Western Asset Premium Liquid Reserves

Investment Objective

The Fund's investment objective is to provide shareholders with liquidity and as high a level of current income as is consistent with preservation of capital.

Investment Strategy

The Fund may invest in all types of high quality, short-term money market instruments denominated in U.S. dollars. These may include:

• obligations of U.S. and non-U.S. banks and other U.S. and foreign private issuers;
• commercial paper and asset-backed commercial paper;
• obligations of the U.S. government and its agencies and instrumentalities, and repurchase agreements for these obligations; and
• obligations issued or guaranteed by the governments of Western Europe, Australia, Japan and Canada.

The Fund may invest more than 25% of its assets in bank obligations, such as certificates of deposit, fixed- time deposits and bankers' acceptances.

Investment Risks

An investment in a money market fund is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although a money market fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.

The Fund's yield may be affected by changes in interest rates and changes in credit ratings. Please see the Fund's prospectus for additional fund specific risks.

Investment Management

Managed By Western Asset

• Best known as an active fixed-income manager offering products spanning the yield curve and the globe.
• Founded in 1971, the Firm's philosophy centers upon a team approach that unites groups of specialists dedicated to different market sectors.