Western Asset Var Global High Yield Bond
Objective And StrategyObjective
To maximize total return.
The fund invests primarily in high yield fixed income securities issued by U.S. and foreign companies and foreign governments and their agencies and instrumentalities. Under normal market conditions, the fund invests at least 80% of its assets in high yield bonds. Under normal circumstances, the fund will be invested in at least three countries (one of which may be the United States). The fund may invest without limit in foreign securities denominated either in U.S. dollars or foreign currencies and may invest up to 35% of its assets in sovereign debt issued by emerging market governmental issuers. Instead of, and/or in addition to, investing directly in particular securities, the fund may use instruments such as derivatives and synthetic instruments that are intended to provide economic exposure to the securities of the issuer or to be used as a hedging technique.
Tax Inefficient Fund
* This portfolio is subject to the risks of investing in low-grade corporate bonds that have a higher default risk, less liquidity and greater sensitivity to changes in the economy than investment-grade bonds. High-yield bonds are rated lower because there is a greater risk associated with the issuer's ability to pay principal and interest.