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Q110 | Investment Ideas
Go anywhere.
INVESTMENT PRODUCTS: NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
1	
In choosing open-end funds for investment, the Fund will favor Legg Mason products when available. In such cases, the Legg
Mason-affiliated fund must offer access to an asset class or employ a strategy which Permal wishes to utilize and, in Permal’s
judgment, the Legg Mason-affiliated fund can accommodate the Fund’s investments.
Investing in 4D: The four dimensions of flexibility
Geography
The Fund can move anywhere around the globe in search of opportunities.
And it does so with a focus on risk management and a top-down worldview.
Asset class
Investments can range from the traditional stocks, bonds and cash to commodities,
currencies, hedge funds, REITs, and master limited partnerships.
Investment vehicles
Permal can choose from open-end1
, closed-end and exchange-traded funds (ETFs).
And the Fund’s open architecture allows for investment in funds both inside and
outside the Legg Mason family of managers.
Asset allocation
The first three dimensions of flexibility come together in the fourth: The Fund’s wide
investment bands allow it to adjust asset allocation as market conditions change.
1
2
3
4
Legg Mason PermalTactical Allocation Fund (LPTAX)
blends traditional and alternative asset classes to
seek out opportunities in all market environments.
This fund-of-funds invests using four dimensions of
flexibility — resulting in a “go anywhere” fund that
offers investors key advantages.
The fourth dimension: asset allocation
Compared with traditional portfolios that have static asset allocations, the Fund has much greater
latitude to increase or reduce the scale of its investments in different asset classes. Its equity
allocation, for example, can range from a conservative 20% of total assets to a more-robust 80%.
So when opportunity knocks, Permal is ready at the door: It can emphasize assets with the most favorable pros-
pects and trim others accordingly.
Legg Mason Permal Tactical Allocation Fund Traditional 60/30/10 strategy
Asset class Allocation ranges and investments Allocations and investments
Equity:
U.S.
International	
Emerging markets
20% – 80%
Open-end funds
Closed-end funds
Exchange-traded funds
60%
Equity securities
Fixed income:
U.S. government
Corporates
Bank loans
Convertible bonds
International
Emerging markets
TIPS
10% – 60%
Open-end funds
Closed-end funds
Exchange-traded funds
Exchange-traded notes
30%
Fixed-income securities
Cash equivalents:
T-bills 0% – 40%
T-bills
Money market funds
Cash
10%
T-bills
Money market funds
Cash
Alternatives (including long or
short strategies):
Commodities
Real estate
Infrastructure
Foreign currencies
Hedge fund strategies
0% – 40%
Open-end funds
Closed-end funds
Exchange-traded funds
Exchange-traded notes
Master limited partnerships
Hedge fund strategies
0%
In choosing open-end funds for investment, the Fund will favor Legg Mason products when available. In such cases, the Legg Mason-affiliated fund 	
must offer access to an asset class or employ a strategy which Permal wishes to utilize and, in Permal’s judgment, the Legg Mason-affiliated fund can 	
accommodate the Fund’s investments.
The use of tactical allocation strategies and alternative investments involves additional risks. The Fund is not intended to be a complete investment 	
program and may not be suitable for all investors. See last page for details.
A focus on risk management
Legg Mason PermalTactical Allocation Fund delivered solid returns during the past year, with
significantly lower equity exposure than its benchmark, which is composed of 60% global
equities, 30% bonds and 10%Treasury bills.
**	Annualized for period since inception through April 30, 2010. Source: Legg Mason.
	
See last page for descriptions of Index Blend and S&P 500 Index.
Performance shown represents past performance and is no guarantee of future results.
Current performance may be higher or lower than the performance shown. Investment
return and principal value will fluctuate, so shares, when redeemed, may be worth more
or less than the original cost. Class A shares reflect a maximum front-end sales charge
As of March 31, 2010 As of April 30, 2010
Without sales charges With sales charges Without sales charges With sales charges Expenses
Symbol 1-yr
Since 	
inception 1-yr
Since 	
inception 1-yr
Since 	
inception** 1-yr
Since 	
inception** Gross2
Net3
Class A LPTAX – 24.88 – 17.67 23.38 24.58 16.29 17.70 3.63 1.82
Class C LPTCX – 23.95 – 22.95 22.37 23.60 21.37 23.60 4.25 2.57
Class I LPTIX – 25.19 – 25.19 23.69 24.88 23.69 24.88 3.17 1.57
Class FI LPTFX – 24.88 – 24.88 23.38 24.58 23.38 24.58 3.77 1.82
Index Blend – – 27.14 – 27.14 24.48 26.22 24.48 26.22 – –
S&P 500 – – 39.37 – 39.37 38.84 39.39 38.84 39.39 – –
Average annual total returns & fund expenses (%) Inception date: 4/13/09
Risk measures As of April 30, 2010
Returns (%) As of April 30, 2010
2	
Gross expenses are the Fund’s total annual operating expenses for the share class(es) indicated as of the date of the Fund’s most current prospectus and do
not reflect fee waivers or reimbursements. These expenses include management fees, 12b-1 distribution and service fees, and other expenses.
3	
Net expenses are the Fund’s total annual operating expenses for the share class(es) indicated as of the date of the Fund’s most current prospectus and reflect contrac-
tual fee waivers and/or reimbursements. The Fund’s manager has contractually agreed to waive fees and/or reimburse operating expenses for certain share classes
until April 30, 2012, so that the total operating expenses are not expected to exceed 1.75% for Class A, 2.50% for Class C, 1.50% for Class I and 1.75% for Class FI of the
Fund’s average daily net assets attributable to each share class. Not all underlying Fund expenses are subject to these fee waivers and/or reimbursements.
Beta Standard deviation Up-capture ratio Down-capture ratio
Class A* 0.94 8.35% 0.94 0.87
Index Blend 1.00 8.48% 1.00 1.00
Class A* 0.61 8.35% 0.56 0.41
S&P 500 1.00 11.65% 1.00 1.00
Index Blend 0.68 8.48% 0.60 0.54
S&P 500 1.00 11.65% 1.00 1.00
*	 Without sales charge 	 For period May 1, 2009 through April 30, 2010.	 Source: Legg Mason and Zephyr StyleAdvisor.
0
7
14
21
28
Class A*
One-year Since inception
Index Blend Class A* Index Blend
*	 Without sales charge
In a strong period for
equities, Legg Mason
Permal Tactical Allocation
Fund generated equity-
like returns — by
significantly investing
in fixed income.
of 5.75%. One-year returns for Class C shares reflect a CDSC of 1.0%. Performance
for other share classes will vary due to differences in sales charge structure and
class expenses. Total returns assume the reinvestment of all distributions at net
asset value and the deduction of all Fund expenses. Performance data do not reflect
trade date adjustments made to the NAV at month-end. Performance would have
been lower if fees had not been waived in various periods. To obtain the most recent
month-end information, please visit www.leggmason.com/individualinvestors.
The Fund’s equity
market-based risk
was low by a wide
margin.
The Fund’s volatility
was significantly 	
lower than the 	
market’s.
The Fund declined
less than the 	
market did.
Evolution of an allocation
Legg Mason PermalTactical Allocation Fund shifts its asset allocation as it scours the globe for
opportunities. Over time, the allocation will reflect wherever Permal sees the best potential for
superior risk-adjusted returns.
*	
	 Data as of April 30, 2009.
**	
Treasury Inflation-Protected Securities.
	
	 Percentages are based on total portfolio as of date indicated, are subject to change at any time and do not include trade-date activity. For informational purposes only and not
to be considered a recommendation to purchase or sell any security. Certain portfolio holdings may be held through the Fund’s subsidiary, Tactical Allocation Fund, Ltd., an ex-
empted company incorporated in the Cayman Islands. Data for Class A shares. Totals may not add to 100.0% due to rounding. Source: Legg Mason.
Detailed asset allocation(%)
At Inception At 10/31/09 At 4/30/10
Fixed Income 47.25 51.15 37.26
Fixed Income Blend 7.00 8.25 12.06
International Debt 6.87 8.07 8.08
Investment Grade Corp. Bonds 6.78 7.95 –
Agency Mortgage Debt 6.78 11.06 4.01
High Yield Corp. Bonds 6.25 2.08 2.12
Bank Loans 6.00 3.96 4.03
TIPS** 4.78 4.91 2.94
Convertible Bonds 2.79 4.87 4.02
Equity 36.51 36.25 49.76
US Equity 23.60 21.33 35.55
Intl. Developed Equity 7.98 11.19 11.40
Emerging Markets Equity 4.93 3.73 2.81
Alternatives 9.34 8.56 11.95
Hedge Fund Strategies 4.80 3.92 3.80
Real Assets 4.54 4.64 5.21
Foreign Currency – – 2.94
Cash  Cash Equivalents 6.89 4.03 1.02
47.25%
36.51%
9.34%
6.89%
51.19%
36.25%
8.56%
4.03%
37.26%
49.76%
11.95%
1.02%
At inception* At 10/31/09 At 4/30/10
“Now we’ve shifted more assets into
stocks and alternative strategies,
and out of bonds.”
Christopher Zuehlsdorff, portfolio manager
“While shifting among fixed-income sectors, we continued
to overweight fixed income through 2009, which helped
generate a solid return, with relatively low volatility.”
Christopher Zuehlsdorff, portfolio manager
About the Permal Group
Permal is a global pioneer in the use of multi-manager funds. Its approach has
passed the test of time: Permal has invested through many market cycles during
its 36-year history.
4	
As of March 31, 2010.
New York
Permal Group, Inc.
Permal Asset Management, Inc.
SEC Registered Investment Advisor Boston
Permal Capital Management, LLC
SEC Registered Investment Advisor
Dubai
DFSA Regulated
Hong Kong
SFC Regulated
Singapore
Mas Regulated
Tokyo
Paris
Nassau, Bahamas
The St. James Bank  Trust Co. Limited
CBB Regulated
WP Fund Services Ltd.
Securities Board Regulated
London
Permal Investment Management Services Limited
FSA Authorized and Regulated
The Permal advantage:
•	 Permal is one of the world’s oldest and largest alternative
fund-of-funds managers
•	 $17.4 billion under management4
•	 Seeks above-average returns over time while maintaining
a lower risk profile than traditional investments
•	 Disciplined and rigorous investment and risk
management processes
•	 Active reallocation among managers and strategies to poten-
tially capitalize on opportunities wherever they may materialize
•	 Exceptional combination of experience, asset allocation
expertise and global reach
The information advantage:
•	 Legg Mason’s Permal Group affiliate
manages the Fund.
•	 With over 36 years of experience, Permal
has gained direct access to some of the
world’s best-known — and most exclu-
sive — investment minds. This wealth
of insights informs asset allocation and
investment decisions.
In global pursuit of
opportunities
Permal truly goes anywhere for
investment opportunities — both in the
markets and on the ground. Its offices
are strategically located in key financial
centers: NewYork, London, Singapore,
Dubai, Paris, Boston, Hong Kong,Tokyo
and Nassau.
Meet the investment team
Legg Mason PermalTactical Allocation Fund is managed by
a team of seasoned investment professionals.
Portfolio managers
Christopher Zuehlsdorff, CFA
Alexander Pillersdorf
Investment committee
Isaac Souede, CEO
James Hodge, CIO
Robert Kaplan, EVP
Judy Tchou, EVP
© 2010 Legg Mason Investor Services, LLC, member FINRA, SIPC.
	
Legg Mason Investor Services, LLC and The Permal Group LLC are subsidiaries of Legg Mason, Inc.
	
403924  PRML012454  5/10  FN1010930
What should I know
before investing?
All investments are subject to risk, includ-
ing the possible loss of principal. The Fund
is a newly organized, open-end investment
company with a limited history of opera-
tions. In addition to the Fund’s operating
expenses, you will indirectly bear the op-
erating expenses of the underlying funds.
The Fund may invest in unregistered hedge
funds, which are highly speculative invest-
ments that employ aggressive investment
strategies and carry substantial risk. Invest-
ments in hedge funds are generally illiquid,
difficult to value and may carry significant
restrictions for transferring assets. Some
of the underlying funds employ leverage,
which increases the volatility of investment
returns and subjects the Fund to magnified
losses if an underlying fund’s investments
decline in value. The Fund and some of the
underlying funds may use derivatives, such
as options and futures, which can be illiquid,
may disproportionately increase losses,
and have a potentially large impact on Fund
performance. Some of the underlying funds
may employ short selling, a speculative
strategy. Unlike the possible loss on a se-
curity that is purchased, there is no limit on
the amount of loss on an appreciating se-
curity that is sold short. The Fund and each
underlying fund may engage in active and
frequent trading, resulting in higher port-
folio turnover and transaction costs. There
is no assurance that these and other strate-
gies used by the Fund or underlying funds
will be successful. International invest-
ments are subject to special risks, including
currency fluctuations and social, economic
and political uncertainties, which could in-
crease volatility. These risks are magnified
in emerging markets. Small- and mid-cap
stocks involve greater risks and volatility
than large-cap stocks. Fixed-income securi-
ties involve interest rate, credit, inflation
and reinvestment risks. As interest rates
rise, the value of fixed-income securities
falls. High-yield bonds possess greater price
volatility, illiquidity, and possibility of de-
fault. Please see the prospectus for a more
complete discussion of the Fund’s risks.
Diversification does not assure a profit or
protect against market loss.
What terms should I know?
Beta is a measure of a portfolio’s volatility, or
systematic risk, in comparison to the market
as a whole. A beta below 1.00 indicates less
volatility than the market; a higher beta indi-
cates more volatility.
Standard deviation indicates the percentage by
which an investment’s performance has varied
from its average performance in any given
month during the period indicated.The higher
the standard deviation, the greater the range of
performance, indicating greater volatility.
Up-capture ratio measures the extent to
which an investment participates in the up-
side of the market as a whole during periods
when the market’s performance is positive.
An up-capture ratio above 1.00 indicates that
the investment captured more positive return
than the investment’s benchmark.
Down-capture ratio measures the extent to
which an investment participates in the down-
side of the market as a whole during periods
when the market’s performance is negative. A
down-capture ratio below 1.00 indicates that
the investment captured less negative return
than the investment’s benchmark.
Index Blend is composed of 60% MSCIWorld
Index, 30% Barclays Capital U.S. Aggregate
Bond Index and 10%Treasury bills.The MSCI
World Index is an unmanaged index consid-
ered representative of growth stocks of
developed countries. Index performance is
calculated with net dividends.The Barclays
Capital U.S. Aggregate Bond Index is a broad-
based bond index composed of government,
corporate, mortgage- and asset-backed issues
rated investment grade or higher and having at
least one year to maturity.The 90-DayTreasury
Bill Index is an unmanaged index generally
representative of the average yield of 90-day
Treasury bills. Please note that an investor can-
not invest directly in an index.
The SP 500 Index is an unmanaged index
of 500 stocks that is generally representative
of the performance of larger companies in
the U.S. Please note that an investor cannot
invest directly in an index.
Exchange-traded funds (ETFs) are securities
that track an index, commodity or basket
of assets. Although ETFs are classified as
open-end mutual funds, their shares trade
like stocks on an exchange. Unlike open-end
funds, whose net asset value is calculated
once daily after the close of trading, ETFs
experience price changes throughout the day
as they are bought and sold.
Where can I find
more information?
Talk to your financial advisor about the
role Legg Mason PermalTactical Allocation
Fund can play as a part of a well-
diversified portfolio.
AN INVESTOR SHOULD CONSIDER A FUND’S INVESTMENT OBJEC­TIVES, RISKS, CHARGES AND EXPENSES CAREFULLY BEFORE
INVESTING. FOR A FREE PROSPEC­TUS, WHICH CONTAINSTHIS AND OTHER INFOR­MATION ON ANY LEGG MASON FUND, VISIT
WWW.LEGGMASON.COM/INDIVIDUALINVESTORS. AN INVESTOR SHOULD READTHE PROSPECTUS CAREFULLY BEFORE INVESTING.

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Permal TAF sales piece 0510 (2016_01_25 03_57_23 UTC)

  • 1. Q110 | Investment Ideas Go anywhere. INVESTMENT PRODUCTS: NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE 1 In choosing open-end funds for investment, the Fund will favor Legg Mason products when available. In such cases, the Legg Mason-affiliated fund must offer access to an asset class or employ a strategy which Permal wishes to utilize and, in Permal’s judgment, the Legg Mason-affiliated fund can accommodate the Fund’s investments. Investing in 4D: The four dimensions of flexibility Geography The Fund can move anywhere around the globe in search of opportunities. And it does so with a focus on risk management and a top-down worldview. Asset class Investments can range from the traditional stocks, bonds and cash to commodities, currencies, hedge funds, REITs, and master limited partnerships. Investment vehicles Permal can choose from open-end1 , closed-end and exchange-traded funds (ETFs). And the Fund’s open architecture allows for investment in funds both inside and outside the Legg Mason family of managers. Asset allocation The first three dimensions of flexibility come together in the fourth: The Fund’s wide investment bands allow it to adjust asset allocation as market conditions change. 1 2 3 4 Legg Mason PermalTactical Allocation Fund (LPTAX) blends traditional and alternative asset classes to seek out opportunities in all market environments. This fund-of-funds invests using four dimensions of flexibility — resulting in a “go anywhere” fund that offers investors key advantages.
  • 2. The fourth dimension: asset allocation Compared with traditional portfolios that have static asset allocations, the Fund has much greater latitude to increase or reduce the scale of its investments in different asset classes. Its equity allocation, for example, can range from a conservative 20% of total assets to a more-robust 80%. So when opportunity knocks, Permal is ready at the door: It can emphasize assets with the most favorable pros- pects and trim others accordingly. Legg Mason Permal Tactical Allocation Fund Traditional 60/30/10 strategy Asset class Allocation ranges and investments Allocations and investments Equity: U.S. International Emerging markets 20% – 80% Open-end funds Closed-end funds Exchange-traded funds 60% Equity securities Fixed income: U.S. government Corporates Bank loans Convertible bonds International Emerging markets TIPS 10% – 60% Open-end funds Closed-end funds Exchange-traded funds Exchange-traded notes 30% Fixed-income securities Cash equivalents: T-bills 0% – 40% T-bills Money market funds Cash 10% T-bills Money market funds Cash Alternatives (including long or short strategies): Commodities Real estate Infrastructure Foreign currencies Hedge fund strategies 0% – 40% Open-end funds Closed-end funds Exchange-traded funds Exchange-traded notes Master limited partnerships Hedge fund strategies 0% In choosing open-end funds for investment, the Fund will favor Legg Mason products when available. In such cases, the Legg Mason-affiliated fund must offer access to an asset class or employ a strategy which Permal wishes to utilize and, in Permal’s judgment, the Legg Mason-affiliated fund can accommodate the Fund’s investments. The use of tactical allocation strategies and alternative investments involves additional risks. The Fund is not intended to be a complete investment program and may not be suitable for all investors. See last page for details.
  • 3. A focus on risk management Legg Mason PermalTactical Allocation Fund delivered solid returns during the past year, with significantly lower equity exposure than its benchmark, which is composed of 60% global equities, 30% bonds and 10%Treasury bills. ** Annualized for period since inception through April 30, 2010. Source: Legg Mason. See last page for descriptions of Index Blend and S&P 500 Index. Performance shown represents past performance and is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, so shares, when redeemed, may be worth more or less than the original cost. Class A shares reflect a maximum front-end sales charge As of March 31, 2010 As of April 30, 2010 Without sales charges With sales charges Without sales charges With sales charges Expenses Symbol 1-yr Since inception 1-yr Since inception 1-yr Since inception** 1-yr Since inception** Gross2 Net3 Class A LPTAX – 24.88 – 17.67 23.38 24.58 16.29 17.70 3.63 1.82 Class C LPTCX – 23.95 – 22.95 22.37 23.60 21.37 23.60 4.25 2.57 Class I LPTIX – 25.19 – 25.19 23.69 24.88 23.69 24.88 3.17 1.57 Class FI LPTFX – 24.88 – 24.88 23.38 24.58 23.38 24.58 3.77 1.82 Index Blend – – 27.14 – 27.14 24.48 26.22 24.48 26.22 – – S&P 500 – – 39.37 – 39.37 38.84 39.39 38.84 39.39 – – Average annual total returns & fund expenses (%) Inception date: 4/13/09 Risk measures As of April 30, 2010 Returns (%) As of April 30, 2010 2 Gross expenses are the Fund’s total annual operating expenses for the share class(es) indicated as of the date of the Fund’s most current prospectus and do not reflect fee waivers or reimbursements. These expenses include management fees, 12b-1 distribution and service fees, and other expenses. 3 Net expenses are the Fund’s total annual operating expenses for the share class(es) indicated as of the date of the Fund’s most current prospectus and reflect contrac- tual fee waivers and/or reimbursements. The Fund’s manager has contractually agreed to waive fees and/or reimburse operating expenses for certain share classes until April 30, 2012, so that the total operating expenses are not expected to exceed 1.75% for Class A, 2.50% for Class C, 1.50% for Class I and 1.75% for Class FI of the Fund’s average daily net assets attributable to each share class. Not all underlying Fund expenses are subject to these fee waivers and/or reimbursements. Beta Standard deviation Up-capture ratio Down-capture ratio Class A* 0.94 8.35% 0.94 0.87 Index Blend 1.00 8.48% 1.00 1.00 Class A* 0.61 8.35% 0.56 0.41 S&P 500 1.00 11.65% 1.00 1.00 Index Blend 0.68 8.48% 0.60 0.54 S&P 500 1.00 11.65% 1.00 1.00 * Without sales charge For period May 1, 2009 through April 30, 2010. Source: Legg Mason and Zephyr StyleAdvisor. 0 7 14 21 28 Class A* One-year Since inception Index Blend Class A* Index Blend * Without sales charge In a strong period for equities, Legg Mason Permal Tactical Allocation Fund generated equity- like returns — by significantly investing in fixed income. of 5.75%. One-year returns for Class C shares reflect a CDSC of 1.0%. Performance for other share classes will vary due to differences in sales charge structure and class expenses. Total returns assume the reinvestment of all distributions at net asset value and the deduction of all Fund expenses. Performance data do not reflect trade date adjustments made to the NAV at month-end. Performance would have been lower if fees had not been waived in various periods. To obtain the most recent month-end information, please visit www.leggmason.com/individualinvestors. The Fund’s equity market-based risk was low by a wide margin. The Fund’s volatility was significantly lower than the market’s. The Fund declined less than the market did.
  • 4. Evolution of an allocation Legg Mason PermalTactical Allocation Fund shifts its asset allocation as it scours the globe for opportunities. Over time, the allocation will reflect wherever Permal sees the best potential for superior risk-adjusted returns. * Data as of April 30, 2009. ** Treasury Inflation-Protected Securities. Percentages are based on total portfolio as of date indicated, are subject to change at any time and do not include trade-date activity. For informational purposes only and not to be considered a recommendation to purchase or sell any security. Certain portfolio holdings may be held through the Fund’s subsidiary, Tactical Allocation Fund, Ltd., an ex- empted company incorporated in the Cayman Islands. Data for Class A shares. Totals may not add to 100.0% due to rounding. Source: Legg Mason. Detailed asset allocation(%) At Inception At 10/31/09 At 4/30/10 Fixed Income 47.25 51.15 37.26 Fixed Income Blend 7.00 8.25 12.06 International Debt 6.87 8.07 8.08 Investment Grade Corp. Bonds 6.78 7.95 – Agency Mortgage Debt 6.78 11.06 4.01 High Yield Corp. Bonds 6.25 2.08 2.12 Bank Loans 6.00 3.96 4.03 TIPS** 4.78 4.91 2.94 Convertible Bonds 2.79 4.87 4.02 Equity 36.51 36.25 49.76 US Equity 23.60 21.33 35.55 Intl. Developed Equity 7.98 11.19 11.40 Emerging Markets Equity 4.93 3.73 2.81 Alternatives 9.34 8.56 11.95 Hedge Fund Strategies 4.80 3.92 3.80 Real Assets 4.54 4.64 5.21 Foreign Currency – – 2.94 Cash Cash Equivalents 6.89 4.03 1.02 47.25% 36.51% 9.34% 6.89% 51.19% 36.25% 8.56% 4.03% 37.26% 49.76% 11.95% 1.02% At inception* At 10/31/09 At 4/30/10 “Now we’ve shifted more assets into stocks and alternative strategies, and out of bonds.” Christopher Zuehlsdorff, portfolio manager “While shifting among fixed-income sectors, we continued to overweight fixed income through 2009, which helped generate a solid return, with relatively low volatility.” Christopher Zuehlsdorff, portfolio manager
  • 5. About the Permal Group Permal is a global pioneer in the use of multi-manager funds. Its approach has passed the test of time: Permal has invested through many market cycles during its 36-year history. 4 As of March 31, 2010. New York Permal Group, Inc. Permal Asset Management, Inc. SEC Registered Investment Advisor Boston Permal Capital Management, LLC SEC Registered Investment Advisor Dubai DFSA Regulated Hong Kong SFC Regulated Singapore Mas Regulated Tokyo Paris Nassau, Bahamas The St. James Bank Trust Co. Limited CBB Regulated WP Fund Services Ltd. Securities Board Regulated London Permal Investment Management Services Limited FSA Authorized and Regulated The Permal advantage: • Permal is one of the world’s oldest and largest alternative fund-of-funds managers • $17.4 billion under management4 • Seeks above-average returns over time while maintaining a lower risk profile than traditional investments • Disciplined and rigorous investment and risk management processes • Active reallocation among managers and strategies to poten- tially capitalize on opportunities wherever they may materialize • Exceptional combination of experience, asset allocation expertise and global reach The information advantage: • Legg Mason’s Permal Group affiliate manages the Fund. • With over 36 years of experience, Permal has gained direct access to some of the world’s best-known — and most exclu- sive — investment minds. This wealth of insights informs asset allocation and investment decisions. In global pursuit of opportunities Permal truly goes anywhere for investment opportunities — both in the markets and on the ground. Its offices are strategically located in key financial centers: NewYork, London, Singapore, Dubai, Paris, Boston, Hong Kong,Tokyo and Nassau. Meet the investment team Legg Mason PermalTactical Allocation Fund is managed by a team of seasoned investment professionals. Portfolio managers Christopher Zuehlsdorff, CFA Alexander Pillersdorf Investment committee Isaac Souede, CEO James Hodge, CIO Robert Kaplan, EVP Judy Tchou, EVP
  • 6. © 2010 Legg Mason Investor Services, LLC, member FINRA, SIPC. Legg Mason Investor Services, LLC and The Permal Group LLC are subsidiaries of Legg Mason, Inc. 403924 PRML012454 5/10 FN1010930 What should I know before investing? All investments are subject to risk, includ- ing the possible loss of principal. The Fund is a newly organized, open-end investment company with a limited history of opera- tions. In addition to the Fund’s operating expenses, you will indirectly bear the op- erating expenses of the underlying funds. The Fund may invest in unregistered hedge funds, which are highly speculative invest- ments that employ aggressive investment strategies and carry substantial risk. Invest- ments in hedge funds are generally illiquid, difficult to value and may carry significant restrictions for transferring assets. Some of the underlying funds employ leverage, which increases the volatility of investment returns and subjects the Fund to magnified losses if an underlying fund’s investments decline in value. The Fund and some of the underlying funds may use derivatives, such as options and futures, which can be illiquid, may disproportionately increase losses, and have a potentially large impact on Fund performance. Some of the underlying funds may employ short selling, a speculative strategy. Unlike the possible loss on a se- curity that is purchased, there is no limit on the amount of loss on an appreciating se- curity that is sold short. The Fund and each underlying fund may engage in active and frequent trading, resulting in higher port- folio turnover and transaction costs. There is no assurance that these and other strate- gies used by the Fund or underlying funds will be successful. International invest- ments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could in- crease volatility. These risks are magnified in emerging markets. Small- and mid-cap stocks involve greater risks and volatility than large-cap stocks. Fixed-income securi- ties involve interest rate, credit, inflation and reinvestment risks. As interest rates rise, the value of fixed-income securities falls. High-yield bonds possess greater price volatility, illiquidity, and possibility of de- fault. Please see the prospectus for a more complete discussion of the Fund’s risks. Diversification does not assure a profit or protect against market loss. What terms should I know? Beta is a measure of a portfolio’s volatility, or systematic risk, in comparison to the market as a whole. A beta below 1.00 indicates less volatility than the market; a higher beta indi- cates more volatility. Standard deviation indicates the percentage by which an investment’s performance has varied from its average performance in any given month during the period indicated.The higher the standard deviation, the greater the range of performance, indicating greater volatility. Up-capture ratio measures the extent to which an investment participates in the up- side of the market as a whole during periods when the market’s performance is positive. An up-capture ratio above 1.00 indicates that the investment captured more positive return than the investment’s benchmark. Down-capture ratio measures the extent to which an investment participates in the down- side of the market as a whole during periods when the market’s performance is negative. A down-capture ratio below 1.00 indicates that the investment captured less negative return than the investment’s benchmark. Index Blend is composed of 60% MSCIWorld Index, 30% Barclays Capital U.S. Aggregate Bond Index and 10%Treasury bills.The MSCI World Index is an unmanaged index consid- ered representative of growth stocks of developed countries. Index performance is calculated with net dividends.The Barclays Capital U.S. Aggregate Bond Index is a broad- based bond index composed of government, corporate, mortgage- and asset-backed issues rated investment grade or higher and having at least one year to maturity.The 90-DayTreasury Bill Index is an unmanaged index generally representative of the average yield of 90-day Treasury bills. Please note that an investor can- not invest directly in an index. The SP 500 Index is an unmanaged index of 500 stocks that is generally representative of the performance of larger companies in the U.S. Please note that an investor cannot invest directly in an index. Exchange-traded funds (ETFs) are securities that track an index, commodity or basket of assets. Although ETFs are classified as open-end mutual funds, their shares trade like stocks on an exchange. Unlike open-end funds, whose net asset value is calculated once daily after the close of trading, ETFs experience price changes throughout the day as they are bought and sold. Where can I find more information? Talk to your financial advisor about the role Legg Mason PermalTactical Allocation Fund can play as a part of a well- diversified portfolio. AN INVESTOR SHOULD CONSIDER A FUND’S INVESTMENT OBJEC­TIVES, RISKS, CHARGES AND EXPENSES CAREFULLY BEFORE INVESTING. FOR A FREE PROSPEC­TUS, WHICH CONTAINSTHIS AND OTHER INFOR­MATION ON ANY LEGG MASON FUND, VISIT WWW.LEGGMASON.COM/INDIVIDUALINVESTORS. AN INVESTOR SHOULD READTHE PROSPECTUS CAREFULLY BEFORE INVESTING.