Western Asset’s Investment Philosophy
Investment Philosophy
The value of a consistent approach.
Every market is different, but since 1971, Western Asset has managed risk and sought value in fixed-income through multiple business cycles and economic environments.
Our Philosophy: The Foundation of Our Business
Long-Term Fundamental Value
Markets often misprice securities, as prices can deviate from fundamental fair value over the short term. By identifying these mispricings and consistently investing in undervalued securities, our goal is to deliver attractive investment returns over the long term. We do this through disciplined and rigorous analysis, comparing prices to the fundamental fair values estimated by our macroeconomic and credit research teams around the globe.
Multiple diversified strategies
We seek diversified sources of returns. Our objective is to meet or exceed our investors’ performance objectives within their tolerances for risk. We seek to diversify investments and add value across interest rate duration, yield curve, sector allocation, security selection, country and currency strategies. We deploy multiple diversified strategies that benefit in different environments so no one strategy dominates performance, helping to dampen volatility.
A Time-tested Approach
Our global, fixed-income specialists utilize a team-based approach to active management emphasizing intensive proprietary research supported by robust risk management. Founded in 1971, Western Asset has deep experience investing across a range of fixed-income sectors and the proven ability to navigate a variety of market environments.
Investment Process: Our Proven, Time-Tested Philosophy in Action
Western Asset applies the same investment process in every occasion. We believe perpetually blending long-term value opportunities with multiple diversified strategies is key to meeting clients’ investment objectives within their risk tolerances. And our consistent approach helps eliminate the potential distraction of short-term market noise, as we focus instead on discovering areas of opportunity. Western Asset’s distinct market views and value-investing style distinguish the Firm from traditional bond managers, and have historically enabled us to deliver favorable performance outcomes for investors over the long-term.
We have over 50 years of experience. Whether markets are risk-on or risk-off, we follow our investment philosophy that combines long-term fundamental value with multiple diversified strategies in seeking to meet clients’ objectives.
