Western Asset Ultra-Short Income Fund;A

Frequently Asked Questions About ARMZX

What does ARMZX invest in?

The Fund seeks high current income and to limit the degree of fluctuation of its net asset value by investing principally in a portfolio of adjustable rate securities, many of which will also be US Government securities.

What is the expense ratio of ARMZX?

Western Asset Ultra-Short Income Fund;A (ARMZX) charges an expense ratio of 0.65%. This is the annual fee deducted from fund assets to cover management and operations.

What is ARMZX's dividend yield?

ARMZX's trailing-twelve-month yield is 3.93%, calculated from the sum of dividends over the past year divided by the current price.

Is ARMZX a good long-term hold?

ARMZX is a leveraged fund designed to deliver a daily multiple of its underlying index. Daily reset compounding means returns over multi-day periods can diverge significantly from the headline multiple, typically with negative drift in choppy markets. These funds are designed for short-term tactical use, not buy-and-hold. Review the fund's prospectus before holding more than a few days.

How does ARMZX's daily reset work?

ARMZX rebalances exposure each trading day to maintain its target leverage ratio against the next day's move. The daily reset means returns compound at the daily level, so a +1%, −1% sequence on the underlying doesn't return the underlying to flat after the leverage multiplier. Over time this path-dependence erodes returns in volatile markets and amplifies them in trending markets.

How big is ARMZX?

Western Asset Ultra-Short Income Fund;A (ARMZX) manages $508.3M in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure. Funds below ~$50M are at higher risk of liquidation.