Investment objective & strategy
As of June 24, 2025 · prospectusObjective. The fund seeks to maximize total return consisting of capital appreciation and income, consistent with prudent investment management.
Strategy. The fund invests in a portfolio of debt obligations of various maturities. Under normal market conditions, the fund expects to invest primarily in corporate obligations and in derivatives and other instruments relating to such investments. The fund currently limits its investments to U.S. dollar denominated 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) debt obligations. 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 … The fund invests in a portfolio of debt obligations of various maturities. Under normal market conditions, the fund expects to invest primarily in corporate obligations and in derivatives and other instruments relating to such investments. The fund currently limits its investments to U.S. dollar denominated 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) debt obligations. 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. 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, 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. The fund is classified as diversified.
Top holdings
As of Feb. 27, 2026 · N-PORT| Security | Ticker | Value | % of fund |
|---|---|---|---|
| ZOOM COMMUNICATIONS INC | ZTS 1 C165 | $13.13M | 3.91% |
| UNITED MEXICAN | — | $12.51M | 3.72% |
| CITIGROUP INC | — | $6.90M | 2.05% |
| BANK OF AMER CRP | — | $6.64M | 1.98% |
| JPMORGAN CHASE | — | $6.61M | 1.97% |
| Aimco CLO 15 Ltd | — | $6.51M | 1.94% |
| MASTERCARD INC | — | $6.14M | 1.83% |
| MORGAN STANLEY | — | $6.01M | 1.79% |
| LOCKHEED MARTIN | — | $5.34M | 1.59% |
| FIRSTENERGY CORP | — | $5.24M | 1.56% |
Portfolio moves
Nov 28, 2025 → Feb 27, 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. |
|---|---|---|
| State Street(R) SPDR(R) MarketAxess Investment Grade 400 Corporate Bond ETF · LQIG | 8% | 0.07% |
| Western Asset Core Bond Fund · WATFX, WAPIX, WACSX, WABAX, WABCX, WABRX, LWACX | 8% | 0.42% |
| BondBloxx BBB Rated 10+ Year Corporate Bond ETF | 8% | 0.19% |
Advisers
| Firm | Role |
|---|---|
| FRANKLIN TEMPLETON FUND ADVISER, LLC | Adviser |
| Western Asset Management Company, LLC | Sub-adviser |
| Western Asset Management Company Limited | Sub-adviser |
Footnotes
- Expense ratio as of June 24, 2025, from the fund's prospectus.
- Net assets and holdings count as of February 27, 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.