LWARX

About LWARX

Western Asset Short-Term Bond Fund Class R is an open-end mutual fund focused on generating current income while emphasizing preservation of capital and liquidity. The strategy primarily invests in investment-grade fixed income, including corporate bonds, U.S. government and agency securities, and mortgage- and asset-backed securities, with flexibility to allocate a portion to U.S. dollar–denominated issues from non-U.S. issuers. The portfolio targets the short end of the curve, maintaining a short effective duration—around two years—and an average maturity of roughly four years to reduce interest-rate sensitivity relative to intermediate and long-duration peers. The fund employs active management and can use derivatives to adjust interest-rate, credit, and sector exposures, seeking efficient implementation of its risk positioning. With hundreds of holdings, it maintains broad diversification across issuers and sectors, and distributes income monthly. Positioned within the short-term bond category, it serves as a conservative fixed-income allocation for investors aiming to balance income needs with lower volatility than longer-duration bond funds.