Mutual Funds: Top 5 Legg Mason Funds

Zacks Investment Research
updated | Zacks.com

With assets under management of $682 billion, Legg Mason is one of the world’s largest asset managers. It uses a multi-affiliate business model to provide a wide range of financial services to individual and institutional investors in 190 countries across six continents. Legg Mason affiliates are among the industry leaders in their respective areas of specialization. They operate with a high degree of autonomy each utilizing its own unique approach and processes which it believes are best suited to its clients. Legg Mason complements the operations of its affiliates by providing distribution and client services as well as support in areas such as operations, technology and accounting.
 
Below we will share with you 5 top rated Legg Mason funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect the fund to outperform its peers in the future. To view the Zacks Rank and past performance of all Legg Mason funds, then click here.

Legg Mason Lifestyle Allocation 50% A (SBBAX) seeks both capital appreciation and income. It is non-diversified and invests in Legg Mason-affiliated mutual funds. It invests half of its assets in equity funds and the other half in fixed-income funds. The fund returned 34.37% over the last one year period.

This Legg Mason fund has a minimum initial investment of $1,000 and an expense ratio of 1.24% compared to a category average of 0.86%.

Legg Mason ClearBridge Small Cap Value A (SBVAX) invests the majority of its assets in small-cap domestic companies. Up to 20% of its net assets may be used to purchase equities in companies with larger market capitalizations. It may invest not more than 10% of its assets in foreign securities. The fund returned 45.33% in 2009 and has a ten year annualized return of 8.27%.

Peter J. Hable is the fund manager and he has managed this Legg Mason fund since 1999.

Legg Mason Western Asset High Income A (SHIAX) seeks high levels of current income. It invests heavily in corporate bonds, notes, debentures and related instruments. Up to 40% of its assets may be used to purchase foreign fixed-income securities. The fund returned 54.32% over the last one year period.

The Legg Mason fund has an expense ratio of 1.02% compared to a category average of 1.21%.

Legg Mason Western Asset Government Securities A (SGVAX) invests at least 80% of its assets in debt securities issued or guaranteed by the U.S. government. These debt securities include U.S. Treasury and mortgage-related securities. The fund has a five year annualized return of 7.75%.

As of December 2009, this fund held 576 issues, with 10.76% of its total assets invested in FNMA 6%.

Legg Mason Western Asset Strategic Income A (SDSAX) seeks high current income by investing in a wide range of domestic and foreign fixed-income securities. Up to 50% of its assets may be invested in securities rated below investment grade. The fund returned 29.28% over the last one year period.

Keith J. Gardner is the fund manager and he has managed this Legg Mason fund since 2006.

To view the Zacks Rank and past performance of all Legg Mason funds, then click here.

About Zacks Mutual Fund Rank

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Learn more about the Zacks Mutual Fund Rank at http://www.zacks.com/funds/mutualfund/

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