Legg mason cll 112011-final

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Legg mason cll 112011-final

  1. 1. Asian Debt: From Peripheral toMainstream AssetChia-Liang Lian, Head of Investment Management,Asia (A i (ex- J Japan), W t ) Western AAsset, CFA tCitywire Pan-European ConferenceBerlin, 16-18 November 2011B li 16 18 N bThis document is for Asset Managers, Fund Distributors and Authorised Intermediaries. Not for use by Private Individuals.
  2. 2. About Western Asset ManagementFocus• Fixed-income• Active management• A wholly owned subsidiary of Legg MasonStatistics (as of September 30, 2011)• 902 staff members• 530 client relationships• $433 billi under management $433.5 billion dProduct Interests• T t l Return Unconstrained (TRU) B d Total R t U t i d Bond• Global Multi-Sector• Bank Loans• Emerging Markets – Sovereign, local, credit• Long Duration Source: Western Asset, as at 30 September 2011. Page 1 Assets under management in USD (billions).
  3. 3. Asian Debt: From P i h l T M i tA i D bt F Peripheral To Mainstream A Asset t Page 2
  4. 4. Asian Bonds: 3 Reasons to be Invested in Asia1. The world is becoming less G-7 centric2. Asian bonds remain underinvested in international bond portfolios3. Asian currencies outlook remains supportive particularly when it has a growth and yield advantage over developed markets Page 3
  5. 5. 1. The World is Becoming Less G7-CentricAsia is characterised by strong credit quality and strong fundamentals particularly relative to Westerneconomies G7 Is Now Less Dominant Than In The Past 70 70 Percent of World GDP (%) 65 65 60 60 W 55 55 50 50 45 45 70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 01 02 03 04 05 06 07 08 09 10 Asias Growing Influence In The Global Economy 20 20 Percent of World GDP (%) ) 16 16 12 12 8 8 o 4 4 0 0 70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 01 02 03 04 05 06 07 08 09 10 Source : World Bank. As of December 2010. Page 4
  6. 6. 1. The World is Becoming Less G7-CentricAsia and Developed Markets Sovereign Rating Trajectories Diverge Asia Developed Markets 2001 2011 2001 2011 China BBB AA- Canada AA+ AAA Hong Kong A+ AAA France AAA AAA India BB BBB BBB- Italy AA A Indonesia CCC BB+ Germany AAA AAA Korea BBB+ A Japan AA AA- Malaysia BBB A- United Kingdom AAA AAA Philippines BB+ BB United States AAA AA+ Singapore AAA AAA Portugal AA BBB- Taiwan AA AA- Ireland AAA BBB+ Thailand BBB- BBB+ Greece A CC Spain AA+ AA- Source: Bloomberg, as of 10 November 2011. Page 5
  7. 7. 1.The World is Becoming Less G7-CentricThe Pick-up In Asian Yields Has Significantly Increased Since The Financial Crisis 7.0 US 5-year Government Bond vs. HSBC ALBI 6.5 6.0 5.5 HSBC Asian Local Bond 5.0 50 Overall Average Yield 4.5 4.0 Yield (%) 3.5 d US 5-year Government 3.0 Bond Yield 2.5 2.0 1.5 1.0 0.5 0.0 Sep 05 Mar 06 Sep 06 Mar 07 Sep 07 Mar 08 Sep 08 Mar 09 Sep 09 Mar 10 Sep 10 Mar 11 Sep 11 Source: Bloomberg, as of 30 September 2011 Page 6
  8. 8. 1. The World is Becoming Less G7-CentricForeign Reserves Serve as Self Insurance for Asia 2001 September 2011 450 4500 389 400 4000 350 3500 3202 303 300 276 278 3000 234 USD billion 250 2500 USD billion D 200 170 2000 150 121 126 1500 112 102 100 77 1000 44 50 33 28 500 208 0 0 India T aiwan South Korea Singapore Hong Kong Thailand Malaysia China (Right Scale) Source: Bloomberg, as of 30 September 2011. Page 7
  9. 9. 1. The World is Becoming Less G7-CentricAsian Countries have Sound Government Finances Public Debt* (% of GDP) Hong Kong China Indonesia T aiwan T hailand India Malaysia Philippines Spain United States United Kingdom Portugal Ireland Italy Greece Japan 0 20 40 60 80 100 120 140 160 180 200 220 Percent of GDP (%) *Based on 2010 estimates. Page 8 Source: CIA World Factbook, accessed 6 October 2011.
  10. 10. 1. The World is Becoming Less G7-Centric On Monetary Policy, Asia is no Longer a “Price Taker” China India Indonesia Korea US 18 18 17 17 16 16 15 15 14 14 13 13 12 12 11 11 Polic Rate (%) Polic Rate (%) 10 10 9 9 cy cy 8 8 7 7 6 6 5 5 4 4 3 3 2 2 1 1 0 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source: JP Morgan, Bloomberg, as of 11 November 2011. Page 9
  11. 11. 2. Asian Bonds Remain Underinvested in International Bond PortfoliosAsia Tightening Cycle is Probably Behind Us Real GDP Growth Consumer Price Inflation 12 8 11 7 10 6 Percent Ov Year Ago (%) Percent Over Year Ago (%) 9 5 8 7 4 ver 6 3 5 2 4 1 3 2 0 00 01 02 03 04 05 06 07 08 09 10 11 12 00 01 02 03 04 05 06 07 08 09 10 11 12 Note: Real GDP growth forecast begins from 3Q11 onwards. Consumer Price Inflation (CPI) forecast begins from 4Q11. Dotted lines denote forecast data. Page 10 Source: JPMorgan, as at 30 September 2011.
  12. 12. 2. Asian Bonds Remain Underinvested in International Bond PortfoliosCurrency Performance30 September 2010 – 30 September 2011 Chinese Renminbi CNY 4.9 Taiwanese Dollar TWD 2.5 Singapore Dollar SGD 0.7 Philippine Peso PHP 0.2 Hong Kong Dollar HKD -0.3 Indonesian Rupiah IDR -0.5 -0 5 Thai Baht THB -2.7 Malaysian Ringgit MYR -3.2 South Korean Won KRW -3.2 Indian Rupee INR -8.2 Source: Bloomberg, as at 30 September 2011. Page 11
  13. 13. 2. Asian Bonds Remain Underinvested in International Bond PortfoliosSingapore Dollar Nominal Effective Exchange Rate 120 118 116 114 112 110 SG NEER 108 Top Band GD 106 Mid Point 104 102 100 98 96 Bottom Band 94 Sep 01 Sep 02 Sep 03 Sep 04 Sep 05 Sep 06 Sep 07 Sep 08 Sep 09 Sep 10 Sep 11 Source: Bloomberg. As of 30 September 2011 Page 12 Information shown above is for illustrative purposes only and is not intended to represent the processes, yields or performance for any specific investment.
  14. 14. 2. Asian Bonds Remain Underinvested in International Bond PortfoliosUS Dollar vs. Chinese Yuan USDCNY 3 Month At-The-Money (ATM) Implied Volatility 6 5 4 3 2 1 0 Sep 10 Oct 10 Nov 10 Dec 10 Jan 11 Feb 11 Mar 11 Apr 11 May 11 Jun 11 Jul 11 Aug 11 Sep 11 Realized Appreciation Over Past 3 Months (1 Month Lag) Implied Appreciation 12 10 8 6 Percent (%) 4 2 0 -2 -4 Jun 10 Aug 10 Oct 10 Dec 10 Jan 11 Mar 11 May 11 Jul 11 Sep 11 Source: Bloomberg. As of 30 September 2011. Page 13
  15. 15. 3. Asian Currencies Outlook Remains Supportive Particularly When theyhas a Growth and Yield Advantage over Developed MarketsShare of Asia in Global Benchmarks Asia 100% 90% 80% 70% 60% ercent Pe 50% 40% 30% 20% 16.1 7.8 10% 2.4 0.6 0% Global GDP MSCI Global Barclays Aggregate Citi WGBI Source: JPMorgan, Morgan Stanley, Barclays Capital and Citi., as at 30 September 2011. Page 14
  16. 16. 3. Asian Currencies Outlook Remains Supportive Particularly When theyhas a Growth and Yield Advantage over Developed MarketsAsian Bonds: High Returns with Contained Volatility Returns vs. Volatility (USD Unhedged) 14 12 JPMorgan GBI-EM Local Markets 10 Reward (annualiized return %) JPMorgan EMBI+ Barclays Capital US HSBC Asian Local Bond 8 High Yield Barclays Capital Barclays Capital Gl b B l C it l Globall US Agg Agg JPMorgan CEMBI Broad 6 US T reasuries 4 US T-Bills (1-3mth) 2 S&P 500 0 0 2 4 6 8 10 12 14 16 18 20 Risk (standard deviation %) *Source: Bloomberg, from September 2005 to September 2011 Page 15
  17. 17. Volatility – One Key Consideration Amid A Fluid External Environment Equity* Debt* 75% 70% 65% 60% ualized) 55% 50% 3-month Rollin Volatility (Annu 45% 40% 35% ng 30% 25% 20% 15% 10% 5% 0% Jan 08 Jul 08 Jan 09 Jul 09 Jan 10 Jul 10 Jan 11 Jul 11 *Equity represented by the MSCI EM Far East ex-Japan Index, Debt represented by the HSBC Asian Local Bond Index. Page 16 Source: Morgan Stanley, HSBC. As of 18 Oct 11
  18. 18. Summary• Asian local bond markets offer significant carry and are supported by strong fundamentals and credit quality• We believe Asian currencies are on a long term appreciation path• We believe Asian bonds will grow into a core asset class Page 17
  19. 19. Legg ML Mason W t Western Asset Asian Opportunities Fund: A tA i O t iti F dPortfolio Performance & Positioning Page 18
  20. 20. Legg Mason Western Asset Asian Opportunities FundPerformance Returns as at 31 October 2011Annualised (USD) Legg Mason Western Asset Asian Opportunities Fund  ‐ Class A (Dist) D USD HSBC Asian Local Overall Index 16 14.76 14 12 11.33 10.20 10 9.48 9.61 8.31 8 % 6.62 6.00 6 4.73 4.26 4.37 4 3.26 2 0 1 Month YTD 1 Year 2 Years 3 Years Since Inception       02 July 2008 Source: Legg Mason. As at 31 October 2011. Page 19 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. Based in USD for Class A (Dist) D Past performance is no guide to future returns and may not be repeated.
  21. 21. Legg Mason Western Asset Asian Opportunities FundRelative Duration and Yield Curve Positioning Portfolio vs Bench Difference (LOCAL Debt) <2yrs 2-4yrs 4-6yrs 6-8yrs 8-10yrs 10-15yrs Total Korea -0.07 0.07 0.32 0.00 -0.02 0.02 0.00 -0.08 0.08 0.15 Singapore -0.03 -0.05 -0.08 -0.14 0.30 0.27 0.27 Hong Kong -0.04 -0.10 -0.13 -0.21 0.03 0.02 -0.43 Taiwan 0.01 0.03 -0.05 0.01 -0.06 -0.15 -0.21 Sub Total -0.14 0.20 -0.26 -0.36 0.26 0.07 -0.22 Malaysia M l i -0.02 0 02 -0.07 0 07 0.11 0 11 0.00 0 00 0.08 0 08 0.11 0 11 0.20 0 20 Thailand -0.02 -0.01 -0.06 -0.02 -0.07 0.04 -0.13 Sub Total -0.04 -0.08 0.05 -0.02 0.01 0.16 0.07 India 0.00 -0.05 -0.04 -0.02 0.08 0.01 -0.01 - China (Onshore) ( ) -0.03 -0.07 0.00 -0.08 -0.07 -0.10 -0.35 - China (Offshore) 0.01 0.11 -0.01 0.00 0.07 0.00 0.18 Sub Total -0.02 -0.01 -0.04 -0.10 0.09 -0.09 -0.18 Philippines -0.01 0.05 -0.01 0.03 -0.02 0.03 0.07 Indonesia 0.01 0.05 -0.06 -0.20 0.45 -0.10 0.14 Pakistan P ki t 0.00 0 00 0.00 0 00 0.00 0 00 0.00 0 00 0.00 0 00 0.00 0 00 0.00 0 00 Sri Lanka 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Vietnam 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Emerging Market Total 0.01 0.10 -0.07 -0.17 0.42 -0.08 0.21 Total (Local Debt) ( ) -0.20 0.21 -0.32 -0.65 0.78 0.07 -0.12 USD debt 0.00 0.15 -0.10 0.28 -0.54 -0.02 -0.18 Grand Total -0.20 0.36 -0.42 -0.37 0.25 0.04 -0.30 *Benchmark is represented by the HSBC Asia Local Bond Index (USD Unhedged). Page 20 Source : Western Asset. As of 30 September 2011.
  22. 22. Legg Mason Western Asset Asian Opportunities FundCurrency Allocation as at 31 October 2011 Benchmark* (%) Portfolio (%) South Korea 16.5 South Korea 17.0 Singapore 15.0 Singapore 16.2 Hong Kong 13.3 Hong Kong 11.9 USD 0.0 USD -7.0 Taiwan 5.6 Taiwan 4.4 China 9.4 China 14.4 Malaysia 9.3 Malaysia 11.0 Thailand 7.7 Thailand 7.1 India 6.3 India 6.4 Indonesia 12.5 Indonesia 14.7 Philippines 4.5 Philippines 5.1 EUR 0.0 EUR -1.2 Benchmark Benchmark* Portfolio 6 5.5 5.3 ontribution (Years) 5 4 3 2 0.9 09 0.9 1.1 09 11 0.8 1 0 1.0 Duration Co 0.7 0.6 1 0.2 0.5 0.2 0.4 0.2 0.5 0.7 0.4 0.3 0.4 0.3 0.3 0.4 0 -0.1 -1 South Singapore Hong USD Taiwan China Malaysia Thailand India Indonesia Philippines Total Korea Kong Page 21 *Benchmark is represented by the HSBC Asia Local Bond Index (USD Unhedged) Differences in total may be due to rounding. Source: Western Asset as of 31 October 2011.
  23. 23. Legg Mason Western Asset Asian Opportunities FundSector Allocation as at 31 October 2011 Benchmark* (%) Portfolio (%) Sovereign So e e g 84.1 Sovereign g 65.9 Supranational Supranational 0.3 Agency Agency 4.6 Derivatives Derivatives -7.3 Corporate 15.9 Corporate 24.2 Cash & FX Cash & FX 12.2 Benchmark Benchmark* Portfolio 6 5.5 5.3 ontribution (Years) 4.7 4.7 5 4 3 2 1.3 0.8 1 0.3 03 Duration Co 0.0 0.0 0 -1 -1.1 -2 Sovereign Supranational Agency Derivatives Corporate Cash & FX Total *Benchmark is represented by the HSBC Asia Local Bond Index (USD Unhedged) Page 22 Differences in total may be due to rounding. Source: Western Asset as of 31 October 2011.
  24. 24. Legg Mason Western Asset Asian Opportunities FundCredit Quality Allocation as at 31 October 2011 Benchmark* (%) Portfolio** (%) AAA 17.9 AAA 11.4 AA 15.9 AA 2.1 A 34.5 A 34.5 BBB 6.4 BBB 8.1 <BBB 17.0 <BBB 23.8 NR 8.4 NR 7.9 Cash 0.0 Cash 12.2 Benchmark* Portfolio 6 5.5 5.3 ontribution (Years) 5 4 2.8 3 1.7 2 1.0 1.2 0.9 1.1 1.5 1 0.4 04 0.5 05 0.4 0.3 04 03 Duration Co 0.0 0.0 0 -1 -2 -1.0 AAA AA A BBB <BBB NR Cash Total *Benchmark is represented by the HSBC Asia Local Bond Index (USD Unhedged). Ratings for government bonds are based on the sovereign rating of Page 23 the country of issuer where S&P ratings are not available. **Ratings are based on S&P only. Ratings on derivatives are based on country ratings. Differences in total may be due to rounding. Source: Western Asset as of 31 October 2011.
  25. 25. Asian Regional Outlook – A Shelter Amid Global Vagaries?Outlook• Recently, most Asian central banks’ concerns have shifted from inflation to slowing global growth• C t l b k are lik l to pause and act cautiously iin th coming months Central banks likely t d t ti l the i th• Continued loose monetary policy in the US, Europe and Japan will continue to benefit Asian economies and financial markets over the longer term• Asian currencies will continue to appreciate at a moderate pace over the longer termStrategy• Maintain exposure to Asian currencies as long as Asia has a growth and yield advantage• Maintain corporate bond exposure by selectively buying issues with compelling valuationsRisk Considerations• Trade protectionism• Failure to rebalance sources of growth• Policy slippage under extreme market conditions y pp g• European contagion The above reflects current opinions of Western Asset Management as of 21 October 2011. The views expressed are opinions of the portfolio managers as of the date of this Page 24 document and are subject to change based on market and other conditions and may differ from other portfolio managers or of the firm as a whole. These opinions are not intended to be a forecast of future events, a guarantee of future results or investment advice.
  26. 26. AppendixA di Page 25
  27. 27. South Korea South Korea Government Yields 5.0 Yield to Maturity (%) 4.5 ( 30 Jun 11 4.0 30 Sep 11 3.5 Y 3.0 1yr 2yr 5yr 10yr 20yr Maturity (Years) South Korea Government Yield Changes from 30 Jun 11 to 30 Sep 11 10 3 0 Yield Changes (bps) -10 -20 -12 -30 -31 31 d -32 -33 -40 -50 1yr 2yr 5yr 10yr 20 yr Source: Bloomberg, as at 30 September 2011. Page 26 26
  28. 28. Singapore Government Singapore Government Yields 3.5 3.0 %) Yield to Maturity (% 2.5 25 2.0 30 Jun 11 1.5 30 Sep 11 1.0 Y 0.5 0.0 1yr 2yr 5yr 10yr 20yr Maturity (Years) Singapore Government Yield Changes from 30 Jun 11 to 30 Sep 11 0 -20 Yield Changes (bps) -22 -40 -29 -60 -46 C -80 -69 -100 -88 1yr 2yr 5yr 10yr 20 yr Source: Bloomberg. As of 30 September 2011. Page 27
  29. 29. Indonesia Indonesian Government Yields 10 9 Yield to Maturity (%) ( 8 30 Jun 11 7 30 Sep 11 6 Y 5 1yr 2yr 5yr 10yr 20yr Maturity (Years) Indonesian Government Yield Changes from 30 Jun 11 to 30 Sep 11 30 13 0 Yield Changes (bps) -30 -26 -60 -45 -51 d -90 -99 -120 1yr 2yr 5yr 10yr 20yr Source: Bloomberg. As of 30 September 2011. Page 28
  30. 30. India India Government Yields 9.0 8.8 Yield to Maturity (%) 8.6 29 Sep 11 8.4 8.2 82 30 Jun 11 Y 8.0 1yr 2yr 4yr 5yr 7yr 10yr Maturity ( y (Years) ) 5 Year Swap Spread* 5 Year Swap Rate* 30 0 -30 Basis Points -60 -90 -120 -150 -180 Sep 10 Oct 10 Nov 10 Dec 10 Jan 11 Feb 11 Mar 11 Apr 11 May 11 Jun 11 Jul 11 Aug 11 Sep 11 Source: Bloomberg. As of 30 September 2011. Page 29 *From 4 Jan 11 to 25 Apr 11, the 6 Year India Government Bond Generic Bid Yield was used as a proxy as for the 5 Year India Government Bond Generic Bid Yield.
  31. 31. Biographies – Investment TeamCHIA LIANG LIAN (18 Years’ Experience, joining 1 October 2011)Chia-Liang has over 18 years of experience, he joins Western Asset from PIMCO in Singapore, where he has spent the last five years as Head of Emerging Asia PortfolioManagement. From 2001 to 2005, Chia-Liang worked at JP Morgan as a Vice President responsible for Emerging Markets research. Prior to that, he worked at Merrill Lynch from 1997to 2001 in a similar capacity and was predominantly a sovereign bond analyst, initially following North Asia, before expanding his coverage to include Southeast Asia. From 1993 to 1997,he was a Senior Economist at the Monetary Authority of Singapore Chia-Liang received his bachelor’s of science in Economics with Direct Upper Second Honors from the National Singapore. Chia Liang bachelor sUniversity of Singapore. He is a CFA charterholder.KEITH J. GARDNER (28 Years’ Experience)•Western Asset Management Company – Head of Developing Markets, 1994 - Present•Legg Mason, Inc. – Portfolio Manager, 1992 -1994•T. Rowe Price Associates, Inc. – Portfolio Manager, 1985 - 1992•Salomon Brothers, Inc. – Research Analyst, 1983 - 1985•Emerging Markets Trade Association – Board Member•Emerging Markets Creditors’ Association – Founding and Board Member•State University of New York at Binghamton, B.S.JULIA HO, CFA (24 Years’ Experience)•Western Asset Management Company Pte. Ltd. – Portfolio Manager/Research Analyst, 2003 - present•Rothschild Asset Management (Singapore) Ltd. – Portfolio Manager/Director, 1995 -2 003•UOB Asset Management – Portfolio Manager, 1988 - 1995•Nomura Securities – Bond Sales Executive, 1987 - 1988•National University of Singapore B B A B.B.A.•Chartered Financial Analyst Page 30
  32. 32. Biographies – Investment TeamADRIAN CHEE (19 Years’ Experience)•Western Asset Management Company Pte. Ltd. – Research Analyst, 2007- present•Standard & Poor’s - Singapore – Director, Corporate Infrastructure and Financial Svcs. Ratings, 2001 - 2007•Standard Chartered Bank – Risk Mgr., Markets and Inst. Risk Mgmt., 1995 - 2001•Tat Lee Bank Ltd., Singapore – Senior Credit and Mktg. Officer, 1993 - 1995 Ltd Mktg Officer•Dev & Comm Bank Group, Malaysia – Credit and Mktg. Officer, 1992 - 1993•La Trobe University, B. Economics•Taylor’s College, MalaysiaHENRIETTA P. GOURLAY (12 Years’ Experience)•Western Asset Management Company Pte. Ltd. – Research Analyst, 2003 - present•Merrill Lynch Investment Management – Credit Analyst, 1999 - 2003•University of Edinburgh, M.A. (Hons) Page 31
  33. 33. Important InformationThis 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 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 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 marketsand may involve a higher degree of risk. This Fund may invest in certain types of financial derivative instruments (FDIs) for efficient portfolio management or investmentpurposes.p rposes These instr ments ma in ol e a higher degree of risk Please refer to the Simplified Prospectus and Prospect s doc mentation which describe the f ll instruments may involve risk. Prospect s Prospectus documentation, hich fullobjective and risk factors associated with this Fund.This Fund is offered solely to non-US investors under the terms and conditions of the Fund’s current prospectus – please refer to the Simplified Prospectus andProspectus documentation, 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,Limited Riverside Two, Sir John Rogerson’s Quay, Grand Canal Dock Dublin 2 Ireland Two Rogerson s Quay Dock, 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.Opinions expressed are subject to change without notice and do not take into account the particular investment objectives, financial situation or needs of individualinvestors.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.November 2011N b ref: 7417 f Page 32

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