Legg Mason Western Asset Global Bond A aims to outperform the Bloomberg Barclays Global Aggregate Index (hedged into Australian dollars) (Benchmark) over rolling three-five year periods. The investment process applies an active, team-managed strategy that employs a long term, value-oriented approach to identify inefficiencies and subsequent mispricing opportunities in the global fixed income market.
The Fund was down 3.01% during the month of September. In comparison the benchmark was down 1.84% over the month of September. Within the Fund, an overweight to overall Fund duration detracted from returns as yields rose. While an underweight to Japanese duration was additive. An overweight to the 5-year part of the US yield curve and an underweight to 10-years added to returns as the yield curve steepened. An overweight to US agency mortgage backed securities detracted modestly from returns as spreads widened. While US high-yield corporate bonds underperformed. Emerging market country exposure had a negative impact on returns as currency positioning detracted from returns as the US dollar strengthened.
What is Legg Mason Western Asset Global Bond A Legg Mason Western Asset Global Bond A is an Managed Funds investment product that is benchmarked against Global Aggregate Hdg Index and sits inside the Fixed Income - Bonds - Global Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The Legg Mason Western Asset Global Bond A has Assets Under Management of 401.73 M with a management fee of 0.5%, a performance fee of 0.00% and a buy/sell spread fee of 0.12%.
How has the investment product performed recently?
The recent investment performance of the investment product shows that the Legg Mason Western Asset Global Bond A has returned 3.99% in the last month. The previous three years have returned -3.6% annualised and 5.66% each year since inception, which is when the Legg Mason Western Asset Global Bond A first started.
How is risk measured in this investment product?
There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since Legg Mason Western Asset Global Bond A first started, the Sharpe ratio is 0.03 with an annualised volatility of 5.66%. The maximum drawdown of the investment product in the last 12 months is -4.95% and -17.38% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.
What is the relative performance of the investment product?
Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The Legg Mason Western Asset Global Bond A has a 12-month excess return when compared to the Fixed Income - Bonds - Global Index of 1.14% and 0.37% since inception.
Does the investment product produce Alpha over its Peers?
Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. Legg Mason Western Asset Global Bond A has produced Alpha over the Fixed Income - Bonds - Global Index of 0.06% in the last 12 months and 0.04% since inception.
What are similar investment products?
For a full list of investment products in the Fixed Income - Bonds - Global Index category, you can click here for the Peer Investment Report.
What level of diversification will Legg Mason Western Asset Global Bond A provide?
Legg Mason Western Asset Global Bond A has a correlation coefficient of 0.96 and a beta of 1.4 when compared to the Fixed Income - Bonds - Global Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.
How do I compare the investment product with its peers?
For a full quantitative report on Legg Mason Western Asset Global Bond A and its peer investments, you can click here for the Peer Investment Report.
How do I compare the Legg Mason Western Asset Global Bond A with the Global Aggregate Hdg Index?
For a full quantitative report on Legg Mason Western Asset Global Bond A compared to the Global Aggregate Hdg Index, you can click here.
Can I sort and compare the Legg Mason Western Asset Global Bond A to do my own analysis?
To sort and compare the Legg Mason Western Asset Global Bond A financial metrics, please refer to the table above.
Has the Legg Mason Western Asset Global Bond A been independently verified by SMSF Mate?
This investment product is in the process of being independently verified by SMSF Mate. Once we have verified the investment product, you will be able to find more information here.
How can I invest in Legg Mason Western Asset Global Bond A?
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Comments from SMSF Mates
SMSF Mate does not receive commissions or kickbacks from the Legg Mason Western Asset Global Bond A. All data and commentary for this fund is provided free of charge for our readers general information.
Performance Commentary - June 30, 2023 The Fund was down 0.30% during the month of June. In comparison the benchmark was down 0.16 over the month of June. Within the Fund, duration positioning had a negative impact on performance as yields in the US and the UK moved higher. While, short-dated US and UK government bond yields moved sharply higher, also detracting from returns. On the other side, positives within the Fund included, the spread between long-term inflation expectations in the US versus Germany declining modestly, adding to returns. While Emerging Market country and foreign exchange exposure were positive contributors. High yield corporate bonds also had a positive impact on returns. In addition, an overweight to corporate bonds added to returns as spreads narrowed. While an overweight to US agency MBS also added value.
Performance Commentary - May 31, 2023 The Fund was up 3.06% during the month of March, and was up 2.96% over the March quarter. In comparison the benchmark was up 2.11% over the month of March and was up 2.38% over the March quarter.
Within the Fund, Investment-grade and high-yield corporate credit spreads were wider over the month. USD-denominated emerging market (EM) bond spreads widened, while EM local yields fell but underperformed US Treasury yields. The US dollar was generally weaker across both developed market (DM) and EM currencies.
Performance Commentary - March 31, 2023 The Fund was up 3.06% during the month of March, and was up 2.96% over the March quarter. In comparison the benchmark was up 2.11% over the month of March and was up 2.38% over the March quarter.
Within the Fund, Investment-grade and high-yield corporate credit spreads were wider over the month. USD-denominated emerging market (EM) bond spreads widened, while EM local yields fell but underperformed US Treasury yields. The US dollar was generally weaker across both developed market (DM) and EM currencies.
Performance Commentary - December 31, 2022 The Fund was down 1.36% during the month of December, and was up 1.86% over the December quarter. In comparison the benchmark fell 1.31% over the month of December and was up 0.64% over the December quarter. Within the Fund, overweight positions in US, UK and core European duration detracted as yields rose. An underweight to Japanese duration contributed to returns. US yield-curve positioning added modestly to returns in December, and currency positioning was also a positive as the US dollar weakened. An overweight to US high-yield corporate bonds detracted to the Fund’s return. From a positioning perspective, we reduced the overweight allocation to UK duration early in the month. We added to core European duration as yields rose in the aftermath of the ECB policy meeting, and we tactically traded the South African rand.
Performance Commentary - September 30, 2022 The Fund was down 4.49% during September, and was down 4.93% over the September quarter. In comparison the benchmark fell 3.50% over the month of September and fell 3.78% over the September quarter. Within the Fund, overweight positions in US, UK and Australian duration detracted from returns. While a flatter US yield curve was also additive in September. Overweight’s to emerging market government bonds and corporate bonds detracted from performance. While currency positioning detracted as the US dollar strengthened. Long positions in the Japanese yen, Norwegian krone and in select emerging market currencies detracted. This was partially offset by short British pound and Chinese renminbi exposures, which added to returns. From a positioning perspective, we increased the underweight to Japanese duration and reduced the US yield-curve flattener. We purchased long UK inflationlinked government bonds. While also reducing our underweight to the British pound, initiated a long Canadian dollar exposure and added to the Japanese yen.
Performance Commentary - June 30, 2022 The Fund was down 2.62% during June, and was down 5.37% over the June quarter. In comparison the benchmark fell 1.64% over the month of June and 4.66% over the June quarter.
From a performance standpoint, a modest overweight to overall portfolio duration detracted from performance. While, short positions in US and UK inflation swaps were positive contributors to performance. An overweight to Emerging market bonds and currencies detracted, while overweights to European financial issuers detracted over the month of June.
In addition the Funds allocations to high-yield corporate bonds negatively impacted performance. While a short position in the Japanese yen provided useful diversification and added to returns over the month of June. Form a positioning perspective within the Fund, we added to core European duration as yields rose and increased US yield-curve flattener, rotating 5-year duration exposure into 30-year bonds. We increased an underweight to Japanese duration and initiated an overweight to local currency Polish government bonds. The Fund also added to investment-grade corporate bonds with a focus on high-quality banks and moved from a short to long position in Japanese yen
Performance Commentary - March 31, 2022 The Fund was down 2.96% during March, and was down 6.45% over the March quarter. The Fund’s underweight to core European duration was positive but this was offset by overweight positions in US, Australian and Canadian duration. While an overweight to spread sectors contributed to performance. On the other side, an overweight to local EM government bonds detracted from performance while currency positioning was modestly negative. The Fund switched from underweight to overweight overall Fund duration, while adding to core European and UK duration as yields rose. We reduced the Fund’s US yield curve-fattening position and we rotated from hard currency EM bonds into investment-grade corporates. ƒThe Fund also reduced EM currency exposure versus the US dollar and closed underweights to the Australian and Canadian dollars.
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