Legg Mason Western Asset Macro Opportunities Bond Fund upgraded by Lonsec

Andy Sowerby

Andy Sowerby

Leading research house Lonsec has upgraded its rating for the Legg Mason Western Asset Macro Opportunities Bond Fund (Fund) to “Recommended” and has reclassified the Fund to Lonsec’s Growth Alternatives sector, reflecting the economic leverage employed.

This successful strategy which offers an absolute return fixed income solution has been available offshore for many years and the Fund was launched in Australia two years ago. Having been rated as investment grade last year the recent upgrade reflects Lonsec’s “strong conviction this financial product can generate risk-adjusted returns in line with relevant objectives”.

In its report, Lonsec identifies three key factors in its decision to increase its conviction in the Fund. They are:

  • Managed by a large and high-quality investment team led by Western Asset’s veteran CIO Kenneth Leech;
  • Access to the wider Western Asset expertise and infrastructure. At 31 March 2018, Western Asset had $A561 billion in assets under management and 127 investment personnel across six continents.
  • The long-term performance of Western Asset’s underlying Macro Opportunities strategy.

The Fund, which is underpinned by a high conviction global macro strategy that invests in fixed income and currency markets, has a long-term fundamental investment style that uses active management around volatility, duration and yield curve.

Legg Mason Managing Director, Australia and New Zealand, Andy Sowerby, says Lonsec’s decision to upgrade the Fund to “Recommended” recognises the “strong product design underpinned by a world-class investment team and a proven investment process.”

“The Legg Mason Western Asset Macro Opportunities Fund’s objective appeals to investors seeking a high conviction unconstrained proposition that can help diversify risk and deliver attractive returns over time,” said Mr Sowerby.

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