This document summarizes ClearBridge Advisors' socially aware investing (SAI) strategy. It notes that SAI aims to maximize both financial returns and social good by investing in companies promoting best practices in environmental, social, and governance issues. The document highlights that ClearBridge Advisors was an early pioneer in SAI, managing such portfolios since 1987, and that their SAI process integrates SAI-specific analysts and managers into their investment teams. It also summarizes evidence that SAI strategies have historically outperformed broad market indexes over medium- and long-term periods.

1. For broker/dealer use only. Not for distribution to the public.
INVESTMENT PRODUCTS: NOT FDIC INSURED • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY • NO BANK GUARANTEE • MAY LOSE VALUE
Good intentions get good results. Do your clients
want to earn returns and help to make the world a
better place? They can potentially accomplish both
through socially aware investing (“SAI”). Legg Mason’s
ClearBridge Advisors is among the leading — and
most experienced — SAI investment managers.
Q410 | Separately Managed Accounts

2. Difference in annualized returns of MSCI KLD 400 Social Index and S&P 500 Index (%) for periods ending December 31, 2010
Past performance is no guarantee of future results. Socially aware stocks are represented by the MSCI KLD 400 Social Index, and the
broad stock market is represented by the S&P 500 Index. Investors cannot invest directly in an index. Sources: Legg Mason and MSCI.com.
*
Inception date of MSCI KLD 400 Social Index is May 1, 1990.
SAI aims to maximize both financial return and social good. It favors companies
that promote best practices concerning the environment, social issues and
corporate governance. As companies increasingly adopt SAI priorities into
their business practices, these priorities become critical to competitiveness
and profitability — which ultimately drive stock prices.
It’s widely believed that returns suffer when SAI criteria are added to the investment process. But
precisely the opposite is true: SAI-related stocks have outperformed the broad stock market over the
medium and longer terms.
Socially aware stocks have historically outperformed
-3.17
-4
-3
-2
-1
0
1
2
0.65
1.47
0.12 0.04
1- Year 3- Year 5- Year 10- Year Since MSCI KLD
400 inception*
Socialinvesting
outperforms
Socialinvesting
underperforms

3. ClearBridge Advisors: a pioneer of socially aware investing. ClearBridge
Advisors, Legg Mason’s largest equity manager, was among the first — and
largest — mainstream investment managers to commit to socially aware
investing. It has managed SAI portfolios since 1987.
As a firm, ClearBridge has focused on high-quality companies, active manage-
ment and careful stock selection dating back to its origins over 45 years ago.
Its SAI process neatly fits into this approach in two key ways:
SAI-specific portfolio managers and
research analysts are fully integrated
into ClearBridge’s style-based invest-
ment teams.1 2
The ClearBridge SAI investment process seeks best-in-class
socially aware companies
In SAI portfolios, SAI investment
criteria are as essential to the stock
selection process as a style team’s
own fundamental criteria.
Monitor continuously
Sector analysts and portfolio
managers review portfolio holdings
and engage companies on
fundamental and SAI issues
Select securities and construct portfolio
• Uses fundamental and SAI criteria to
evaluate stocks
• Select stocks defined “best in class”
according to fundamental and SAI criteria
Conduct fundamental analysis
Refines investment universe by
eliminating less-attractive companies
Define initial investment universe
Considers companies whose market cap is similar to those
in the S&P 500 Index, Russell 1000 and Russell 3000 indices
1
3
4
2

4. What should I know before investing?
Client portfolios are managed based on investment instructions or advice provided by one or more
of the following Legg Mason affiliated investment management firms, as indicated in portfolio
names or otherwise: ClearBridge Advisors, LLC,Western Asset Management Company, Brandywine
Global Investment Management, LLC, Global Currents Investment Management, LLC and Legg
Mason Capital Management, Inc. (“LMCM”). Management is implemented by Legg Mason Private
Portfolio Group, LLC or, in the case of certain programs, by the program sponsor or its designee.
The program manager(s) may, to a limited extent, invest in other securities entailing additional risks
beyond those highlighted in this presentation. All investments are subject to risk, including the pos-
sible loss of principal, and there is no guarantee that these investment objectives will be achieved.
Where can I find
more information?
Financial Advisors
www.myleggmason.com
Individual Investors
www.leggmason.com/individualinvestors
Institutional Investors
www.leggmason.com/institutional
Follow us onTwitter
www.twitter.com/leggmason
For broker/dealer use only. Not for distribution to the public.
© 2011 Legg Mason Investor Services, LLC. Member FINRA, SIPC. Legg Mason Investor Services, LLC and ClearBridge Advisors, LLC are
subsidiaries of Legg Mason, Inc. 404850 CBAX013071 2/11 FN1012596
To learn more about how
SAI might help your clients’
investment goals, call
888-891-7226.
The ClearBridge commitment. When it comes to socially aware investing,
ClearBridge offers a singular combination of five key advantages:
Mary Jane McQuillen
Director and Portfolio
Manager
Head of Socially Aware
Investment Program (SAI),
ClearBridge Advisors
Karoline Barwinski
Assistant Vice President
and Research Associate
“At ClearBridge, socially aware investing is
much more than something we do. It’s something
we believe in.”
— Mary Jane McQuillen
Mary Jane McQuillen is a board member of the New York
Society of Security Analysts (NYSSA); a former member
of the board of the Social Investment Forum (SIF); a
board member of the IRRC Institute; a Steering Committee
member of SIF’s Sustainable Investment Research Analyst
Network working group; and a longstanding member of
the United Nations Environment Program Finance Initiative
Asset Management Working Group. She joined ClearBridge
in 1996 and has 14 years of investment industry experience.
SAI principles instituted across entire
firm, not just within the SAI team
Active participation in prominent
SAI initiatives such as the Principles
for Responsible Investing and the
Social Investment Forum
Deep experience over a wide range
of market conditions
In-house portfolio management and
research professionals
Analyst-driven SAI-focused meetings
directly with portfolio companies
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