Western Asset and Franklin Templeton Launch Western Asset Long Credit VIT

Western Asset, one of the world’s leading fixed income managers, in partnership with parent company Franklin Templeton, has launched the Western Asset Long Credit VIT. The fund is a series of Legg Mason Partners Variable Income Trust. Legg Mason Partners Fund Advisor, LLC ("LMPFA") acts as the Fund's investment manager. Western Asset Management Company, LLC and Western Asset Management Company Limited act as the Fund’s sub-advisers. Western Asset has been one of Franklin Templeton’s autonomous specialist investment managers since July 2020.

Shares of the Fund may only be purchased or redeemed through variable annuity contracts and variable life insurance policies offered by the separate accounts of participating life insurance companies or through eligible pension or other qualified plans.

The Fund’s investment objective is total return consistent with prudent investment management. Under normal circumstances, the fund invests at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in fixed income securities. Western Asset seeks total return from a portfolio constructed primarily of long investment-grade corporate bonds across a broad range of issuers and industries while incorporating opportunistic investments in sectors such as high-yield credit, structured securities and emerging markets.

The Fund normally seeks to maintain a dollar-weighted average effective duration within 10% of the average effective duration of a custom benchmark, which is composed of a 60% weighting to the Bloomberg US Long Credit Index and 40% weighting to the Bloomberg US Intermediate Credit Index. Effective duration seeks to measure the expected sensitivity of market price to changes in interest rates, taking into account the anticipated effects of structural complexities; for example, some bonds can be prepaid by the issuer.

Western Asset began managing long duration products in 1989. The firm currently manages $402 billion in total assets under management as of March 31, 2023, of which $65.5 billion is in corporate credit and $10 billion is in long duration assets.

“We employ a team-based approach to active investment management that’s centered around a long-term, value-oriented investment philosophy. The portfolio will incorporate our top-down macro-economic views with our credit analysts’ fundamental and relative value views regarding industry and issuer opportunities,” said Ryan K. Brist, Western Asset’s Head of Global Investment Grade Credit and Portfolio Manager. “Our hallmark team-based approach and intensive proprietary research are supported by robust risk management processes.”

About Western Asset

For over half a century, Western Asset has delivered long-term fundamental value investment solutions to our clients. With over $400 billion in client assets under management and deep experience across the range of fixed-income sectors, Western Asset is recognized as one of the world’s leading fixed-income managers. For more information, go to westernasset.com.

About Franklin Templeton

Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 155 countries. Franklin Templeton’s mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company offers specialization on a global scale, bringing extensive capabilities in fixed income, equity, alternatives and multi-asset solutions. With offices in more than 30 countries and approximately 1,300 investment professionals, the California-based company has over 75 years of investment experience and approximately $1.4 trillion in assets under management as of March 31, 2023. For more information, please visit franklinresources.com and follow us on LinkedIn, Twitter and Facebook.

All investments involve risks, including possible loss of principal. The fund is newly organized, with a limited history of operations. Fixed-income securities involve interest rate, credit, inflation and reinvestment risks, and possible loss of principal. As interest rates rise, the value of fixed-income securities falls. Changes in the credit rating of a bond, or in the credit rating or financial strength of a bond’s issuer, insurer or guarantor, may affect the bond’s value. Lower-rated high yield bonds are subject to greater price volatility, illiquidity and possibility of default. Derivative instruments can be illiquid, may disproportionately increase losses, and have a potentially large impact on fund performance. Asset-backed, mortgage-backed or mortgage-related securities are subject to prepayment and extension risks. These and other risks are discussed in the fund’s prospectus.

Variable annuities are sold by prospectus only. An investor should consider the investment objectives, risk, changes and expenses of the insurance contract and the underlying portfolio carefully before investing. The prospectuses contain this and other important information about the insurance contract and the underlying portfolio. For a free prospectus on the underlying portfolio, please visit franklintempleton.com. An investor should read the prospectus carefully before investing.

Any information, statement or opinion set forth herein is general in nature, is not directed to or based on the financial situation or needs of any particular investor, and does not constitute, and should not be construed as, investment advice, forecast of future events, a guarantee of future results, or a recommendation with respect to any particular security or investment strategy or type of retirement account. Investors seeking financial advice regarding the appropriateness of investing in any securities or investment strategies should consult their financial professional.

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

©2023 Franklin Distributors, LLC, member FINRA, SIPC. Franklin Distributors, LLC, and Western Asset Management Company, LLC and Western Asset Management Company Limited are all subsidiaries of Franklin Resources, Inc.

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Western Asset, one of the world’s leading fixed income managers, in partnership with parent company Franklin Templeton, has launched the Western Asset Long Credit VIT. Western Asset has $402 billion in total assets under management as of March 31, 2023.