Western Global Credit AR fund set to launch long financials

The Legg Mason Western Asset Global Credit Absolute Return fund is set to launch on 1 May with a strong bias towards senior and subordinated financial debt.

The new long/short fund, to be run by specialist fixed income affiliate Western Asset, will be added to Legg Mason’s Dublin-domiciled range and target an 8% to 10% return per annum. Portfolio manager Dipankar Shewaram says the tactical fund can have up to 50% in non-investment grade securities and run a duration of between -10 to 10 years. The fund will have a maximum 20% foreign currency exposure and VaR limit of 20%. Shewaram has run a model portfolio since the start of the year, which is net long 50% senior financials, 25% subordinated financials, 25% high yield and 2% emerging mar...