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Legg mason

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  • 1. Legg Mason Western Asset Global Multi Strategy Fund Legg Mason Funds Global Funds September 2012This document is for Asset Managers, Fund Distributors and Authorised Intermediaries. Not for use by Private Individuals.
  • 2. Global fixed Global value income investing Legg Mason’s Investment Capabilities Global Emerging quantitative markets  A diversified global asset equity management firm, founded in 1899  Total assets: £405 billion  Approximately 3,100 employees worldwide Global equity Fundamental value-based  Offices in 31 locations investing Small-cap Quality- equities: focused US, Europe, US equity Global Global investing alternative fund- of-funds Source: Legg Mason, as at 31 July 2012.Page 1
  • 3. Global breadth and local depth Harnesses the 1 Pasadena 2 New York 3 São Paolo 4 London 5 Dubai $182.0bn $164.1bn $17.5bn $40.2bn Total staff: 2 experience of a Investment professionals: 49 Investment professionals: 25 Investment professionals: 17 Investment professionals: 16 Total staff: 577 Total staff: 96 Total staff: 73 Total staff: 74 global manager dedicated to fixed 4 income investing 1 2 8 5 7  Managed by Western Asset, a subsidiary of Legg Mason 6  Total assets in fixed income: $445.9billion  8 countries across 5 3 continents 9  Total staff: 889 6 Singapore 7 Hong Kong 8 Tokyo 9 Melbourne $3.8bn Total staff: 2 $23.0bn $15.3bn Investment Investment Investment professionals: 3 professionals: 3 professionals: 5 Total staff: 17 Total staff: 16 Total staff: 16 Source: Western Asset, as at 30 June 2012. Assets under management in USD (billions).Page 2
  • 4. Why are  Maximise returns strategic bond  Minimise downside funds popular?  Opportunity to perform throughout the market cycle  Yield  Diversification  Outsource asset allocation But to be truly Strategic, you need to be Global…Page 3
  • 5. Domestic bond market by nationality of issuer ($bn issuance outstanding, 2011) The UK 30000 bond market is tiny when compared to the rest of the world 15000 0 US Japan EM France Italy Germany UK Spain Canada Source: Bank for International Settlements, as at 31 December 2011.Page 4
  • 6. Largest funds in the IMA Strategic Bond Sector by AUM* But not all 3.8 1.6 0.9 0.7 strategic 100 EM bond funds Europe** are truly global 27.4 15.6 20.1 30.2 23.73 9.4 12.2 North America 17.5 13.8 13.8 % UK 26.9 51.8 48.4 51.4 45.1 6.98 0 Fund A Fund B Fund C Fund D GMS Fund *Source: Source for largest funds by AUM is Lipper Feri as at 31 May 2012. Source for breakdowns is Funds Library, as at 31 May 2012. **Developed Europe ex UK. For illustrative purposes only.Page 5
  • 7. Annual Sector Returns 2002-2011 Across Global Bond Sectors Highest returns Flexibility is 2002 Global Govt 2003 2004 EMD Local Govt 2005 2006 2007 2008 2009 2010 EMD Local Govt 2011 Global High Yield EMD Govt (USD) EMD Local Govt (USD) UK Gilts Global High Yield UK Gilts the key driver Inflation Linked Global Govt Bonds EMD Govt (USD) (USD) Global Govt Inflation Linked Sterling Non-Gilts Global High Yield Global Govt Inflation Linked Global Govt Bonds (USD) EMD Govt (USD) Global High Yield Global Govt Inflation Linked of diversified Global Corporate EMD Local Govt (USD) Global High Yield UK Gilts EMD Govt (USD) Global Govt Bonds Mortgages EMD Local Govt (USD) EMD Govt (USD) returns in EMD Govt (USD) Global Govt Bonds EMD Govt (USD) EMD Local Govt (USD) Global Corporate 0-3mth US T-bills Global Corporate Sterling Non-Gilts Sterling Global Govt Global Govt Global Govt Sterling Global Govt Global Govt 0-3mth US T-bills Mortgages UK Gilts global fixed Non-Gilts Mortgages Inflation Linked Bonds Global Corporate Mortgages Inflation Linked Global Govt EMD Govt (USD) Non-Gilts EMD Local Govt Inflation Linked Sterling Global Corporate Bonds Mortgages Bonds (USD) Non-Gilts income UK Gilts 0-3mth US T-bills Sterling Non-Gilts Global High Yield Mortgages UK Gilts Global Govt Inflation Linked Mortgages Global Corporate Global Govt Global Govt 0-3mth US T-bills Mortgages UK Gilts 0-3mth US T-bills Global Corporate Global High Yield Inflation Linked Bonds Sterling Global Govt Global High Yield UK Gilts Mortgages Global Corporate Global High Yield EMD Govt (USD) 0-3mth US T-bills 0-3mth US T-bills Non-Gilts Inflation Linked Global Govt Sterling EMD Local Govt Sterling Non-Gilts 0-3mth US T-bills UK Gilts Global High Yield UK Gilts 0-3mth US T-bills Bonds Non-Gilts (USD) UK Gilts Sterling Non-Gilts Lowest returns Source: Bloomberg, as at 31 December 2011. 0-3mth US Treasury Bills: Merrill Lynch US Treasury Bills 0-3 Months, EMD Local: JP Morgan Global Bond Index Emerging Market Local Unhedged, EMD (USD): Merrill Lynch USD Emerging 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): Merrill Lynch 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).Page 6
  • 8. The Legg Mason Global Multi Strategy Bond FundPage 7
  • 9. Leverages Western Assets global fixed income capabilities Investment Approach  Long Term GMS Portfolio - 1 2 8  Value Orientation Ian Edmonds 7  Diversified Strategies 3 9 Investment Emerging Mortgage Global High Yield Backed Grade Credit Markets SecuritiesPage 8
  • 10.  Monthly Income – current distribution yield of 5.0% Legg Mason  Focuses on opportunities across all global fixed income sectors Global  Employs active interest rate management Multi Strategy Fund  Issue selection key contributor to returns  Leverages the expertise of Western Asset Management  Onshore AUM: £612m  Strategy AUM: £2.7bn  Strategy AUM: £2.7bn Source: Legg Mason, as at 31 July 2012.Page 9
  • 11. Truly Active Approach: Flexibility to Increase or Reduce Exposure to Global Fixed Income Sectors as Economic Conditions Change Key to Generating Returns Dynamic rotation 100 Governments/Agencies between fixed 90 Inflation-Linked 80 income sectors Cash Percent of Portfolio (Market Value) 70 MBS/ABS key to the 60 Investment-Grade Corporates Fund’s 50 investment 40 High-Yield approach 30 20 10 Emerging Markets 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: Western Asset. As of 31 Jul 12 Data as at 31 July 2012.Page 10
  • 12. Sector breakdown Country breakdown Cash 9% Cash 9% Asset Backed High Yield Diversified 1% Emerging 24% Other 13% US 29% Market 7% country and Residential Mortgage Other sector Backed 7% Emerging 9% coverage Investment Grade 14% Russia 4% Mexico 4% UK 7% Emerging Market Investment Brazil 7% Grade 23% Government Eurozone 15% 22% Credit rating breakdown Currency breakdown Cash Key Portfolio Statistics 9% AAA 23% British Pound 92 Yield 5.00% Brazilian Real 2 Duration 4.8 yrs Mexican Peso 2 <BBB 30% AA US Dollar 2 1% Average Rating A Malaysian Ringgit 1 A Peruvian Sol 1 12% Indian Rupee 1 South African Rand 1Data as at 31 July 2012 Euro -2 BBB 25%Page 11
  • 13. Rolling ten year performance since inception from 30 August 2002 to 30 August 2012 – Based on the Offshore fund in US Dollars Long term Legg Mason Western Asset Global Multi Strategy Fund - Class A Distr. (D) USD performance of 25 the strategy 20 19.90 10/10 +ve Years 15 13.74 Percent 11.82 11.06 10 7.52 6.97 5.53 5 3.63 3.25 0.94 0 Sep 02 - Sep 03 - Sep 04 - Sep 05 - Sep 06 - Sep 07 - Sep 08 - Sep 09 - Sep 10 - Sep 11 - Sep 03 Sep 04 Sep 05 Sep 06 Sep 07 Sep 08 Sp 09 Sep 10 Sep 11 Sep 12 Source: Legg Mason as at 31 July 2012. NAV to NAV with gross income reinvested without initial charges but reflecting annual management fees, based in USD for class A shares. *Fund launched on 30/08/2002. Past performance is not an indicator of future results and may not be repeatedPage 12
  • 14. Cumulative gross performance and income generation since inception (in GBP) Strong % Distribution Yield % Legg Mason Global Multi Strategy Bond Fund (A) 30 performance 25 returns and 20 consistent 15 yield 10 generation 5 0 -5 -10 -15 -20 Source: Legg Mason as of 31 July 2012, in Sterling. Performance is calculated on a NAV to NAV basis. Performance calculations include reinvested dividends, without deduction of withholding tax, and the deduction of the Total Expense Ratio over the calculated period. Sales charges, taxes and other locally applied costs to be paid by an investor have not been deducted. Past performance is not an indicator of future results and may not be repeatedPage 13
  • 15. The Global Multi Sector Composite has been used to demonstrate the longer term track record of the manager Risk/Reward Since Inception (31 Oct 1996) to 30 June 2012 Exceptional 12 long-term US$ Emerging Markets risk/reward 10 GMS Composite Global HY (US$ hedged) profile Reward (Annualised Return %) 8 GMS Internal Benchmark* US Mortgages Global Credit (US$ hedged) 6 Global Aggregate (US$ hedged) 4 US Equities Commodities 3-Month US$ LIBOR 2 0 0 2 4 8 6 10 12 14 16 18 Risk (Standard Deviation %) Source: Barclays Capital, JP Morgan and Bloomberg as of 3130 Jun 12 Source: Bloomberg, Merrill Lynch, JP Morgan, HSBC, Barclays Capital. As of July 2012, in US Dollars. The data has been used to demonstrate the longer term track record of the investment manager in managing the Legg Mason Index-2% Issuer Strategy *From 1/10/05, the current benchmark is comprised of 50% Barclays Capital Global Aggregate Index; 25% Barclays Capital High Yield Global Multi Bond Fund. There are differencesFrom 1/1/02 tothe above composite and the Legg MasonAggregate Index; 25% Lehman Brothers Fund, Cap; 25% JP Morgan EMBI+ Index. between 30/9/05 the benchmark was comprised of 50% Lehman Global Global Multi Strategy Bond including differences in the Morgan EMBI+ Index. Prior to that, the benchmark was comprised of 50% Citigroup World Government Bond Index Unhedged; fees and High Yield Index; 25% JP number of holdings, strategy, the amount of assets under management, cash flows, expenses, and applicable regulatory 25% JP Morgan EMBI+ Index. 25% Lehman Brothers High Yield Index; requirements, including investment and borrowing restrictions. The past performance of the above composites moretherefore, not indicative of the future performance of the Legg Mason Global Please see the performance disclosure for is, information Multi Strategy Bond Fund. Past performance is not an indicator of future results and may not be repeated.Page 14
  • 16. Global and flexible to tap into diversified sources of incomePage 15
  • 17. Global bonds offer access to sectors with higher yielding opportunities 10.0 Diversify and 9.3 8.2 maximise 7.9 sources of 5.9 income from 5.5 % 4.6 higher yielding 4.2 3.7 4.1 3.6 4.0 bond sectors 2.0 2.4 1.8 1.5 0.9 0.0 Source: Bloomberg, as at 29 June 2012Page 16
  • 18. Global bonds offer access to countries with higher yielding opportunities 12 Diversify and maximise 9 sources of 8.4 income from 7.6 7.5 7.3 6.4 higher yielding 6.2 % 5.5 5.2 bond sectors 4.3 4.9 3.4 3.5 0 Source: JPM GBI-EM Global Diversified, As of 6 July 2012Page 17
  • 19. Ability to opportunistically invest in Emerging Market bonds provide diversified sources of income and higher yield Sector US Corporate Bonds EM Corporate Bonds EM USD Sovereign Bonds Rotation: US 1200 Dollar 1000 1012 944 Corporate Advantage 800 Average Spread (bps) 607 593 600 463 400 297 270 201 176 200 0 Investment-Grade BB B Quality Source: Barclays Capital, JPMorgan. As of 31 Jul 12 Source: Barclays Capital/JPMorgan, as at 31 July 2012Page 18
  • 20. This is now the seventh quarter in a row of balance sheet improvement – companies continue to delever and liquidity is near record highs High-Yield Coverage LTM EBITDA Margins Corporate 5.5 18 17 Credit 4.5 3.97 16 Percent 15 Fundamentals 3.5 3.12 14 13 Still Improving 2.5 12 1999 2001 2003 2005 2007 2009 2011 1999 2001 2003 2005 2007 2009 2011 Leverage Cash/Debt 5.0 20 4.07 4.28 3.72 15 4.0 Percent 10 2.83 3.0 5 2.0 0 1999 2001 2003 2005 2007 2009 2011 1999 2001 2003 2005 2007 2009 2011 Source: Morgan Stanley, as at 31 March 2012. Note: Approximately 200 public high-yield issuers.Page 19
  • 21.  Focuses on opportunities across all global fixed income sectors Legg Mason  Volatility over 3 years: 4.98% Global  Net distribution yield: 5.00% Multi Strategy Fund - Summary  10 out of 10 years’ positive returns for the strategy*  Leverages the expertise of Western Asset Management  Maximum flexibility to be truly strategic  Strategy AUM: £2.7bn This 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 reliable custody arrangements than mature markets and may involve a higher degree of risk. Unlike a bank or building society account, your money is at risk. The Legg Mason Western Asset Global Multi Strategy Bond Fund is a sub-fund of Legg Mason Global Fund plc, an umbrella fund established an investment company with variable capital, and is authorised in the UK by the Financial Services Authority as an undertaking for collective investment in transferable securities. Source: Legg Mason, as at 31 July 2012. *Based on annual performance from Sep to Sep every year since launch on 20 August 2002.Page 20
  • 22. AppendixPage 21
  • 23. Biography Ian Edmonds Portfolio Manager, GMS Ian has been part of Western Asset since 1996 when it was acquired from Lehman Brothers, and has been involved with the Global Multi Strategy Bond Fund since its inception. His research focus is on the European high yield market, and he is a member of Western Assets Global Credit Committee which helps determine the company’s credit strategies. Ian started his career in 1990 at Bacon & Woodrow as a trainee Actuary before joining Lehman Brothers Global Asset Management in 1994 as a research analyst.Page 22
  • 24. Dedicated sales and client service team members: Contact details Adam Gent Dan Churchouse Head of UK Sales Business Development Manager agent@leggmason.com dchurchouse@leggmason.com 020 7070 7374 020 7070 7497 Available on all major platforms, find out more at: www.leggmason.co.uk www.globalbondmasters.co.uk Or contact UK Sales Support & Client Services on: t: 020 7070 7444 e: clientserviceuk@leggmason.comPage 23
  • 25. Important InformationPage 24
  • 26. Composite disclosure As of 31 March 2012 Global Multi-Sector (USD Unhedged) Composite Composite Inception: 11/1/96 | Composite Creation: 11/1/96 No. of Gross Total Net Total Benchmark Gross Total Benchmark Total Internal Mkt. Value Percentage of Firm Assets Accts Return Return Total Return 3-Yr St Dev 3-Yr St Dev Dispersion (US$mil) Firm Assets (US$mil) 2002 1 11.29% 10.85% 11.62% 6.49% 6.10% -na- $29 0.03% $112,087 2003 1 23.44% 22.96% 20.53% 6.99% 6.33% -na- $95 0.06% $148,333 2004 1 13.05% 12.60% 10.41% 6.69% 5.87% -na- $174 0.09% $197,837 2005 1 3.74% 3.32% 1.28% 5.83% 5.47% -na- $316 0.13% $249,233 2006 1 7.75% 7.32% 8.66% 4.93% 4.20% -na- $374 0.07% $510,172 2007 3 7.79% 7.36% 6.94% 4.02% 3.49% -na- $1,349 0.22% $621,493 2008 4 -13.71% -14.06% -7.00% 8.86% 8.03% -na- $1,673 0.33% $505,660 2009 4 32.92% 32.41% 23.29% 11.44% 9.21% -na- $2,133 0.44% $482,218 2010 3 10.16% 9.72% 9.44% 11.91% 9.60% -na- $2,436 0.54% $453,909 2011 3 3.74% 3.32% 6.42% 8.94% 6.46% -na- $2,635 0.59% $443,140 YTD2012 4 3.95% 3.84% 2.78% 8.32% 6.18% -na- $2,800 0.63% $446,691 Description: 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. 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 for the composite is a blend of the Barclays Capital Global Aggregate Bond Index (50%), the JP Morgan Emerging Markets Bond Index Plus (EMBI+) (25%), and the Barclays Capital U.S. High Yield 2% Issuer Cap Bond Index (25%). The Barclays Capital Global Aggregate Bond Index provides a broad-based measure of the global investment-grade fixed income markets. The JP Morgan Emerging Markets Bond Index Plus (EMBI+) tracks total returns for traded external debt instruments in the emerging markets. The instruments include external-currency-denominated Brady bonds, loans and Eurobonds, as well as US dollar denominated local markets instruments. The Barclays Capital U.S. High Yield 2% Issuer Capped Bond Index is the 2% Issuer Cap component of the Barclays Capital U.S. Corporate High Yield Bond index. The Barclays Capital U.S. High Yield Bond Index covers the universe of fixed rate, 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 Yield Index; 25% JP Morgan EMBI+ Index. Prior to 1/1/2002, the Custom Index was comprised of 50% Citigroup WGBI, Unhedged; 25% Lehman Brothers High Yield Index; 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, 2010.Page 25
  • 27. Composite disclosure Western 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. and Western 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 and Western 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. In September 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 Western Asset 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 Management Company, 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 Asset opened 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 which time 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 the accounts 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 the process 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 also authorized 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 with the 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, among other 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 ten years. 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 the account 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 the reinvestment 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 Western Asset’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 $10 million. 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, Euro Corporate 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 are used 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.Page 26
  • 28. Important information This 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 investment company with variable capital and incorporated with limited liability under the laws of Ireland with registered number 278601. It qualifies, and is authorised in Ireland by the Central Bank of Ireland as an undertaking for collective investment in transferable securities and is a section 264 Scheme as recognised by the FSA. 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 the income 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 can be affected by changes in interest rates, in exchange rates, general market conditions, political, social and economic developments and other variable factors. Unlike a bank 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 and may involve a higher degree of risk. The fund will invest in certain types of financial derivative instruments for efficient portfolio management, investment purposes and/or hedging. 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, which describe the full objective and risk factors associated with this Fund. Before investing you should carefully read the Prospectus. Copies of prospectuses, simplified prospectus, semi-annual and annual reports, if published, may be obtained at: BNY Mellon Investment Servicing (International) Limited, Riverside Two, Sir John Rogerson‘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 from sources believed reliable but is not guaranteed by Legg Mason Investments (Europe) Limited and is not a complete summary or statement of all available data. Opinions expressed 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, Company No. 1732037. Authorised and regulated by the Financial Services 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. September 2012 P0183Page 27