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. Under normal circumstances, the fund expects to invest primarily in a combination of U.S. dollar denominated and non-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 of U.S. and non-U.S. issuers (including emerging market issuers) and in derivatives and other instruments relating to such investments. The fund intends to invest a substantial portion of its assets in mortgage-related securities (including collateralized mortgage obligations), U.S. government securities and money market instruments. The fund also intends to invest in asset-backed and inflation-protected securities and to engage in dollar rolls on mortgage-related securities. Although the fund may invest in securities of any maturity, … Under normal circumstances, the fund expects to invest primarily in a combination of U.S. dollar denominated and non-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 of U.S. and non-U.S. issuers (including emerging market issuers) and in derivatives and other instruments relating to such investments. The fund intends to invest a substantial portion of its assets in mortgage-related securities (including collateralized mortgage obligations), U.S. government securities and money market instruments. The fund also intends to invest in asset-backed and inflation-protected securities and to engage in dollar rolls on mortgage-related securities. Although the fund may invest in securities of any maturity, the funds target dollar-weighted average effective duration, as estimated by the funds subadviser, is expected to range between 6 months and 10 years. Effective duration seeks to measure the expected sensitivity of market price to changes in interest rates, taking into account the anticipated effects of structural complexities (for example, some bonds can be prepaid by the issuer). 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 |
|---|---|---|---|
| US TREASURY N/B | — | $50.48M | 12.73% |
| Uniform Mortgage-Backed Security, TBA | FNMA | $28.85M | 7.28% |
| GNMA II TBA 30 YR 3 JUMBOS | — | $26.79M | 6.75% |
| Ginnie Mae | — | $25.90M | 6.53% |
| US TREASURY N/B | — | $22.26M | 5.61% |
| GNMA II, 30 Year | — | $19.50M | 4.92% |
| GNII II 5.5% 03/01/2056 #TBA | — | $18.23M | 4.60% |
| Ginnie Mae | — | $16.36M | 4.12% |
| GNMA TBA | G2SF | $12.71M | 3.21% |
| Uniform Mortgage-Backed Security, TBA | — | $12.43M | 3.13% |
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. |
|---|---|---|
| Western Asset SMASh Series Core Completion Fund · WAADX | 18% | 0.00% |
| Western Asset Intermediate Bond Fund · WATIX, WABSX, WATAX, WATCX, WATRX | 12% | 0.45% |
| T. Rowe Price Mortgage-Backed Securities Multi-Sector Account Portfolio | 11% | 0.02% |
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).
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