Legg Mason today announced that its Australian Bond Trust has been upgraded by Zenith to ‘Highly Recommended’, as at June 2016. The Trust is managed by Legg Mason’s largest affiliate fund manager, Western Asset Management, a fixed income specialist with $US436 billion under management. The principal investments of the Trust include government bonds, corporate bonds and other fixed interest securities.
In its fund review, Zenith notes that the Trust represents “one of the strongest offerings in the Australian fixed income peer group”. The report also notes that “Zenith’s conviction in Western Asset’s investment capability has increased”. This was underpinned by Zenith’s “strong view of the investment team and their ability to consistently meet the Fund’s excess return objective”.
In terms of cost to the investor, Zenith also describes the Trust’s 0.39% p.a. management cost as “deemed to be low” in comparison to the sector average of 0.50% p.a.
Western Asset Australia Head of Investment Management Anthony Kirkham said “We are delighted to be awarded Zenith’s highest rating as positive endorsement of Western’s strong local team and global investment expertise. We believe our domestic and global capability provides a compelling case for considering the Australian Bond Trust.”
Legg Mason Australia Head of Sales Beau Titchkosky said “We are receiving increased interest in the Western Asset story from clients, and we are pleased we are able to deliver a highly-rated solution from a global leader in fixed income that is also the largest affiliate in the Legg Mason stable.”
The Legg Mason Western Asset Australian Bond Trust is a top-quartile performing fund over five years, according to the May 2016 Mercer Survey (in the Australian Fixed Income Core Sub-universe). The Trust commenced in 1998 and its fund manager Western Asset, is one of the largest fixed income fund managers in the world.
