The assets of the Legg Mason Diversified Fixed Income Trust are managed on a sub-advisory basis by Western Asset Management Company Pty Ltd, a subsidiary of Legg Mason, Inc. and an affiliate of Legg Mason Australia.
The investment process is an active management approach that aims to capture incremental returns from a variety of diversified sources. This approach is supported by an array of quantitative tools. A fundamental value based and research driven process is used in all fixed income investment decisions.
The investment process aims to generate excess return from a diversified range of sources, including active:
- real and nominal duration management;
- country, sector and security selection; and
- global credit security selection, including high yield and emerging market bonds.
In addition to the broad sector allocation of bond type and country allocation, the mandate includes limited currency allocation decisions. Extensive risk management approach and risk measurement capabilities are indispensable components of the Investment Process, ensuring efficient construction of portfolios with asymmetric return profiles and a clear understanding of portfolio exposure to facilitate risk management.