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US High Yield

Description

The strategic goal at Western Asset is to add value to client portfolios while adhering to a disciplined risk control process. The Firm's high-yield investment process is a team based approach that combines the assessment of macro-economic conditions by the Broad Market Strategy Committee with bottom- up analysis and examination conducted by Western Asset's dedicated credit analysts, traders, risk management and portfolio managers. The end result is a tightly risk-controlled portfolio that most efficiently reflects the themes and strategies the high-yield team is trying to express within the context of each portfolio's risk tolerance.

Investment Vehicles

Performance as of March 31, 2020

Returns for periods greater than one year are annualized. Please see the Performance and Risk Disclosures for more detail.

Portfolio Characteristics as of March 31, 2020

Leverage None
Credit Quality BB-
Effective Duration 4.24 years
Spread Duration 4.46 years
Yield-to-Worst 8.26%

Snapshot

Strategy AUM: Total US High Yield Assets:
USD5.9 billion (as of March 31, 2020)
Benchmark: Bloomberg Barclays US High Yield - 2% Issuer Cap USD Unhedged Index
Inception Date: 01 Apr 06

Sector Allocation as of March 31, 2020

Sectors Portfolio (%) Benchmark (%)
Basic Industry 4.9 6.1
Capital Goods 8.0 8.6
Communications 20.5 20.2
Consumer Cyclical 17.6 17.2
Consumer Non Cyclical 14.8 15.7
Energy 8.2 10.0
Technology 4.5 6.9
Transportation 1.4 1.4
Industrial Other 0.8 1.2
Utility 1.1 2.7
Finance 16.4 9.9
EM Government 0.3 0.0
US Government 0.0 0.0
Cash & Cash Equivalents 1.2 0.0
Note: Sector allocation includes look-through to any underlying commingled vehicles if held. Data may not sum to total due to rounding.
IMPORTANT INFORMATION: All investments involve risk including loss of principal. Past performance is not indicative of future investment results. This information is only for use by professional clients, eligible counterparties or qualified investors. It is not aimed at, or for use by, retail clients.
Employees and/or clients of Western Asset may have a position in the securities mentioned. This has been prepared without taking into account your objectives, financial situation or needs. Before acting on this information, you should consider its appropriateness having regard to your objectives, financial situation or needs. It is your responsibility to be aware of and observe the applicable laws and regulations of your country of residence.

Western Asset Management Company Distribuidora de Títulos e Valores Mobiliários Limitada is authorised and regulated by Comissão de Valores Mobiliários and Banco Central do Brasil. Western Asset Management Company Pty Ltd ABN 41 117 767 923 is the holder of the Australian Financial Services Licence 303160. Western Asset Management Company Pte. Ltd. Co. Reg. No. 200007692R is a holder of a Capital Markets Services Licence for fund management and regulated by the Monetary Authority of Singapore. Western Asset Management Company Ltd is a registered Financial Instruments Business Operator and regulated by the Financial Services Agency of Japan. Western Asset Management Company Limited is authorised and regulated by the Financial Conduct Authority ("FCA"). This communication is intended for distribution to Professional Clients only if deemed to be a financial promotion in the UK and EEA countries as defined by the FCA or MiFID II rules.