Western Asset's Australia Diversified composite includes portfolios that employ an active, team-managed investment approach around a long-term, value-oriented investment philosophy. These portfolios use diversified strategies and all sectors of the Australian and global fixed-income markets in seeking to add value while minimizing risk.

Exceed the benchmark return by 100 basis points annually over a 3- to 5-year period while approximating benchmark risk.

Construct a diversified portfolio using all major Australian and global fixed-income sectors with a bias towards non-government securities. Value is added through duration management, yield curve positioning, sector rotation and issue selection. The global portion of the portfolio also uses bloc and currency allocations to add value. Market risk is controlled by constraining duration exposure.