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Why Now

Normalizing interest rates, slowing inflation and higher yields are breathing new life into the world’s fixed income markets, and Franklin Western Asset Core Plus Bond Fund is positioned to capture those emerging opportunities in North America and select developing markets.

The core does more in this globally diversified strategy. A solid foundation of high-quality securities is designed to provide stability, while a smaller “plus” component of less traditional and off-index holdings adds flexibility and return potential.

  • As growth and inflation moderate and the risks surrounding central bank policy become more balanced, so too should the fixed income environment.
  • Credit markets are still attractive. Investment grade corporate bonds should capture meaningful upside in moderate economic slowdown but can prove resilient should challenging economic headwinds prevail. Also taking advantage of opportunities in agency MBS, structured credit and EMD.
  • Inflation has peaked, and we believe longer-term bond yields have as well. As inflation continues to trend lower, and the Fed is expected to slow or pause the pace of rate hikes, bond yields will drift lower over time and our rates positioning should be a nice contributor to total returns.
  • Gain exposure to US interest rate risk through portfolio of predominantly investment grade US fixed income sectors.
  • An actively managed, high-quality, multi-sector fixed income portfolio
  • A portfolio ballast for risker assets
  • A diversifier to Canadian core fixed income
  • Exposure to global fixed income with a tilt towards U.S. markets
  • Strategic exposure to spread sectors (i.e. non-governmental fixed income investments)
  • A long-term fundamental value manager to capitalize on market inefficiencies
  • Investment Grade Securities: minimum 70%
  • Non-USD Denominated Securities: maximum 20%
  • Portfolio Duration: +/- 30% of Benchmark*
  • Portfolio Hedged to CAD: 100% (+/- 2%)

*Bloomberg Barclays U.S. Aggregate (Hedged into CAD) Index

Key Features

Core Plus Bond Strategy

Aims to deliver returns through active investments in high-quality global core fixed income securities with limited opportunistic investments in high-yield, emerging markets, and other off-benchmark debt securities.

Effective Across Market Cycles

Tapping into multiple drivers of returns and adding value across duration, yield curve, sector allocation, security selection, country and currency strategies, this multi-faceted strategy is equipped to dampen volatility and generate returns across market cycles.

Team-Based, Time-Tested Philosophy

For over 50 years, Western Asset has employed an integrated team-based investment approach around a long-term fundamental value-oriented investment philosophy.

Rigorous Risk Management Process

The strategy employs a proprietary fixed income risk analysis system, Western Information System for Estimating Risk (WISER), and integrates various risk tolerances to protect assets. The risk management process is driven by robust communication and escalation procedures that prioritizes transparency.

Next Step

Learn more about Franklin Western Asset Core Plus Bond Fund

ETF Details Fund Details

About Western Asset

Founded in 1971, Western Asset has over 50 years of experience managing fixed income solutions with over 600 billion in asset under management as of September 30, 2021.

Western Asset specializes in managing fixed income strategies, employing a proven investment philosophy and process to protect capital and drive long-term growth for clients.

The firm is globally integrated, operating as a single team with an open, integrated investment platform bringing together the combined acumen of investment professionals throughout the world.

Meet the team

Western Asset is recognized for an approach emphasizing team management and intensive proprietary research, supported by robust risk management. The fund leverages the global breadth of Western Asset’s investment platform, fundamental value-oriented investment philosophy and process that combines top-down macro-economic views with bottom-up fundamental research.

Julien A. Scholnick, CFA

Associate Portfolio Manager
Industry experience 24 Years

Mark Lindbloom

Portfolio Manager
Industry experience 43 Years

Frederick R. Marki, CFA

Portfolio Manager
Industry experience 38 Years