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Western Asset Emerging Markets Message Board

  • riskprof1 riskprof1 Sep 5, 2013 12:40 PM Flag


    Frankly, I just came across this security. I'm intrigued by the discount to NAV and the fact that emerging markets are beat down overall. Still watching it for now, but any thoughts on ESD? What are its top holdings?

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    • frdmhr Sep 9, 2013 2:51 PM Flag

      These guys were spun off from the old Salomon Brothers. The fund is unlevered and something like 90% of the assets are dollar demnominated making them not subject to currency translation. This is where some of the biggest disconnect is. As Emerging market currencies weaken this has been getting sold off even though the dividend/income strean/ hence share price should not be afffected by the currency weakness. I owned a lot of this fund and unloaded it in the $22 range when the price was right up against the NAV. Recently I've bought a lot with an average price in the low $17 range. If you believe as I that long term rates are done going up for the time being than I would be buying down here giving yourself a truly contrarion play with a good margin of safety.

      • 1 Reply to frdmhr
      • I didn't know about the Solomon start, but do know Western Asset management has been running this fund for many years and doing a pretty good job. I'm pretty sure my first buys into this were roughly 10 years ago.
        Anyhow, the managers are competent, the yield is very good, and it provides good diversification against the USD. Anyone with a few bucks should have some weighting here. I've recently added in the low 17's and now own several thousand shares here.

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