Emerging markets show resilience despite a U.S. slowdown
The past 12 months have certainly been a challenge for U.S. investors, but emerging markets have been able to withstand the uncertainty. In fact, emerging markets have experienced such dramatic growth in recent years that they are much less affected by U.S. markets than they used to be, according to David Lazenby, senior portfolio manager at Batterymarch Financial Management, one of Legg Mason's independent investment firms.
David recently appeared on Consuelo Mack WealthTrack on PBS to talk about the sector's strong showing. He is head of the portfolio management team of Legg Mason Emerging Markets Trust. Select the link below to watch highlights of his appearance and read important disclosure. Please note that investing in emerging markets entails significant risk and may not be suitable for all investors.
David Lazenby on WealthTrack |
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Interested in learning more about Legg Mason Emerging Markets Trust? |
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Strong relative performance – ranked in the top quartile over 1-, 3-, 5- and 10 years. |
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| Rankings in the Lipper Emerging Markets Category are based on average annual total returns assuming reinvestment of dividends and capital gains, as of June 30, 2008. Each fund is ranked within a universe of funds similar in portfolio characteristics and capitalizations, as defined by Lipper Inc. A high Lipper ranking does not necessarily imply that a fund achieved positive results for the period. The Fund's Primary Class shares were ranked 25 out of 280, 10 out of 200, 10 our of 172, and 17 out of 97 for the 1-, 3-, 5-, and 10-year periods, respectively. Rankings are based on performance that does not include sales charges. Results would have been less favorable had sales charges been included. Results reflect oldest share class. Other share classes are available for which rankings may vary. Learn more » |
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Overall Morningstar™ Rating - |
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| Primary Class Shares of the Fund rated based on risk-adjusted return¹ among 216 diversified emerging markets funds as of 6/30/08. The overall Morningstar rating for a Fund is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) Morningstar rating metrics. Learn more » |
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Legg Mason Emerging Markets Trust – Strong Relative Performance
Emerging markets have outperformed U.S. stocks over short and long-term periods – and Legg Mason Emerging Markets Trust has been a solid performer in its category. Of course, past performance is no guarantee of future results, and emerging markets entail significant risk.
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The performance shown above represents past performance. Past performance is no guarantee of future results, and current performance may be higher or lower than the performance shown above. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns as of the recent month-end may be obtained by visiting www.leggmason.com/individualinvestors. Average annual total returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses. Performance would have been lower if fees had not been waived in various periods. Performance does not reflect a 2% redemption fee, which is applied to the Fund if redeemed within 60 days. Performance would have been lower if the redemption fee had been applied. Other share classes are available for which performance and expenses will differ. Not all share classes are available through all distribution channels. Minimums may vary based on share class. Please contact your financial professional for further information.
*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.
The MSCI EM Index is an unmanaged index based on share process of a select group of emerging market stocks that are available to global investors. 25 countries are included in this index. It is not possible to invest directly in an index.
The S&P 500 Index is an unmanaged index of 500 stocks that is generally representative of the performance of larger companies in the U.S.
Important Fund Risks
The Fund is subject to market risk, or the risk that prices of securities will go down because of the interplay of market forces. There are special considerations associated with investing in emerging markets, including risks related to currency fluctuations and adverse social and political developments. Furthermore, the securities markets of emerging markets countries are substantially smaller, less developed, less liquid and more volatile than securities markets of the U.S. and more developed countries.
Legg Mason Emerging Markets Trust - A Highly Rated Morningstar Fund
Overall Morningstar™ Rating - 
"This fund earns 4 stars under Morningstar's rating methodology, meaning that compared with other funds in its category, it has historically generated above-average returns given the amount of risk it has taken on. In this case, that's impressive, because the fund had to turn out especially strong returns to compensate for its unusually high volatility."
- Morningstar
1. Indicated returns are not annualized.
Past performance is no guarantee of future results. Please note that a four or five star rating does not necessarily imply that a fund achieved positive returns for the period. For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) Primary class shares of the Fund were rated against 216, 188, and 109 funds over the 3-, 5- and 10-year periods, respectively. With respect to these funds, Primary class shares of the Fund received Morningstar Ratings of 5, 4, and 3 stars for the 3-, 5- and 10-year periods, respectively. Ratings are for the primary share class only; other classes may have different performance characteristics. Classes have a common portfolio.
An investor should consider a fund's investment objectives, risks, charges and expenses carefully before investing. For a free prospectus, which contains this and other information on any Legg Mason Partners Fund, visit www.LeggMason.com/IndividualInvestors. An investor should read the prospectus carefully before investing.
The views expressed are those of the portfolio manager as of June 27, 2008, are subject to change based on market and other conditions and may differ from other portfolio managers or 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. All data referenced are from sources believed to be reliable but cannot be guaranteed. Forecasts are inherently limited and should not be relied upon as an indication of actual or future performance.