBOR + 4.100%) |
|
|
9.120 |
% |
|
|
3/25/31 |
|
|
|
2,000,000 |
|
|
|
2,165,180 |
(b)(e) |
| Federal National Mortgage Association (FNMA) — CAS,
2019-R02 1B1 (1 mo. USD LIBOR + 4.150%) |
|
|
9.170 |
% |
|
|
8/25/31 |
|
|
|
3,000,000 |
|
|
|
3,109,545 |
(a)(b)(e) |
See Notes to Financial
Statements.
|
|
|
|
|
| 8 |
|
|
|
BrandywineGLOBAL—Global Income Opportunities Fund Inc. 2023 Semi-Annual Report |
BrandywineGLOBAL—Global
Income Opportunities Fund Inc.
(Percentages shown based on Fund net assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Security |
|
Rate |
|
|
Maturity
Date |
|
|
Face
Amount† |
|
|
Value |
|
| Collateralized Mortgage Obligations (g) — continued |
|
| Federal National Mortgage Association (FNMA) — CAS,
2019-R05 1B1 (1 mo. USD LIBOR + 4.100%) |
|
|
9.120 |
% |
|
|
7/25/39 |
|
|
|
187,748 |
|
|
$ |
189,854 |
(a)(b)(e) |
| Federal National Mortgage Association (FNMA) — CAS,
2020-R01 1B1 (1 mo. USD LIBOR + 3.250%) |
|
|
8.270 |
% |
|
|
1/25/40 |
|
|
|
1,025,000 |
|
|
|
996,953 |
(a)(b)(e) |
| Federal National Mortgage Association (FNMA) — CAS,
2022-R03 1M2 (30 Day Average SOFR + 3.500%) |
|
|
8.315 |
% |
|
|
3/25/42 |
|
|
|
1,200,000 |
|
|
|
1,223,214 |
(a)(b)(e) |
| FREMF Mortgage Trust, 2019-K102 C |
|
|
3.652 |
% |
|
|
12/25/51 |
|
|
|
2,580,000 |
|
|
|
2,296,397 |
(a)(e) |
| IM Pastor FTH, 3 B (3 mo. EURIBOR + 0.290%) |
|
|
3.040 |
% |
|
|
3/22/43 |
|
|
|
7,400,000 |
EUR |
|
|
4,347,353 |
(c)(e) |
| Oaktown RE VI Ltd., 2021-1A M1B (30 Day Average
SOFR + 2.050%) |
|
|
6.865 |
% |
|
|
10/25/33 |
|
|
|
700,000 |
|
|
|
697,139 |
(a)(e) |
| RMAC Securities No 1 PLC, 2006-NS1X B1C (3 mo. EURIBOR + 0.880%) |
|
|
3.828 |
% |
|
|
6/12/44 |
|
|
|
1,332,422 |
EUR |
|
|
1,352,693 |
(c)(e) |
| Rural Hipotecario IX FTA, 9 B (3 mo. EURIBOR + 0.320%) |
|
|
3.002 |
% |
|
|
2/17/50 |
|
|
|
1,271,993 |
EUR |
|
|
1,203,733 |
(c)(e) |
| Wells Fargo Commercial Mortgage Trust, 2019-C51
D |
|
|
3.000 |
% |
|
|
6/15/52 |
|
|
|
1,500,000 |
|
|
|
950,524 |
(a) |
| WF-RBS Commercial Mortgage Trust, 2013-C15 XA, IO |
|
|
0.410 |
% |
|
|
8/15/46 |
|
|
|
34,258,903 |
|
|
|
3,614 |
(e) |
| Total Collateralized Mortgage Obligations (Cost
— $34,446,718) |
|
|
|
|
|
|
|
32,977,766 |
|
| Senior Loans — 1.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Consumer Discretionary — 1.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Automobile Components —
1.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| First Brands Group LLC, 2022 Incremental Term Loan (3 mo. Term SOFR + 5.000%) |
|
|
10.246 |
% |
|
|
3/30/27 |
|
|
|
1,986,455 |
|
|
|
1,911,964 |
(e)(h)(i) |
| Industrials — 0.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Building Products —
0.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Hayward Industries Inc., 2022 Incremental Term Loan (1 mo. Term SOFR + 3.350%) |
|
|
8.332 |
% |
|
|
5/30/28 |
|
|
|
995,000 |
|
|
|
968,881 |
(e)(h)(i)(j) |
| Total Senior Loans (Cost — $2,843,609) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,880,845 |
|
| Mortgage-Backed Securities — 1.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| FHLMC — 1.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Federal Home Loan Mortgage Corp. (FHLMC) (Cost — $2,641,584) |
|
|
5.000 |
% |
|
|
9/1/52 |
|
|
|
2,652,611 |
|
|
|
2,639,447 |
|
See Notes to Financial
Statements.
|
|
|
|
|
|
|
| BrandywineGLOBAL—Global Income Opportunities Fund Inc. 2023 Semi-Annual Report |
|
|
|
|
9 |
|
Schedule of investments
(unaudited) (cont’d)
April 30, 2023
BrandywineGLOBAL—Global Income Opportunities Fund Inc.
(Percentages shown based on Fund net assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Security |
|
Rate |
|
|
Maturity
Date |
|
|
Face
Amount† |
|
|
Value |
|
| Convertible Bonds & Notes — 0.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Communication Services — 0.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Media — 0.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| DISH Network Corp., Senior Notes (Cost — $2,907,177) |
|
|
3.375 |
% |
|
|
8/15/26 |
|
|
|
3,070,000 |
|
|
$ |
1,461,320 |
(b) |
| Total Investments before Short-Term Investments
(Cost — $279,000,597) |
|
|
|
255,436,432 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
Shares |
|
|
|
|
| Short-Term Investments — 4.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Western Asset Premier Institutional U.S. Treasury Reserves, Premium Shares (Cost —
$6,435,275) |
|
|
4.717 |
% |
|
|
|
|
|
|
6,435,275 |
|
|
|
6,435,275 |
(k)(l) |
| Total Investments — 169.9% (Cost —
$285,435,872) |
|
|
|
|
|
|
|
261,871,707 |
|
| Mandatory Redeemable Preferred Stock, at Liquidation
Value — (32.4)% |
|
|
|
|
|
|
|
(50,000,000 |
) |
| Other Liabilities in Excess of Other Assets —
(37.5)% |
|
|
|
|
|
|
|
(57,724,634 |
) |
| Total Net Assets Applicable to Common Shareholders
— 100.0% |
|
|
|
|
|
|
$ |
154,147,073 |
|
See Notes to Financial
Statements.
|
|
|
|
|
| 10 |
|
|
|
BrandywineGLOBAL—Global Income Opportunities Fund Inc. 2023 Semi-Annual Report |
BrandywineGLOBAL—Global
Income Opportunities Fund Inc.
| † |
Face amount denominated in U.S. dollars, unless otherwise noted. |
| (a) |
Security is exempt from registration under Rule 144A of the Securities Act of 1933. This security may be resold in
transactions that are exempt from registration, normally to qualified institutional buyers. This security has been deemed liquid pursuant to guidelines approved by the Board of Directors. |
| (b) |
All or a portion of this security is pledged as collateral pursuant to the loan agreement (Note 5). |
| (c) |
Security is exempt from registration under Regulation S of the Securities Act of 1933. Regulation S applies to securities
offerings that are made outside of the United States and do not involve direct selling efforts in the United States. This security has been deemed liquid pursuant to guidelines approved by the Board of Directors. |
| (d) |
Security has no maturity date. The date shown represents the next call date. |
| (e) |
Variable rate security. Interest rate disclosed is as of the most recent information available. Certain variable rate
securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description above.
|
| (f) |
Securities traded on a when-issued or delayed delivery basis. |
| (g) |
Collateralized mortgage obligations are secured by an underlying pool of mortgages or mortgage pass-through certificates
that are structured to direct payments on underlying collateral to different series or classes of the obligations. The interest rate may change positively or inversely in relation to one or more interest rates, financial indices or other financial
indicators and may be subject to an upper and/or lower limit. |
| (h) |
Interest rates disclosed represent the effective rates on senior loans. Ranges in interest rates are attributable to
multiple contracts under the same loan. |
| (i) |
Senior loans may be considered restricted in that the Fund ordinarily is contractually obligated to receive approval from
the agent bank and/or borrower prior to the disposition of a senior loan. |
| (j) |
Security is valued using significant unobservable inputs (Note 1). |
| (k) |
Rate shown is one-day yield as of the end of the reporting period.
|
| (l) |
In this instance, as defined in the Investment Company Act of 1940, an “Affiliated Company” represents Fund
ownership of at least 5% of the outstanding voting securities of an issuer, or a company which is under common ownership or control with the Fund. At April 30, 2023, the total market value of investments in Affiliated Companies was $6,435,275
and the cost was $6,435,275 (Note 9). |
|
|
|
| Abbreviation(s) used in this
schedule: |
|
|
| BRL |
|
— Brazilian Real |
|
|
| CAS |
|
— Connecticut Avenue Securities |
|
|
| COP |
|
— Colombian Peso |
|
|
| EUR |
|
— Euro |
|
|
| EURIBOR |
|
— Euro Interbank Offered Rate |
|
|
| ICE |
|
— Intercontinental Exchange |
|
|
| IO |
|
— Interest Only |
|
|
| LIBOR |
|
— London Interbank Offered Rate |
|
|
| MXN |
|
— Mexican Peso |
|
|
| REMIC |
|
— Real Estate Mortgage Investment Conduit |
|
|
| SOFR |
|
— Secured Overnight Financing Rate |
|
|
| USD |
|
— United States Dollar |
|
|
| ZAR |
|
— South African Rand |
See Notes to Financial
Statements.
|
|
|
|
|
|
|
| BrandywineGLOBAL—Global Income Opportunities Fund Inc. 2023 Semi-Annual Report |
|
|
|
|
11 |
|
Schedule of investments
(unaudited) (cont’d)
April 30, 2023
BrandywineGLOBAL—Global Income Opportunities Fund Inc.
At April 30, 2023, the Fund had the following open futures contracts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Number of
Contracts |
|
|
Expiration
Date |
|
|
Notional
Amount |
|
|
Market
Value |
|
|
Unrealized
Appreciation |
|
| Contracts to Buy: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. Treasury 10-Year Notes |
|
|
183 |
|
|
|
6/23 |
|
|
$ |
20,392,913 |
|
|
$ |
21,082,173 |
|
|
$ |
689,260 |
|
At April 30, 2023, the Fund had the following open forward foreign currency contracts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Currency
Purchased |
|
|
Currency
Sold |
|
|
Counterparty |
|
Settlement
Date |
|
|
Unrealized
Appreciation (Depreciation) |
|
| INR |
|
|
1,410,000,000 |
|
|
USD |
|
|
17,182,549 |
|
|
Barclays Bank PLC |
|
|
5/4/23 |
|
|
$ |
42,018 |
|
| USD |
|
|
17,175,433 |
|
|
INR |
|
|
1,410,000,000 |
|
|
Barclays Bank PLC |
|
|
5/4/23 |
|
|
|
(49,134) |
|
| EUR |
|
|
11,870,000 |
|
|
USD |
|
|
12,924,157 |
|
|
Barclays Bank PLC |
|
|
5/5/23 |
|
|
|
161,153 |
|
| EUR |
|
|
7,210,000 |
|
|
USD |
|
|
7,873,969 |
|
|
Citibank N.A. |
|
|
5/5/23 |
|
|
|
74,227 |
|
| EUR |
|
|
7,980,000 |
|
|
USD |
|
|
8,722,539 |
|
|
JPMorgan Chase & Co. |
|
|
5/5/23 |
|
|
|
74,493 |
|
| EUR |
|
|
12,200,000 |
|
|
USD |
|
|
13,084,427 |
|
|
JPMorgan Chase & Co. |
|
|
5/5/23 |
|
|
|
364,670 |
|
| EUR |
|
|
15,920,000 |
|
|
USD |
|
|
17,401,356 |
|
|
JPMorgan Chase & Co. |
|
|
5/5/23 |
|
|
|
148,613 |
|
| USD |
|
|
6,153,872 |
|
|
EUR |
|
|
5,630,000 |
|
|
JPMorgan Chase & Co. |
|
|
5/5/23 |
|
|
|
(52,556) |
|
| USD |
|
|
21,105,343 |
|
|
EUR |
|
|
19,330,000 |
|
|
JPMorgan Chase & Co. |
|
|
5/5/23 |
|
|
|
(203,760) |
|
| USD |
|
|
26,316,181 |
|
|
EUR |
|
|
24,070,000 |
|
|
JPMorgan Chase & Co. |
|
|
5/5/23 |
|
|
|
(218,226) |
|
| EUR |
|
|
4,140,000 |
|
|
USD |
|
|
4,560,097 |
|
|
Morgan Stanley & Co. Inc. |
|
|
5/5/23 |
|
|
|
3,776 |
|
| EUR |
|
|
5,630,000 |
|
|
USD |
|
|
6,201,292 |
|
|
Morgan Stanley & Co. Inc. |
|
|
5/5/23 |
|
|
|
5,136 |
|
| USD |
|
|
17,535,447 |
|
|
EUR |
|
|
15,920,000 |
|
|
Morgan Stanley & Co. Inc. |
|
|
5/5/23 |
|
|
|
(14,522) |
|
| USD |
|
|
15,653,127 |
|
|
ZAR |
|
|
280,000,000 |
|
|
HSBC Securities Inc. |
|
|
5/15/23 |
|
|
|
371,705 |
|
| ZAR |
|
|
280,000,000 |
|
|
USD |
|
|
15,375,209 |
|
|
JPMorgan Chase & Co. |
|
|
5/15/23 |
|
|
|
(93,788) |
|
| USD |
|
|
14,284,728 |
|
|
ZAR |
|
|
263,000,000 |
|
|
UBS Securities LLC |
|
|
5/15/23 |
|
|
|
(68,893) |
|
| AUD |
|
|
11,760,000 |
|
|
USD |
|
|
7,998,893 |
|
|
JPMorgan Chase & Co. |
|
|
6/7/23 |
|
|
|
(203,692) |
|
| KRW |
|
|
13,610,000,000 |
|
|
USD |
|
|
10,499,923 |
|
|
Citibank N.A. |
|
|
6/9/23 |
|
|
|
(305,154) |
|
| USD |
|
|
18,352,980 |
|
|
JPY |
|
|
2,404,000,000 |
|
|
Barclays Bank PLC |
|
|
6/16/23 |
|
|
|
574,328 |
|
| USD |
|
|
7,835,887 |
|
|
JPY |
|
|
1,013,000,000 |
|
|
Citibank N.A. |
|
|
6/16/23 |
|
|
|
344,300 |
|
| JPY |
|
|
1,692,000,000 |
|
|
USD |
|
|
13,003,463 |
|
|
Morgan Stanley & Co. Inc. |
|
|
6/16/23 |
|
|
|
(490,368) |
|
| JPY |
|
|
1,725,000,000 |
|
|
USD |
|
|
13,184,042 |
|
|
Morgan Stanley & Co. Inc. |
|
|
6/16/23 |
|
|
|
(426,897) |
|
| NOK |
|
|
137,200,000 |
|
|
USD |
|
|
13,307,767 |
|
|
Morgan Stanley & Co. Inc. |
|
|
6/23/23 |
|
|
|
(397,995) |
|
| IDR |
|
|
75,560,000,000 |
|
|
USD |
|
|
5,069,780 |
|
|
JPMorgan Chase & Co. |
|
|
7/17/23 |
|
|
|
71,225 |
|
| IDR |
|
|
78,710,000,000 |
|
|
USD |
|
|
5,343,154 |
|
|
JPMorgan Chase & Co. |
|
|
7/17/23 |
|
|
|
12,173 |
|
| USD |
|
|
10,461,820 |
|
|
IDR |
|
|
154,270,000,000 |
|
|
JPMorgan Chase & Co. |
|
|
7/17/23 |
|
|
|
(34,511) |
|
| USD |
|
|
10,783,606 |
|
|
BRL |
|
|
53,780,000 |
|
|
HSBC Securities Inc. |
|
|
7/19/23 |
|
|
|
171,506 |
|
| CAD |
|
|
17,900,000 |
|
|
USD |
|
|
13,313,351 |
|
|
Citibank N.A. |
|
|
7/25/23 |
|
|
|
(78,598) |
|
| USD |
|
|
13,155,235 |
|
|
CAD |
|
|
17,900,000 |
|
|
Citibank N.A. |
|
|
7/25/23 |
|
|
|
(79,518) |
|
| USD |
|
|
18,079,618 |
|
|
MXN |
|
|
332,900,000 |
|
|
Citibank N.A. |
|
|
7/28/23 |
|
|
|
(95,401) |
|
| USD |
|
|
20,976,993 |
|
|
COP |
|
|
96,920,000,000 |
|
|
JPMorgan Chase & Co. |
|
|
7/28/23 |
|
|
|
766,379 |
|
| EUR |
|
|
19,500,000 |
|
|
USD |
|
|
21,585,108 |
|
|
Morgan Stanley & Co. Inc. |
|
|
8/4/23 |
|
|
|
18,213 |
|
See Notes to Financial
Statements.
|
|
|
|
|
| 12 |
|
|
|
BrandywineGLOBAL—Global Income Opportunities Fund Inc. 2023 Semi-Annual Report |
BrandywineGLOBAL—Global Income Opportunities Fund Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency
Purchased |
|
|
Currency
Sold |
|
|
Counterparty |
|
Settlement
Date |
|
|
Unrealized
Appreciation (Depreciation) |
|
| USD |
|
|
6,232,008 |
|
|
EUR |
|
|
5,630,000 |
|
|
Morgan Stanley & Co. Inc. |
|
|
8/4/23 |
|
|
$ |
(5,258) |
|
| USD |
|
|
8,855,429 |
|
|
EUR |
|
|
8,000,000 |
|
|
Morgan Stanley & Co. Inc. |
|
|
8/4/23 |
|
|
|
(7,472) |
|
| Net unrealized appreciation on open forward foreign currency contracts |
|
|
|
|
|
$ |
378,172 |
|
|
|
|
| Abbreviation(s) used in this
table: |
|
|
| AUD |
|
— Australian Dollar |
|
|
| BRL |
|
— Brazilian Real |
|
|
| CAD |
|
— Canadian Dollar |
|
|
| COP |
|
— Colombian Peso |
|
|
| EUR |
|
— Euro |
|
|
| IDR |
|
— Indonesian Rupiah |
|
|
| INR |
|
— Indian Rupee |
|
|
| JPY |
|
— Japanese Yen |
|
|
| KRW |
|
— South Korean Won |
|
|
| MXN |
|
— Mexican Peso |
|
|
| NOK |
|
— Norwegian Krone |
|
|
| USD |
|
— United States Dollar |
|
|
| ZAR |
|
— South African Rand |
At April 30, 2023, the Fund had the following open swap contracts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| OTC CREDIT DEFAULT SWAPS ON CORPORATE ISSUES — SELL
PROTECTION1 |
|
| Swap Counterparty
(Reference Entity) |
|
Notional
Amount2 |
|
|
Termination
Date |
|
|
Implied
Credit Spread at April 30,
20233 |
|
Periodic
Payments Received by
the Fund† |
|
|
Market
Value |
|
|
Upfront
Premiums Paid (Received) |
|
|
Unrealized
Depreciation |
|
| Morgan Stanley & Co. Inc. (Lumen Technologies Inc., 7.500%, due 4/1/24) |
|
$ |
1,485,000 |
|
|
|
6/20/23 |
|
|
5.725% |
|
|
1.000% quarterly |
|
|
$ |
(10,144) |
|
|
$ |
(2,706) |
|
|
$ |
(7,438) |
|
| Morgan Stanley & Co. Inc. (Lumen Technologies Inc., 7.500%, due 4/1/24) |
|
|
1,625,000 |
|
|
|
6/20/25 |
|
|
13.385% |
|
|
1.000% quarterly |
|
|
|
(360,257) |
|
|
|
(72,951) |
|
|
|
(287,306) |
|
| Total |
|
$ |
3,110,000 |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(370,401) |
|
|
$ |
(75,657) |
|
|
$ |
(294,744) |
|
See Notes to Financial
Statements.
|
|
|
|
|
|
|
| BrandywineGLOBAL—Global Income Opportunities Fund Inc. 2023 Semi-Annual Report |
|
|
|
|
13 |
|
Schedule of investments
(unaudited) (cont’d)
April 30, 2023
BrandywineGLOBAL—Global Income Opportunities Fund Inc.
| 1 |
If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap
agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net
settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. |
| 2 |
The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of
credit protection if a credit event occurs as defined under the terms of that particular swap agreement. |
| 3 |
Implied credit spreads, utilized in determining the market value of credit default swap agreements on corporate or
sovereign issues as of period end, serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity
reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood
or risk of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as “Defaulted” indicates a credit event has occurred for the referenced entity or obligation. |
| † |
Percentage shown is an annual percentage rate. |
|
|
|
|
|
| Summary of Investments by Country* |
|
| United States |
|
|
44.7 |
% |
| Mexico |
|
|
10.0 |
|
| Brazil |
|
|
9.1 |
|
| Colombia |
|
|
8.8 |
|
| South Africa |
|
|
5.5 |
|
| Spain |
|
|
3.0 |
|
| China |
|
|
2.9 |
|
| Canada |
|
|
2.5 |
|
| Bermuda |
|
|
2.2 |
|
| Ireland |
|
|
2.0 |
|
| United Kingdom |
|
|
1.8 |
|
| Israel |
|
|
1.8 |
|
| Zambia |
|
|
1.1 |
|
| Japan |
|
|
0.5 |
|
| Uruguay |
|
|
0.4 |
|
| Panama |
|
|
0.4 |
|
| France |
|
|
0.4 |
|
| Luxembourg |
|
|
0.3 |
|
| Chile |
|
|
0.1 |
|
| Short-Term Investments |
|
|
2.5 |
|
| |
|
|
100.0 |
% |
| * |
As a percentage of total investments. Please note that the Fund holdings are as of April 30, 2023 and are subject to
change. |
See Notes to Financial
Statements.
|
|
|
|
|
| 14 |
|
|
|
BrandywineGLOBAL—Global Income Opportunities Fund Inc. 2023 Semi-Annual Report |
Statement of assets and liabilities (unaudited)
April 30, 2023
|
|
|
|
|
|
| Assets: |
|
| Investments in unaffiliated securities, at value (Cost — $279,000,597) |
|
$ |
255,436,432 |
|
| Investments in affiliated securities, at value (Cost — $6,435,275) |
|
|
6,435,275 |
|
| Foreign currency, at value (Cost — $131) |
|
|
127 |
|
| Cash |
|
|
2,692,063 |
|
| Interest receivable |
|
|
4,696,418 |
|
| Unrealized appreciation on forward foreign currency contracts |
|
|
3,203,915 |
|
| Receivable for securities sold |
|
|
2,574,180 |
|
| Deposits with brokers for OTC derivatives |
|
|
540,000 |
|
| Deposits with brokers for open futures contracts |
|
|
452,535 |
|
| Receivable from brokers — net variation margin on open futures contracts |
|
|
85,781 |
|
| Receivable from brokers for OTC derivatives |
|
|
50,000 |
|
| Principal paydown receivable |
|
|
41,971 |
|
| Dividends receivable from affiliated investments |
|
|
28,172 |
|
| Receivable for open OTC swap contracts |
|
|
3,628 |
|
| Prepaid expenses |
|
|
9,441 |
|
| Total Assets |
|
|
276,249,938 |
|
|
|
| Liabilities: |
|
|
|
|
| Loan payable (Note 5) |
|
|
61,000,000 |
|
| Mandatory Redeemable Preferred Stock ($10 liquidation value per share; 5,000,000 shares
issued and outstanding) (net of deferred offering costs of $342,972) (Note 6) |
|
|
49,657,028 |
|
| Payable for securities purchased |
|
|
4,920,072 |
|
| Unrealized depreciation on forward foreign currency contracts |
|
|
2,825,743 |
|
| Distributions payable to Common Shareholders |
|
|
1,343,347 |
|
| Deposits from brokers for OTC derivatives |
|
|
870,000 |
|
| OTC swaps, at value (premiums received — $75,657) |
|
|
370,401 |
|
| Distributions payable to Mandatory Redeemable Preferred Stockholders |
|
|
365,463 |
|
| Interest expense payable |
|
|
280,549 |
|
| Investment management fee payable |
|
|
153,174 |
|
| Accrued foreign capital gains tax |
|
|
124,232 |
|
| Directors’ fees payable |
|
|
4,792 |
|
| Accrued expenses |
|
|
188,064 |
|
| Total Liabilities |
|
|
122,102,865 |
|
| Total Net Assets Applicable to Common Shareholders |
|
$ |
154,147,073 |
|
|
|
| Net Assets Applicable to Common Shareholders: |
|
|
|
|
| Common stock par value ($0.001 par value; 16,791,836 shares issued and outstanding;
95,000,000 common shares authorized) |
|
$ |
16,792 |
|
| Paid-in capital in excess of par value |
|
|
261,991,001 |
|
| Total distributable earnings (loss) |
|
|
(107,860,720) |
|
| Total Net Assets Applicable to Common Shareholders |
|
$ |
154,147,073 |
|
|
|
| Common Shares Outstanding |
|
|
16,791,836 |
|
|
|
| Net Asset Value Per Common Share |
|
|
$9.18 |
|
See Notes to Financial Statements.
|
|
|
|
|
|
|
| BrandywineGLOBAL—Global Income Opportunities Fund Inc. 2023 Semi-Annual Report |
|
|
|
|
15 |
|
Statement of operations (unaudited)
For the Six Months Ended April 30, 2023
|
|
|
|
|
|
|
| Investment Income: |
|
|
|
|
| Interest |
|
$ |
10,345,418 |
|
| Dividends from affiliated investments |
|
|
129,169 |
|
| Less: Foreign taxes withheld |
|
|
(88,121) |
|
| Total Investment
Income |
|
|
10,386,466 |
|
|
|
| Expenses: |
|
|
|
|
| Interest expense (Note 5) |
|
|
1,553,551 |
|
| Investment management fee (Note 2) |
|
|
1,123,318 |
|
| Distributions to Mandatory Redeemable Preferred Stockholders (Notes 1 and 6) |
|
|
900,042 |
|
| Amortization of preferred stock offering costs (Note 6) |
|
|
69,053 |
|
| Commitment fees (Note 5) |
|
|
49,020 |
|
| Transfer agent fees |
|
|
48,814 |
|
| Legal fees |
|
|
40,757 |
|
| Fund accounting fees |
|
|
33,848 |
|
| Audit and tax fees |
|
|
29,642 |
|
| Directors’ fees |
|
|
25,433 |
|
| Custody fees |
|
|
17,893 |
|
| Rating agency fees |
|
|
11,876 |
|
| Shareholder reports |
|
|
6,466 |
|
| Stock exchange listing fees |
|
|
5,333 |
|
| Insurance |
|
|
900 |
|
| Miscellaneous expenses |
|
|
14,683 |
|
| Total Expenses |
|
|
3,930,629 |
|
| Less: Fee waivers and/or expense reimbursements (Note 2) |
|
|
(200,793) |
|
| Net Expenses |
|
|
3,729,836 |
|
| Net Investment Income |
|
|
6,656,630 |
|
|
| Realized and Unrealized Gain (Loss) on Investments, Futures Contracts, Swap Contracts, Forward Foreign Currency Contracts and Foreign Currency Transactions
(Notes 1, 3 and 4): |
|
| Net Realized Gain (Loss) From: |
|
|
|
|
| Investment transactions in unaffiliated securities |
|
|
(10,082,295) |
† |
| Futures contracts |
|
|
(1,197,799) |
|
| Swap contracts |
|
|
42,763 |
|
| Forward foreign currency contracts |
|
|
(3,594,681) |
|
| Foreign currency transactions |
|
|
(105,266) |
|
| Net Realized Loss |
|
|
(14,937,278) |
|
| Change in Net Unrealized Appreciation (Depreciation) From: |
|
|
|
|
| Investments in unaffiliated securities |
|
|
21,062,282 |
‡ |
| Futures contracts |
|
|
1,894,198 |
|
| Swap contracts |
|
|
(258,070) |
|
| Forward foreign currency contracts |
|
|
(1,809,711) |
|
| Foreign currencies |
|
|
63,038 |
|
| Change in Net Unrealized Appreciation
(Depreciation) |
|
|
20,951,737 |
|
| Net Gain on Investments, Futures Contracts, Swap Contracts, Forward Foreign Currency Contracts and Foreign Currency Transactions |
|
|
6,014,459 |
|
| Increase in Net Assets Applicable to Common Shareholders From Operations |
|
$ |
12,671,089 |
|
† Net of foreign capital gains tax of $188,461.
‡ Net of change in accrued foreign capital gains tax of $(22,660).
See Notes to Financial Statements.
|
|
|
|
|
| 16 |
|
|
|
BrandywineGLOBAL—Global Income Opportunities Fund Inc. 2023 Semi-Annual Report |
Statements of changes in
net assets
|
|
|
|
|
|
|
|
|
| For the Six Months Ended April 30, 2023 (unaudited)
and the Year Ended October 31, 2022 |
|
2023 |
|
|
2022 |
|
|
|
|
| Operations: |
|
|
|
|
|
|
|
|
| Net investment income |
|
$ |
6,656,630 |
|
|
$ |
13,225,983 |
|
| Net realized loss |
|
|
(14,937,278) |
|
|
|
(25,664,473) |
|
| Change in net unrealized appreciation (depreciation) |
|
|
20,951,737 |
|
|
|
(40,324,987) |
|
| Increase (Decrease) in Net Assets
Applicable to Common Shareholders From Operations |
|
|
12,671,089 |
|
|
|
(52,763,477) |
|
|
|
|
| Distributions to Common Shareholders From (Note 1): |
|
|
|
|
|
|
|
|
| Total distributable earnings |
|
|
(8,731,755) |
|
|
|
(16,694,871) |
|
| Return of capital |
|
|
— |
|
|
|
(1,272,393) |
|
| Decrease in Net Assets From Distributions
to Common Shareholders |
|
|
(8,731,755) |
|
|
|
(17,967,264) |
|
| Increase (Decrease) in Net Assets
Applicable to Common Shareholders |
|
|
3,939,334 |
|
|
|
(70,730,741) |
|
|
|
|
| Net Assets Applicable to Common Shareholders: |
|
|
|
|
|
|
|
|
| Beginning of period |
|
|
150,207,739 |
|
|
|
220,938,480 |
|
| End of period |
|
$ |
154,147,073 |
|
|
$ |
150,207,739 |
|
See Notes to Financial
Statements.
|
|
|
|
|
|
|
| BrandywineGLOBAL—Global Income Opportunities Fund Inc. 2023 Semi-Annual Report |
|
|
|
|
17 |
|
Statement of cash flows (unaudited)
For the Six
Months Ended April 30, 2023
|
|
|
|
|
|
|
| Increase (Decrease) in Cash: |
|
|
|
|
| Cash Flows from Operating Activities: |
|
|
|
|
| Net increase in net assets applicable to common shareholders resulting from
operations |
|
$ |
12,671,089 |
|
| Adjustments to reconcile net increase in net assets resulting from operations to net cash
provided (used) by operating activities: |
|
|
|
|
| Purchases of portfolio securities |
|
|
(61,295,866) |
|
| Sales of portfolio securities |
|
|
64,437,125 |
|
| Net purchases, sales and maturities of short-term investments |
|
|
1,037,514 |
|
| Net amortization of premium (accretion of discount) |
|
|
(250,942) |
|
| Increase in receivable for securities sold |
|
|
(2,574,180) |
|
| Decrease in interest receivable |
|
|
97,417 |
|
| Increase in prepaid expenses |
|
|
(5,196) |
|
| Increase in dividends receivable from affiliated investments |
|
|
(11,204) |
|
| Decrease in principal paydown receivable |
|
|
67,899 |
|
| Decrease in receivable for open OTC swap contracts |
|
|
1,109 |
|
| Decrease in net premiums received for OTC swap contracts |
|
|
(27,804) |
|
| Decrease in receivable from brokers for OTC derivatives |
|
|
1,410,000 |
|
| Increase in receivable from brokers — net variation margin on open futures
contracts |
|
|
(85,781) |
|
| Increase in deposits from brokers for OTC derivatives |
|
|
270,000 |
|
| Increase in payable for securities purchased |
|
|
4,920,072 |
|
| Amortization of preferred stock offering costs |
|
|
69,053 |
|
| Decrease in investment management fee payable |
|
|
(1,805) |
|
| Increase in Directors’ fees payable |
|
|
325 |
|
| Increase in interest expense payable |
|
|
76,131 |
|
| Increase in accrued expenses |
|
|
19,909 |
|
| Decrease in distributions payable to Mandatory Redeemable Preferred Stockholders |
|
|
(7,457) |
|
| Decrease in payable to brokers — net variation margin on futures contracts |
|
|
(74,344) |
|
| Net realized loss on investments |
|
|
10,082,295 |
|
| Change in net unrealized appreciation (depreciation) of investments, OTC swap contracts
and forward foreign currency contracts |
|
|
(18,994,501) |
|
| Net Cash Provided in Operating
Activities* |
|
|
11,830,858 |
|
|
|
| Cash Flows from Financing Activities: |
|
|
|
|
| Distributions paid on common stock (net of distributions payable) |
|
|
(8,899,673) |
|
| Net Cash Used by Financing
Activities |
|
|
(8,899,673) |
|
| Net Increase in Cash and Restricted Cash |
|
|
2,931,185 |
|
| Cash and restricted cash at beginning of period |
|
|
753,540 |
|
| Cash and restricted cash at end of period |
|
$ |
3,684,725 |
|
| * |
Included in operating expenses is $1,527,253 paid for interest and commitment fees on borrowings and $907,499 paid for
distributions to Mandatory Redeemable Preferred Stockholders. |
See Notes to Financial Statements.
|
|
|
|
|
| 18 |
|
|
|
BrandywineGLOBAL—Global Income Opportunities Fund Inc. 2023 Semi-Annual Report |
The following table provides a reconciliation of cash (including foreign currency) and restricted cash reported within the
Statement of Assets and Liabilities that sums to the total of such amounts shown on the Statement of
Cash Flows.
|
|
|
|
|
| |
|
April 30, 2023 |
|
| Cash |
|
$ |
2,692,190 |
|
| Restricted cash |
|
|
992,535 |
|
| Total cash and restricted cash shown in the Statement of Cash Flows |
|
$ |
3,684,725 |
|
Restricted cash consists of cash that has been segregated to cover the Fund’s collateral or margin obligations
under derivative contracts. It is separately reported on the Statement of Assets and Liabilities as Deposits with
brokers.
See Notes to Financial Statements.
|
|
|
|
|
|
|
| BrandywineGLOBAL—Global Income Opportunities Fund Inc. 2023 Semi-Annual Report |
|
|
|
|
19 |
|
Financial highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| For a common share of capital stock outstanding throughout each year ended
October 31, unless otherwise noted: |
|
|
|
|
| |
|
20231,2 |
|
|
20221 |
|
|
20211 |
|
|
20201 |
|
|
20191 |
|
|
20181 |
|
|
|
|
|
|
|
|
| Net asset value, beginning of period |
|
|
$8.95 |
|
|
|
$13.16 |
|
|
|
$13.35 |
|
|
|
$14.46 |
|
|
|
$12.34 |
|
|
|
$14.87 |
|
|
|
|
|
|
|
|
| Income (loss) from operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment income |
|
|
0.40 |
|
|
|
0.79 |
|
|
|
0.75 |
|
|
|
0.65 |
|
|
|
0.82 |
|
|
|
0.85 |
|
| Net realized and unrealized gain (loss) |
|
|
0.35 |
|
|
|
(3.93) |
|
|
|
(0.00) |
3 |
|
|
(0.93) |
|
|
|
2.06 |
|
|
|
(2.45) |
|
| Total income (loss) from
operations |
|
|
0.75 |
|
|
|
(3.14) |
|
|
|
0.75 |
|
|
|
(0.28) |
|
|
|
2.88 |
|
|
|
(1.60) |
|
|
|
|
|
|
|
|
| Less distributions to common shareholders from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment income |
|
|
(0.52) |
4 |
|
|
(0.99) |
|
|
|
(0.67) |
|
|
|
(0.84) |
|
|
|
(0.76) |
|
|
|
(0.33) |
|
| Return of capital |
|
|
— |
|
|
|
(0.08) |
|
|
|
(0.27) |
|
|
|
— |
|
|
|
— |
|
|
|
(0.60) |
|
| Total distributions to common
shareholders |
|
|
(0.52) |
|
|
|
(1.07) |
|
|
|
(0.94) |
|
|
|
(0.84) |
|
|
|
(0.76) |
|
|
|
(0.93) |
|
| Anti-dilutive impact of tender offer |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.01 |
5 |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
| Net asset value, end of period |
|
|
$9.18 |
|
|
|
$8.95 |
|
|
|
$13.16 |
|
|
|
$13.35 |
|
|
|
$14.46 |
|
|
|
$12.34 |
|
|
|
|
|
|
|
|
| Market price, end of period |
|
|
$7.83 |
|
|
|
$7.83 |
|
|
|
$12.23 |
|
|
|
$11.01 |
|
|
|
$12.35 |
|
|
|
$10.29 |
|
| Total return, based on NAV6,7 |
|
|
8.62 |
% |
|
|
(24.82) |
% |
|
|
5.46 |
% |
|
|
(1.83) |
% |
|
|
24.04 |
% |
|
|
(11.30) |
% |
| Total return, based on Market Price8 |
|
|
6.51 |
% |
|
|
(28.37) |
% |
|
|
19.70 |
% |
|
|
(4.41) |
% |
|
|
28.29 |
% |
|
|
(14.46) |
% |
|
|
|
|
|
|
|
| Net assets applicable to common shareholders, end of period (millions) |
|
|
$154 |
|
|
|
$150 |
|
|
|
$221 |
|
|
|
$224 |
|
|
|
$304 |
|
|
|
$259 |
|
|
|
|
|
|
|
|
| Ratios to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gross expenses |
|
|
5.10 |
%9 |
|
|
3.47 |
% |
|
|
2.81 |
% |
|
|
3.05 |
%10 |
|
|
3.26 |
% |
|
|
3.06 |
% |
| Net expenses11,12 |
|
|
4.84 |
9 |
|
|
3.27 |
|
|
|
2.66 |
|
|
|
2.89 |
10 |
|
|
3.11 |
|
|
|
2.92 |
|
| Net investment income |
|
|
8.63 |
9 |
|
|
7.19 |
|
|
|
5.40 |
|
|
|
4.75 |
10 |
|
|
6.13 |
|
|
|
6.06 |
|
|
|
|
|
|
|
|
| Portfolio turnover rate |
|
|
24 |
% |
|
|
32 |
% |
|
|
49 |
% |
|
|
61 |
% |
|
|
55 |
% |
|
|
52 |
% |
See Notes to Financial
Statements.
|
|
|
|
|
| 20 |
|
|
|
BrandywineGLOBAL—Global Income Opportunities Fund Inc. 2023 Semi-Annual Report |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| For a common share of capital stock outstanding throughout each year ended
October 31, unless otherwise noted: |
|
|
|
|
| |
|
20231,2 |
|
|
20221 |
|
|
20211 |
|
|
20201 |
|
|
20191 |
|
|
20181 |
|
|
|
|
|
|
|
|
| Supplemental data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loan Outstanding, End of Period (000s) |
|
|
$61,000 |
|
|
|
$61,000 |
|
|
|
$60,000 |
|
|
|
$60,000 |
|
|
|
$100,000 |
|
|
|
$100,000 |
|
| Asset Coverage Ratio for Loan
Outstanding13 |
|
|
435 |
% |
|
|
428 |
% |
|
|
568 |
% |
|
|
573 |
% |
|
|
454 |
% |
|
|
409 |
% |
| Asset Coverage, per $1,000 Principal Amount of Loan Outstanding13 |
|
|
$4,347 |
|
|
|
$4,282 |
|
|
|
$5,682 |
|
|
|
$5,735 |
|
|
|
$4,536 |
|
|
|
$4,090 |
|
| Weighted Average Loan (000s) |
|
|
$61,000 |
|
|
|
$66,255 |
|
|
|
$60,000 |
|
|
|
$88,962 |
|
|
|
$101,781 |
|
|
|
$104,914 |
|
| Weighted Average Interest Rate on Loan |
|
|
5.07 |
% |
|
|
1.78 |
% |
|
|
0.79 |
% |
|
|
1.50 |
% |
|
|
3.03 |
% |
|
|
2.53 |
% |
| Mandatory Redeemable Preferred Stock at Liquidation Value, End of Period (000s) |
|
|
$50,000 |
|
|
|
$50,000 |
|
|
|
$60,000 |
|
|
|
$60,000 |
|
|
|
$50,000 |
|
|
|
$50,000 |
|
| Asset Coverage Ratio for Mandatory Redeemable Preferred Stock14 |
|
|
239 |
% |
|
|
235 |
% |
|
|
284 |
% |
|
|
287 |
% |
|
|
302 |
% |
|
|
273 |
% |
| Asset Coverage, per $10 and/or $100,000 Liquidation Value per Share of Mandatory
Redeemable Preferred Stock14 |
|
|
$24 |
|
|
|
$24 |
|
|
|
$284,115 |
|
|
|
$286,740 |
|
|
|
$302,410 |
|
|
|
$272,636 |
|
See Notes to Financial
Statements.
|
|
|
|
|
|
|
| BrandywineGLOBAL—Global Income Opportunities Fund Inc. 2023 Semi-Annual Report |
|
|
|
|
21 |
|
Financial highlights (cont’d)
| 1 |
Per share amounts have been calculated using the average shares method. |
| 2 |
For the six months ended April 30, 2023 (unaudited). |
| 3 |
Amount represents less than $0.005 or greater than $(0.005) per share. |
| 4 |
The actual source of the Fund’s current fiscal year distributions may be from net investment income, return of
capital or a combination of both. Shareholders will be informed of the tax characteristics of the distributions after the close of the fiscal year. |
| 5 |
The tender offer was completed at a price of $13.53 for 4,197,959 shares and $56,798,385 for the year ended
October 31, 2020. |
| 6 |
The total return calculation assumes that distributions are reinvested at NAV. Past performance is no guarantee of future
results. Total returns for periods of less than one year are not annualized. |
| 7 |
Performance figures may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the
absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower. Past performance is no guarantee of future results. Total returns for periods of less than one year are not annualized.
|
| 8 |
The total return calculation assumes that distributions are reinvested in accordance with the Fund’s dividend
reinvestment plan. Past performance is no guarantee of future results. Total returns for periods of less than one year are not annualized. |
| 10 |
Included in the expense ratios are certain non-recurring legal and transfer agent
fees that were incurred by the Fund during the period. Without these fees, the gross and net expense ratios would have been 2.85% and 2.69%, respectively. |
| 11 |
Reflects fee waivers and/or expense reimbursements. |
| 12 |
The manager has agreed to waive the Fund’s management fee to an extent sufficient to offset the net management fee
payable in connection with any investment in an affiliated money market fund. |
| 13 |
Represents value of net assets plus the loan outstanding and mandatory redeemable preferred stock at the end of the period
divided by the loan outstanding at the end of the period. |
| 14 |
Represents value of net assets plus the loan outstanding and mandatory redeemable preferred stock at the end of the period
divided by the loan and mandatory redeemable preferred stock outstanding at the end of the period. |
See Notes to Financial Statements.
|
|
|
|
|
| 22 |
|
|
|
BrandywineGLOBAL—Global Income Opportunities Fund Inc. 2023 Semi-Annual Report |
Notes to financial statements (unaudited)
1. Organization and significant accounting policies
BrandywineGLOBAL—Global Income Opportunities Fund Inc. (the “Fund”) was incorporated in Maryland on October 27, 2010 and is registered as a non-diversified, closed-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Fund’s primary investment objective is to provide current income.
As a secondary investment objective, the Fund will seek capital appreciation. There can be no assurance the Fund will achieve its investment objectives. The Fund seeks to achieve its investment objectives by investing, under normal market
conditions, at least 80% of its assets in global fixed income securities.
The Fund follows the accounting and reporting guidance in Financial Accounting Standards
Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies (“ASC 946”). The following are significant accounting policies consistently followed by the Fund and are in
conformity with U.S. generally accepted accounting principles (“GAAP”), including, but not limited to, ASC 946. Estimates and assumptions are required to be made regarding assets, liabilities and changes in net assets resulting from
operations when financial statements are prepared. Changes in the economic environment, financial markets and any other parameters used in determining these estimates could cause actual results to differ. Subsequent events have been evaluated
through the date the financial statements were issued.
(a) Investment valuation. The valuations for fixed income securities (which may include, but are not limited to, corporate, government, municipal, mortgage-backed, collateralized mortgage obligations and asset-backed securities) and certain
derivative instruments are typically the prices supplied by independent third party pricing services, which may use market prices or broker/dealer quotations or a variety of valuation techniques and methodologies. The independent third party pricing
services typically use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Investments in open-end funds are valued at the
closing net asset value per share of each fund on the day of valuation. Futures contracts are valued daily at the settlement price established by the board of trade or exchange on which they are traded. Equity securities for which market quotations
are available are valued at the last reported sales price or official closing price on the primary market or exchange on which they trade. When the Fund holds securities or other assets that are denominated in a foreign currency, the Fund will use
the currency exchange rates, generally determined as of 4:00 p.m. (Eastern Time). If independent third party pricing services are unable to supply prices for a portfolio investment, or if the prices supplied are deemed by the manager to be
unreliable, the market price may be determined by the manager using quotations from one or more broker/dealers or at the transaction price if the security has recently been purchased and no value has yet been obtained from a pricing service or
pricing broker. When reliable prices are not readily available, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded, but before the Fund
calculates its net asset value, the Fund values these securities as determined in accordance with procedures approved by the Fund’s Board of Directors.
Pursuant to policies adopted by the Board of Directors, the Fund’s manager has been designated as the valuation designee and is responsible for the oversight of the
daily valuation process. The Fund’s manager is assisted by the Global Fund Valuation Committee
|
|
|
|
|
|
|
| BrandywineGLOBAL—Global Income Opportunities Fund Inc. 2023 Semi-Annual Report |
|
|
|
|
23 |
|
Notes to financial statements
(unaudited) (cont’d)
(the “Valuation Committee”). The Valuation Committee is responsible for making fair
value determinations, evaluating the effectiveness of the Fund’s pricing policies, and reporting to the Fund’s manager and the Board of Directors. When determining the reliability of third party pricing information for investments owned by
the Fund, the Valuation Committee, among other things, conducts due diligence reviews of pricing vendors, monitors the daily change in prices and reviews transactions among market participants.
The Valuation Committee will consider pricing methodologies it deems relevant and appropriate when making fair value determinations. Examples of possible methodologies
include, but are not limited to, multiple of earnings; discount from market of a similar freely traded security; discounted cash-flow analysis; book value or a multiple thereof; risk premium/yield analysis; yield to maturity; and/or fundamental
investment analysis. The Valuation Committee will also consider factors it deems relevant and appropriate in light of the facts and circumstances. Examples of possible factors include, but are not limited to, the type of security; the issuer’s
financial statements; the purchase price of the security; the discount from market value of unrestricted securities of the same class at the time of purchase; analysts’ research and observations from financial institutions; information
regarding any transactions or offers with respect to the security; the existence of merger proposals or tender offers affecting the security; the price and extent of public trading in similar securities of the issuer or comparable companies; and the
existence of a shelf registration for restricted securities.
For each portfolio security that has been fair valued pursuant to the policies adopted by the Board of
Directors, the fair value price is compared against the last available and next available market quotations. The Valuation Committee reviews the results of such back testing monthly and fair valuation occurrences are reported to the Board of
Directors quarterly.
The Fund uses valuation techniques to measure fair value that are consistent with the market approach and/or income approach, depending on the
type of security and the particular circumstance. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable securities. The income approach uses valuation techniques to discount
estimated future cash flows to present value.
GAAP establishes a disclosure hierarchy that categorizes the inputs to valuation techniques used to value assets and
liabilities at measurement date. These inputs are summarized in the three broad levels listed below:
| • |
|
Level 1 — unadjusted quoted prices in active markets for identical investments |
| • |
|
Level 2 — other significant observable inputs (including quoted prices for similar investments, interest rates,
prepayment speeds, credit risk, etc.) |
| • |
|
Level 3 — significant unobservable inputs (including the Fund’s own assumptions in determining the fair
value of investments) |
The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing
in those securities.
|
|
|
|
|
| 24 |
|
|
|
BrandywineGLOBAL—Global Income Opportunities Fund Inc. 2023 Semi-Annual Report |
The following is a summary of the inputs used in valuing the Fund’s assets and liabilities carried at fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ASSETS |
|
| Description |
|
Quoted Prices
(Level 1) |
|
|
Other Significant
Observable Inputs (Level 2) |
|
|
Significant
Unobservable Inputs (Level 3) |
|
|
Total |
|
| Long-Term Investments†: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Corporate Bonds & Notes |
|
|
— |
|
|
$ |
137,478,828 |
|
|
|
— |
|
|
$ |
137,478,828 |
|
| Sovereign Bonds |
|
|
— |
|
|
|
77,998,226 |
|
|
|
— |
|
|
|
77,998,226 |
|
| Collateralized Mortgage Obligations |
|
|
— |
|
|
|
32,977,766 |
|
|
|
— |
|
|
|
32,977,766 |
|
| Senior Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Consumer Discretionary |
|
|
— |
|
|
|
1,911,964 |
|
|
|
— |
|
|
|
1,911,964 |
|
| Industrials |
|
|
— |
|
|
|
— |
|
|
$ |
968,881 |
|
|
|
968,881 |
|
| Mortgage-Backed Securities |
|
|
— |
|
|
|
2,639,447 |
|
|
|
— |
|
|
|
2,639,447 |
|
| Convertible Bonds & Notes |
|
|
— |
|
|
|
1,461,320 |
|
|
|
— |
|
|
|
1,461,320 |
|
| Total Long-Term Investments |
|
|
— |
|
|
|
254,467,551 |
|
|
|
968,881 |
|
|
|
255,436,432 |
|
| Short-Term Investments† |
|
$ |
6,435,275 |
|
|
|
— |
|
|
|
— |
|
|
|
6,435,275 |
|
| Total Investments |
|
$ |
6,435,275 |
|
|
$ |
254,467,551 |
|
|
$ |
968,881 |
|
|
$ |
261,871,707 |
|
| Other Financial Instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Futures Contracts†† |
|
$ |
689,260 |
|
|
|
— |
|
|
|
— |
|
|
$ |
689,260 |
|
| Forward Foreign Currency Contracts†† |
|
|
— |
|
|
$ |
3,203,915 |
|
|
|
— |
|
|
|
3,203,915 |
|
| Total Other Financial Instruments |
|
$ |
689,260 |
|
|
$ |
3,203,915 |
|
|
|
— |
|
|
$ |
3,893,175 |
|
| Total |
|
$ |
7,124,535 |
|
|
$ |
257,671,466 |
|
|
$ |
968,881 |
|
|
$ |
265,764,882 |
|
|
| LIABILITIES |
|
| Description |
|
Quoted Prices
(Level 1) |
|
|
Other Significant
Observable Inputs (Level 2) |
|
|
Significant
Unobservable Inputs (Level 3) |
|
|
Total |
|
| Other Financial Instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Forward Foreign Currency Contracts†† |
|
|
— |
|
|
$ |
2,825,743 |
|
|
|
— |
|
|
$ |
2,825,743 |
|
| OTC Credit Default Swaps on Corporate Issues — Sell Protection‡ |
|
|
— |
|
|
|
370,401 |
|
|
|
— |
|
|
|
370,401 |
|
| Total |
|
|
— |
|
|
$ |
3,196,144 |
|
|
|
— |
|
|
$ |
3,196,144 |
|
| † |
See Schedule of Investments for additional detailed categorizations. |
| †† |
Reflects the unrealized appreciation (depreciation) of the instruments. |
| ‡ |
Value includes any premium paid or received with respect to swap contracts. |
(b) Futures contracts. The Fund uses futures contracts generally to gain
exposure to, or hedge against, changes in interest rates or gain exposure to, or hedge against, changes in
|
|
|
|
|
|
|
| BrandywineGLOBAL—Global Income Opportunities Fund Inc. 2023 Semi-Annual Report |
|
|
|
|
25 |
|
Notes to financial statements
(unaudited) (cont’d)
certain asset classes. A futures contract represents a commitment for the future purchase or sale
of an asset at a specified price on a specified date.
Upon entering into a futures contract, the Fund is required to deposit cash or securities with a broker in an
amount equal to a certain percentage of the contract amount. This is known as the ‘‘initial margin’’ and subsequent payments (‘‘variation margin’’) are made or received by the Fund each day, depending on the
daily fluctuation in the value of the contract. For certain futures, including foreign denominated futures, variation margin is not settled daily, but is recorded as a net variation margin payable or receivable. The daily changes in contract value
are recorded as unrealized appreciation or depreciation in the Statement of Operations and the Fund recognizes a realized gain or loss when the contract is closed.
Futures contracts involve, to varying degrees, risk of loss in excess of the amounts reflected in the financial statements. In addition, there is the risk that the Fund
may not be able to enter into a closing transaction because of an illiquid secondary market.
(c) Forward foreign
currency contracts. The Fund enters into a forward foreign currency contract to hedge against foreign currency exchange rate risk on its non-U.S. dollar denominated
securities or to facilitate settlement of a foreign currency denominated portfolio transaction. A forward foreign currency contract is an agreement between two parties to buy and sell a currency at a set price with delivery and settlement at a
future date. The contract is marked-to-market daily and the change in value is recorded by the Fund as an unrealized gain or loss. When a forward foreign currency
contract is closed, through either delivery or offset by entering into another forward foreign currency contract, the Fund recognizes a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the
value of the contract at the time it is closed.
Non-deliverable forward foreign currency exchange contracts are
settled with the counterparty in cash without the delivery of foreign currency.
Forward foreign currency contracts involve elements of market risk in excess of the
amounts reflected on the Statement of Assets and Liabilities. The Fund bears the risk of an unfavorable change in the foreign exchange rate underlying the forward foreign currency contract. Risks may also arise upon entering into these contracts
from the potential inability of the counterparties to meet the terms of their contracts.
(d) Swap agreements.
The Fund invests in swaps for the purpose of managing its exposure to interest rate, credit or market risk, or for other purposes. The use of swaps involves risks that are different from those associated
with other portfolio transactions. Swap agreements are privately negotiated in the over-the-counter market and may be entered into as a bilateral contract (“OTC
Swaps”) or centrally cleared (“Centrally Cleared Swaps”). Unlike Centrally Cleared Swaps, the Fund has credit exposure to the counterparties of OTC Swaps.
In a Centrally Cleared Swap, immediately following execution of the swap, the swap agreement is submitted to a clearinghouse or central counterparty (the
“CCP”) and the CCP becomes the ultimate counterparty of the swap agreement. The Fund is required to interface with the CCP through a broker, acting in an agency capacity. All payments are settled with the CCP through the broker. Upon
entering into a Centrally Cleared Swap, the Fund is required to deposit initial margin with the broker in the form of cash or securities.
|
|
|
|
|
| 26 |
|
|
|
BrandywineGLOBAL—Global Income Opportunities Fund Inc. 2023 Semi-Annual Report |
Swap contracts are marked-to-market daily
and changes in value are recorded as unrealized appreciation (depreciation). The daily change in valuation of Centrally Cleared Swaps, if any, is recorded as a net receivable or payable for variation margin on the Statement of Assets and
Liabilities. Gains or losses are realized upon termination of the swap agreement. Collateral, in the form of restricted cash or securities, may be required to be held in segregated accounts with the Fund’s custodian in compliance with the terms
of the swap contracts. Securities posted as collateral for swap contracts are identified in the Schedule of Investments and restricted cash, if any, is identified on the Statement of Assets and Liabilities. Risks may exceed amounts recorded in the
Statement of Assets and Liabilities. These risks include changes in the returns of the underlying instruments, failure of the counterparties to perform under the contracts’ terms, and the possible lack of liquidity with respect to the swap
agreements.
OTC Swap payments received or made at the beginning of the measurement period are reflected as a premium or deposit, respectively, on the Statement of
Assets and Liabilities. These upfront payments are amortized over the life of the swap and are recognized as realized gain or loss in the Statement of Operations. Net periodic payments received or paid by the Fund are recognized as a realized gain
or loss in the Statement of Operations.
The Fund’s maximum exposure in the event of a defined credit event on a credit default swap to sell protection is the
notional amount. As of April 30, 2023, the total notional value of all credit default swaps to sell protection was $3,110,000. This amount would be offset by the value of the swap’s reference entity, upfront premiums received on the swap
and any amounts received from the settlement of a credit default swap where the Fund bought protection for the same referenced security/entity.
For average notional
amounts of swaps held during the six months ended April 30, 2023, see Note 4.
Credit default swaps
The Fund enters into credit default swap (“CDS”) contracts for investment purposes, to manage its credit risk or to add leverage. CDS agreements involve one
party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a default by a third party, typically corporate or sovereign issuers, on a specified obligation, or in the event of a
write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising a credit index. The Fund may use a CDS to provide protection against defaults of the issuers (i.e., to reduce risk where the Fund has
exposure to an issuer) or to take an active long or short position with respect to the likelihood of a particular issuer’s default. As a seller of protection, the Fund generally receives an upfront payment or a stream of payments throughout the
term of the swap provided that there is no credit event. If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the maximum potential amount of future payments (undiscounted)
that the Fund could be required to make under a CDS agreement would be an amount equal to the notional amount of the agreement. These amounts of potential payments will be partially offset by any recovery of values from the respective referenced
obligations. As a seller of protection, the Fund effectively adds leverage to its portfolio because, in addition to its total net assets, the Fund is subject to investment exposure on the notional amount of the swap. As a buyer of
|
|
|
|
|
|
|
| BrandywineGLOBAL—Global Income Opportunities Fund Inc. 2023 Semi-Annual Report |
|
|
|
|
27 |
|
Notes to financial statements
(unaudited) (cont’d)
protection, the Fund generally receives an amount up to the notional value of the swap if a credit
event occurs.
Implied spreads are the theoretical prices a lender receives for credit default protection. When spreads rise, market perceived credit risk rises and
when spreads fall, market perceived credit risk falls. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to enter into the agreement. Wider credit
spreads and decreasing market values, when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined
under the terms of the agreement. Credit spreads utilized in determining the period end market value of CDS agreements on corporate or sovereign issues are disclosed in the Schedule of Investments and serve as an indicator of the current status of
the payment/ performance risk and represent the likelihood or risk of default for credit derivatives. For CDS agreements on asset-backed securities and credit indices, the quoted market prices and resulting values, particularly in relation to the
notional amount of the contract as well as the annual payment rate, serve as an indication of the current status of the payment/ performance risk.
The Fund’s
maximum risk of loss from counterparty risk, as the protection buyer, is the fair value of the contract (this risk is mitigated by the posting of collateral by the counterparty to the Fund to cover the Fund’s exposure to the counterparty). As
the protection seller, the Fund’s maximum risk is the notional amount of the contract. CDS are considered to have credit risk-related contingent features since they require payment by the protection seller to the protection buyer upon the
occurrence of a defined credit event.
Entering into a CDS agreement involves, to varying degrees, elements of credit, market and documentation risk in excess of the
related amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreement may default on its obligation to perform or
disagree as to the meaning of the contractual terms in the agreement, and that there will be unfavorable changes in net interest rates.
(e) Loan participations. The Fund may invest in loans arranged through private negotiation between one or more financial institutions. The Fund’s investment
in any such loan may be in the form of a participation in or an assignment of the loan. In connection with purchasing participations, the Fund generally will have no right to enforce compliance by the borrower with the terms of the loan agreement
related to the loan, or any rights of off-set against the borrower and the Fund may not benefit directly from any collateral supporting the loan in which it has purchased the participation.
The Fund assumes the credit risk of the borrower, the lender that is selling the participation and any other persons interpositioned between the Fund and the borrower.
In the event of the insolvency of the lender selling the participation, the Fund may be treated as a general creditor of the lender and may not benefit from any off-set between the lender and the borrower.
(f) Stripped securities. The Fund may invest in ‘‘Stripped
Securities,’’ a term used collectively for components, or strips, of fixed income securities. Stripped Securities can be
|
|
|
|
|
| 28 |
|
|
|
BrandywineGLOBAL—Global Income Opportunities Fund Inc. 2023 Semi-Annual Report |
principal only securities (“PO”), which are debt obligations that have been stripped of unmatured interest
coupons, or interest only securities (“IO”), which are unmatured interest coupons that have been stripped from debt obligations. The market value of Stripped Securities will fluctuate in response to changes in economic conditions, rates of
pre-payment, interest rates and the market’s perception of the securities. However, fluctuations in response to interest rates may be greater in Stripped Securities than for debt obligations of comparable maturities that pay interest currently.
The amount of fluctuation may increase with a longer period of maturity.
The yield to maturity on IO’s is sensitive to the rate of principal repayments
(including prepayments) on the related underlying debt obligation and principal payments may have a material effect on yield to maturity. If the underlying debt obligation experiences greater than anticipated prepayments of principal, the Fund may
not fully recoup its initial investment in IO’s.
(g) Securities traded on a when-issued and delayed delivery
basis. The Fund may trade securities on a when-issued or delayed delivery basis. In when-issued and delayed delivery transactions, the securities are purchased or sold by the Fund with payment and delivery
taking place in the future in order to secure what is considered to be an advantageous price and yield to the Fund at the time of entering into the transaction.
Purchasing such securities involves risk of loss if the value of the securities declines prior to settlement. These securities are subject to market fluctuations and
their current value is determined in the same manner as for other securities.
(h) Cash flow information.
The Fund invests in securities and distributes dividends from net investment income and net realized gains, which are paid in cash and may be reinvested at the discretion of shareholders. These activities
are reported in the Statements of Changes in Net Assets and additional information on cash receipts and cash payments is presented in the Statement of Cash Flows.
(i) Foreign currency translation. Investment securities and other assets
and liabilities denominated in foreign currencies are translated into U.S. dollar amounts based upon prevailing exchange rates on the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign
currencies are translated into U.S. dollar amounts based upon prevailing exchange rates on the respective dates of such transactions.
The Fund does not
isolate that portion of the results of operations resulting from fluctuations in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net
realized and unrealized gain or loss on investments.
Net realized foreign exchange gains or losses arise from sales of foreign currencies, including gains and
losses on forward foreign currency contracts, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded
on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in
|
|
|
|
|
|
|
| BrandywineGLOBAL—Global Income Opportunities Fund Inc. 2023 Semi-Annual Report |
|
|
|
|
29 |
|
Notes to financial statements
(unaudited) (cont’d)
the values of assets and liabilities, other than investments in securities, on the date of
valuation, resulting from changes in exchange rates.
Foreign security and currency transactions may involve certain considerations and risks not typically
associated with those of U.S. dollar denominated transactions as a result of, among other factors, the possibility of lower levels of governmental supervision and regulation of foreign securities markets and the possibility of political or economic
instability.
(j) Credit and market risk. The Fund invests in
high-yield and emerging market instruments that are subject to certain credit and market risks. The yields of high-yield and emerging market debt obligations reflect, among other things, perceived credit and market risks. The Fund’s investments
in securities rated below investment grade typically involve risks not associated with higher rated securities including, among others, greater risk related to timely and ultimate payment of interest and principal, greater market price volatility
and less liquid secondary market trading. The consequences of political, social, economic or diplomatic changes may have disruptive effects on the market prices of investments held by the Fund. The Fund’s investments in non-U.S. dollar denominated securities may also result in foreign currency losses caused by devaluations and exchange rate fluctuations.
Investments in securities that are collateralized by real estate mortgages are subject to certain credit and liquidity risks. When market conditions result in an
increase in default rates of the underlying mortgages and the foreclosure values of underlying real estate properties are materially below the outstanding amount of these underlying mortgages, collection of the full amount of accrued interest and
principal on these investments may be doubtful. Such market conditions may significantly impair the value and liquidity of these investments and may result in a lack of correlation between their credit ratings and values.
(k) Foreign investment risks. The Fund’s investments in foreign
securities may involve risks not present in domestic investments. Since securities may be denominated in foreign currencies, may require settlement in foreign currencies or may pay interest or dividends in foreign currencies, changes in the
relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Fund. Foreign investments may also subject the Fund to foreign government exchange restrictions, expropriation,
taxation or other political, social or economic developments, all of which affect the market and/or credit risk of the investments.
(l) Counterparty risk and credit-risk-related contingent features of derivative instruments. The Fund may invest in certain securities or engage in other
transactions where the Fund is exposed to counterparty credit risk in addition to broader market risks. The Fund may invest in securities of issuers, which may also be considered counterparties as trading partners in other transactions. This may
increase the risk of loss in the event of default or bankruptcy by the counterparty or if the counterparty otherwise fails to meet its contractual obligations. The Fund’s subadviser attempts to mitigate counterparty risk by (i) periodically
assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain
transactions. Market events and changes in overall economic conditions may impact the assessment of
|
|
|
|
|
| 30 |
|
|
|
BrandywineGLOBAL—Global Income Opportunities Fund Inc. 2023 Semi-Annual Report |
such counterparty risk by the subadviser. In addition, declines in the values of underlying collateral received may expose
the Fund to increased risk of loss.
With exchange traded and centrally cleared derivatives, there is less counterparty risk to the Fund since the exchange or
clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, the credit risk is limited to failure of the clearinghouse. While offset
rights may exist under applicable law, the Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default of the clearing broker or clearinghouse.
The Fund has entered into master agreements, such as an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or
similar agreement, with certain of its derivative counterparties that govern over-the-counter (“OTC”) derivatives and provide for general obligations,
representations, agreements, collateral posting terms, netting provisions in the event of default or termination and credit related contingent features. The credit related contingent features include, but are not limited to, a percentage decrease in
the Fund net assets or net asset value per share over a specified period of time. If these credit related contingent features were triggered, the derivatives counterparty could terminate the positions and demand payment or require additional
collateral.
Under an ISDA Master Agreement, the Fund may, under certain circumstances, offset with the counterparty certain derivative financial instruments’
payables and/or receivables with collateral held and/or posted and create one single net payment. However, absent an event of default by the counterparty or a termination of the agreement, the terms of the ISDA Master Agreements do not result in an
offset of reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities across transactions between the Fund and the applicable counterparty. The enforceability of the right to offset may vary by
jurisdiction.
Collateral requirements differ by type of derivative. Collateral or margin requirements are set by the broker or exchange clearinghouse for exchange
traded derivatives while collateral terms are contract specific for OTC traded derivatives. Cash collateral that has been pledged to cover obligations of the Fund under derivative contracts, if any, will be reported separately in the Statement of
Assets and Liabilities. Securities pledged as collateral, if any, for the same purpose are noted in the Schedule of Investments.
As of April 30, 2023, the Fund
held forward foreign currency contracts and OTC credit default swaps with credit related contingent features which had a liability position of $3,196,144. If a contingent feature in the master agreements would have been triggered, the Fund would
have been required to pay this amount to its derivatives counterparties. As of April 30, 2023, the Fund had posted with its counterparties cash and/or securities as collateral to cover the net liability of these derivatives amounting to
$540,000, which could be used to reduce the required payment.
As of April 30, 2023, the Fund held cash collateral from HSBC Securities Inc. and JPMorgan
Chase & Co. in the amounts of $270,000 and $600,000, respectively. These amounts can be used to reduce the Fund’s exposure to the counterparty in the event of default.
|
|
|
|
|
|
|
| BrandywineGLOBAL—Global Income Opportunities Fund Inc. 2023 Semi-Annual Report |
|
|
|
|
31 |
|
Notes to financial statements
(unaudited) (cont’d)
(m) Security transactions and
investment income. Security transactions are accounted for on a trade date basis. Interest income (including interest income from
payment-in-kind securities), adjusted for amortization of premium and accretion of discount, is recorded on the accrual basis. Paydown gains and losses on mortgage- and
asset-backed securities are recorded as adjustments to interest income. Dividend income is recorded on the ex-dividend date for dividends received in cash and/or securities. Foreign dividend income is recorded
on the ex-dividend date or as soon as practicable after the Fund determines the existence of a dividend declaration after exercising reasonable due diligence. The cost of investments sold is determined by use
of the specific identification method. To the extent any issuer defaults or a credit event occurs that impacts the issuer, the Fund may halt any additional interest income accruals and consider the realizability of interest accrued up to the date of
default or credit event.
(n) Distributions to shareholders. Distributions to common shareholders from net investment income of the Fund, if any, are declared quarterly and paid on a monthly basis. The actual source of the Fund’s monthly distributions may be from net investment
income, return of capital or a combination of both. Common shareholders will be informed of the tax characteristics of the distributions after the close of the fiscal year. Distributions to common shareholders of net realized gains, if any, are
declared at least annually. Pursuant to its Managed Distribution Policy, adopted by the Fund in August 2012, the Fund intends to make regular monthly distributions to common shareholders at a fixed rate per common share, which rate may be adjusted
from time to time by the Fund’s Board of Directors. Under the Fund’s Managed Distribution Policy, if, for any monthly distribution, the value of the Fund’s net investment income and net realized capital gain is less than the amount of
the distribution, the difference will be distributed from the Fund’s net assets (and may constitute a “return of capital”). The Board of Directors may modify, terminate or suspend the Managed Distribution Policy at any time, including
when certain events would make part of the return of capital taxable to common shareholders. Any such modification, termination or suspension could have an adverse effect on the market price of the Fund’s shares. Distributions to common
shareholders of the Fund are recorded on the ex-dividend date and are determined in accordance with income tax regulations, which may differ from GAAP.
Distributions to holders of Mandatory Redeemable Preferred Stock (“MRPS”) are accrued on a daily basis as described in Note 6 and are treated as an operating
expense as required by GAAP. For tax purposes, the payments made to the holders of the Fund’s MRPS are treated as dividends or distributions. The character of distributions to MRPS holders made during the year may differ from their ultimate
characterization for federal income tax purposes.
(o) Compensating balance arrangements. The Fund has an arrangement with its custodian bank whereby a portion of the custodian’s fees is paid indirectly by credits earned on the Fund’s cash on deposit with the bank.
(p) Federal and other taxes. It is the Fund’s policy to comply with
the federal income and excise tax requirements of the Internal Revenue Code of 1986 (the “Code”), as amended, applicable to regulated investment companies. Accordingly, the Fund intends to distribute its taxable income and net realized
gains, if any, to shareholders in accordance with timing
|
|
|
|
|
| 32 |
|
|
|
BrandywineGLOBAL—Global Income Opportunities Fund Inc. 2023 Semi-Annual Report |
requirements imposed by the Code. Therefore, no federal or state income tax provision is required in the Fund’s financial statements.
Management has analyzed the Fund’s tax positions taken on income tax returns for all open tax years and has concluded that as of October 31, 2022, no provision
for income tax is required in the Fund’s financial statements. The Fund’s federal and state income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by
the Internal Revenue Service and state departments of revenue.
Under the applicable foreign tax laws, a withholding tax may be imposed on interest, dividends and
capital gains at various rates. Realized gains upon disposition of securities issued in or by certain foreign countries are subject to capital gains tax imposed by those countries. As of April 30, 2023, there were $124,232 of capital gains tax
liabilities accrued on unrealized gains.
(q) Reclassification. GAAP
requires that certain components of net assets be reclassified to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset value per share.
2. Investment management agreement and other transactions with affiliates
Legg Mason Partners Fund Advisor, LLC (“LMPFA”) is the Fund’s investment manager and Brandywine Global Investment Management, LLC (“Brandywine
Global”) is the Fund’s subadviser. LMPFA and Brandywine Global are indirect, wholly-owned subsidiaries of Franklin Resources, Inc. (“Franklin Resources”).
LMPFA provides administrative and certain oversight services to the Fund. The Fund pays an investment management fee, calculated daily and paid monthly, at an annual
rate of 0.85% of the Fund’s average daily managed assets. “Managed assets” means net assets plus the amount of any borrowing and assets attributable to any preferred stock that may be outstanding. LMPFA delegates to Brandywine Global
the day-to-day portfolio management of the Fund. For its services, LMPFA pays Brandywine Global a fee monthly, at an annual rate equal to 70% of the net management fee
it receives from the Fund.
During periods in which the Fund utilizes financial leverage, the fees paid to LMPFA will be higher than if the Fund did not utilize
leverage because the fees are calculated as a percentage of the Fund’s assets, including those investments purchased with leverage.
Effective June 1,
2022, LMPFA implemented a voluntary investment management fee waiver of 0.15% that continued until May 31, 2023. Effective June 1, 2023, LMPFA implemented a voluntary investment management fee waiver of 0.20% that will continue until
May 31, 2024.
The manager has agreed to waive the Fund’s management fee to an extent sufficient to offset the net management fee payable in connection
with any investment in an affiliated money market fund (the “affiliated money market fund waiver”).
During the six months ended April 30, 2023, fees
waived and/or expenses reimbursed amounted to $200,793, which included an affiliated money market fund waiver of $2,561.
|
|
|
|
|
|
|
| BrandywineGLOBAL—Global Income Opportunities Fund Inc. 2023 Semi-Annual Report |
|
|
|
|
33 |
|
Notes to financial statements
(unaudited) (cont’d)
All officers and one Director of the Fund are employees of Franklin Resources or its affiliates
and do not receive compensation from the Fund.
3. Investments
During the six months ended April 30, 2023, the aggregate cost of purchases and proceeds from sales of investments (excluding short-term investments) and U.S.
Government & Agency Obligations were as follows:
|
|
|
|
|
|
|
|
|
| |
|
Investments |
|
|
U.S. Government &
Agency Obligations |
|
| Purchases |
|
$ |
56,338,461 |
|
|
$ |
4,957,405 |
|
| Sales |
|
|
59,862,985 |
|
|
|
4,574,140 |
|
At April 30, 2023, the aggregate cost of investments and the aggregate gross unrealized appreciation and depreciation of investments
for federal income tax purposes were substantially as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Cost/Premiums
Paid (Received) |
|
|
Gross
Unrealized Appreciation |
|
|
Gross
Unrealized Depreciation |
|
|
Net
Unrealized Appreciation (Depreciation) |
|
| Securities |
|
$ |
285,435,872 |
|
|
$ |
3,845,399 |
|
|
$ |
(27,409,564) |
|
|
$ |
(23,564,165) |
|
| Futures contracts |
|
|
— |
|
|
|
689,260 |
|
|
|
— |
|
|
|
689,260 |
|
| Forward foreign currency contracts |
|
|
— |
|
|
|
3,203,915 |
|
|
|
(2,825,743) |
|
|
|
378,172 |
|
| Swap contracts |
|
|
(75,657) |
|
|
|
— |
|
|
|
(294,744) |
|
|
|
(294,744) |
|
4. Derivative instruments and hedging activities
Below is a table, grouped by derivative type, that provides information about the fair value and the location of derivatives within the Statement of Assets and
Liabilities at April 30, 2023.
|
|
|
|
|
|
|
|
|
|
|
|
|
| ASSET DERIVATIVES1 |
|
| |
|
Interest Rate
Risk |
|
|
Foreign
Exchange Risk |
|
|
Total |
|
| Futures contracts2 |
|
$ |
689,260 |
|
|
|
— |
|
|
$ |
689,260 |
|
| Forward foreign currency contracts |
|
|
— |
|
|
$ |
3,203,915 |
|
|
|
3,203,915 |
|
| Total |
|
$ |
689,260 |
|
|
$ |
3,203,915 |
|
|
$ |
3,893,175 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LIABILITY DERIVATIVES1 |
|
| |
|
Foreign
Exchange Risk |
|
|
Credit
Risk |
|
|
Total |
|
| Forward foreign currency contracts |
|
$ |
2,825,743 |
|
|
|
— |
|
|
$ |
2,825,743 |
|
| OTC swap contracts3 |
|
|
— |
|
|
$ |
370,401 |
|
|
|
370,401 |
|
| Total |
|
$ |
2,825,743 |
|
|
$ |
370,401 |
|
|
$ |
3,196,144 |
|
|
|
|
|
|
| 34 |
|
|
|
BrandywineGLOBAL—Global Income Opportunities Fund Inc. 2023 Semi-Annual Report |
| 1 |
Generally, the balance sheet location for asset derivatives is receivables/net unrealized appreciation and for liability
derivatives is payables/net unrealized depreciation. |
| 2 |
Includes cumulative unrealized appreciation (depreciation) of futures contracts as reported in the Schedule of
Investments. Only net variation margin is reported within the receivables and/or payables on the Statement of Assets and Liabilities. |
| 3 |
Values include premiums paid (received) on swap contracts which are shown separately in the Statement of Assets and
Liabilities. |
The following tables provide information about the effect of derivatives and hedging activities on the Fund’s Statement of
Operations for the six months ended April 30, 2023. The first table provides additional detail about the amounts and sources of gains (losses) realized on derivatives during the period. The second table provides additional information about the
change in net unrealized appreciation (depreciation) resulting from the Fund’s derivatives and hedging activities during the period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| AMOUNT OF NET REALIZED GAIN (LOSS) ON DERIVATIVES RECOGNIZED |
|
| |
|
Interest
Rate Risk |
|
|
Foreign
Exchange Risk |
|
|
Credit
Risk |
|
|
Total |
|
| Futures contracts |
|
$ |
(1,197,799) |
|
|
|
— |
|
|
|
— |
|
|
$ |
(1,197,799) |
|
| Swap contracts |
|
|
— |
|
|
|
— |
|
|
$ |
42,763 |
|
|
|
42,763 |
|
| Forward foreign currency contracts |
|
|
— |
|
|
$ |
(3,594,681) |
|
|
|
— |
|
|
|
(3,594,681) |
|
| Total |
|
$ |
(1,197,799) |
|
|
$ |
(3,594,681) |
|
|
$ |
42,763 |
|
|
$ |
(4,749,717) |
|
|
| CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED |
|
| |
|
Interest
Rate Risk |
|
|
Foreign
Exchange Risk |
|
|
Credit
Risk |
|
|
Total |
|
| Futures contracts |
|
$ |
1,894,198 |
|
|
|
— |
|
|
|
— |
|
|
$ |
1,894,198 |
|
| Swap contracts |
|
|
— |
|
|
|
— |
|
|
$ |
(258,070) |
|
|
|
(258,070) |
|
| Forward foreign currency contracts |
|
|
— |
|
|
$ |
(1,809,711) |
|
|
|
— |
|
|
|
(1,809,711) |
|
| Total |
|
$ |
1,894,198 |
|
|
$ |
(1,809,711) |
|
|
$ |
(258,070) |
|
|
$ |
(173,583) |
|
During the six months ended April 30, 2023, the volume of derivative activity for the Fund was as follows:
|
|
|
|
|
| |
|
Average Market
Value |
|
| Futures contracts (to buy) |
|
$ |
20,723,117 |
|
| Forward foreign currency contracts (to buy) |
|
|
100,440,150 |
|
| Forward foreign currency contracts (to sell) |
|
|
194,802,678 |
|
|
|
| |
|
Average Notional
Balance |
|
| Credit default swap contracts (sell protection) |
|
$ |
3,381,429 |
|
|
|
|
|
|
|
|
| BrandywineGLOBAL—Global Income Opportunities Fund Inc. 2023 Semi-Annual Report |
|
|
|
|
35 |
|
Notes to financial statements
(unaudited) (cont’d)
The following table presents the Fund’s OTC derivative assets and liabilities by counterparty
net of amounts available for offset under an ISDA Master Agreement and net of the related collateral pledged (received) by the Fund as of April 30, 2023.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Counterparty |
|
Gross Assets
Subject to
Master
Agreements1 |
|
|
Gross
Liabilities
Subject to
Master
Agreements1 |
|
|
Net Assets
(Liabilities)
Subject to
Master
Agreements |
|
|
Collateral
Pledged
(Received)2,3 |
|
|
Net
Amount4,5 |
|
| Barclays Bank PLC |
|
$ |
777,499 |
|
|
$ |
(49,134) |
|
|
$ |
728,365 |
|
|
|
— |
|
|
$ |
728,365 |
|
| Citibank N.A. |
|
|
418,527 |
|
|
|
(558,671) |
|
|
|
(140,144) |
|
|
$ |
280,000 |
|
|
|
139,856 |
|
| HSBC Securities Inc. |
|
|
543,211 |
|
|
|
— |
|
|
|
543,211 |
|
|
|
(270,000) |
|
|
|
273,211 |
|
| JPMorgan Chase & Co. |
|
|
1,437,553 |
|
|
|
(806,533) |
|
|
|
631,020 |
|
|
|
(600,000) |
|
|
|
31,020 |
|
| Morgan Stanley & Co. Inc. |
|
|
27,125 |
|
|
|
(1,712,913) |
|
|
|
(1,685,788) |
|
|
|
260,000 |
|
|
|
(1,425,788) |
|
| UBS Securities LLC |
|
|
— |
|
|
|
(68,893) |
|
|
|
(68,893) |
|
|
|
— |
|
|
|
(68,893) |
|
| Total |
|
$ |
3,203,915 |
|
|
$ |
(3,196,144) |
|
|
$ |
7,771 |
|
|
$ |
(330,000) |
|
|
$ |
(322,229) |
|
| 1 |
Absent an event of default or early termination, derivative assets and liabilities are presented gross and not offset in
the Statement of Assets and Liabilities. |
| 2 |
Gross amounts are not offset in the Statement of Assets and Liabilities. |
| 3 |
In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to
overcollateralization. |
| 4 |
Net amount may also include forward foreign currency exchange contracts that are not required to be collateralized.
|
| 5 |
Represents the net amount receivable (payable) from (to) the counterparty in the event of default. |
5. Loan
The Fund has a Master Margin Loan
Agreement (the “BNYM Credit Agreement”) with The Bank of New York Mellon (“BNYM”) as lender. The BNYM Credit Agreement provides for borrowings in an aggregate principal amount of up to $100,000,000, subject to the terms and
conditions therein. Each loan under the BNYM Credit Agreement constitutes an open commitment by BNYM terminable upon 180 days’ notice by the Fund or BNYM. The Fund pays interest on borrowings calculated based on the Overnight Bank Funding Rate
plus applicable margin. The Overnight Bank Funding Rate is a volume weighted median measure of U.S. dollar funding costs for U.S. based banks calculated using both federal funds transactions and overnight eurodollar time deposits. The Fund pays a
commitment fee on the unutilized portion of the loan commitment amount at an annual rate of 0.25% except that no commitment fee is accrued when the aggregate outstanding balance of the loan is equal to or greater than 75% of the margin loan
commitment amount. To the extent of the borrowing outstanding, the Fund is required to maintain collateral in a special custody account at the Fund’s custodian on behalf of BNYM. The BNYM Credit Agreement contains certain covenants that, among
other things, may limit the Fund’s ability to pay distributions in certain circumstances, incur additional debt, change its fundamental investment policies and engage in certain transactions, including mergers and consolidations, and require
asset coverage ratios in addition to those required by the 1940 Act. In addition, the BNYM Credit Agreement may be subject to early termination under certain conditions and may contain other provisions that could limit the Fund’s ability to
utilize borrowing under the agreement. Interest expense related to the BNYM Credit Agreement for the six months ended April 30,
|
|
|
|
|
| 36 |
|
|
|
BrandywineGLOBAL—Global Income Opportunities Fund Inc. 2023 Semi-Annual Report |
2023 was $1,553,551. For the six months ended April 30, 2023, the Fund incurred commitment fees of $49,020. For the six months ended April 30, 2023, the average daily loan balance was
$61,000,000 and the weighted average interest rate was 5.07%. At April 30, 2023, the Fund had $61,000,000 of borrowings outstanding.
6. Mandatory redeemable preferred stock
On December 30, 2019, the Fund completed a private placement of $50,000,000 fixed rate
Mandatory Redeemable Preferred Stock (”MRPS”). Net proceeds from the offering were used, in part, to refinance leverage provided by redeemed MRPS. Offering costs incurred by the Fund in connection with the MRPS issuance are being amortized
to expense over the respective life of each series of MRPS. Series D MRPS were issued with a Term Redemption date of December 30, 2024 and Series E MRPS were issued with a Term Redemption date of December 30, 2026.
The table below summarizes the key terms of each series of the MRPS at April 30, 2023.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Series |
|
Term
Redemption
Date |
|
|
Rate |
|
|
Shares |
|
|
Liquidation
Preference
Per Share |
|
|
Aggregate
Liquidation
Value |
|
|
Estimated
Fair Value |
|
| Series D |
|
|
12/30/2024 |
|
|
|
3.55 |
% |
|
|
2,500,000 |
|
|
$ |
10 |
|
|
$ |
25,000,000 |
|
|
$ |
23,742,013 |
|
| Series E |
|
|
12/30/2026 |
|
|
|
3.71 |
% |
|
|
2,500,000 |
|
|
|
10 |
|
|
|
25,000,000 |
|
|
|
23,057,934 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
50,000,000 |
|
|
$ |
46,799,947 |
|
The MRPS are not listed on any exchange or automated quotation system. The estimated fair value of the MRPS was calculated, for
disclosure purposes, based on estimated market yields and credit spreads for comparable instruments with similar maturity, terms and structure. The MRPS are categorized as Level 3 within the fair value hierarchy.
Holders of MRPS are entitled to receive quarterly cumulative cash dividends payable on the first business day following each quarterly dividend date (February 15,
May 15, August 15 and November 15). In the event of a rating downgrade of any series of the MRPS below “A” by Fitch Ratings Inc., the applicable dividend rate will increase, according to a predetermined schedule, by 0.5% to 4.0%.
The MRPS rank senior to the Fund’s outstanding common stock and on parity with any other preferred stock. The Fund may, at its option, redeem the MRPS, in
whole or in part, at the liquidation preference amount plus all accumulated but unpaid dividends plus the make-whole amount equal to the discounted value of the remaining scheduled payments. If the Fund fails to maintain a total leverage (debt and
preferred stock) asset coverage ratio of at least 225% or is in default of specified rating agency requirements, the MRPS are subject to mandatory redemption under certain provisions.
The Fund may not declare dividends or make other distributions on shares of its common stock unless the Fund has declared and paid full cumulative dividends on the MRPS,
due on or prior to the date of the common stock dividend or distribution, and meets the MRPS asset coverage and rating agency requirements.
The holders of the MRPS
have one vote per share and vote together with the holders of common stock of the Fund as a single class except on matters affecting only the holders of MRPS or the holders of common stock. Pursuant to the 1940 Act, holders of the MRPS have the
right to elect two Directors of the Fund, voting separately as a class.
|
|
|
|
|
|
|
| BrandywineGLOBAL—Global Income Opportunities Fund Inc. 2023 Semi-Annual Report |
|
|
|
|
37 |
|
Notes to financial statements
(unaudited) (cont’d)
7. Distributions to common shareholders subsequent to April 30, 2023
The following distributions to common shareholders have been declared by the Fund’s Board of Directors and are payable subsequent to the period end
of this report:
|
|
|
|
|
|
|
|
|
| Record Date |
|
Payable Date |
|
|
Amount |
|
| 4/21/2023 |
|
|
5/1/2023 |
|
|
$ |
0.0800 |
|
| 5/23/2023 |
|
|
6/1/2023 |
|
|
$ |
0.0800 |
|
| 6/23/2023 |
|
|
7/3/2023 |
|
|
$ |
0.0800 |
|
| 7/24/2023 |
|
|
8/1/2023 |
|
|
$ |
0.0800 |
|
| 8/24/2023 |
|
|
9/1/2023 |
|
|
$ |
0.0800 |
|
8. Stock repurchase program
On November 16, 2015, the Fund announced that the Fund’s Board of Directors (the “Board”) had authorized the Fund to repurchase in the open market up
to approximately 10% of the Fund’s outstanding common stock when the Fund’s shares are trading at a discount to net asset value. The Board has directed management of the Fund to repurchase shares of common stock at such times and in such
amounts as management reasonably believes may enhance stockholder value. The Fund is under no obligation to purchase shares at any specific discount levels or in any specific amounts. During the six months ended April 30, 2023 and the year
ended October 31, 2022, the Fund did not repurchase any shares.
Since the commencement of the stock repurchase program through April 30, 2023, the Fund
repurchased 86,958 shares or 0.41% of its common shares outstanding for a total amount of $1,165,853.
9. Transactions with
affiliated company
As defined by the 1940 Act, an affiliated company is one in which the Fund owns 5% or more of the outstanding voting securities, or a
company which is under common ownership or control with the Fund. The following company was considered an affiliated company for all or some portion of the six months ended April 30, 2023. The following transactions were effected in such
company for the six months ended April 30, 2023.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Affiliate
Value at |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
October 31, |
|
|
Purchased |
|
|
Sold |
|
| |
2022 |
|
|
Cost |
|
|
Shares |
|
|
Proceeds |
|
|
Shares |
|
| Western Asset Premier Institutional U.S. Treasury Reserves, Premium Shares |
|
$ |
7,472,789 |
|
|
$ |
60,300,095 |
|
|
|
60,300,095 |
|
|
$ |
61,337,609 |
|
|
|
61,337,609 |
|
|
|
|
|
|
| 38 |
|
|
|
BrandywineGLOBAL—Global Income Opportunities Fund Inc. 2023 Semi-Annual Report |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (cont’d) |
|
Realized
Gain (Loss) |
|
|
Dividend
Income |
|
|
Net Increase
(Decrease) in
Unrealized
Appreciation
(Depreciation) |
|
|
Affiliate
Value at
April 30,
2023 |
|
| Western Asset Premier Institutional U.S. Treasury Reserves, Premium Shares |
|
|
— |
|
|
$ |
129,169 |
|
|
|
— |
|
|
$ |
6,435,275 |
|
10. Deferred capital losses
As of October 31, 2022, the Fund had deferred capital losses of $64,248,157, which have no expiration date, that will be available to offset future taxable capital
gains.
11. Recent accounting pronouncement
In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-04,
Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting. In January 2021 and December 2022, the FASB issued ASU No. 2021-01 and
ASU No. 2022-06, with further amendments to Topic 848. The amendments in the ASUs provide optional temporary accounting recognition and financial reporting relief from the effect of certain types of
contract modifications due to the planned discontinuation of the London Interbank Offered Rate (LIBOR) and other interbank-offered based reference rates as of the end of 2021 for certain LIBOR settings and 2023 for the remainder. The ASUs are
effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2024. Management has reviewed the requirements and believes the adoption of these ASUs will not have a
material impact on the financial statements.
12. Other matter
The Fund’s investments, payment obligations, and financing terms may be based on floating rates, such as the London Interbank Offered Rate, or “LIBOR,”
which is the offered rate for short-term Eurodollar deposits between major international banks. On March 5, 2021, the ICE Benchmark Administration, the administrator of LIBOR, stated that it will cease the publication of the overnight and one-, three-, six- and twelve-month USD LIBOR settings immediately following the LIBOR publication on Friday, June 30, 2023. All other LIBOR settings, including the one-week and two-month USD LIBOR settings, have ceased publication as of January 1, 2022. In March 2022, the U.S. federal government enacted legislation to establish a
process for replacing LIBOR in certain existing contracts that do not already provide for the use of a clearly defined or practicable replacement benchmark rate as described in the legislation. Generally speaking, for contracts that do not contain a
fallback provision as described in the legislation, a benchmark replacement recommended by the Federal Reserve Board will effectively automatically replace the USD LIBOR benchmark in the contract after June 30, 2023. The recommended benchmark
replacement will be based on the Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York, including certain spread adjustments and benchmark replacement conforming changes. There remains uncertainty regarding the
impact of the transition from LIBOR on the Fund’s transactions and the financial markets generally.
|
|
|
|
|
|
|
| BrandywineGLOBAL—Global Income Opportunities Fund Inc. 2023 Semi-Annual Report |
|
|
|
|
39 |
|
Additional shareholder information (unaudited)
Results of annual meeting of shareholders
The
Annual Meeting of Shareholders of BrandywineGLOBAL—Global Income Opportunities Fund Inc. was held on April 14, 2023 for the purpose of considering and voting upon the proposals presented at the Meeting. The following table provides
information concerning the matters voted upon at the Meeting:
Election of Directors
|
|
|
|
|
|
|
|
|
|
|
|
|
| Nominees |
|
Common Shares
and Preferred
Shares, voting
together, Voted
FOR Election |
|
|
Common Shares and
Preferred Shares, voting
together, WITHHELD |
|
|
Common Shares and
Preferred Shares, voting
together, ABSTAIN |
|
| Nisha Kumar |
|
|
15,129,021 |
|
|
|
880,492 |
|
|
|
131,684 |
|
| Jane Trust |
|
|
15,152,397 |
|
|
|
867,977 |
|
|
|
120,823 |
|
At April 30, 2023, in addition to Nisha Kumar and Jane Trust, the other Directors of the Fund were as follows:
Robert D. Agdern
Carol L. Colman
Daniel P. Cronin
Paolo M. Cucchi
Eileen A. Kamerick
Ratification of Selection of Independent
Registered Public Accountants
To ratify the selection of PricewaterhouseCoopers LLP (“PwC”) as independent registered public accountants of the
Fund for the fiscal year ended October 31, 2023.
|
|
|
|
|
|
|
|
|
| FOR |
|
AGAINST |
|
|
ABSTAIN |
|
| 16,007,558 |
|
|
52,964 |
|
|
|
80,675 |
|
|
|
|
|
|
| 40 |
|
|
|
BrandywineGLOBAL—Global Income Opportunities Fund Inc. |
Dividend reinvestment plan (unaudited)
Unless you elect to receive distributions in cash (i.e., opt-out), all dividends, including any capital gain dividends and return
of capital distributions, on your Common Stock will be automatically reinvested by Computershare Trust Company, N.A., as agent for the stockholders (the “Plan Agent”), in additional shares of Common Stock under the Fund’s Dividend
Reinvestment Plan (the “Plan”). You may elect not to participate in the Plan by contacting the Plan Agent. If you do not participate, you will receive all cash distributions paid by check mailed directly to you by Computershare Trust
Company, N.A., as dividend paying agent.
If you participate in the Plan, the number of shares of Common Stock you will receive will be determined as follows:
(1) If the market price of the Common Stock (plus $0.03 per share commission) on the payment date (or, if the payment date is not a NYSE trading day, the
immediately preceding trading day) is equal to or exceeds the net asset value per share of the Common Stock at the close of trading on the NYSE on the payment date, the Fund will issue new Common Stock at a price equal to the greater of (a) the
net asset value per share at the close of trading on the NYSE on the payment date or (b) 95% of the market price per share of the Common Stock on the payment date.
(2) If the net asset value per share of the Common Stock exceeds the market price of the Common Stock (plus $0.03 per share commission) at the close of
trading on the NYSE on the payment date, the Plan Agent will receive the dividend or distribution in cash and will buy Common Stock in the open market, on the NYSE or elsewhere, for your account as soon as practicable commencing on the trading day
following the payment date and terminating no later than the earlier of (a) 30 days after the dividend or distribution payment date, or (b) the payment date for the next succeeding dividend or distribution to be made to the stockholders; except
when necessary to comply with applicable provisions of the federal securities laws. If during this period: (i) the market price (plus $0.03 per share commission) rises so that it equals or exceeds the net asset value per share of the Common
Stock at the close of trading on the NYSE on the payment date before the Plan Agent has completed the open market purchases or (ii) if the Plan Agent is unable to invest the full amount eligible to be reinvested in open market purchases, the
Plan Agent will cease purchasing Common Stock in the open market and the Fund shall issue the remaining Common Stock at a price per share equal to the greater of (a) the net asset value per share at the close of trading on the NYSE on the day
prior to the issuance of shares for reinvestment or (b) 95% of the then current market price per share.
Common Stock in your account will be held by the Plan Agent
in non-certificated form. Any proxy you receive will include all shares of Common Stock you have received under the Plan. You may withdraw from the Plan (i.e., opt-out)
by notifying the Plan Agent in writing at P.O. Box 43006, Providence, RI 02940-3078 or by calling the Plan Agent at
1-888-888-0151. Such withdrawal will be effective immediately if notice is received by the Plan Agent not less than ten business
days prior to any dividend or distribution record date;
|
|
|
|
|
|
|
| BrandywineGLOBAL—Global Income Opportunities Fund Inc. |
|
|
|
|
41 |
|
Dividend reinvestment plan
(unaudited) (cont’d)
otherwise such withdrawal will be effective as soon as practicable after the Plan Agent’s
investment of the most recently declared dividend or distribution on the Common Stock. Plan participants who sell their shares will be charged a service charge (currently $5.00 per transaction) and the Plan Agent is authorized to deduct brokerage
charges actually incurred from the proceeds (currently $0.05 per share commission). There is no service charge for reinvestment of your dividends or distributions in Common Stock. However, all participants will pay a pro rata share of brokerage
commissions incurred by the Plan Agent when it makes open market purchases. Because all dividends and distributions will be automatically reinvested in additional shares of Common Stock, this allows you to add to your investment through dollar cost
averaging, which may lower the average cost of your Common Stock over time. Dollar cost averaging is a technique for lowering the average cost per share over time if the Fund’s net asset value declines. While dollar cost averaging has definite
advantages, it cannot assure profit or protect against loss in declining markets.
Automatically reinvesting dividends and distributions does not mean that you do
not have to pay income taxes due upon receiving dividends and distributions. Investors will be subject to income tax on amounts reinvested under the Plan.
The Fund
reserves the right to amend or terminate the Plan if, in the judgment of the Board of Directors, the change is warranted. The Plan may be terminated, amended or supplemented by the Fund upon notice in writing mailed to stockholders at least 30 days
prior to the record date for the payment of any dividend or distribution by the Fund for which the termination or amendment is to be effective. Upon any termination, you will be sent cash for any fractional share of Common Stock in your account. You
may elect to notify the Plan Agent in advance of such termination to have the Plan Agent sell part or all of your Common Stock on your behalf. Additional information about the Plan and your account may be obtained from the Plan Agent at P.O. Box
43006, Providence, RI 02940-3078 or by calling the Plan Agent at 1-888-888-0151.
|
|
|
|
|
| 42 |
|
|
|
BrandywineGLOBAL—Global Income Opportunities Fund Inc. |
BrandywineGLOBAL —
Global Income Opportunities Fund Inc.
Directors
Robert D. Agdern
Carol L. Colman
Daniel P. Cronin
Paolo M. Cucchi
Eileen A. Kamerick
Nisha Kumar
Jane Trust
Chairman
Officers
Jane Trust
President and Chief Executive Officer
Christopher Berarducci
Treasurer and Principal Financial Officer
Fred Jensen
Chief Compliance Officer
George P. Hoyt
Secretary and Chief Legal Officer
Thomas C. Mandia
Senior Vice President
Jeanne M. Kelly
Senior Vice President
BrandywineGLOBAL— Global Income Opportunities Fund Inc.
620 Eighth Avenue
47th Floor
New York, NY 10018
Investment manager
Legg Mason Partners Fund Advisor, LLC
Subadviser
Brandywine Global Investment Management, LLC
Custodian
The Bank of New York Mellon
Transfer agent
Computershare Inc.
P.O. Box 43006
Providence, RI 02940-3078
Independent registered public accounting firm
PricewaterhouseCoopers LLP Baltimore, MD
Legal counsel
Simpson Thacher & Bartlett LLP
900 G Street NW
Washington, DC 20001
New York Stock Exchange Symbol
BWG
Legg Mason Funds Privacy and Security Notice
Your Privacy and the Security of Your Personal Information is Very
Important to the Legg Mason Funds
This Privacy and Security Notice (the “Privacy Notice”) addresses the Legg Mason Funds’ privacy and
data protection practices with respect to nonpublic personal information the Funds receive. The Legg Mason Funds include the Western Asset Money Market Funds sold by the Funds’ distributor, Franklin Distributors, LLC, as well as Legg
Mason-sponsored closed-end funds. The provisions of this Privacy Notice apply to your information both while you are a shareholder and after you are no longer invested with the Funds.
The Type of Nonpublic Personal Information the Funds Collect About You
The Funds collect and maintain nonpublic personal information about you in connection with your shareholder account. Such information may include, but is not limited
to:
| • |
|
Personal information included on applications or other forms; |
| • |
|
Account balances, transactions, and mutual fund holdings and positions; |
| • |
|
Bank account information, legal documents, and identity verification documentation; and |
| • |
|
Online account access user IDs, passwords, security challenge question responses. |
How the Funds Use Nonpublic Personal Information About You
The Funds do not sell or share your nonpublic personal information with third parties or with affiliates for their marketing purposes, unless you have authorized the
Funds to do so. The Funds do not disclose any nonpublic personal information about you except as may be required to perform transactions or services you have authorized or as permitted or required by law. The Funds may disclose information about you
to:
| • |
|
Employees, agents, and affiliates on a “need to know” basis to enable the Funds to conduct ordinary business or
to comply with obligations to government regulators; |
| • |
|
Service providers, including the Funds’ affiliates, who assist the Funds as part of the ordinary course of business
(such as printing, mailing services, or processing or servicing your account with us) or otherwise perform services on the Funds’ behalf, including companies that may perform statistical analysis, market research and marketing services solely
for the Funds; |
| • |
|
Permit access to transfer, whether in the United States or countries outside of the United States to such Funds’
employees, agents and affiliates and service providers as required to enable the Funds to conduct ordinary business, or to comply with obligations to government regulators; |
| • |
|
The Funds’ representatives such as legal counsel, accountants and auditors to enable the Funds to conduct ordinary
business, or to comply with obligations to government regulators; |
| • |
|
Fiduciaries or representatives acting on your behalf, such as an IRA custodian or trustee of a grantor trust.
|
|
| NOT PART OF THE SEMI-ANNUAL
REPORT |
Legg Mason Funds Privacy and Security Notice (cont’d)
Except as otherwise permitted by applicable law, companies acting on the Funds’ behalf,
including those outside the United States, are contractually obligated to keep nonpublic personal information the Funds provide to them confidential and to use the information the Funds share only to provide the services the Funds ask them to
perform.
The Funds may disclose nonpublic personal information about you when necessary to enforce their rights or protect against fraud, or as permitted or
required by applicable law, such as in connection with a law enforcement or regulatory request, subpoena, or similar legal process. In the event of a corporate action or in the event a Fund service provider changes, the Funds may be required to
disclose your nonpublic personal information to third parties. While it is the Funds’ practice to obtain protections for disclosed information in these types of transactions, the Funds cannot guarantee their privacy policy will remain
unchanged.
Keeping You Informed of the Funds’ Privacy and Security Practices
The Funds will notify you annually of their privacy policy as required by federal law. While the Funds reserve the right to modify this policy at any time, they will
notify you promptly if this privacy policy changes.
The Funds’ Security Practices
The Funds maintain appropriate physical, electronic and procedural safeguards designed to guard your nonpublic personal information. The Funds’ internal data
security policies restrict access to your nonpublic personal information to authorized employees, who may use your nonpublic personal information for Fund business purposes only.
Although the Funds strive to protect your nonpublic personal information, they cannot ensure or warrant the security of any information you provide or transmit to them,
and you do so at your own risk. In the event of a breach of the confidentiality or security of your nonpublic personal information, the Funds will attempt to notify you as necessary so you can take appropriate protective steps. If you have consented
to the Funds using electronic communications or electronic delivery of statements, they may notify you under such circumstances using the most current email address you have on record with them.
In order for the Funds to provide effective service to you, keeping your account information accurate is very important. If you believe that your account information is
incomplete, not accurate or not current, if you have questions about the Funds’ privacy practices, or our use of your nonpublic personal information, write the Funds using the contact information on your account statements, email the Funds by
clicking on the Contact Us section of the Funds’ website at www.franklintempleton.com, or contact the Funds at
1-877-721-1926 for the Western Asset Money Market Funds or 1-888-777-0102 for the Legg Mason-sponsored closed-end funds.
Revised
October 2022
|
| NOT PART OF THE SEMI-ANNUAL
REPORT |
Legg Mason Funds Privacy and Security Notice (cont’d)
Legg Mason California Consumer Privacy Act Policy
Although much of the personal information we collect is “nonpublic personal information” subject to federal law, residents of California may, in certain
circumstances, have additional rights under the California Consumer Privacy Act (“CCPA”). For example, if you are a broker, dealer, agent, fiduciary, or representative acting by or on behalf of, or for, the account of any other person(s)
or household, or a financial advisor, or if you have otherwise provided personal information to us separate from the relationship we have with personal investors, the provisions of this Privacy Policy apply to your personal information (as defined
by the CCPA).
In addition to the provisions of the Legg Mason Funds Security and Privacy Notice, you may have the right to know the categories and specific pieces
of personal information we have collected about you.
You also have the right to request the deletion of the personal information collected or maintained by the
Funds.
If you wish to exercise any of the rights you have in respect of your personal information, you should advise the Funds by contacting them as set forth
below. The rights noted above are subject to our other legal and regulatory obligations and any exemptions under the CCPA. You may designate an authorized agent to make a rights request on your behalf, subject to the identification process described
below. We do not discriminate based on requests for information related to our use of your personal information, and you have the right not to receive discriminatory treatment related to the exercise of your privacy rights.
We may request information from you in order to verify your identity or authority in making such a request. If you have appointed an authorized agent to make a request
on your behalf, or you are an authorized agent making such a request (such as a power of attorney or other written permission), this process may include providing a password/passcode, a copy of government issued identification, affidavit or other
applicable documentation, i.e. written permission. We may require you to verify your identity directly even when using an authorized agent, unless a power of attorney has been provided. We reserve the right to deny a request submitted by an agent if
suitable and appropriate proof is not provided.
For the 12-month period prior to the date of this Privacy Policy, the Legg
Mason Funds have not sold any of your personal information; nor do we have any plans to do so in the future.
Contact Information
Address: Data Privacy Officer, 100 International Dr., Baltimore, MD 21202
Email: DataProtectionOfficer@franklintempleton.com
Phone: 1-800-396-4748
Revised October 2022
|
| NOT PART OF THE SEMI-ANNUAL
REPORT |
BrandywineGLOBAL—Global Income Opportunities Fund Inc.
BrandywineGLOBAL — Global Income Opportunities Fund Inc.
620 Eighth Avenue
47th Floor
New York, NY 10018
Notice is hereby given in accordance with Section 23(c) of the Investment Company Act of 1940, as amended, that from time to time the Fund may purchase, at market
prices, shares of its stock.
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first
and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Forms N-PORT are available on the SEC’s website at www.sec.gov.
To obtain information on Form N-PORT, shareholders can call the Fund at 1-888-777-0102.
Information on how the Fund voted proxies relating to portfolio securities during the prior 12-month period ended June 30th
of each year and a description of the policies and procedures that the Fund uses to determine how to vote proxies related to portfolio transactions are available (1) without charge, upon request, by calling 1-888-777-0102, (2) at www.franklintempleton.com and (3) on the SEC’s website at www.sec.gov.
Quarterly performance, semi-annual and annual reports, current net asset value and other information regarding the Fund may be found on Franklin Templeton’s website,
which can be accessed at www.franklintempleton.com. Any reference to Franklin Templeton’s website in this report is intended to allow investors public access to information regarding the Fund and does not, and is not intended to, incorporate
Franklin Templeton’s website in this report.
This report is transmitted to the shareholders of BrandywineGLOBAL — Global Income Opportunities Fund Inc. for
their information. This is not a prospectus, circular or representation intended for use in the purchase of shares of the Fund or any securities mentioned in this report.
Computershare Inc.
P.O. Box 43006
Providence, RI 02940-3078
LMFX014702 06/23 SR23-4667
Not applicable.
| ITEM 3. |
AUDIT COMMITTEE FINANCIAL EXPERT. |
Not applicable.
| ITEM 4. |
PRINCIPAL ACCOUNTANT FEES AND SERVICES. |
Not applicable.
| ITEM 5. |
AUDIT COMMITTEE OF LISTED REGISTRANTS. |
Not applicable.
| ITEM 6. |
SCHEDULE OF INVESTMENTS. |
Included herein under Item 1.
| ITEM 7. |
DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
| ITEM 8. |
INVESTMENT PROFESSIONALS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
|
Not applicable.
| ITEM 9. |
PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS. |
Not applicable.
| ITEM 10. |
SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. |
Not applicable.
| ITEM 11. |
CONTROLS AND PROCEDURES. |
| |
(a) |
The registrant’s principal executive officer and principal financial officer have concluded that the
registrant’s disclosure controls and procedures (as defined in Rule 30a- 3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of
the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the 1940 Act and 15d-15(b) under the Securities Exchange Act of 1934. |
| |
(b) |
There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the period covered by this report that have materially affected, or are likely to materially affect the registrant’s internal control over financial reporting.
|
| ITEM 12. |
DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT
INVESTMENT COMPANIES |
Not applicable.
(a) (1) Not applicable.
Exhibit
99.CODE ETH
(a) (2)
Certifications pursuant to section 302 of the Sarbanes-Oxley Act of 2002 attached hereto.
Exhibit
99.CERT
(b) Certifications pursuant to Section
906 of the Sarbanes-Oxley Act of 2002 attached hereto.
Exhibit 99.906CERT
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this
Report to be signed on its behalf by the undersigned, there unto duly authorized.
|
|
|
| BrandywineGLOBAL - Global Income Opportunities Fund Inc. |
|
|
| By: |
|
/s/ Jane Trust |
|
|
Jane Trust |
|
|
Chief Executive Officer |
|
|
| Date: |
|
June 26, 2023 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940,
this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
|
|
|
| By: |
|
/s/ Jane Trust |
|
|
Jane Trust |
|
|
Chief Executive Officer |
|
|
| Date: |
|
June 26, 2023 |
|
|
| By: |
|
/s/ Christopher Berarducci |
|
|
Christopher Berarducci |
|
|
Principal Financial Officer |
|
|
| Date: |
|
June 26, 2023 |
CERTIFICATIONS PURSUANT TO SECTION 302
EX-99.CERT
CERTIFICATIONS
I, Jane Trust, certify that:
| 1. |
I have reviewed this report on Form N-CSR of BrandywineGLOBAL - Global
Income Opportunities Fund Inc.; |
| 2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
| 3. |
Based on my knowledge, the financial statements, and other financial information included in this report,
fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the
periods presented in this report; |
| 4. |
The registrant’s other certifying officers and I are responsible for establishing and maintaining
disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule
30a-3(d) under the Investment Company Act of 1940) for the registrant and have: |
| |
a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be
designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is
being prepared; |
| |
b) |
Designed such internal control over financial reporting, or caused such internal control over financial
reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting
principles; |
| |
c) |
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this
report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and |
| |
d) |
Disclosed in this report any change in the registrant’s internal control over financial reporting that
occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
| 5. |
The registrant’s other certifying officers and I have disclosed to the registrant’s auditors and the
audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
| |
a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over
financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and |
| |
b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in
the registrant’s internal control over financial reporting. |
|
|
|
|
|
|
|
| Date: June 26, 2023 |
|
|
|
|
|
/s/ Jane Trust |
|
|
|
|
|
|
Jane Trust |
|
|
|
|
|
|
Chief Executive Officer |
CERTIFICATIONS
I, Christopher Berarducci, certify that:
| 1. |
I have reviewed this report on Form N-CSR of BrandywineGLOBAL - Global
Income Opportunities Fund Inc.; |
| 2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
| 3. |
Based on my knowledge, the financial information included in this report, and the financial statements on which
the financial information is based, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the
registrant as of, and for, the periods presented in this report; |
| 4. |
The registrant’s other certifying officers and I are responsible for establishing and maintaining
disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule
30a-3(d) under the Investment Company Act of 1940) for the registrant and have: |
| |
a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be
designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is
being prepared; |
| |
b) |
Designed such internal control over financial reporting, or caused such internal control over financial
reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting
principles; |
| |
c) |
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this
report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and |
| |
d) |
Disclosed in this report any change in the registrant’s internal control over financial reporting that
occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
| 5. |
The registrant’s other certifying officers and I have disclosed to the registrant’s auditors and the
audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
| |
a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over
financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and |
| |
b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in
the registrant’s internal control over financial reporting. |
|
|
|
|
|
|
|
| Date: June 26, 2023 |
|
|
|
|
|
/s/ Christopher Berarducci |
|
|
|
|
|
|
Christopher Berarducci |
|
|
|
|
|
|
Principal Financial Officer |
CERTIFICATIONS PURSUANT TO SECTION 906
EX-99.906CERT
CERTIFICATION
Jane Trust, Chief
Executive Officer, and Christopher Berarducci, Principal Financial Officer of BrandywineGLOBAL - Global Income Opportunities Fund Inc. (the “Registrant”), each certify to the best of their knowledge that:
1. The Registrant’s periodic report on Form N-CSR for the period ended
April 30, 2023 (the “Form N-CSR”) fully complies with the requirements of section 15(d) of the Securities Exchange Act of 1934, as amended; and
2. The information contained in the Form N-CSR fairly presents, in all material
respects, the financial condition and results of operations of the Registrant.
|
|
|
|
|
| Chief Executive Officer |
|
|
|
Principal Financial Officer |
| BrandywineGLOBAL - Global Income |
|
|
|
BrandywineGLOBAL - Global Income |
| Opportunities Fund Inc. |
|
|
|
Opportunities Fund Inc. |
|
|
|
| /s/ Jane Trust |
|
|
|
/s/ Christopher Berarducci |
| Jane Trust |
|
|
|
Christopher Berarducci |
| Date: June 26, 2023 |
|
|
|
Date: June 26, 2023 |
This certification is being furnished to the Securities and Exchange Commission solely pursuant to 18 U.S.C. § 1350 and
is not being filed as part of the Form N-CSR with the Commission.
BrandywineGlobal Global ... (NYSE:BWG)
Historical Stock Chart
Von Apr 2024 bis Mai 2024
BrandywineGlobal Global ... (NYSE:BWG)
Historical Stock Chart
Von Mai 2023 bis Mai 2024
