Fixed Income  

Launch Pad: Bond fund

The team will employ a high-conviction approach and a liquid alternative global macro strategy that aims to maximise total return with a volatility of 5-10 per cent.

Adam Gent, head of UK sales at Legg Mason, said the fund was “a compelling alternative to traditional long-only bond investing”.

Details

• Strategy: will use active trading of cash bonds, futures, options and other derivatives.

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• Positions will primarily be taken through derivatives for maximum liquidity and can be long, short or market neutral.

• The managers will focus on both long-term value investing and active management of duration, yield curve and volatility.

• The fund will not gear up and it will have daily liquidity.

• AMC: 1.5 per cent for retail A class.

• Minimum investment: $1000 or local currency equivalent (sterling or euro).

IFA verdict: Darius McDermott, managing director of London-based Chelsea Financial Services: “Western Asset is a highly respected bond fund manager and we believe it has credibility in this space.”