Western Asset Emerging Markets Debt Fund Inc.

Frequently Asked Questions About EMD

What does EMD invest in?

Operated by Legg Mason Partners Fund Advisor, LLC, the Western Asset Emerging Markets Debt Fund Inc. is an open-end mutual fund dedicated to fixed-income investments. Additional management support is provided by Western Asset Management Company, Western Asset Management Company Limited, and Western Asset Management Company Pte. Ltd. The fund's primary objective is to invest in debt instruments from emerging market countries across the globe, including fixed income securities issued by governments, government-related entities, and corporate entities, irrespective of their maturity or credit quality. Its portfolio construction relies on a combination of fundamental analysis and a top-down selection methodology. This process considers a range of factors such as currency movements, inflation and interest rate trends, economic growth forecasts, the liquidity of a nation's debt markets, its political landscape, and tax policies. The fund benchmarks its performance against the JPMorgan Emerging Markets Bond Index Global. Established in the United States on December 1, 2003, it was previously known as Salomon Brothers Emerging Markets Debt Fund Inc.

What is the expense ratio of EMD?

Western Asset Emerging Markets Debt Fund Inc. (EMD) charges an expense ratio of 3.13%. This is the annual fee deducted from fund assets to cover management and operations.

What is EMD's dividend yield?

EMD's trailing-twelve-month yield is 10.75%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of EMD?

Effective duration measures EMD's sensitivity to interest-rate changes — a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. EMD's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of EMD?

EMD's credit quality breakdown — the share of holdings rated AAA through CCC and below — is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.

What is the yield to maturity of EMD?

Yield to maturity (YTM) is the total return you'd earn from EMD if every bond in the portfolio is held to maturity at the current price. EMD's YTM is published on the fund's factsheet on the issuer's website — it differs from the trailing-12-month yield because YTM reflects current bond prices rather than historical income paid.