On Tuesday, Legg Mason unit Permal Asset Management, one of the largest fund-of-hedge-funds managers, took the wraps off its debut mutual fund, and a Legg Mason executive told The MFWire that it won't be Permal's only '40 Act offering.

Matt Schiffman Legg Mason Head of Americas Retail

"I believe you will see more '40 Act products coming from Permal and more multi-managed products from Legg Mason," said Matt Schiffman, who joined Legg Mason from Lincoln Financial as US head of product and marketing in November and transitioned to the role of head of Americas retail in mid-March.

The newly launched Legg Mason Permal Tactical Allocation Fund comes with an expense ratio of 175 basis points and a maximum front load of 575 bps. It will invest mainly in funds from Legg Mason's affiliates. It will also invest in unaffiliated mutual funds, ETFs and alternative investments.

"We've received fairly good feedback from our distribution partners that while demographics have not changed, investor psychology has changed," Schiffman said.

"Investors are looking for flexibility, simplicity and liquidity," he said.

A go-anywhere fund, the Tactical Allocation Fund is not constrained by geography or investment style.

Legg Mason acquired Permal in 2005 from Sequana Capital. 

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