legg mason cll 112011-final
Post on 07-Nov-2014
1.098 Views
Preview:
DESCRIPTION
TRANSCRIPT
Asian Debt: From Peripheral toAsian Debt: From Peripheral to Mainstream Asset
Chia-Liang Lian, Head of Investment Management, A i ( J ) W t A t CFAAsia (ex- Japan), Western Asset, CFACitywire Pan-European Conference
B li 16 18 N b 2011Berlin, 16-18 November 2011
This document is for Asset Managers, Fund Distributors and Authorised Intermediaries. Not for use by Private Individuals.
About Western Asset Management Focus
• Fixed-income
• Active managementActive management
• A wholly owned subsidiary of Legg Mason
Statistics (as of September 30, 2011)Statistics (as of September 30, 2011)
• 902 staff members
• 530 client relationships
$433 billi d• $433.5 billion under management
Product Interests
T t l R t U t i d (TRU) B d• Total Return Unconstrained (TRU) Bond
• Global Multi-Sector
• Bank Loans
• Emerging Markets – Sovereign, local, credit
• Long DurationPage 1Source: Western Asset, as at 30 September 2011.
Assets under management in USD (billions).
A i D bt F P i h l T M i t A tAsian Debt: From Peripheral To Mainstream Asset
Page 2
Asian Bonds: 3 Reasons to be Invested in Asia
1. The world is becoming less G-7 centric
2. Asian bonds remain underinvested in international bond portfolios
3. Asian currencies outlook remains supportive particularly when it has a growth and yield advantage over developed markets
Page 3
1. The World is Becoming Less G7-Centric
70G7 Is Now Less Dominant Than In The Past
70
Asia is characterised by strong credit quality and strong fundamentals particularly relative to Western economies
60
65
70
60
65
70
Wor
ld GD
P (%
)
45
50
55
45
50
55
Perce
nt of
W
20
01 02 03 04 05 06 07 08 09 1070 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00
Asia's Growing Influence In The Global Economy20
)
8
12
16
8
12
16
of W
orld
GDP
(%)
0
4
01 02 03 04 05 06 07 08 09 100
4
70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00
Perce
nt o
Page 4Source : World Bank. As of December 2010.
1. The World is Becoming Less G7-Centric
Asia Developed Markets2001 2011 2001 2011
Asia and Developed Markets Sovereign Rating Trajectories Diverge
2001 2011 2001 2011
China BBB AA- Canada AA+ AAA
Hong Kong A+ AAA France AAA AAA
India BB BBB- Italy AA AIndia BB BBB Italy AA A
Indonesia CCC BB+ Germany AAA AAA
Korea BBB+ A Japan AA AA-
Malaysia BBB A- United Kingdom AAA AAA
Philippines BB+ BB United States AAA AA+
Singapore AAA AAA Portugal AA BBB-
Taiwan AA AA- Ireland AAA BBB+
Thailand BBB- BBB+ Greece A CC
Spain AA+ AA-
Page 5Source: Bloomberg, as of 10 November 2011.
1.The World is Becoming Less G7-Centric
7.0 US 5-year Government Bond vs. HSBC ALBI
The Pick-up In Asian Yields Has Significantly Increased Since The Financial Crisis
HSBC Asian Local Bond 5 0
5.5
6.0
6.5
Overall Average Yield
3.5
4.0
4.5
5.0
d (%
)
US 5-year Government Bond Yield
2.0
2.5
3.0
3.5
Yield
0.5
1.0
1.5
0.0Sep 05 Mar 06 Sep 06 Mar 07 Sep 07 Mar 08 Sep 08 Mar 09 Sep 09 Mar 10 Sep 10 Mar 11 Sep 11
Page 6Source: Bloomberg, as of 30 September 2011
1. The World is Becoming Less G7-Centric
450 45002001 September 2011
450 45002001 September 20112001 September 2011
Foreign Reserves Serve as Self Insurance for Asia
389
3202350
400
450
3500
4000
4500
389
3202350
400
450
3500
4000
4500
276303
234
278
3202
250
300
350
ion 2500
3000
3500
USD
276303
234
278
3202
250
300
350
ion 2500
3000
3500
USD
121 112
170
126150
200USD
bill
1500
2000
D billion
121 112
170
126150
200USD
bill
1500
2000
D billion
44
10277
112
33 28 20850
100
500
1000
44
10277
112
33 28 20850
100
500
1000
0India Taiwan South Korea Singapore Hong Kong Thailand Malaysia China
(Right Scale)
00India Taiwan South Korea Singapore Hong Kong Thailand Malaysia China
(Right Scale)
0
Page 7Source: Bloomberg, as of 30 September 2011.
1. The World is Becoming Less G7-Centric
Public Debt* (% of GDP)
Asian Countries have Sound Government Finances
TaiwanIndonesia
ChinaHong Kong
PhilippinesMalaysia
IndiaThailand
United KingdomUnited States
Spain
GreeceItaly
IrelandPortugal
0 20 40 60 80 100 120 140 160 180 200 220
Japan
Percent of GDP (%)
Page 8*Based on 2010 estimates. Source: CIA World Factbook, accessed 6 October 2011.
1. The World is Becoming Less G7-Centric On Monetary Policy, Asia is no Longer a “Price Taker”
1718
1718
China India Indonesia Korea US
13141516
13141516
89
101112
cy R
ate (%
)
89
101112
cy R
ate (%
)
45678
Polic
45678
Polic
01234
01234
2010 20112001 2002 2003 2004 2005 2006 2007 2008 2009
Page 9Source: JP Morgan, Bloomberg, as of 11 November 2011.
2. Asian Bonds Remain Underinvested in International Bond Portfolios
Real GDP Growth12
Consumer Price Inflation8
Asia Tightening Cycle is Probably Behind Us
10
11
12
6
7
8
7
8
9
ver Y
ear A
go (%
)
4
5
6
er Y
ear A
go (%
)
5
6
Perce
nt Ov
2
3
4
Perce
nt Ov
2
3
4
0
1
00 01 02 03 04 05 06 07 08 09 10 11 12 00 01 02 03 04 05 06 07 08 09 10 11 12
Page 10Note: Real GDP growth forecast begins from 3Q11 onwards. Consumer Price Inflation (CPI) forecast begins from 4Q11. Dotted lines denote forecast data. Source: JPMorgan, as at 30 September 2011.
2. Asian Bonds Remain Underinvested in International Bond Portfolios
30 September 2010 – 30 September 2011
Currency Performance
4.9
2.5
0.7
Chinese Renminbi CNY
Taiwanese Dollar TWD
Singapore Dollar SGD
0.2
-0.3
-0 5
Philippine Peso PHP
Hong Kong Dollar HKD
Indonesian Rupiah IDR -0.5
-2.7
-3.2
Indonesian Rupiah IDR
Thai Baht THB
Malaysian Ringgit MYR
-3.2
-8.2
South Korean Won KRW
Indian Rupee INR
Page 11Source: Bloomberg, as at 30 September 2011.
2. Asian Bonds Remain Underinvested in International Bond Portfolios
120
Singapore Dollar Nominal Effective Exchange Rate
114
116
118
108
110
112
GD N
EER
Top Band
102
104
106SG
Mid Point
96
98
100
Bottom Band
94Sep 01 Sep 02 Sep 03 Sep 04 Sep 05 Sep 06 Sep 07 Sep 08 Sep 09 Sep 10 Sep 11
Page 12Source: Bloomberg. As of 30 September 2011Information shown above is for illustrative purposes only and is not intended to represent the processes, yields or performance for any specific
investment.
2. Asian Bonds Remain Underinvested in International Bond Portfolios
USDCNY 3 Month At-The-Money (ATM) Implied Volatility6
US Dollar vs. Chinese Yuan
3
4
5
0
1
2
Sep 10 Oct 10 Nov 10 Dec 10 Jan 11 Feb 11 Mar 11 Apr 11 May 11 Jun 11 Jul 11 Aug 11 Sep 11
1012
Realized Appreciation Over Past 3 Months (1 Month Lag) Implied Appreciation
Sep 10 Oct 10 Nov 10 Dec 10 Jan 11 Feb 11 Mar 11 Apr 11 May 11 Jun 11 Jul 11 Aug 11 Sep 11
02468
Perce
nt (%
)
-4-20
Jun 10 Aug 10 Oct 10 Dec 10 Jan 11 Mar 11 May 11 Jul 11 Sep 11
Page 13Source: Bloomberg. As of 30 September 2011.
3. Asian Currencies Outlook Remains Supportive Particularly When they has a Growth and Yield Advantage over Developed Markets
100%Asia
has a Growth and Yield Advantage over Developed MarketsShare of Asia in Global Benchmarks
80%
90%
100%
60%
70%
erce
nt
30%
40%
50%Pe
16.1
7.82.4 0.6
10%
20%
0.60%
Global GDP MSCI Global Barclays Aggregate Citi WGBI
Source: JPMorgan, Morgan Stanley, Barclays Capital and Citi., as at 30 September 2011. Page 14
3. Asian Currencies Outlook Remains Supportive Particularly When they has a Growth and Yield Advantage over Developed Markets
Returns vs. Volatility (USD Unhedged)14
has a Growth and Yield Advantage over Developed MarketsAsian Bonds: High Returns with Contained Volatility
JPMorgan GBI-EM Local Markets
12
JPMorgan EMBI+
Barclays Capital
Barclays Capital US High Yield
B l C it l Gl b l
HSBC Asian Local Bond 8
10
ized r
eturn
%)
JPMorgan CEMBI BroadUS Agg
US Treasuries
Barclays Capital Global Agg
4
6
Rewa
rd (a
nnua
li
S&P 500
US T-Bills (1-3mth)2
4
00 2 4 6 8 10 12 14 16 18 20
Risk (standard deviation %)
Page 15*Source: Bloomberg, from September 2005 to September 2011
Volatility – One Key Consideration Amid A Fluid External Environment
70%75%
Equity* Debt*
50%55%60%65%
ualiz
ed)
35%40%45%50%
ng V
olatili
ty (A
nnu
15%20%25%30%
3-mo
nth R
ollin
0%5%
10%15%
Jan 08 Jul 08 Jan 09 Jul 09 Jan 10 Jul 10 Jan 11 Jul 11
Page 16*Equity represented by the MSCI EM Far East ex-Japan Index, Debt represented by the HSBC Asian Local Bond Index.Source: Morgan Stanley, HSBC. As of 18 Oct 11
Summary
• Asian local bond markets offer significant carry and are supported by strong fundamentals and credit quality
• We believe Asian currencies are on a long term appreciation path
• We believe Asian bonds will grow into a core asset class
Page 17
L M W t A t A i O t iti F dLegg Mason Western Asset Asian Opportunities Fund: Portfolio Performance & Positioning
Page 18
Performance Returns as at 31 October 2011Legg Mason Western Asset Asian Opportunities Fund
Annualised (USD)
Legg Mason Western Asset Asian Opportunities Fund ‐ Class A (Dist) D USD HSBC Asian Local Overall Index
14.76
14
16
9.48 9.6110.20
11.33
8.31
10
12
4.264.73
4.37
6.626.00
4
6
8%
3.26
0
2
4
0
1 Month YTD 1 Year 2 Years 3 Years Since Inception 02 July 2008
Page 19Source: Legg Mason. As at 31 October 2011.Performance is calculated on a NAV to NAV basis. Performance calculations include reinvested dividends, without deduction of withholding tax, and the deduction of the Total Expense Ratio over the calculated period. Sales charges, taxes and other locally applied costs to be paid by an investor have not
been deducted. Based in USD for Class A (Dist) DPast performance is no guide to future returns and may not be repeated.
Relative Duration and Yield Curve PositioningLegg Mason Western Asset Asian Opportunities Fund
Difference (LOCAL Debt) <2yrs 2-4yrs 4-6yrs 6-8yrs 8-10yrs 10-15yrs Total
Korea -0.07 0.32 0.00 -0.02 0.00 -0.08 0.15
Portfolio vs Bench
Korea 0.07 0.32 0.00 0.02 0.00 0.08 0.15Singapore -0.03 -0.05 -0.08 -0.14 0.30 0.27 0.27Hong Kong -0.04 -0.10 -0.13 -0.21 0.03 0.02 -0.43Taiwan 0.01 0.03 -0.05 0.01 -0.06 -0.15 -0.21Sub Total -0.14 0.20 -0.26 -0.36 0.26 0.07 -0.22
M l i 0 02 0 07 0 11 0 00 0 08 0 11 0 20Malaysia -0.02 -0.07 0.11 0.00 0.08 0.11 0.20Thailand -0.02 -0.01 -0.06 -0.02 -0.07 0.04 -0.13Sub Total -0.04 -0.08 0.05 -0.02 0.01 0.16 0.07
India 0.00 -0.05 -0.04 -0.02 0.08 0.01 -0.01 - China (Onshore) -0.03 -0.07 0.00 -0.08 -0.07 -0.10 -0.35( ) - China (Offshore) 0.01 0.11 -0.01 0.00 0.07 0.00 0.18Sub Total -0.02 -0.01 -0.04 -0.10 0.09 -0.09 -0.18
Philippines -0.01 0.05 -0.01 0.03 -0.02 0.03 0.07Indonesia 0.01 0.05 -0.06 -0.20 0.45 -0.10 0.14P ki t 0 00 0 00 0 00 0 00 0 00 0 00 0 00Pakistan 0.00 0.00 0.00 0.00 0.00 0.00 0.00Sri Lanka 0.00 0.00 0.00 0.00 0.00 0.00 0.00Vietnam 0.00 0.00 0.00 0.00 0.00 0.00 0.00Emerging Market Total 0.01 0.10 -0.07 -0.17 0.42 -0.08 0.21
Total (Local Debt) -0.20 0.21 -0.32 -0.65 0.78 0.07 -0.12( )
USD debt 0.00 0.15 -0.10 0.28 -0.54 -0.02 -0.18
Grand Total -0.20 0.36 -0.42 -0.37 0.25 0.04 -0.30
Page 20*Benchmark is represented by the HSBC Asia Local Bond Index (USD Unhedged).Source : Western Asset. As of 30 September 2011.
Currency Allocation as at 31 October 2011Legg Mason Western Asset Asian Opportunities Fund
Benchmark* (%) Portfolio (%)
16.515.0
South Korea
Singapore
17.016.2
South Korea
Singapore
13.3
0.05.6
9.4
Hong Kong
USD
Taiwan
China
11.9-7.0
4.4
14.4
Hong Kong
USD
Taiwan
China
9.37.7
6.3
12.5
Malaysia
Thailand
India
Indonesia
11.0
7.16.4
14.7
Malaysia
Thailand
India
Indonesia
4.5
0.0
Philippines
EUR
5.1-1.2
Philippines
EUR
Benchmark* Portfolio
0 90 9 1 1 1 0
5.35.5
23456
ontrib
ution
(Yea
rs)
Benchmark Portfolio
0.9 0.6 0.5 0.4 0.4 0.4 0.80.3
0.9 1.10.2 0.2 0.2 0.3 0.3
1.00.40.50.7 0.7
-0.1-1012
SouthKorea
Singapore HongKong
USD Taiwan China Malaysia Thailand India Indonesia Philippines Total
Dura
tion C
o
Page 21*Benchmark is represented by the HSBC Asia Local Bond Index (USD Unhedged)Differences in total may be due to rounding. Source: Western Asset as of 31 October 2011.
Korea Kong
Sector Allocation as at 31 October 2011Legg Mason Western Asset Asian Opportunities Fund
Benchmark* (%) Portfolio (%)
84.1Sovereign 65.9SovereignSo e e g
Supranational
Agency
0.3
4.6
g
Supranational
Agency
15.9
Derivatives
Corporate
Cash & FX
-7.3
24.2
12.2
Derivatives
Corporate
Cash & FX
Benchmark* Portfolio
0.8
4.7
0 31.3
5.54.7 5.3
23456
ontrib
ution
(Yea
rs)
Benchmark Portfolio
0.0 0.3 0.0
-1.1-2-101
Sovereign Supranational Agency Derivatives Corporate Cash & FX Total
Dura
tion C
o
Page 22*Benchmark is represented by the HSBC Asia Local Bond Index (USD Unhedged)Differences in total may be due to rounding. Source: Western Asset as of 31 October 2011.
Credit Quality Allocation as at 31 October 2011Legg Mason Western Asset Asian Opportunities Fund
Benchmark* (%) Portfolio** (%)
17.9AAA 11.4AAA
15.9
34.5
6.4
AA
A
BBB
2.1
34.5
8.1
AA
A
BBB
17.0
8.4
0.0
<BBB
NR
Cash
23.8
7.9
12.2
<BBB
NR
Cash
Benchmark* Portfolio
1.70 4
1.10 4
1.2
2.81.5
0 3
5.3
0.9
5.5
1.00 51
23456
ontrib
ution
(Yea
rs)
0.4 0.4
-1.0
0.3 0.0 0.00.5
-2-101
AAA AA A BBB <BBB NR Cash Total
Dura
tion C
o
Page 23*Benchmark is represented by the HSBC Asia Local Bond Index (USD Unhedged). Ratings for government bonds are based on the sovereign rating of the country of issuer where S&P ratings are not available.
**Ratings are based on S&P only. Ratings on derivatives are based on country ratings.Differences in total may be due to rounding. Source: Western Asset as of 31 October 2011.
Asian Regional Outlook – A Shelter Amid Global Vagaries?
Outlook• Recently, most Asian central banks’ concerns have shifted from inflation to slowing global growth
C t l b k lik l t d t ti l i th i th• Central banks are likely to pause and act cautiously in the coming months• Continued loose monetary policy in the US, Europe and Japan will continue to benefit Asian economies and
financial markets over the longer term• Asian currencies will continue to appreciate at a moderate pace over the longer term• Asian currencies will continue to appreciate at a moderate pace over the longer term
Strategy• Maintain exposure to Asian currencies as long as Asia has a growth and yield advantageMaintain exposure to Asian currencies as long as Asia has a growth and yield advantage• Maintain corporate bond exposure by selectively buying issues with compelling valuations
Risk Considerations• Trade protectionism• Failure to rebalance sources of growth• Policy slippage under extreme market conditionsy pp g• European contagion
The above reflects current opinions of Western Asset Management as of 21 October 2011. The views expressed are opinions of the portfolio managers as of the date of this document and are subject to change based on market and other conditions and may differ from other portfolio managers or of the firm as a whole. These opinions are not intended
to be a forecast of future events, a guarantee of future results or investment advice.
Page 24
A diAppendix
Page 25
South Korea
South Korea Government Yields
4.5
5.0
(%)
30 Jun 11
30 Sep 113.5
4.0
4.5
Yield
to M
aturity
(
3.0
1yr 2yr 5yr 10yr 20yr
Maturity (Years)
Y
South Korea Government Yield Changes from 30 Jun 11 to 30 Sep 11310
Maturity (Years)
-12
31-30
-20
-100
d Cha
nges
(bps
)
-31 -33-32
-50
-40
1yr 2yr 5yr 10yr 20 yr
Yield
Page 26Source: Bloomberg, as at 30 September 2011.
26
Singapore Government
2 53.03.5
%)
Singapore Government Yields
30 Jun 11
30 Sep 111.01.52.02.5
Yield
to M
aturity
(%
0.00.5
1yr 2yr 5yr 10yr 20yrMaturity (Years)
Y
Singapore Government Yield Changes from 30 Jun 11 to 30 Sep 110
-29-22
-46-60
-40
-20
Chan
ges (
bps)
-88
-69
-100
-80
1yr 2yr 5yr 10yr 20 yr
Yield
C
Page 27Source: Bloomberg. As of 30 September 2011.
Indonesia
Indonesian Government Yields
9
10(%
)
30 Jun 11
30 Sep 11
6
7
8
Yield
to M
aturity
(
5
6
1yr 2yr 5yr 10yr 20yr
Maturity (Years)
Y
Indonesian Government Yield Changes from 30 Jun 11 to 30 Sep 111330
-26
-51-45-60
-30
0
d Cha
nges
(bps
)
-99-120
-90
1yr 2yr 5yr 10yr 20yr
Yield
Page 28Source: Bloomberg. As of 30 September 2011.
India
India Government Yields
8.8
9.0%
)
30 Jun 11
29 Sep 11
8 2
8.4
8.6
Yield
to M
aturity
(
30 Jun 11
8.0
8.2
1yr 2yr 4yr 5yr 7yr 10yrMaturity (Years)
Y
5 Year Swap Spread*
030
y ( )
5 Year Swap Rate*
-120-90-60-30
Basis
Poin
ts
-180-150
Sep 10 Oct 10 Nov 10 Dec 10 Jan 11 Feb 11 Mar 11 Apr 11 May 11 Jun 11 Jul 11 Aug 11 Sep 11
Page 29Source: Bloomberg. As of 30 September 2011.*From 4 Jan 11 to 25 Apr 11, the 6 Year India Government Bond Generic Bid Yield was used as a proxy as for the 5 Year India Government Bond Generic Bid Yield.
Biographies – Investment Team
CHIA LIANG LIAN (18 Years’ Experience, joining 1 October 2011)Chia-Liang has over 18 years of experience, he joins Western Asset from PIMCO in Singapore, where he has spent the last five years as Head of Emerging Asia Portfolio Management. From 2001 to 2005, Chia-Liang worked at JP Morgan as a Vice President responsible for Emerging Markets research. Prior to that, he worked at Merrill Lynch from 1997 to 2001 in a similar capacity and was predominantly a sovereign bond analyst, initially following North Asia, before expanding his coverage to include Southeast Asia. From 1993 to 1997, he was a Senior Economist at the Monetary Authority of Singapore Chia-Liang received his bachelor’s of science in Economics with Direct Upper Second Honors from the Nationalhe was a Senior Economist at the Monetary Authority of Singapore. Chia Liang received his bachelor s of science in Economics with Direct Upper Second Honors from the National University of Singapore. He is a CFA charterholder.
KEITH J. GARDNER (28 Years’ Experience)•Western Asset Management Company – Head of Developing Markets, 1994 - Present•Legg Mason, Inc. – Portfolio Manager, 1992 -1994•T. Rowe Price Associates, Inc. – Portfolio Manager, 1985 - 1992•Salomon Brothers, Inc. – Research Analyst, 1983 - 1985•Emerging Markets Trade Association – Board Member•Emerging Markets Creditors’ Association – Founding and Board Member•State University of New York at Binghamton, B.S.
JULIA HO, CFA (24 Years’ Experience)•Western Asset Management Company Pte. Ltd. – Portfolio Manager/Research Analyst, 2003 - present•Rothschild Asset Management (Singapore) Ltd. – Portfolio Manager/Director, 1995 -2 003•UOB Asset Management – Portfolio Manager, 1988 - 1995•Nomura Securities – Bond Sales Executive, 1987 - 1988•National University of Singapore B B A•National University of Singapore B.B.A.•Chartered Financial Analyst
Page 30
Biographies – Investment TeamADRIAN CHEE (19 Years’ Experience)•Western Asset Management Company Pte. Ltd. – Research Analyst, 2007- present•Standard & Poor’s - Singapore – Director, Corporate Infrastructure and Financial Svcs. Ratings, 2001 - 2007•Standard Chartered Bank – Risk Mgr., Markets and Inst. Risk Mgmt., 1995 - 2001•Tat Lee Bank Ltd Singapore Senior Credit and Mktg Officer 1993 1995•Tat Lee Bank Ltd., Singapore – Senior Credit and Mktg. Officer, 1993 - 1995•Dev & Comm Bank Group, Malaysia – Credit and Mktg. Officer, 1992 - 1993•La Trobe University, B. Economics•Taylor’s College, Malaysia
HENRIETTA P. GOURLAY (12 Years’ Experience)•Western Asset Management Company Pte. Ltd. – Research Analyst, 2003 - present•Merrill Lynch Investment Management – Credit Analyst, 1999 - 2003•University of Edinburgh, M.A. (Hons)
Page 31
Important Information
This is a sub-fund (Fund) of Legg Mason Global Funds plc, an umbrella fund with segregated liability between sub-funds, established as an open-ended investment company with variable capital and incorporated with limited liability under the laws of Ireland with registered number 278601. It qualifies, and is authorised in Ireland by the Central Bank of Ireland as an undertaking for collective investment in transferable securities and is a section 264 Scheme as recognised by the FSA.
This document does not constitute an invitation to invest. Past performance is no guide to future returns and may not be repeated. The value of investments and theThis document does not constitute an invitation to invest. Past performance is no guide to future returns and may not be repeated. The value of investments and the income from them can go down as well as up and investors may not get back the amounts originally invested. The value of investments and the income from them can be affected by changes in interest rates, in exchange rates, general market conditions, political, social and economic developments and other variable factors. Unlike a bank or building society account, your money is at risk. This Fund may invest in ‘non-investment grade’ bonds, which carry a higher degree of default risk than ‘investment grade’ bonds. This Fund may invest in emerging markets that may be less liquid and may have less reliable custody arrangements than mature markets and may involve a higher degree of risk. This Fund may invest in certain types of financial derivative instruments (FDIs) for efficient portfolio management or investment p rposes These instr ments ma in ol e a higher degree of risk Please refer to the Simplified Prospect s and Prospect s doc mentation hich describe the f llpurposes. These instruments may involve a higher degree of risk. Please refer to the Simplified Prospectus and Prospectus documentation, which describe the full objective and risk factors associated with this Fund.
This Fund is offered solely to non-US investors under the terms and conditions of the Fund’s current prospectus – please refer to the Simplified Prospectus and Prospectus documentation, which describe the full objective and risk factors associated with this Fund. Before investing you should carefully read the Prospectus. Copies of prospectuses, simplified prospectus, semi-annual and annual reports, if published, may be obtained at: BNY Mellon Investment Servicing (International) Limited Riverside Two Sir John Rogerson’s Quay Grand Canal Dock Dublin 2 IrelandLimited, Riverside Two, Sir John Rogerson s Quay, Grand Canal Dock, Dublin 2, Ireland.
This document is for use by Professional Clients and Eligible Counterparties. It is not aimed at, or for use by, Retail Clients. This information has been prepared from sources believed reliable but is not guaranteed by Legg Mason Investments (Europe) Limited and is not a complete summary or statement of all available data. Opinions expressed are subject to change without notice and do not take into account the particular investment objectives, financial situation or needs of individual investors.
Issued and approved by Legg Mason Investments (Europe) Limited, registered office 201 Bishopsgate, London, EC2M 3AB. Registered in England and Wales, Company No. 1732037. Authorised and regulated by the Financial Services Authority. Client Services +44 (0) 20 7070 7444.
N b 2011 f 7417November 2011 ref: 7417
Page 32
top related