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Mutual Fund Commentary

With nearly $733 billion of assets under management (as of Sept 30, 2016), Legg Mason has 33 years of experience in providing financial services throughout the world. Legg Mason, along with its nine investment affiliates currently manages more than 90 mutual funds across a wide range of categories, including both equity and fixed-income funds. Most of the company’s clients (63%) are domiciled in the U.S. This Baltimore-based company serves both individual and institutional investors with around 3,400 employees in 40 offices throughout the globe.

Below we share with you four top-rated Legg Mason mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of Legg Mason mutual funds.

Western Asset Municipal High Income A (STXAX - Free Report) seeks tax exempted current income. The fund invests a major portion of its assets in “municipal securities” rated in the Baa/BBB categories or below investment grade. In case of no rating, the sub-adviser determines the fund’s credit quality. Western Asset Municipal High Income A has year-to-date and one-year returns of 5.3% and 6.3%, respectively.

STXAX has an expense ratio of 0.80% compared with the category average of 0.96%.

Western Asset Short-Term Bond A (SBSTX - Free Report) invests a large chunk of its assets in fixed income instruments that are rated "investment grade". These securities include corporate debt securities, mortgage-backed securities and derivatives approved by the U.S. government and its entities. SBSTX may invest a maximum of one-fourth of its assets in foreign securities that are denominated in U.S. dollar. Western Asset Short-Term Bond A has year-to-date and one-year returns of 2.2% and 1.8%, respectively.

John Bellows is one of the fund managers of SBSTX since June 2016.

Western Asset Inflation Indexed Plus Bond FI (WATPX - Free Report) seeks returns through capital preservation. WATPX invests a bulk of its assets in fixed income securities that are inflation indexed and more than 70% in the U.S. Treasury Inflation Protected Securities.Western Asset Inflation Indexed Plus Bond FI has year-to-date and one-year returns of 4.7% and 3.5%, respectively.

WATPXhas an expense ratio of 0.64% compared with the category average of 0.73%.

Western Asset High Yield A (WAYAX - Free Report) invests a huge portion of its assets in below investment grade fixed income or debt securities that are U.S. dollar denominated. The objective of WAYAX is to maximize returns thorough effective investment management. Western Asset High Yield A has year-to-date and one-year returns of 14.3% and 7.3%, respectively.

As of September 2016, WAYAX held 466 issues, with 1.26% of its assets invested in Kcad Holdings Equity (Fka Turbo).

To view the Zacks Rank and past performance of all Legg Mason mutual funds, investors can click here to see the complete list of Legg Mason mutual funds.

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