Investment objective & strategy
As of April 24, 2025 · prospectusObjective. The fund seeks to maximize total return consisting of capital appreciation and income, consistent with prudent investment management.
Strategy. The fund has a flexible investment strategy and invests in a variety of securities and instruments and uses a variety of investment techniques in pursuing its objective. Under normal market conditions, the fund expects to invest primarily in any combination of U.S. dollar denominated and non-U.S. dollar denominated debt obligations (including loans and loan participations) of both U.S. and non-U.S. issuers (including emerging market issuers) and in derivatives and other instruments relating to such investments. The fund may at times invest in the securities of issuers located in only one country or in a relatively small number of countries, including in any emerging market country or countries. Currently the fund does not contemplate investing 25% or more of its assets … The fund has a flexible investment strategy and invests in a variety of securities and instruments and uses a variety of investment techniques in pursuing its objective. Under normal market conditions, the fund expects to invest primarily in any combination of U.S. dollar denominated and non-U.S. dollar denominated debt obligations (including loans and loan participations) of both U.S. and non-U.S. issuers (including emerging market issuers) and in derivatives and other instruments relating to such investments. The fund may at times invest in the securities of issuers located in only one country or in a relatively small number of countries, including in any emerging market country or countries. Currently the fund does not contemplate investing 25% or more of its assets in a single country or a small number of countries, except in the United States. The subadviser may invest a significant portion of the funds assets in various industry sectors, to the extent consistent with the funds fundamental investment restrictions. In purchasing debt obligations for the fund, the subadviser may take full advantage of the entire range of maturities and durations, and may adjust the average maturity or duration of the funds investments from time to time. The fund may invest without limit in both investment grade (that is, rated in the Baa/BBB categories or above, or, if unrated, determined to be of comparable credit quality by the subadviser) securities and below investment grade securities rated in the C category or above or unrated securities determined to be of comparable credit quality by the subadviser. Below investment grade debt obligations are sometimes referred to as junk bonds or high yield securities. The fund may invest without limit in loans, loan participations and fixed income securities that pay interest at rates that float or reset periodically at a margin above a generally recognized base lending rate such as the Prime Rate, the London Inter-Bank Offered Rate or another generally recognized base lending rate. The fund may also invest in structured notes, including total return swaps and credit-linked notes. The values of structured notes are linked to reference instruments, including currencies, other securities, interest rates, commodities, indices or other financial indicators, and a structured notes interest rate or principal amount payable at maturity may vary based on changes in one or more reference instruments. Instead of, and/or in addition to, investing directly in particular securities, the fund may use instruments such as derivatives, including options, interest rate swaps, credit default swaps and options on credit default swaps, foreign currency futures, forwards and options, and futures contracts, and other synthetic instruments that are intended to provide economic exposure to the securities or the issuer or to be used as a hedging technique. The fund may use one or more types of these instruments without limit, subject to applicable regulatory requirements. For additional information regarding derivatives, see More on the funds investment strategies, investments and risksDerivatives in the Prospectus. The fund may also engage in a variety of transactions using derivatives in order to change the investment characteristics of its portfolio (such as shortening or lengthening duration) and for other purposes. The fund may borrow money to increase portfolio holdings, to the extent consistent with the funds fundamental investment restrictions.
Top holdings
As of March 31, 2026 · N-PORT| Security | Ticker | Value | % of fund |
|---|---|---|---|
| FNCL 6 4/26 | — | $59.03M | 8.94% |
| FNCL 4.5 4/26 | — | $31.85M | 4.83% |
| FNCL 5.5 4/26 | — | $25.12M | 3.81% |
| FNCL 2 4/26 | — | $24.98M | 3.78% |
| G2SF 2 4/26 | — | $23.14M | 3.51% |
| G2SF 2.5 4/24 | — | $22.03M | 3.34% |
| BBCMS 2019-C5 A4 | — | $19.08M | 2.89% |
| Presidencia da Republica | NTNFF33 | $18.92M | 2.87% |
| G2SF 5 4/26 | — | $18.82M | 2.85% |
| US TREASURY N/B | — | $16.84M | 2.55% |
Portfolio moves
Dec 31, 2025 → Mar 31, 2026How many positions this fund opened, exited, grew, trimmed, or left unchanged between its two most recent N-PORT snapshots — net changes between point-in-time reports, not a trade log.
Similar funds
Funds whose portfolios most overlap this one, by weight| Fund | Overlap | Net exp. |
|---|---|---|
| Western Asset Core Plus Bond Fund · WACPX, WACIX, WAPSX, WAPAX, WAPCX, WAPRX, LWCPX | 24% | 0.42% |
| Putnam Morgtage Securities Fund · PGSIX, PGSBX, PGVCX, PGVRX, PUSYX | 22% | 0.51% |
| Putnam VT Mortgage Securities Fund | 21% | 0.50% |
Advisers
| Firm | Role |
|---|---|
| FRANKLIN TEMPLETON FUND ADVISER, LLC | Adviser |
| Western Asset Management Company, LLC | Sub-adviser |
| Western Asset Management Company Ltd | Sub-adviser |
| Western Asset Management Company Pte. Ltd. | Sub-adviser |
| Western Asset Management Company Limited | Sub-adviser |
Footnotes
- Expense ratio as of April 24, 2025, from the fund's prospectus.
- Net assets and holdings count as of March 31, 2026, from the fund's N-PORT filing.
- Total return for calendar year 2025, before tax and after fund expenses. Computed by compounding the twelve monthly total returns the fund reported in its SEC N-PORT filings for 2025 (the latest prospectus does not yet chart this year).
Machine-readable: JSON · Markdown. Programmatic access via the agent surface.