We are Dedicated to Active Fixed-Income Asset Management
We believe that by dedicating all of our resources to active fixed-income asset management we can provide superior investment results and service to our clients. We believe that active, value-driven investing can add significantly to returns and reduce portfolio volatility over a market cycle.
We are Globally Integrated
We think and act on a global basis. Diversity of knowledge and experience from specialists located throughout our eight global investment centers meaningfully broadens our opportunity set and improves our ability to diversify portfolios.
Risk Management is Fundamental to How We Manage Assets
We integrate risk management into our portfolio construction process, and independent risk managers continually monitor portfolio risk.
By devoting all of its resources to fixed income, Western Asset adds unique value to this asset class through active management of fixed income portfolios, with a value-oriented investment approach that is supported by a team of fixed income specialists in every market sector. This includes an extensive credit research team with experience of companies issuing both 'non-investment grade' and 'investment grade' bonds. Western Asset’s expertise extends across multiple fixed income sectors around the world.
The firm's philosophy centres upon a team approach — where fixed income portfolios are managed by uniting groups of specialists dedicated to different market sectors.
Western Asset believes that significant inefficiencies exist in the fixed income markets. It therefore attempts to add value by exploiting these inefficiencies across the sectors in which it invests by combining traditional analysis with innovative technology. Western uses multiple strategies, including active sector and issue selection, to enhance value while at the same time preventing negative performance from any one strategy having a negative impact on returns. It then augments these strategies by engaging in opportunistic trading to exploit market inefficiencies over the course of an economic cycle.
Western Asset's strategic goal is to add value to client portfolios while adhering to a disciplined risk control process. To accomplish this aim, it targets four main strategies:
- Sector allocation (rotating between different sectors of the bond market)
- Issue selection (seeking to uncover mis-priced or undervalued securities)
- Duration exposure (adjusting its exposure to take account of interest rate movements)
- Attempts to take advantage of shifts in the relationship between short, medium and longer dated bonds.
- For global portfolios, country and currency allocations form a fifth crucial element.