Legg Mason Global Blue Chip Bond Fund
Adjust Font Size
About the Fund
Investment Aim
To achieve a total return via income yield and capital appreciation while seeking to mitigate capital erosion.
The Fund seeks to achieve its objective by investing in a range of fixed interest securities including, but not limited to, corporate bonds, government bonds, asset backed securities and mortgage backed securities. A minimum of 80% of the Fund’s net asset value will be invested in debt and fixed income securities which are rated A- or higher by S&P or other agencies. No more than 20% of the Fund’s net asset value may be exposed to currencies other than pounds sterling.
Performance Benchmark
BofA Merrill Lynch U.K. Gilts, 1-10 Yrs Index (from 11.03.2011)
- Emphasis will be on higher quality and more liquid investment grade corporate bonds issued by "blue chip" companies.
- Managed by one of the world’s largest fixed income managers.
About the Investment Strategy
- Construct and maintain an investment grade credit portfolio incorporating bottomup credit analysis together with top-down macro-economic views in a risk-oriented framework.
- Added value is sought through issuer and issue selection and sector/industry rotation.
- The portfolio will invest in bonds denominated in the currencies of the permitted domiciles. At least 80% of the fund will be hedged back to sterling or denominated in sterling.
About the Investment Team
Founded in 1971, Western Asset has decades of experience and is now one of the world's largest managers of fixed income investments. Western Asset follows a team-focused approach comprising groups of specialists dedicated to all the major areas of the fixed income market. Its expertise extends globally across major bond markets.
Risk Factors:
Interest rate risk: This Fund holds fixed income investments and may be affected by changes in interest rates.
Hedging risk:This Fund may use eligible derivatives to hedge their foreign currency exposure back to the base currency, pounds sterling. Hedging transactions can reduce the effects of currency and asset fluctuations but can expose additional risks, e.g. counterparty default.
Derivative investment risk: This Fund may invest in certain types of financial derivative instruments (FDIs) for efficient portfolio management or investment purposes. These instruments may involve a higher degree of risk.
Annual management charge from capital: This Fund has its annual management charge levied against capital, which may adversely affect the capital growth of the Fund.
Please refer to the Simplified Prospectus and Prospectus documentation for Legg Mason Funds ICVC, which describe the full risk factors associated with this Fund.
On the 11 March 2011 the Legg Mason Global Blue Chip Bond Fund changed investment objective, policy and name. The Fund was previously known as the Legg Mason Sterling Corporate Plus Bond Fund.