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LEGG MASON WA GLOBAL CREDIT ABSOLUTE RETURN PF USD HDG - Fund overview

No Bestinvest rating


Overview of LEGG MASON WA GLOBAL CREDIT ABSOLUTE RETURN PF USD HDG

A Dublin listed, sophisticated UCIT 3 fund with an absolute return focus targeting returns of about 8% on a 3 yr rolling basis. Returns will be generated predominantly through investment in the global credit markets and their related derivative instruments; currency and interest rate decisions may also supplement returns. The manager is in a position to draw on the global resources of Western Asset Management, part of the Legg Mason Group and one of the world's largest fixed income houses.
Investors should be aware that Absolute Return funds do not guarantee a positive return and you could get back less than you invested, as with any other investment. Additionally, the underlying assets of these funds generally use complex hedging techniques through the use of derivative products, which can carry additional risks which may not be immediately apparent.

Standard Initial Charge

No data available.

Fund summary

Sector  –
Product type  OFFSHORE FUND
Launched  May, 2010
Size  £68m
Yield 0.0%
Charging basis  Income
Dividends paid  monthly
Bid price(inc) 6,591.08p
Bid price(acc) 6,592.36p

Fund Charges

Standard Initial charge
Initial charge via Bestinvest
Additional bid/offer spread 0.00%
Annual management charge 0.75%
Total expense ratio 0.90%
Reduction in yield (10yr) 0.90%

Bestinvest says


The manager has a track record relating to a similar absolute return vehicle whilst at his previous employer. The fund is not designed to be a market neutral credit fund targeting month on month positive returns it will have an absolute return focus. The fund does not have any formal stop loss policy, although the manager will generally seek to reduce risk if drawdowns approach 2%. The mandate enables the manager to use derivative instruments to take long and short positions in credit, interest rate and currency markets.

Portfolio

legg mason wa global credit absolute return pf usd hdg  asset allocation illustration
Allocation Proportion
Equity
High yield bonds
Quality bonds 50%
Property
Commodities
Hedge 50%
Fund cash
legg mason wa global credit absolute return pf usd hdg  equity geographic illustration
Allocation Proportion
UK 7%
Europe 31%
Nth America 53%
Japan 3%
Pacific 6%
Other Equity

No data available.

Investment process


Whilst the fund is not designed to be a market neutral credit fund targeting month on month positive returns it will have an absolute return focus. The fund does not have any formal stop loss policy, although the manager will generally seek to reduce risk if drawdowns approach 2%. Over the cycle returns credit beta, credit alpha and interest rate / currency decisions are expected to contribute equally to the return profile. The mandate enables the manager to use derivative instruments to take long and short derivative positions in credit, interest rate and currency markets, in doing so the gross exposure of long and short positions may exceed NAV. Under normal market conditions the fund's gross exposure is anticipated to be approximately 200%, of which 1/4 would be short positions. Returns are generally hedged to sterling.

The value of your investments and the income from them can go down as well as up, and you can get back less than you originally invested. Past performance or any yields quoted should not be considered reliable indicators of future returns. Before investing in funds please check the specific risk factors on the key features document or refer to our risk warning notice as some funds can be high risk or complex; they may also have risks relating to the geographical area, industry sector and/or underlying assets in which they invest. Prevailing tax rates and relief are dependent on your individual circumstances and are subject to change.

Bestinvest (Brokers) Ltd & Bestinvest (Consultants) Ltd are authorised and regulated by the Financial Services Authority. This site is for UK Investors only

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