Business & Finance
Business and Finance
Business and Finance
Fri, July 23, 2010
Thu, July 22, 2010 Western Asset Variable Rate Strategic Fund Inc. as of June 30, 2010
NEW YORK--([ BUSINESS WIRE ])--Western Asset Variable Rate Strategic Fund Inc. (NYSE: GFY) announces its portfolio composition as of June 30, 2010.
Investment Objective: The Funda™s investment objective is to maintain a high level of current income.
Portfolio Composition*:
Asset Allocation | |||
Mortgage-Backed Securities | 42.3% | ||
High Yield Corporate Bonds | 22.5% | ||
Investment Grade Corporate Bonds | 10.8% | ||
Asset-Backed Securities | 10.4% | ||
Emerging Market Debt | 8.5% | ||
Sovereign Debt External Currency | 1.2% | ||
Sovereign Debt Local Currency | 2.8% | ||
Corporates External Currency | 4.5% | ||
Cash & Other Securities | 5.4% | ||
Credit Quality Allocation1 | |||
| AAA | 37.3% | ||
| AA | 5.1% | ||
| A | 7.1% | ||
| BBB | 12.6% | ||
| BB | 14.7% | ||
| B | 14.8% | ||
| CCC | 7.7% | ||
| CC | 0.4% | ||
| C | 0.1% | ||
| D | 0.2% | ||
| Not Rated | 0.2% | ||
The investment manager has assigned its own ratings to securities not rated by | |||
Top Five High Yield Industries | |||
| Bank Loans | 8.7% | ||
| Communications | 2.4% | ||
| Finance Companies | 2.3% | ||
| Consumer Cyclical | 2.0% | ||
| Energy | 2.0% | ||
Top Five Emerging Market Countries | |||
| Brazil | 4.0% | ||
| Russia | 1.7% | ||
| Mexico | 0.8% | ||
| Thailand | 0.7% | ||
| India | 0.6% | ||
Currency Allocation | |||
| US Dollar | 97.1% | ||
| Brazilian Reals | 2.5% | ||
| Russian Rubles | 0.4% | ||
Average Life (years) | 6.07 | ||
Effective Duration (years) | 1.01 | ||
Average Coupon (%) | 3.78 | ||
Portfolio Statistics: | |||
Inception Date | October 26, 2004 | ||
Inception Price | $20.00 | ||
Total Assets | $108,625,865 | ||
Net Assets** | $108,625,865 | ||
Loans | 0.00% | ||
Preferred Shares | 0.00% | ||
Reverse Repos | 0.00% | ||
Market Price | $15.37 | ||
NAV | $16.31 | ||
| (Daily NAV is available on market quotation systems using the symbol XGFYX.) | |||
Distribution Rate | $0.0560 per share | ||
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. | |
| ** | The difference between total assets and net assets, if any, is due primarily to the Funda™s use of borrowings and other assets and liabilities; 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 Funda™s portfolio, the value of the Fund will be more volatile and all other risks will tend to be compounded. |
Western Asset Variable Rate Strategic Fund Inc., a non-diversified closed-end investment management company traded on the New York Stock Exchange under the symbol aGFYa, is advised by Legg Mason Partners Fund Advisor, LLC, a wholly owned subsidiary of Legg Mason, Inc., and is sub-advised by Western Asset Management Company, 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 credit risk, inflation risk, call risk, and interest rate risks. As interest rates rise, bond prices fall, reducing the value of the Fund's share price. International investing is subject to additional risks. These risks are greater in emerging markets. The credit quality ratings shown may change over time.
For more information, please call Fund Investor Services at 888-777-0102, or consult the Funda™s web site at [ www.leggmason.com/cef ].
1 Credit quality is a measure of a bond issuer's ability to repay interest and a principal in a timely manner. The credit ratings shown are based on each portfolio security's rating as provided by the following Nationally Recognized Statistical Rating Organizations ("NRSRO"): Standard and Poor's ("S&P"), Moody's Investors Service ("Moody's"), Fitch Ratings, Ltd. In the case where a security is not rated by an NRSRO the rating is determined by Western Asset Management ("WAM"), the fund's investment manager (and not an NRSRO). For this purpose, if two or more of the other NRSROs have assigned a rating to a security, the highest rating is used. If a security is not rated by a NRSRO, WAM will analyze comparable securities with similar characteristics (size, capital structure, industry sector, risks, etc.) and assign its own rating using denominations similar to those of S&P. Unrated securities assigned a rating by WAM are specified separately in the credit quality breakdown being shown. A negative allocation may be apparent, which is primarily due to the Fund's unsettled trade activity. Currency forwards and futures are not rated by a NRSRO or WAM and are listed as "Non Rated". 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 by WAM monthly and may change over time. Please note, WAM is not a NRSRO nor has the Fund itself been rated by a NRSRO.
