NEW YORK--(BUSINESS WIRE)--Legg Mason BW Global Income Opportunities Fund Inc. (NYSE: BWG) announces its portfolio composition as of September 30, 2012.
Investment Objective: To provide current income. As a secondary investment objective, the Fund will seek capital appreciation.
Investment Strategy: The Fund seeks to achieve its investment objectives by investing, under normal market conditions, at least 80% of its assets in global fixed-income securities. These may include, but are not limited to, sovereign debt of developed and emerging market countries, U.S. and non-U.S. corporate debt, mortgage-backed securities and currency exposure. The Fund may manage its currency exposure through the use of futures, forwards and other derivative instruments, for hedging and investment purposes.
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Portfolio Composition*: |
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Asset Allocation |
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Government |
45.4% | |
| US | 1.1% | |
| Non-US 44.3% | ||
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Global Investment Grade Corporate Bonds |
25.5% | |
| US | 21.9% | |
| Non-US 3.5% | ||
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Mortgage-Backed Securities |
18.9% | |
| Prime | 12.4% | |
| Alt-A | 6.5% | |
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Asset Backed Securities |
1.0% | |
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Global High Yield Corporate Bonds |
8.6% | |
| US | 4.9% | |
| Non-US 3.7% | ||
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Cash & Other Securities |
0.7% | |
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Credit Quality Allocation** |
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| AAA | 1.8% | |
| AA | 0.9% | |
| A | 30.3% | |
| BBB | 42.5% | |
| BB | 7.0% | |
| B | 7.6% | |
| CCC | 9.4% | |
| CC | 0.5% | |
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Top Five Countries |
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| United States | 48.3% | |
| South Africa | 11.1% | |
| Mexico | 11.0% | |
| Brazil | 10.2% | |
| Poland | 6.9% | |
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Currency of Issue |
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| US Dollars | 52.5% | |
| Mexican Peso | 10.9% | |
| South African Rand | 10.9% | |
| Brazilian Real | 8.1% | |
| Polish Zloty | 6.9% | |
| Hungarian Forint | 6.6% | |
| Euro | 2.8% | |
| British Pound Sterling | 1.1% | |
| Swiss Franc | 0.2% | |
| New Turkish Lira | 0.1% | |
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Currency Exposure (includes currency hedging and investments) |
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| US Dollars | 34.7% | |
| Mexican Peso | 13.2% | |
| South African Rand | 12.8% | |
| New Turkish Lira | 8.3% | |
| Brazilian Real | 8.1% | |
| Polish Zloty | 7.1% | |
| Hungarian Forint | 6.5% | |
| Chilean Peso | 4.2% | |
| Indian Rupee | 4.0% | |
| British Pound Sterling | 0.7% | |
| Euro | 0.5% | |
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Effective Duration (years) |
9.35 | |
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Average Coupon (%) 8.83 |
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Portfolio Statistics: |
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Inception Date |
March 28, 2012 | |
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Inception Price |
$20.00 | |
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Total Assets *** |
$582,868,513.9 | |
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Net Assets |
$442,049,315.3 | |
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Loans**** |
23.16% | |
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Preferred Shares**** |
0.00% | |
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Reverse Repos**** |
0.00% | |
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Market Price |
$19.86 | |
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NAV |
$20.97 | |
| (Daily NAV is available on market quotation systems using the symbol XBWGX.) | ||
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Distribution Rate |
$0.1175 per share |
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Frequency |
Monthly (Declared quarterly, paid monthly)***** |
| * Portfolio holdings and weightings are historical and are presented here for informational purposes only. They are subject to change at any time. Negative allocations and allocations in excess of 100%, if any, are primarily due to the Fund's unsettled trade activity. |
| ** Credit quality is a measure of a bond issuer's ability to repay interest and principal in a timely manner. The credit ratings shown are based on each portfolio security's rating as provided by Standard and Poor's, Moody's Investors Service and/or Fitch Ratings, Ltd. and typically range from AAA (highest) to D (lowest). For this purpose, if two or more of the agencies have assigned differing ratings to a security, the highest rating is used. Securities that are unrated by all three agencies are reflected as such. The credit quality of the investments in the Fund's portfolio does not apply to the stability or safety of the Fund. These ratings are updated monthly and may change over time. Please note, the Fund itself has not been rated by an independent rating agency. |
| *** The difference between total assets and net assets, if any, is due primarily to the Fund’s use of borrowings; net assets do not include borrowings. The Fund may employ leverage in the form of loans, preferred stock, reverse repurchase agreements and/or other instruments. When the Fund engages in transactions that have a leveraging effect on the Fund’s portfolio, the value of the Fund will be more volatile and all other risks will tend to be compounded. |
| **** Percentages based on total assets. |
| ***** Under the terms of the Fund’s managed distribution policy, the Fund will seek to maintain a consistent distribution level derived from the income generated from the Fund’s fixed income investments. Shareholders should note that if the Fund’s aggregate net investment income and net realized capital gains are less than the amount of the distributions paid, the difference will be distributed from the Fund's assets and may constitute a return of the shareholder’s capital. The Board of Directors may terminate the managed distribution policy at any time. Any such termination could have an adverse effect on the market price of the Fund's shares. |
Legg Mason BW Global Income Opportunities Fund Inc., a non-diversified closed-end investment management company traded on the New York Stock Exchange under the symbol “BWG”. The Fund is advised by Legg Mason Partners Fund Advisor, LLC, a wholly owned subsidiary of Legg Mason, Inc., and is sub-advised by Brandywine Global, Investment Management, LLC, an affiliate of the advisor.
An investment in the Fund involves risk, including loss of principal. Investment return and the value of shares will fluctuate. Fixed income securities are subject to various risks, including but not limited to, credit, inflation, income, prepayment and interest rates risks. As interest rates rise, the value of fixed income securities falls. High yield ("junk bonds") are subject to additional credit risk and a greater risk of default. International investments are subject to additional risks due to currency fluctuations, changes in interest rates and other factors. These risks are greater for emerging markets securities. The Fund's investments in mortgage-backed securities involve additional risks.
The Fund may invest in foreign currencies or currency derivatives which may increase the risk and volatility of the Fund. The Fund may invest in illiquid securities and securities/investments that have a leveraging effect on the portfolio which will increase the risks of the Fund. The Fund may make significant investments in derivative instruments.
Derivative instruments can be illiquid, may disproportionately increase losses and have a potentially large impact on Fund performance. Distributions are not guaranteed and are subject to change.
Data and commentary provided in this press release are for informational purposes only. Legg Mason and its affiliates do not engage in selling shares of the Fund.
For more information, please call Fund Investor Services at 888-777-0102, or consult the Fund’s web site at http://www.lmcef.com.
FN1212204