The assets of the Legg Mason Core Plus Global Bond Trust are managed on a sub-advisory basis by Western Asset Management Company Limited, ("Western Asset"), a subsidiary of Legg Mason, Inc. and an affiliate of Legg Mason Australia.
Western Asset aims to add value by exploiting inefficiencies in fixed income markets. A fundamental approach is used to identify these inefficiencies. The philosophy is implemented through uniform application of the following strategic points:
- Long Term Value Investing - seeks long-term value by actively rotating between different fixed income sectors, including emerging market and high yield debt; and
- Multiple Strategies - employs multiple investment strategies with the objective of managing the impact of directional changes associated with a single sector or market event.
The process assimilates top-down macro-economic views with bottom-up credit analysts' fundamental and relative value views regarding industry and issuer opportunities.
The core plus global bond investment process applies an active, team-managed strategy that employs a long-term, value-oriented approach. Diversified strategies are utilised across fixed income sectors, including emerging market and high yield debt, to add value while minimising risk. Value added is sought through bloc and currency allocation as well as sector concentration and issue selection. Portfolio risk is controlled through market & sector diversification, duration control and active hedging of currency exposures.