Western Asset U.S. High Yield Bond Fund
About The Fund
Investment Aim
The Fund seeks to provide a high level of current income by investing at least 70% of its Total Asset Value in high-yielding debt securities (higher yields are generally available from securities rated below investment grade) of U.S. Issuers that are denominated in U.S. dollars. At least 95% of the Fund's Total Asset Value will be U.S. dollar denominated.
Performance Benchmark
Barclays Capital U.S. Corporate High Yield - 2% Issuer Cap (USD)
- Invests principally in high yield debt issued by US companies.
- Focuses on higher quality bond issuers using rigorous credit analysis.
- Managed by one of the world's largest fixed income managers.
About the Investment Strategy
- The Fund is focused on non-investment grade corporate bonds denominated in US dollars.
- Diversification is achieved by spreading portfolio investments across a wide range of bond issuers across different industry sectors.
- The investment manager employs bottom-up credit research to issue selection in order to add incremental value.
- The manager aims to achieve this by exploiting inefficient markets through identification of undervalued securities, out-of-favour securities, distressed situations, other trading inefficiencies (liquidity, technical factors), potential upgrade candidates and takeover targets/arbitrage situations.
- The Fund aims to maintain an average credit quality of B.
About the Investment Team
Founded in 1971, Western Asset Management has decades of experience and is now one of the world's largest managers of fixed income investments. Western Asset Management follows a team-focused approach comprising groups of specialists dedicated to all the major areas of the fixed income market. Its expertise extends globally across major bond markets.
Risk Factors: Fluctuations in exchange rates can affect the value of the Fund and the income from it. The Fund may invest in 'non-investment grade' bonds, which carry a higher degree of default risk than 'investment grade' bonds and may have an increased potential to erode capital. Please refer to the offering document for Legg Mason Global Funds plc, which describes the full risk factors associated with this Fund.