Legg Mason : BW Alternative Credit Fund (LMAMX Class IS*) Ranks First in Morningstar Nontraditional Bond Funds Category

The Legg Mason BW Alternative Credit Fund (LMAMX) has received number one absolute rankings within Morningstar’s nontraditional bond funds (share class, IS) category for the one- and three-year periods ended February 28, 2014. From its inception date of August 31, 2010 to February 28, 2014, the Fund produced an annualized 21.52 percent gain. Brandywine Global is a wholly owned subsidiary of Legg Mason, Inc. and is sub-adviser to the LMAMX fund.

The Fund returned 7.34 percent for the one-year period ended February 28, 2014, outperforming Morningstar’s designated benchmark for the category, the Barclays U.S. Aggregate Bond Index, by 719 basis points. Likewise, LMAMX’s 12.51 percent return for the three-year period ended February 28, 2014 outperformed the benchmark Index by 868 basis points.

“Our flexible approach to global fixed income credit markets is our core competency and also the key differentiating factor that has yielded these results,” says Gary Herbert, co-portfolio manager for Brandywine Global’s Global Alternative Credit strategy. “Global economies are becoming increasingly turbulent. Being able to quickly adapt to current credit trends is critical to achieving excess returns.”

The investment seeks to provide positive returns independent of market cycles through a high level of income and capital appreciation. Under normal circumstances, the Fund seeks to achieve its investment objective by taking a long/short approach to global credit. It will rotate amongst the global credit opportunities that the portfolio managers find most attractive and navigate the credit-quality spectrum throughout the different phases of the business cycle. The Fund is non-diversified.

Tracy Chen, portfolio manager of Mortgage-Backed Securities for Brandywine Global’s Global Alternative Credit strategy, added, “In particular, we have been capitalizing on unique opportunities in the U.S. and European securitized markets, where we can achieve relatively high risk-adjusted returns while implementing strong risk management techniques, low correlation with the broad credit markets, and good liquidity. We have benefited from both improving fundamentals and favorable technicals in the securitized market.”

As a general guideline, the Fund, over the long-term normally will average at least 50% of its total assets in higher-yielding securities; however, the allocation to higher-yielding securities may be as little as no exposure or as much as the entirety of the portfolio at any given time.

About Brandywine Global

Brandywine Global Investment Management, LLC ("Brandywine Global"), has built up significant experience across fixed income, equity and global portfolios that invest in US and international markets. Founded in 1986 by a group of highly experienced portfolio managers, the firm has been a wholly owned affiliate of Legg Mason, Inc. since 1998 but operates independently. It is headquartered in Philadelphia with satellite offices in Chicago, San Francisco and Singapore. Brandywine pursues one investment approach: value investing. Through practical experience, Brandywine has determined that value-style investing — whether in equity or fixed income markets, in the US or internationally — can provide solid risk-adjusted returns over full investment cycles, and it is a particularly important strategy in today's global markets.

For more information on investments offered through Brandywine Global, call your financial adviser or visit www.leggmason.com.

Legg Mason, Inc. is a global asset management firm with $679.5 billion in assets under management as of December 31, 2013. The Company provides active asset management in many major investment centers throughout the world. Legg Mason is headquartered in Baltimore, MD and its common stock is listed on the New York Stock Exchange (symbol: LM).

The Fund is newly organized, with a limited history of operations. Fixed-income securities involve interest rate, credit, inflation and reinvestment risks; and possible loss of principal. As interest rates rise, the value of fixed-income securities falls. High-yield bonds possess greater price volatility, illiquidity and possibility of default. Asset-backed, mortgage- backed or mortgage-related securities are subject to prepayment and extension risks. International investments are subject to special risks, including currency fluctuations, as well as social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. Equity securities are subject to price fluctuation and possible loss of principal. Derivatives, such as options and futures, can be illiquid, may disproportionately increase losses and have a potentially large impact on Fund performance. Potential active and frequent trading may result in higher transaction costs and increased investor liability. The use of leverage may increase volatility and possibility of loss. The manager's investment style may become out of favor and/or the manager's selection process may prove incorrect; which may have a negative impact on the Fund's performance. The Fund is non-diversified and may invest its assets in a limited number of issuers or strategies. The Fund may engage in short selling, which is a speculative strategy that involves special risks. Unlike the possible loss on a security that is purchased, there is no limit on the amount of loss on an appreciating security that is sold short. The Fund may also use derivatives to a significant extent, which could result in substantial losses and greater volatility in the Fund's net assets.

*This fund is the successor to an institutional account (the "Predecessor"). The performance in the accompanying chart and table is that of the Predecessor. On December 2, 2013, the Predecessor transferred its assets to the fund in exchange for the fund's Class IS shares. The investment policies, portfolio manager’s objectives, guidelines and restrictions of the fund are in all material respects equivalent to those of the Predecessor. As a mutual fund registered under the Investment Company Act of 1940, the fund is subject to certain restrictions to which the Predecessor was not subject. Had the Predecessor been registered under the 1940 Act, its investment performance may have been adversely affected. The performance information reflects the gross expenses of the Predecessor adjusted to reflect the higher fees and expenses of Class IS of the fund. The performance is shown net of annual management fees and other expenses which reflect the application of the Class IS expense limitation agreement. If the expense limitation agreement were not applicable, expenses would be higher and performance lower.

High yield bonds are those rated below investment grade (that is, securities rated below the Baa/BBB categories by at least one Nationally Recognized Statistical Rating Organization) or, if unrated, determined by the adviser to be of comparable credit quality.

The Barclays U.S. Aggregate Index is a broad-based bond index comprised of government, corporate, mortgage and asset-backed issues, rated investment grade or higher, and having at least one year to maturity. Please note an investor cannot invest directly in an index, and unmanaged index returns do not reflect any fees, expenses or sales charges.

A basis point is one one-hundredth of one percent (1/100% or 0.01%).

General Disclosure - © 2014 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Morningstar performance does not include sales charges. Total return assumes the reinvestment of all distributions at net asset value and the deduction of all Fund expenses. Past performance is no guarantee of future results.

Class IS (LMAMX)
Time Period: Quarter-End (as of 12/31/2013)
Inception Date: 8/31/2010

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. 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. Total return figures are based on the NAV per share applied to shareholder subscriptions and redemptions, which may differ from the NAV per share disclosed in Fund shareholder reports. Performance would have been lower if fees had not been waived in various periods. Numbers may be the same due to rounding. To obtain the most recent month‐end information, please visit www.leggmason.com/individualinvestors.

Class A (LMAPX)
Time Period: Quarter-End (as of 12/31/2013)
Inception Date: 12/2/2013

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. Performance of less than one year is cumulative. Class A shares have a maximum front‐end sales charge of 4.25 percent. 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. Total return figures are based on the NAV per share applied to shareholder subscriptions and redemptions, which may differ from the NAV per share disclosed in Fund shareholder reports. Performance would have been lower if fees had not been waived in various periods. Numbers may be the same due to rounding. To obtain the most recent month‐end information, please visit www.leggmason.com/individualinvestors.

**Gross expenses are the Fund's total annual operating expenses for the share class(es) shown. Net expenses for Class(es) A,& IS reflect contractual fee waivers and/or reimbursements, where these reductions reduce the Fund's gross expenses, which cannot be terminated prior to 12/31 2015 without Board consent.

Before investing, carefully consider a fund’s investment objectives, risks, charges and expenses. You can find this and other information in each prospectus, and summary prospectus, if available, at www.leggmason.com/individualinvestors. Please read the prospectus carefully.

© 2014 Legg Mason Investor Services, LLC, member FINRA, SIPC. Brandywine Global Investment Management, LLC and Legg Mason Investor Services, LLC, are subsidiaries of Legg Mason, Inc. TN14-086