Legg Mason has announced that its actively-managed Western Asset Australian Bond Fund has passed $1 billion in funds under management.
The fund, which was designed to invest in Australian dollar-denominated debt securities paying fixed or floating rate coupons issued by governments, supernational bodies and Australian and foreign corporates, outperformed the Bloomberg AusBond Composite 0+ Year index and was ranked top quartile in its peer groups over three, five and 10 years, the firm said.
Anthony Kirkham, head of investment management and Australian operations at Western Asset, said the fund favoured higher quality assets and currently had an average ‘AA’ credit rating.
“With equity market volatility increasing, as well as broader concerns around global growth and political outcomes, the defensive qualities of a well-constructed bond fund can add much needed diversification and protection to an overall portfolio,” he added.
A listed version of the Fund was launched in November 2018 as Australia’s first fixed income Active ETF – the BetaShares Legg Mason Australian Bond Fund (BNDS).