Western Asset Inflation-Linked Opportunities & Income Fund
Find Ratings Reports- Last Ratings Update:02/29/2024
- Price as of 02/29/2024 :$8.47
- Net Assets:$607 Million
- NAV:$10.02
- Premium-15.47%
- Peer Rank:43 of 62
- Investment Rating:D+
- Performance:D+
- RiskC+
We rate Western Asset Inflation-Linked O&I at D+. Negative factors that influence this rating include a high expense structure. The fund invests approximately 91% of its assets in bonds and may be considered for investors seeking a Government Bond strategy.
Total return ranks below peers over the last three years. The Western Asset Inflation-Linked O&I has returned an annual rate of 2.65% since inception. More recently, the fund has generated a total return of 3.37% in the last five years, -1.40% in the last three years, and 5.23% in the last year. How does that compare to other equity funds? In the last five years, it has outperformed 38% of them. It has also outpaced 28% of its competitors on a three year basis and 29% of them over the last year for the period ending 2/29/2024. On a year to date basis, WIW has returned -0.35%.
Downside risk has been above average. WIW has a draw down risk of -40.04%, which is the largest price decline experienced over the last three years. This fund has a three year standard deviation of 13.9%. This fund has had moderate volatility in its monthly performance over the last 36 months.
High expense ratio hinders performance. On total assets of $607.00 million, WIW maintains a high expense ratio compared to its Government Bond peers of 4.10% to cover all operating costs. Brokerage costs for the fund to buy and sell shares are not included in the expense ratio. As WIW is a closed end fund, it has no front end or back end load.
Manager tenure and performance record are net positives. Substandard fund managers tend to be replaced, so a long tenure is usually a good sign that a fund is achieving its objectives. The Western Asset Inflation-Linked O&I has been managed by Michael C. Buchanan for the last 8 years. Over that period, the manager was able to capture more actual gains in excess of the expected return than 87% of other fund managers.