Western Asset Enhanced Income Fund receives inaugural Recommended Rating from Zenith

Felicity Walsh

Western Asset Management, a Franklin Templeton company, is pleased to announce that the Western Asset Enhanced Income Fund has received an inaugural Recommended rating from Zenith Investment Partners.

Western Asset Enhanced Income Fund invests in a diversified portfolio of Australian and global fixed interest securities and focusses on adding value through active management of duration, sector and security selection.

“This rating is recognition of the team’s hard work to generate superior returns for our investors via this enhanced income strategy,” Head of Asia Pacific Investment Management at Western Asset Management, Anthony Kirkham, said.

Felicity Walsh, Managing Director of Franklin Templeton Australia and New Zealand, added, “The Zenith rating underscores our commitment to delivering innovative and high-quality investment solutions. It is a testament to the diligent efforts of the Western Asset investment team and their unwavering focus on creating value for our clients in Australia.”

In its report Zenith said it held a positive view of both the investment team and its investment process and that the fund is an attractive option in the Australian corporate debt sector.

“Zenith considers the portfolio construction process to be sound, effectively synthesising both the outlook of the global investment committees and the fundamental credit analysis to construct a portfolio that reflects the team’s views,” the report said.

The team’s access to a network of global credit analysts that provide on-the-ground and real time surveillance of global corporate bonds positions the investment process for a competitive advantage.

The fund targets returns (before fees, charges and taxes) that exceed the Bloomberg AusBond Bank Bill Index by 1.5% to 2% per annum, when measured over rolling three-year periods, and has achieved this target excess return since its inception in 2021.

“Generating income is an increasingly important theme for investors right now, given the current economic environment and interest rate volatility globally. Our strategy is designed to meet this need by providing consistent and attractive income streams,” Kirkham explained.

Dedicated to active fixed income investing, Western Asset manages a range of strongly rated fixed income strategies for Australian investors.

Notably, the Western Asset Australian Bond Fund retained its ‘Highly Recommended’ rating from Zenith, a rating held by the fund since June 2016.

The Betashares Western Asset Australian Bond Fund, an exchange traded fund that seeks to replicate the strategy of the unlisted Western Asset Australian Bond Fund (ticker code BNDS), also retained its ‘Highly Recommended’ rating.