Western Asset's US Index Plus composite includes portfolios that employ an active team-managed strategy comprised of two components: a synthetic index component that will provide exposure to the equity benchmark through the use of derivatives, and a short duration component that employs a long term value-oriented approach utilizing diversified strategies and all sectors of the fixed-income market in an attempt to add value while minimizing risk.

Exceed an equity benchmark return by 50 basis points annually over a 3- to 7-year period while maintaining volatility consistent with the benchmark.

Construct a portfolio in which cash received is invested in a short-term bond portfolio using Enhanced Cash guidelines while derivatives such as futures, options or swaps are used to replicate the performance of the benchmark. Earning total returns on the bond portfolio that are greater than the implied financing cost of the derivative contracts generates excess returns.