Legg Mason AM – Western Asset Global Bond Trust Fund Review
Fund objective
Legg Mason Asset Management – Western Asset Global Bond Trust Fund aims to maximise total returns in Singapore Dollar terms over the longer term by investing a portfolio of high-quality debt securities of Singapore and major global bond markets such as the G10 countries and Australia and New Zealand. The Fund aims to outperform the Citigroup World Government Bond Index ex-Japan.
Investment Strategy
Legg Mason Asset Management – Western Asset Global Bond Trust Fund aims to outperform the Citigroup World Government Bond Index ex Japan (hedged to Singapore Dollar). The Manager and Sub-Managers will pursue an active but prudent approach which employs fundamental economic and market analysis to take maximum advantage of short and medium to long-term investment opportunities in interest rate and currency trends of the global bond markets. The Trust will invest primarily in debt securities issued by governments, government-linked companies and corporations (a) in Singapore; (b) in countries as defined by the Citigroup World Government Bond Index ex Japan; or (c) in countries with a minimum investment grade credit rating of Aa2 by Moody’s, AA by S&P, AA by Fitch Inc. or its equivalent investment grading by any other internationally reputable credit rating agency.
Legg Mason Asset Management – Western Asset Global Bond Trust Fund will only invest in debt securities issued by governments of benchmark countries, or of issuers with a minimum credit rating of Aa2 by Moody’s, AA by S&P, AA by Fitch Inc. or its equivalent investment grading by any other internationally reputable credit rating agency (and for issuers of Japanese debt securities, a minimum credit rating of A2 by Moody’s, A by S&P, A by Fitch Inc. or its equivalent investment grading by any other internationally reputable credit rating agency). The Trust’s investments in Japanese debt securities have been limited to 10% of its deposited property. The Managers and the Sub-Managers (as the case may be) may employ an active currency hedging programme to manage the non-Singapore Dollar currency exposure. Investments in any one corporate issuer will be restricted to no more than 10%
Investments in any one corporate issuer will be restricted to no more than 10% of the total value of the deposited property of the Trust. To ensure greater degree of liquidity, the Trust will not invest in more than 5% of the aggregate issued and outstanding securities of any single issue. The Trust currently does not engage in securities lending and/or carry out repurchase transactions although it is permitted to do so. The Trust may use swaps, forwards, options and futures for the purposes of hedging and efficient portfolio management.
Who is Legg Mason AM – Western Asset Global Bond Trust Fund suitable for?
Legg Mason Asset Management – Western Asset Global Bond Trust Fund is only suitable for investors who:
- want to diversify their investments on a worldwide basis
- require less volatile returns than those usually associated with that of equity investments
- are looking for portfolio diversification and more stable returns
Dividend or Income payout frequency: N.A.
For additional assessments on product suitability, please obtain professional advice from a qualified Financial Adviser.
What are the key risks of Legg Mason AM – Western Asset Global Bond Trust Fund?
The value of Legg Mason Asset Management – Western Asset Global Bond Trust Fund and its dividends and coupons (if any) may rise or fall. You may lose some or all of your investment depending on the performance of the underlying securities. Factors that may affect the performance of these securities include, without limitation, market risks, fluctuations in interest rates and foreign exchange rates, political instability, exchange controls, changes in taxation and foreign investment policies.
Some of the key risks associated with Legg Mason Asset Management – Western Asset Global Bond Trust Fund are described below:
Market and Credit Risks
- You are exposed to interest rate risk
- You are exposed to debt securities risk
- You are exposed to market risks
- You are exposed to currency risks
Liquidity Risks
- Fund liquidity may be affected during exceptional circumstances
- The Fund is not listed
Product-Specific Risks
- You are exposed to derivatives risks
Investment Fees and Charges
For a limited time (Until 31 Dec 2023), speak to a MAS licensed licensed financial adviser which has committed to offering our readers a flat 1% Subscription fee (Initial Sale Charge) for all Unit Trust Funds investment.
Learn more about the limited time offer on 1% Initial Sales Charge. Terms and conditions may apply.
Where can I get more details about Legg Mason AM – Western Asset Global Bond Trust Fund
- Legg Mason Asset Management – Western Asset Global Bond Trust Fund Fact Sheet (Open in New Window)
- Legg Mason Asset Management – Western Asset Global Bond Trust Fund Product Highlight Sheet (Open in New Window)
- Speak to a licensed licensed financial adviser
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