Restructuring of Management Arrangements for Western Asset/Claymore Inflation-Linked Securities & Income Fund (“WIA”) & W...
February 26 2018 - 5:39PM
Business Wire
WIA and WIW announced changes in the funds’ management
arrangements designed to reduce shareholder expenses and enhance
management efficiencies for the funds. As a result of the changes
approved by the Board of each fund, aggregate annual advisory,
administration and servicing fee rates for WIA are expected to
decrease by 16.5 basis points (“bps” 1 bp = 0.01%) while fee rates
on WIW, subject to shareholder approval of new contracts, are
expected to decrease by 24 bps.
Shareholder savings on WIA will result from Western Asset
reducing its contractual investment advisory fee rate from 40 to 35
bps and Legg Mason Partners Fund Advisor, LLC (“LMPFA”) replacing
Security Investors, LLC (“Security Investors”), and assuming its
servicing and administration responsibilities for the fund, for a
total of 5 bps including the services LMPFA already provides to the
fund. These changes will be effective on or about April 27,
2018.
Shareholder savings on WIW will result from Western Asset and
LMPFA replacing Security Investors and assuming its
responsibilities for the fund. Similar to WIA, Western Asset will
provide investment advisory services directly to WIW for 35 bps,
subject to shareholder approval, rather than as sub-adviser to
Security Investors, and LMPFA will assume Security Investors’
servicing responsibilities for a total of 5 bps including the
services LMPFA already provides to the fund. These changes will be
implemented beginning on or about April 27, 2018 on an interim
basis and will be subject to WIW shareholder approval of new
investment advisory and sub-advisory agreements. The interim
arrangements will provide WIW with 150 days in which to obtain
shareholder approval of new contracts with the new lower fee
structure in place during the interim period. WIW currently expects
to include a vote on these new contracts at its annual meeting of
shareholders scheduled for May 30, 2018.
Western Asset’s portfolio management team for the funds, and the
funds’ investment strategies, will not change as a result of
restructuring the management arrangements for the funds.
Effective on or about April 27, 2018, WIA will be renamed
Western Asset Inflation-Linked Income Fund and WIW will be renamed
Western Asset Inflation-Linked Opportunities & Income Fund.
More Information. The foregoing is not a solicitation of
any proxy. Proxy statements will be filed with the Securities and
Exchange Commission (the “SEC”) in connection with the funds’
forthcoming meetings of shareholders. The funds, their Trustees,
officers and other members of management may be deemed to be
participants in any future solicitations of proxies in connection
with the forthcoming meetings of shareholders. Shareholders may
obtain information regarding the names, affiliations, and interests
of these individuals in the funds’ proxy statements when they
become available. Please read the definitive proxy statements
carefully when they become available before making any voting
decision because they contain important information.
Free copies of such proxy solicitation materials will be
available on the SEC’s Web site (www.sec.gov). Neither Legg Mason
nor any of its affiliates engage in the sale of shares of either
Fund.
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inquiries:Madelyn McHugh, 212-805-6039mmchugh@leggmason.com
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