Legg Mason, one of world’s largest funds management groups, announced that the Legg Mason Western Asset Australian Bond Trust has received the highest rating from Zenith Investment Partners – ‘Highly Recommended’.
The Legg Mason Western Asset Australian Bond Trust, managed by Legg Mason’s leading fixed interest specialist affiliate, Western Asset, provides investors with exposure to a portfolio of Australian fixed interest securities.
The Zenith Report notes that “we continue to maintain a high opinion of the Western Asset investment team and their ability to consistently meet the Fund’s excess return objective [….] the Fund presents as one of the strongest offerings in the Australian Fixed Interest (AFI) peer group.”
Zenith reports that the Western Asset fixed interest team of six is led by Anthony Kirkham, Head of Investment Management who retains a number of responsibilities across portfolio and business management. Zenith “continues to rate Kirkham highly, with our view formed over a number of years. Aside from Kirkham, the team has a complementary set of skills across sector rotation and credit selection.”
The report adds “Bonds can form a key component of an investor’s portfolio and more specifically their exposure to the fixed interest asset class, owing to the defensive characteristics that they often exhibit.
“An inverse relationship exists between the price of bonds and interest rates, the extent of which is not linear and varies according to existing market conditions and the perception of risk. Bonds generally exhibit a negative correlation with equities and will rise in price when growth assets are falling (and vice versa). Bonds are more likely to be favoured during times of heightened risk aversion and typically dampen investment portfolios against capital drawdowns.”
The Fund is deemed suitable for investors seeking exposure to an Australian fixed interest strategy that generates investment returns commonly through credit orientated activities including sector rotation and credit selection.”
Anthony Kirkham, head of Western Asset Australia says that this rating is a positive acknowledgment of the Fund which is appropriate for investors seeking exposure to domestic fixed interest and for blending with international fixed interest strategies to produce a more balanced set of investment
outcomes.
Andy Sowerby, Country Head and Managing Director Legg Mason adds “This Fund is a key offering amongst our market leading fixed income suite of products which are designed for clients to help them tailor portfolios to meet long term investment goals. Western Asset has a deeply resourced investment team and proven track record of outperformance in the Australian fixed interest sector and has established itself as a competitive presence in this key asset class. We are pleased that this fund has consistently been “Highly Recommended for the last 3 years.”
As at 31 March 2017, Western Asset had approximately $A 8.4 billion managed in core Australian fixed interest strategies. In the “Highly Recommended” Legg Mason Western Asset Australian Bond Fund Western Asset it manages approximately $A 470 million.