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  • 1. Legg MasonGlobal Multi StrategyBond FundCitywire South West Conference25-26 April 2013This document is for Asset Managers, Fund Distributors and Authorised Intermediaries. Not for use by Private Individuals.
  • 2. Page 1Legg Mason’sInvestmentCapabilities A diversified global assetmanagement firm, foundedin 1899 Total assets: £437 billion Approximately 3,100employees worldwide Offices in 31 locationsSource: Legg Mason, as at 31 March 2013.GlobalquantitativeequityGlobal valueinvestingFundamentalvalue-basedinvestingSmall-capequities:US, Europe,GlobalGlobalalternativefund-of-fundsQuality-focusedUS equityinvestingEmergingmarketsGlobal fixedincome
  • 3. Page 2Pasadena$181.8bnInvestmentprofessionals: 50Total staff: 558New York$182.0bnInvestmentprofessionals: 26Total staff: 96São Paolo$17.8bnInvestmentprofessionals: 17Total staff: 70Melbourne$15.6bnInvestmentprofessionals: 5Total staff: 17London$38.9bnInvestmentprofessionals: 18Total staff: 72Singapore$4.6bnInvestmentprofessionals: 4Total staff: 20Hong KongTotal staff: 2Tokyo$19.4bnInvestmentprofessionals: 8Total staff: 30Source: Western Asset, as at 31 March 2013. Assets under management in USD (billions).1 24539678DubaiTotal staff: 21 2 3 4 56 7 8 9Harnesses theexperience of aglobal managerdedicated to fixedincome investing Managed by Western Asset,a subsidiary of Legg Mason Total assets in fixed income:$459.4 billion 8 countries across 5continents Total staff: 867Global breadth and local depth
  • 4. Page 3Why arestrategic bondfunds popular? Maximise returns Minimise downside Opportunity to perform throughout the market cycle Yield Diversification Outsource asset allocationBut to be truly Strategic,you need to be Global…
  • 5. Page 401500030000US Japan Eurozone UK EM CanadaThe UKbond marketis relativelysmall comparedto the restof thedeveloped worldSource: Bank for International Settlements, as at 31 December 2012.Domestic bond market by nationality of issuer($bn issuance outstanding, 2012)
  • 6. Page 5But not allstrategicbond fundsare truly globalLargest funds in the IMA Strategic Bond Sector by AUM**Source: Source for largest funds by AUM is Morningstar Direct as at 31 March2013. Source for breakdowns isFundsLibrary, as at 28 February 2013 for Funds A and B and to 31 January 2013 for Funds C and D.**Developed Europe ex UK. For illustrative purposes only. GMS data is as at 31 March 2013.51.5 49.5 36.0 56.4 7.816.0 10.111.77.223.228.435.734.729.230.91.0 1.0 2.5 1.126.6Fund A Fund B Fund C Fund D GMS FundEMEurope**North AmericaUK1000%
  • 7. Page 6Flexibility isthe key driverof diversifiedreturns inglobal fixedincome2003 2004 2005 2006 2007 2008 2009 2010 2011 2012Global High YieldEMD Local Govt(USD)EMD Govt (USD) EMD Local Govt (USD) UK Gilts Global High YieldEMD Local Govt(USD)UK Gilts Global High YieldEMD Govt (USD)Global GovtInflation LinkedSterlingNon-GiltsGlobal High YieldGlobal GovtInflation LinkedGlobal GovtBondsEMD Govt (USD) Global High YieldGlobal GovtInflation LinkedEMD Govt (USD)EMD Local Govt(USD)Global High Yield UK Gilts EMD Govt (USD)Global GovtBondsMortgagesEMD Local Govt(USD)EMD Govt (USD)EMD Local Govt(USD)Global GovtBondsEMD Govt (USD)EMD Local Govt(USD)Global Corporate 0-3mth US T-bills Global CorporateSterlingNon-GiltsGlobal GovtInflation LinkedGlobal GovtBonds0-3mth US T-billsGlobal GovtInflation LinkedMortgagesSterlingNon-GiltsGlobal GovtInflation LinkedUK GiltsGlobal GovtBondsGlobal CorporateGlobal Corporate MortgagesGlobal GovtBondsEMD Govt (USD)EMD Local Govt(USD)SterlingNon-GiltsGlobal Corporate MortgagesGlobal GovtInflation Linked0-3mth US T-billsSterlingNon-GiltsGlobal High Yield Mortgages UK GiltsGlobal GovtInflation LinkedMortgages Global Corporate MortgagesMortgages UK GiltsGlobal GovtInflation Linked0-3mth US T-bills Global CorporateGlobal GovtBondsGlobal High YieldGlobal GovtBondsUK Gilts Mortgages Global CorporateSterlingNon-GiltsGlobal High Yield EMD Govt (USD) 0-3mth US T-billsGlobal GovtInflation Linked0-3mth US T-bills 0-3mth US T-BillsSterling Non-Gilts 0-3mth US T-billsGlobal GovtBondsUK GiltsSterlingNon-GiltsGlobal High Yield UK Gilts 0-3mth US T-billsEMD Local Govt(USD)UK GiltsAnnual Sector Returns 2003-2012 Across Global Bond SectorsUK Gilts Sterling Non-GiltsSource: Bloomberg, as at 31 December 2012. 0-3mth US Treasury Bills: Merrill Lynch US Treasury Bills 0-3Months, EMD Local: JP Morgan Global Bond Index Emerging Market Local Unhedged, EMD (USD): Merrill Lynch USDEmerging Market Sovereign Plus Index, Global Corporate (USD): Merrill Lynch Global Broad Market Corporate Index,Global Govt Bonds (USD): Merrill Lynch Global Government Bond Index, Global Govt Inflation Linked (USD): MerrillLynch Global Governments, Inflation-Linked Index, Global High Yield (USD): Merrill Lynch Global High Yield Index ,Mortgages: Merrill Lynch Mortgage Master Index, Sterling Non-Gilts: Merrill Lynch Sterling Non-Gilts (GBP), UK Gilts:Merrill Lynch UK Gilts (GBP).Lowest returnsHighest returns
  • 8. Page 7The Legg MasonGlobal Multi StrategyBond Fund
  • 9. Page 8EmergingMarketsGovernmentInvestmentGrade CreditHigh Yield1 2GMSPortfolio -IanEdmonds3978InvestmentApproach Long Term Value Orientation Diversified StrategiesMortgageBackedSecuritiesLeverages Western Assets global fixed income capabilities34 securities 88 securities 140 securities 111 securities 9 securitiesSource: Western Asset, as at 3 December 2012. Total number of assets 480..
  • 10. Page 9Legg MasonGlobalMulti StrategyBond FundThis Fund may invest in ‘non-investment grade’ bonds, which carry a higher degree of default risk than‘investment grade’ bonds. It may invest in emerging markets that may be less liquid and may have less reliablecustody arrangements than mature markets and may involve a higher degree of risk. Unlike a bank or buildingsociety account, your money is at risk. The Legg Mason Western Asset Global Multi Strategy Bond Fund is asub-fund of Legg Mason Global Fund plc, an umbrella fund established an investment company with variablecapital, and is authorised in the UK by the Financial Services Authority as an undertaking for collectiveinvestment in transferable securities. Source: Legg Mason, as at 31 March 2013. Focuses on opportunities across all global fixed income sectors Volatility over 3 years: 4.46% Net distribution yield: 4.70% Leverages the expertise of Western Asset Management Maximum flexibility to be truly strategic Fund size: £753m Strategy size: £2.0bn
  • 11. An active,global approachSource Western Asset as at 31 March 2013.* Class A Distr. USD launch date 30 August 2002.Page 10Flexibility to investacross global fixedincome marketsDuration flexibilityGlobal approachhelps to lowervolatility and increasereturnNumber of holdings:Over 400 approx.Risk/return over 10years annualised:7.67%/7.19%*ABS/MBSInflation-linkedGovernments/agenciesCash/cash equivalentsInvestment grade creditHigh yieldUSD emerging marketsLocal emerging marketsEmerging market corporatesLegg Mason Western Asset Global Multi Strategy FundLocalEmergingMarketsEmerging MarketCorporatesUSDEmerging MarketsHigh YieldInvestmentGradeCreditABS/MBSCash/Cash EquivalentsInflation-linkedGovernments/Agencies0102030405060708090100Dec02 Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12PercentofPortfolio(MarketValue)As of 31 Mar 13
  • 12. Page 11Diversifiedcountry andsectorcoverageUS 47%UK 8%Eurozone27%Brazil 2%Mexico 2%South Africa2%Turkey 1% Cash 11%EmergingMarketInvestmentGrade 15%High Yield20%Government21%InvestmentGrade 13%ResidentialMortgageBacked 5%EmergingMarket 14%Asset Backed1%Cash & Others11%Country breakdownSector breakdownData as at 31 March 2013AAA27%AA0%A14%BBB20%<BBB28%Cash11%Credit rating breakdownDistribution Yield 4.70%Duration 4.07 yrsAverage Rating AKey Portfolio StatisticsCurrency breakdown932222111-4BritishPoundBrazilianRealMexicanPesoSouthAfrican RandUSDollarIndianRupeePhilippinePesoTurkishLiraEuro
  • 13. Page 12Strongperformancereturns andconsistentyieldgeneration29.64%-20-15-10-5051015202530Distribution Yield % Legg Mason Global Multi Strategy Bond Fund (A)%Cumulative performance and income generation since inception (in GBP)Source: Legg Mason as of 31 March 2013, in Sterling. Performance is calculated on a NAV to NAV basis., net incomereinvested, net of fees. Sales charges, taxes and other locally applied costs to be paid by an investor have not beendeducted. Past performance is not an indicator of future results and may not be repeated
  • 14. Page 1312 Month rollingreturn periods ofthe strategySource: Legg Mason as at 31 March 2013. NAV to NAV with gross income reinvested without initial charges butreflecting annual management fees, based in USD for class A shares. *Fund launched on 30 August 2002.Past performance is not an indicator of future results and may not be repeated-20-1001020304050TotalReturn(%)3-monthUS$LIBOR Global Multi-sectorComposite 93% (171/183) monthly rolling 1-year periods of positive absolute return 82% (150/183) monthly rolling 1-year periods of positive returns relative to cashReturn DateMax. Return 41.23% 28 Feb 10Min. Return -18.55% 28 Feb 09Rolling 12-Month
  • 15. Page 14Exceptionallong-termrisk/rewardprofileThe Global Multi Sector Composite has been used to demonstrate thelonger term track record of the managerRisk/Reward Since Inception (31 Oct 1996) to 31 March 2013Source: Barclays, JP Morgan and Bloomberg as of 31 March 2013, in US Dollars. The data has been used todemonstrate the longer term track record of the investment manager in managing the Legg Mason Global Multi StrategyBond Fund. There are differences between the above composite and the Legg Mason Global Multi Strategy Bond Fund,including differences in the number of holdings, strategy, the amount of assets under management, cash flows, fees andexpenses, and applicable regulatory requirements, including investment and borrowing restrictions. The pastperformance of the above composites is, therefore, not indicative of the future performance of the Legg Mason GlobalMulti Strategy Bond Fund. Past performance is not an indicator of future results and may not be repeated.
  • 16. Page 15Global and flexible totap into diversifiedsources of income
  • 17. Historically, GlobalMulti Strategy hasperformed well in raterise environmentsPage 16Source: Western Asset 31 December 2012• The strategy has experienced a number of periods where governmentbond yields have risen by around 100 basis points or more in a matterof months (as highlighted in grey).• Diversified exposure to high yield corporate bonds has enabled themanager to maintain performance in rising government bond yieldenvironments.901101301501701902102301.50%2.00%2.50%3.00%3.50%4.00%4.50%5.00%5.50%Aug-02Jan-03Jun-03Nov-03Apr-04Sep-04Feb-05Jul-05Dec-05May-06Oct-06Mar-07Aug-07Jan-08Jun-08Nov-08Apr-09Sep-09Feb-10Jul-10Dec-10May-11Oct-11Mar-12Aug-1210 Year UK GiltsLegg Mason Western Asset Global Multi Strategy Fund, RHYield NAV
  • 18. Page 17Diversify andmaximisesources ofincome fromhigher yieldingbond sectorsSource: Bloomberg, as at 28 February 20131.760.891.821.352.493.336.462.706.214.103.656.594.612.50 2.324.050.0010.00%Global bonds offer access to sectors with higher yielding opportunities
  • 19. 0246810BrazilChileChinaColombiaHungaryIndiaIndonesiaMalaysiaMexicoPeruPhilippinesPolandRussiaSouthAfricaTurkeyYield(%)Page 18Diversify andmaximisesources ofincome fromhigher yieldingbond sectorsSource: JPM GBI-EM Global Diversified, As of 31 March 2013Local currency held in the Global Multi-sector strategyGlobal bonds offer access to countries with higher yielding opportunities
  • 20. 13838151224045679615120272202004006008001000Investment-Grade BB BAverageSpread(bps)QualityUSCorporateBonds EMCorporateBonds EMUSD SovereignBondsSource: Barclays, JPMorgan. Asof 31 Dec12Page 19SectorRotation: USDollarCorporateAdvantageSource: Barclays/JPMorgan, as at 31 December 2012Ability to opportunistically invest in Emerging Market bonds providediversified sources of income and higher yield
  • 21. Based on currentgrowthexpectations,high yield willcontinue toperform wellPage 20-6-4-20246< 0% 0%<--->2% 2%<--->4% 4%<PercentHY BB B CCC• When GDP growth is negative, not surprisingly, high yield gets hit hard.• High growth (+4%) is still acceptable, although not ideal, as companiesbegin levering up balance sheets.• Historically, high-yield has held up reasonably well during periods of2-4% GDP growth. 0-2% GDP is the sweet spot.Source: Morgan Stanley/Bloomberg/the Yield Book, as at 31 March 2011. For illustrative purposes only.Note: Chart data dates back to 1985.
  • 22. Page 21High-Yieldcorporatecreditfundamentalsstill improvingSource: Morgan Stanley, as at 30 September 2012.Note: Approximately 200 public high-yield issuers.This is now the seventh quarter in a row of balance sheet improvement –companies continue to delever and liquidity is near record highs02468101214161999 2001 2003 2005 2007 2009 2011PercentHigh-YieldCash-Debt4.963.514.394.042.03.04.05.06.01999 2001 2003 2005 2007 2009 2011High-YieldLeverageMedian:+138bps0501001502002503003504004501999 2001 2003 2005 2007 2009 2011BasisPointsHigh-YieldSpreadPerUnitofLeverage(SPL)3.083.832.53.03.54.04.51999 2001 2003 2005 2007 2009 2011High-YieldInterestCoverage
  • 23. Example ofconcession forless liquidityPage 22Source: Morgan Stanley/Bloomberg/the Yield Book, as at 31 March 2011.Note: Chart data dates back to 1985.For illustrative purposes onlyCarrols Restaurant Burger King CorporationLargest franchisee of Burger King Burger King franchisorCoupon 11.25% 9.88%Issue 150mm Sr Secured 800mm Sr UnsecuredMaturity 15 May18 15 Oct 18Ratings B3/B- B3/B-Yield to Worst (Offer) 10.45% 5.69%Leverage 5.0x (PF) 4.6xNet Leverage 3.7x (PF) 3.7xCoverage 1.9x (PF) 2.3x1Q12 Same Store Sales 5.90% +4.6% (US systemwide)Price $103 $113.25
  • 24. Emerging Marketcountries are inbetter shape thanthose in thedeveloped worldPage 23Source: JPMorgan. 2012 estimate.DevelopedMarketsEuropeSpainUKColombiaMexicoUSJapan (-9.26% Fiscal Deficit,218% Debt)GermanyFranceItaly (-2.29% Fiscal Deficit,129% Debt)Emerging MarketsAsiaBrazil020406080100120140-10-8-6-4-20Fiscal Deficit (%)Debt(%ofGDP)200DevelopedMarketsEuropeSpainUKColombiaMexicoUSJapan (-9.26% Fiscal Deficit,218% Debt)GermanyFranceItaly (-2.29% Fiscal Deficit,129% Debt)Emerging MarketsAsiaBrazil020406080100120140-10-8-6-4-20Fiscal Deficit (%)Debt(%ofGDP)Source: JPMorgan. 2012 Estimate as of 31 Dec 11200General Government Deficit and DebtRisk Comparison between Developing and Developed GovernmentBond Markets
  • 25. Page 24Legg MasonGlobal MultiStrategy BondFund - Summary Focuses on opportunities across all global fixed income sectors Volatility over 3 years: 4.46% Net distribution yield: 4.70% Leverages the expertise of Western Asset Management Maximum flexibility to be truly strategicThis Fund may invest in ‘non-investment grade’ bonds, which carry a higher degree of default risk than‘investment grade’ bonds. It may invest in emerging markets that may be less liquid and may have less reliablecustody arrangements than mature markets and may involve a higher degree of risk. Unlike a bank or buildingsociety account, your money is at risk. The Legg Mason Western Asset Global Multi Strategy Bond Fund is asub-fund of Legg Mason Global Fund plc, an umbrella fund established an investment company with variablecapital, and is authorised in the UK by the Financial Services Authority as an undertaking for collectiveinvestment in transferable securities. Source: Legg Mason, as at 31 March 2013.
  • 26. Page 25Appendix
  • 27. Source: JPMorgan and Barclays. Data shown as at 31 January. # of countries, market cap, yield and duration shown using EMBI Broad for US Dollar Sovereign EM, CEMBI Broad for USDollar Corporate EM, GBI-EM Broad for Local Currency Sovereign EM.Page 26US DollarSovereignEmergingMarketsUS DollarCorporateEmergingMarketsLocal CurrencySovereignEmergingMarketsUK GovernmentBondsUK CorporateBondsBenchmarkJPM EM Bond Index(EMBI)JPM Corporate EM BondIndex (CEMBI)JPM Government BondIndex (GBI-EM)Barclays Sterling GiltsIndexBarclays Sterling non-GiltsIndexDescriptionUSD denominated debt ofsovereign/quasi-sovereignissuersUSD denominated debtissued by corporate entitiesLiquid, local currency debtof sovereign issuersGBP denominated UKGovernment BondsGBP denominated UKCorporate BondsCurrency denomination USD USD Local Currency GBP GBPOther namesHard currency SovereignExternal DebtHard Currency CorporateCorporate external debtLocal Currency BondsLocal Market DebtUK Government BondsUK GiltsSterling CorporatesUK CorporatesAverage rating (S&P) BB+ BBB BBB+ AA A# of countries: 55 30 17 1 1Market Cap (USD bn) 571 624 1,568 1,106 502Yield (%) 4.7% 4.8% 5.5% 1.9% 3.5%Duration (years) 7.0 5.6 5.0 9.2 7.8EMD is now primarily IG and 4 times the size of the UK IG and HY markets combined
  • 28. Available onmajor platformsPage 27Find out more at:www.leggmason.co.ukwww.globalbondmasters.co.ukOr contact UK Sales Support &Client Services on:t: 020 7070 7444e: clientserviceuk@leggmason.com• Aviva Life• James Hay• Merchant Investors• AllFunds• Ascentric• Aviva Wrap• Axa Elevate• Cofunds• Fidelity Funds Network• Hargreaves Lansdown Vantage• Novia• Nucleus• Scottish Widows Retirement Account• Skandia Investment Solutions• Standard Life (Fundzone and Wrap)• Transact• Zurich PlatformAnnualManagementChargeLegg Mason Global Multi Strategy Bond Fund Class A Inc. (M) GBP 1.25%Legg Mason Global Multi Strategy Bond Fund Class X Inc. (M) GBP 0.625%
  • 29. Page 28Biography Ian EdmondsPortfolio Manager, GMSIan has been part of Western Asset since 1996 when it was acquired from LehmanBrothers, and has been involved with the Global Multi Strategy Bond Fund since itsinception. His research focus is on the European high yield market, and he is amember of Western Assets Global Credit Committee which helps determine thecompany’s credit strategies. Ian started his career in 1990 at Bacon & Woodrow as atrainee Actuary before joining Lehman Brothers Global Asset Management in 1994as a research analyst.
  • 30. Page 29Important Information
  • 31. Page 30Composite disclosureAs of 31 December 2012No. of Gross Total Net Total Benchmark Gross Total Benchmark Total Internal Mkt. Value Percentage of Firm AssetsAccts Return Return Total Return 3-Yr St Dev 3-Yr St Dev Dispersion (US$mil) Firm Assets (US$mil)2003 1 23.44% 22.96% 20.53% 6.99% 6.33% -na- $95 0.06% $148,3332004 1 13.05% 12.60% 10.41% 6.69% 5.87% -na- $174 0.09% $197,8372005 1 3.74% 3.32% 1.28% 5.83% 5.47% -na- $316 0.13% $249,2332006 1 7.75% 7.32% 8.66% 4.93% 4.20% -na- $374 0.07% $510,1722007 3 7.79% 7.36% 6.94% 4.02% 3.49% -na- $1,349 0.22% $621,4932008 4 -13.71% -14.06% -7.00% 8.86% 8.03% -na- $1,673 0.33% $505,6602009 4 32.92% 32.41% 23.29% 11.44% 9.21% -na- $2,133 0.44% $482,2182010 3 10.16% 9.72% 9.44% 11.91% 9.60% -na- $2,436 0.54% $453,9092011 3 3.74% 3.32% 6.42% 8.94% 6.46% -na- $2,635 0.59% $443,1402012 4 11.96% 11.52% 10.47% 5.88% 5.11% -na- $3,041 0.66% $461,891Global Multi-Sector (USD Unhedged) CompositeComposite Inception: 11/1/96 | Composite Creation: 11/1/96Description: Western Asset’s Global Multi-Sector (USD Unhedged) composite includes portfolios that employ an active, team-managed investment approach around a long-term,value-oriented investment philosophy. These portfolios use diversified strategies and all sectors of the fixed-income market in seeking to add value while minimizing risk. Theapproach is to construct a strategic multi-sector high-yield portfolio by investing in global fixed-income markets and currencies. Primarily, these are mortgage-backed and asset-backed securities, high-yield corporate securities, investment-grade corporate securities and emerging market securities.Objective: Exceed the benchmark return by 200 basis points annually over the course of a market cycle. Provide income and capital appreciation.Benchmark Description: The current benchmark is a blend of the Barclays Global Aggregate Bond Index (50%), the JP Morgan Emerging Markets Bond Index Plus (EMBI+) (25%),and the Barclays U.S. High Yield 2% Issuer Cap Bond Index (25%). The Barclays Global Aggregate Bond Index provides a broad-based measure of the global investment-gradefixed income markets. The JP Morgan Emerging Markets Bond Index Plus (EMBI+) tracks total returns for traded external debt instruments in the emerging markets. The instrumentsinclude external-currency-denominated Brady bonds, loans and Eurobonds, as well as US dollar denominated local markets instruments. The Barclays U.S. High Yield 2% IssuerCapped Bond Index is the 2% Issuer Cap component of the Barclays U.S. Corporate High Yield Bond index. The Barclays U.S. High Yield Bond Index covers the universe of fixedrate, non-investment grade debt. From 1/1/2002 to 9/30/2005, the Custom Index was comprised of 50% Lehman Global Aggregate Index; 25% Lehman Brothers US High YieldIndex; 25% JP Morgan EMBI+ Index.Base Currency: USD | Composite Minimum: US$25 million as of 4/1/07 (previously $5 million)Fee Schedule: .40 of 1% on first US$100 million, .20 of 1% on amounts over US$100 million.Examination Period: The composite has been examined for the period from November 1, 1996 to December 31, 2012.
  • 32. Page 31Western Asset has prepared and presented this report in compliance with the Global Investment Performance Standards (GIPS®).For GIPS purposes, the firm is defined as Western Asset, a fixed-income investment manager comprised of Western Asset Management Company, Western Asset Management Company Limited, Western Asset Management Company Pte. Ltd. andWestern Asset Management Company Pty Ltd, with offices in Pasadena, New York, London, Singapore and Melbourne. Each Western Asset company is a wholly owned subsidiary of Legg Mason Inc. (“Legg Mason”), but operates autonomously andWestern Asset, as a firm, is held out to the public as a separate entity. Western Asset Management Company was founded in 1971.In February 1996, Legg Mason, Inc. acquired Lehman Brothers Global Asset Management, Ltd. and renamed the acquired entity Western Asset Management Company Limited, at which time it was incorporated into the definition of Western Asset. InSeptember 2000, Western established Western Asset Management Company (Asia) Pte. Ltd. in Singapore. The office expanded in December 2003 when Legg Mason acquired Rothschild Asset Management (Singapore) Limited, thereby forming WesternAsset Management Company (Asia), a division of Legg Mason Asset Management (Asia) Pte Ltd (“LMAMA”). In October 2006, Legg Mason reorganized its Singapore operations, and LMAMA was renamed Western Asset Management Company Pte. Ltd.(“Western Singapore”).In December 2005, Legg Mason, Inc. acquired a substantial part of Citigroup’s worldwide asset management business. Citigroup’s North American fixed income asset management business was integrated into the legal entity Western Asset ManagementCompany, and the fixed income asset management business of Citigroup Asset Management Limited (“CAM Ltd”), located in London, was integrated into Western Asset Management Company Limited. As part of the Citigroup acquisition, Western Assetopened Western Asset Management Company Pty Ltd (“Western Australia”), located in Melbourne Australia. The fixed income asset management business of Citigroup Asset Management Australia Limited was integrated into Western Australia. Similarly,the fixed income asset management business of Citicorp Investment Bank (Singapore) Limited, and its affiliates in Singapore, was integrated into Western Singapore. In 2006, the accounts from these Citigroup offices transitioned to Western Asset, at whichtime they were incorporated into the definition of the firm. The linking of the historical track records of composites previously managed by Citigroup Asset Management meet the portability requirements set forth by GIPS®.Western Asset’s retail separately managed account business is currently managed by ClearBridge Asset Management, Inc.(“ClearBridge”), a subsidiary of Legg Mason, through an arrangement whereby portfolio managers of Western Asset manage theaccounts as dual hatted employees of ClearBridge. These portfolio managers have access to Western Asset’s fixed income investment resources, expertise and investment outlook and follow Western Asset’s investment process. Western Asset is in theprocess of combining the fixed income portion of these separately managed accounts with Western Asset’s current structure.2.Both Western Asset Management Company and Western Asset Management Company Limited are registered investment advisers and are regulated by the Securities and Exchange Commission. Western Asset Management Company Limited is alsoauthorized and regulated by the Financial Services Authority in the United Kingdom. Western Singapore is registered as an investment adviser in Singapore and regulated by the Monetary Authority of Singapore and is currently undergoing registration withthe SEC. Western Australia is licensed and regulated by the Australian Financial Services and the Australian Securities & Investments Commission.The Firm has been verified for the period from January 1, 1993 through December 31, 2004.Net investment results reflect the deduction of investment advisory fees, while the gross investment results do not. Actual returns will be reduced by advisory fees and any other expenses that may be incurred in the management of an investment account.For each strategy shown, net performance results have been reduced by the amount of the highest fee charged to any Western Asset client employing that particular strategy during the period under consideration. Actual fees may vary depending on, amongother things, the applicable fee schedule and portfolio size. Western Asset’s fees are available upon request and also may be found in Part II of Western’s Form ADV.All returns are gross of withholding tax on interest and capital gains as are the indices.Investment fees have an effect on the investment results obtained by a client. For example, assume that a client places $1,000,000 under Western’s management and the firm achieves for the client a 10% compound annual return on a gross basis over tenyears. If an advisory fee of .325% of average assets under management for the ten years were charged and deducted from the returns, the resulting compound return would be reduced from 10% per year to 9.6425% per year. The ending dollar value of theaccount would be reduced from $2,593,742 to $2,510,668.The portfolios in the composites are all actual, fee-paying and performance fee-paying, fully discretionary accounts managed by the Firm for at least one full month. Investment results shown are for taxable and tax-exempt accounts and include thereinvestment of all earnings. Any possible tax liabilities incurred by the taxable accounts have not been reflected in the performance.The minimum asset size for inclusion in Western Asset’s US dollar based Core, Core Full Discretion, Long Duration, Limited Duration, Enhanced Cash, Intermediate and Corporate Composites is $25 million. The minimum asset size for inclusion in WesternAsset’s US dollar based High Yield Composite is $20 million. The minimum asset size for inclusion in Western Asset’s US dollar based TIPS Composite is $15 million. The minimum asset size for inclusion in Western Asset’s Bank Loan Composite is $10million. The minimum asset size for inclusion in Western Asset’s US dollar based Emerging Market Composite is $5 million. The minimum asset size for inclusion in Western Asset’s US dollar based Index Plus Composite is $25 million as of 1/1/2003(previously $3 million). There is currently no minimum asset size requirement for inclusion in Western Asset’s Absolute Return or Commodity Plus Composites. The minimum asset size for inclusion in US dollar based Global Multi-Sector, Global Sovereign,Global Inflation-linked, Non US Core, and Global Core Full Discretion Composites is $5 million. The minimum asset size for inclusion in the non-dollar based composites is 5 million in local currency.Additional information regarding policies for calculating and reporting returns is available upon request.The dispersion of annual returns is measured by the standard deviation of the asset-weighted portfolio returns represented within the composite. Periods with five or fewer accounts are not statistically representative and are not presented.The total return for the UK Core Composite, UK Long Duration Composite, UK Corporate Only Composite, UK High Alpha Composite and the UK Unconstrained Composite is in Sterling. The total return for the Euro Core Full Discretion Composite, EuroCorporate Composite and Global Corporate Euro Composite Hedged is in Euro. All other composite total returns are expressed in US Dollars.Futures and options may be used occasionally to hedge market exposure or add incremental value to the portfolio. At no time would the use of derivatives result in the portfolios being leveraged. Where portfolio guidelines permit, futures and options areused from time to time to implement new portfolio strategies with minimum cost to the portfolio. Multi-currency portfolios use forward foreign exchange transactions frequently to hedge currency risk.To receive a complete list and description of Western Asset’s composites and/or a presentation that adheres to the GIPS standards, please contact Veronica A. Amici at 626•844•9535 or ramici@westernasset.com.For strategies starting mid-year, the return shown in the inception year is for the composite and index since inception. All returns for strategies with inception prior to 1/1/97 are available upon request.Included in calculating the Enhanced Cash Composite’s performance is the enhanced cash portion of all accounts included in the US Index Plus Composite.All data shown is as of period-end. Past investment results are not necessarily indicative of future investment results.Composite disclosure
  • 33. Page 32This is a sub-fund (Fund) of Legg Mason Global Funds plc, an umbrella fund with segregated liability between sub-funds, established as an open-ended investmentcompany with variable capital and incorporated with limited liability under the laws of Ireland with registered number 278601. It qualifies, and is authorised in Ireland bythe Central Bank of Ireland as an undertaking for collective investment in transferable securities and is a section 264 Scheme as recognised by the Financial ConductAuthority.This document does not constitute an invitation to invest. Past performance is no guide to future returns and may not be repeated. The value of investments and theincome from them can go down as well as up and investors may not get back the amounts originally invested. The value of investments and the income from them canbe affected by changes in interest rates, in exchange rates, general market conditions, political, social and economic developments and other variable factors. Unlike abank or building society account, your money is at risk. This Fund may invest in ‘non-investment grade‘ bonds, which carry a higher degree of default risk than‘investment grade‘ bonds. This Fund may invest in emerging markets that may be less liquid and may have less reliable custody arrangements than mature markets andmay involve a higher degree of risk. The fund will invest in certain types of financial derivative instruments for efficient portfolio management, investment purposes and/orhedging. The use of these instruments involve higher levels of risk including but not limited to market risk, liquidity risk, counterparty risk, operations risk and legal risk.This Fund is offered solely to non-US investors under the terms and conditions of the Fund‘s current prospectus – please refer to the KIID and Prospectus, whichdescribe the full objective and risk factors associated with this Fund. Before investing you should carefully read the Prospectus. Copies of prospectuses, simplifiedprospectus, semi-annual and annual reports, if published, may be obtained at: BNY Mellon Investment Servicing (International) Limited, Riverside Two, Sir JohnRogerson‘s Quay, Grand Canal Dock, Dublin 2, Ireland.This document is for use by Professional Clients and Eligible Counterparties. It is not aimed at, or for use by, Retail Clients. This information has been prepared fromsources believed reliable but is not guaranteed by Legg Mason Investments (Europe) Limited and is not a complete summary or statement of all available data. Opinionsexpressed are subject to change without notice and do not take into account the particular investment objectives, financial situation or needs of individual investors.Issued and approved by Legg Mason Investments (Europe) Limited, registered office 201 Bishopsgate, London, EC2M 3AB. Registered in England and Wales, CompanyNo. 1732037. Authorised and regulated by the Financial Conduct Authority. Client Services +44 (0) 20 7070 7444.This document is for use by Asset Managers, Fund Distributors and Authorised Intermediaries. Not for use by Private Individuals.April 2013 P0336Important information