Western Asset Sub-Advises Collective Investment Fund

NEW YORK, April 2, 2015 /PRNewswire/ -- Legg Mason, Inc. today announced the launch of the Hands Benefit & Trust Long Duration Credit Collective Investment Fund (CIF) which is sub-advised by Western Asset (CUSIP: 41024C729). The fund is benchmarked to the Barclays Long Credit index and will allow eligible retirement plans the efficiency and flexibility to better align assets with their liabilities. 

The Fund will be managed by Ryan Brist, Head of US investment-Grade Credit/Portfolio Manager, and Blanton Keh, Portfolio Manager, who will be supported by Western Asset's Global Credit Team.  At over 70 members strong and averaging 18 years of experience, Western Asset's dedicated credit team is one of the largest and most experienced in the industry. 

Under normal circumstances, the Fund invests in a diverse portfolio of primarily investment-grade credit bonds, but it may also make other opportunistic investments, including limited investments in high-yield, emerging markets and mortgage-backed securities.  Western Asset's investment process combines a traditional fundamental value orientation with credit research driven ideas in an effort to exceed benchmark indices.  Western Asset attempts to add incremental value by exploiting the efficiencies in the corporate bond market.

"Western Asset has managed long credit assets for over 25 years and believes that active management is critical when seeking to keep pace with an ERISA plan's liabilities," says Ryan Brist. "We are excited to be offering our active management capabilities in a new vehicle that provides greater access to plans focused on managing their liabilities."

Doug Hulsey, Head of US Corporate Relationships/Liability Driven Investment (LDI) Solutions at Western Asset, shares Brist's excitement about the conversion. "The CIF will be an efficient and cost effective investment solution for clients and prospects that are focused on managing to their liabilities.  We are most excited to offer the CIF to a range of clients and prospects, but it should be particularly attractive for smaller pension plans and Outsourced Chief Investment Officers (OCIO) providers."

Hands Benefit &Trust (HB&T) is the trustee and is responsible for the establishment, maintenance and operation of the Fund.  It is also responsible for the retention and oversight of the sub-adviser and other service providers for the CIFs.

"The conversion of the Long Duration Credit strategy from a separately managed account to a CIF reflects the broader industry trend of increased demand for the CIF structure," says Stephen Hand, President at HB&T. "The ability to bring the defined benefit space cost efficient access to Western Asset's experienced team and strong track record was attractive from HB&T's perspective.  This represents the third CIF strategy that Western sub-advises for our firm in addition to Core Plus Bond and Global Strategic Income."

About Legg Mason Legg Mason is a global asset management firm with $711 billion in assets under management as of February 28, 2015. 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).

About Western Asset  Western Asset is one of the world's leading global fixed income managers with over $456 billion in assets under management as of December 31, 2014.  Founded in 1971, the firm is known for team management, proprietary research and a long-term fundamental value approach that focuses on producing superior risk-adjusted returns. 

About Hand Benefits & Trust Hand Benefits (HB&T), a Benefit Plans Administrative Services, Inc. (BPAS) company, and its affiliates are a national provider of administration, actuarial, consulting and institutional trust services and have extensive experience serving as sponsor and trustee of collective investment funds. 

Investments in fixed-income securities involve interest rate, credit, inflation and reinvestment risks; and possible loss of principal. An increase in interest rates will reduce the value of fixed income securities. International investments are subject to special risks including currency fluctuations, social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. Asset-backed, mortgage- backed or mortgage-related securities are subject to prepayment and extension risks. Risks of high-yield securities include greater price volatility, illiquidity and possibility of default.

INVESTMENT PRODUCTS: NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE   FN1511252

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SOURCE Legg Mason, Inc.