New Decade, New Choices – It's Your Move

Past performance is no guarantee of future results.

All investments involve risk, including loss of principal amount invested. There is no guarantee that investment objectives will be achieved. Investors should carefully consider their objectives, risk tolerance and time horizon before investing.

Diversification does not assure a profit or protect against market loss. All investments involve risk, including possible loss of principal. Equity securities are subject to price fluctuation. Investments in small-, mid- and micro-capitalization companies may involve a higher degree of risk and volatility than investments in larger, more established companies. International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. 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. When investing in municipal bonds, an investor may be subject to the federal Alternative Minimum Tax, and state and local taxes may apply. Capital gains, if any, are fully taxable. There is no assurance that a company will pay a dividend, or that the current dividend rate will be maintained.

Some of the 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. Certain of the Funds may employ short selling, a speculative strategy. 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. These Funds may engage in active and frequent trading, resulting in higher portfolio turnover and transaction costs. There is no assurance that these and other strategies used by these Funds will be successful. Please see each Fund's prospectus for additional risk information.

All discussion of asset allocation and/or portfolio diversification reflects general principles and does not represent a recommendation for specific action. Diversification does not necessarily ensure a profit or protect against a loss, and its impact on portfolio risk, if any, depends on the specific mix of assets held within the portfolio.

Investors should consider a fund's investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other information about a fund. To obtain a free prospectus, please view the product specific page on this website and click on the prospectus link. An investor should read the prospectus carefully before investing.

Legg Mason, Inc., its affiliates, and its employees are not in the business of providing tax or legal advice to taxpayers. These materials and any tax-related statements are not intended or written to be used, and cannot be used or relied upon, by any such taxpayer for the purpose of avoiding tax penalties. Tax-related statements, if any, may have been written in connection with the "promotion or marketing" of the transaction(s) or matters(s) addressed by these materials, to the extent allowed by applicable law. Any such taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor.

The views expressed are those of the portfolio manager as of September 30, 2009 and are subject to change based on market and other conditions. These views may differ from the views of other portfolio managers or the firm as a whole, and they are not intended to be a forecast of future events, a guarantee of future results, or investment advice.

Fed Funds rate – The federal funds rate is the rate charged by one depository institution on an overnight sale of immediately available funds (balances at the Federal Reserve) to another depository institution; the rate may vary from depository institution to depository institution and from day to day.

GDP ("Gross Domestic Product") is the market value of all final goods and services produced within a country in a given period of time.

¹ The Conference Board Leading Economic Index™ (LEI) is composed of 10 components: average weekly hours, manufacturing; average weekly initial claims for unemployment insurance; index of supplier deliveries – vendor performance; manufacturers' new orders, nondefense capital goods; building permits, new private housing units; stock prices, 500 common stocks; money supply, M2; interest rate spread, 10-year U.S. Treasury bonds less federal funds; and an index of consumer expectations. The Conference Board Leading Economic Index™ (LEI) is a trademark of The Conference Board Inc.

² Source: World Economic Outlook, "A Policy-Driven, Multispeed Recovery," International Monetary Fund. January 2010.

³ The Dow Jones Industrial Average (DJIA) is a widely followed measurement of the stock market. The average is composed of 30 stocks that represent leading companies in major industries. These stocks, widely held by individual and institutional investors, are considered to be all blue-chip companies. 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. The Nasdaq Composite Index is a market value-weighted index that measures all securities listed on the NASDAQ stock market. An investor cannot invest directly in an index.

⁴ Source: U.S. Office of Management and Budget, September 2009.

⁵ Alpha is a measure of performance versus a benchmark (index) on a risk-adjusted basis.