Western Asset Diversified Income Fund Raises $1.0 Billion in Initial Public Offering, Starts Trading on New York Stock Exchange - Seite 2

LMPFA, an indirect wholly-owned subsidiary of Franklin Templeton, has agreed to pay up front at closing, from its own assets, the offering expenses, including compensation to the underwriters and certain dealers as well as the organizational expenses and offering costs associated with the offering. The Fund is not obligated to repay LMPFA for these expenditures.

Fund Investments

Western Asset’s investment process utilizes cross-sector correlations designed to seek optimized return potential and diversification within the portfolio. As active managers of the portfolio, Western Asset will employ its top-down macro view to drive decisions on value, credit sectors, credit quality and duration, and its deep research experience and bottom-up analysis to make sector and security selections.

Under current market conditions, the Fund anticipates it will initially focus on shorter-duration and floating-rate securities, which have lower sensitivity to higher interest rates. Its duration and mix of fixed- and floating-rate investments are subject to change over time. As market conditions change, Western Asset will seek to dynamically rotate investments into sectors and securities that it believes to be undervalued from a fundamental perspective with an attractive return profile and away from investments that it believes to be overvalued.

The Fund may invest in both investment grade and below investment grade corporate debt securities, senior loans, agency and non-agency residential mortgage-backed securities and commercial mortgage-backed securities, government (i.e., sovereign) debt (including U.S. government obligations), floating-rate securities, bank loans, collateralized loan obligations, asset-backed securities, private debt and mortgage whole loans.

About Western Asset

Western Asset is one of the world’s leading fixed-income managers. With a focus on long-term fundamental value investing that employs a top-down and bottom-up approach, the firm has nine offices around the globe and deep experience across the range of fixed-income sectors. Founded in 1971, Western Asset has been recognized for an approach emphasizing team management and intensive proprietary research, supported by robust risk management. To learn more about Western Asset, please visit www.westernasset.com.