BALTIMORE, July 10 /PRNewswire-FirstCall/ -- Legg Mason, Inc. announced today that it launched two new separately managed account products for retail investors to access Western Asset Management's flagship Core and Core Plus strategies. These two managed account strategies combine individual securities with shares of no-fee mutual funds advised by Western Asset Management and its affiliates. The combination of the individual securities and funds is designed to give clients a higher level of diversification than is normally achievable through a traditional separately managed account with low minimum investment requirements.
Previously, these strategies were available only to institutional investors. Now retail investors can access the products with a minimum investment of $250,000. By combining individual securities with no-fee mutual funds, these Core and Core Plus portfolios will allow Western to offer investors exposure to corporate and mortgage bonds as well as fixed income sectors not typically accessible in traditional SMAs, such as high yield, emerging market debt and non-dollar denominated securities.
"Legg Mason constantly looks to develop cutting edge new products for investors, capitalizing on the proven investment capabilities of its subsidiaries. We are delighted to be able to offer retail investors the institutional quality capabilities of Western Asset, a leader in fixed income management," stated Don Froude, Head of US Distribution for Legg Mason.
The no fee mutual funds were created exclusively to be utilized in managing the Western Asset Core and Core Plus strategies for retail managed account clients. There are three no-fee funds. One invests mainly in mortgage-related securities, one focused on the investment grade corporate sector, and one invests in the emerging market debt, high yield and non-US dollar fixed income sectors. The first two funds are used in combination with individual securities to create a core style portfolio. Core plus portfolios are created by combining all three funds with investments in individual securities.
Western Asset will seek to maintain a minimum of 50 percent of each portfolio in individual securities. Typically, these securities will be comprised of individual bonds which will consist mainly of Treasury, Agency and investment grade corporate bonds.
About Legg Mason
Legg Mason is a global asset management firm, with approximately $969 billion in assets under management as of March 31, 2007. The company provides active asset management in many major investment centers throughout the world. Legg Mason is headquartered in Baltimore, Maryland, and its common stock is listed on the New York Stock Exchange (symbol: LM).
Legg Mason Private Portfolio Group, LLC, a subsidiary of Legg Mason, Inc., serves as the manager of retail managed accounts that select a core or core
plus portfolio. Western Asset is the sub-advisor of these portfolios. The accounts are managed on the basis of Western Asset's investment instructions.
Managed account clients will pay fees to program sponsors as to their account managers, and such fees will be calculated taking into account assets invested in shares of the no-fee funds. Unless reimbursed by the fund's manager or its affiliates, ordinary and extraordinary fund-level operating expenses are borne by the no-fee fund's shareholders.
All investments involve risk, including loss of principal. There is no guarantee that the investment objectives will be met. High yield bonds are subject to additional risks of fluctuations in foreign exchange rates, changes in political and economic conditions, foreign taxations and differences in auditing and financial standards. These risks are magnified in the case of investments in emerging markets.
Accounts may be invested either directly or through no-fee funds. Diversification should help limit the impact of a single adverse market event, however it does not assure a profit or protect against market loss.
© 2007 PR Newswire