Legg Mason’s bond fund ‘highly recommended’ by Lonsec
Lonsec has given its ‘highly recommended’ rating to the Legg Mason Western Asset Australian Bond Fund.
In its report, Lonsec praised the fund for its ability to generate risk-adjusted returns in line with relevant objectives and considered it to be “a preferred entry point to this asset class”.
The fund’s strength was also attributed to its highly capable investment team, headed by portfolio manager Anthony Kirkham, as well as its global peers’ expertise.
The fund, which won in the Australian Fixed Income category at this year’s Money Management Fund Manager of the Year Awards, is an Australian bond product managed against the Bloomberg AusBond Composite 0+ year Index.
It invests in Australian-denominated debt securities paying fixed or floating coupons issued by governments, supernational bodies, and Australian and foreign corporates.
According to FE Analytics, the fund’s annualised performance over the last three years was 3.14 per cent against the Bloomberg AusBond Index, which returned 1.96 per cent.
According to Legg Mason’s managing director, Australia and New Zealand, Andy Sowerby, the rating represented “compelling evidence the Western Asset Australian investment team remains ahead of the curve with this fund”.
“Anthony and the team have consistently delivered on their objectives and this, allied to the strength of the team and the robust investment process, is why the fund has achieved a ‘highly recommended’ rating for five consecutive years,” he said.
Recommended for you
There is one specific risk that is a significantly higher concern for financial services directors compared to companies overall and is impacting their risk appetite, according to the AICD.
Global fund managers are shunning bonds, with the asset class seeing the largest drop in allocations in more than 20 years.
Australian Ethical has seen its funds under management reach $10 billion, driven by organic customer growth and superannuation contributions.
Financial advisers will have access to private equity investments run by WTW for the first time as it launches a pooled fund to provide savers with access to traditionally institutional assets.
