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 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. The fund presently intends to limit its investments to U.S. dollar denominated securities and currently anticipates that it will generally only purchase debt securities that are rated in the Baa or BBB categories or above at the time of purchase by one or more Nationally Recognized Statistical Rating Organizations (NRSROs) or unrated securities of comparable quality at the time of purchase (as determined by the subadviser). These securities are known as investment grade securities. The fund may invest a substantial portion of its assets in mortgage-backed and asset-backed securities. Currently the fund does … 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. The fund presently intends to limit its investments to U.S. dollar denominated securities and currently anticipates that it will generally only purchase debt securities that are rated in the Baa or BBB categories or above at the time of purchase by one or more Nationally Recognized Statistical Rating Organizations (NRSROs) or unrated securities of comparable quality at the time of purchase (as determined by the subadviser). These securities are known as investment grade securities. The fund may invest a substantial portion of its assets in mortgage-backed and asset-backed securities. 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 fund may invest in issuers located in emerging market countries. 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 non-diversified, which means it may invest a larger percentage of its assets in a smaller number of issuers than a diversified fund.
Top holdings
As of Feb. 27, 2026 · N-PORT| Security | Ticker | Value | % of fund |
|---|---|---|---|
| Uniform Mortgage-Backed Security, TBA | FNMA | $13.12M | 12.21% |
| Uniform Mortgage-Backed Security, TBA | — | $12.07M | 11.23% |
| Morgan Stanley Capital I Trust, Series 2018-MP, Class A | — | $9.82M | 9.14% |
| Uniform Mortgage-Backed Security, TBA | FNMA | $9.24M | 8.60% |
| Government National Mortgage Association, TBA | G2SF | $8.21M | 7.64% |
| Uniform Mortgage-Backed Security, TBA | — | $7.46M | 6.94% |
| Uniform Mortgage-Backed Security, TBA | — | $6.90M | 6.42% |
| US TREASURY N/B | — | $4.88M | 4.54% |
| GNMA TBA | G2SF | $4.66M | 4.34% |
| Uniform Mortgage-Backed Security, TBA | — | $3.90M | 3.63% |
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 M Fund · LMSMX | 18% | 0.00% |
| Columbia Mortgage Opportunities Fund · CLMAX, CLMCX, CLMVX, CLMZX, CMOYX, CLMDX | 15% | 0.69% |
| Multisector Bond SMA Completion Portfolio · MBSAX | 14% | 0.00% |
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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