Legg Mason American Leading Companies Trust

Investment Objective¹

Long-term capital appreciation and current income.

Investment Strategy

America's leading companies

• Invests at least 80% of assets in prominent "blue chip-oriented" U.S. companies that individually have a market capitalization of at least $5 billion.

Traditional and untraditional valuation measures

• Our analytical approach is not based on traditional, accounting-based valuation measures. We are focused on cash earnings - namely, the present value of future cash flows of a company. Shareholder value is the result of cash, not accounting, earnings. In this way, we believe we differ from most value managers. Traditional valuation measures miss many mispriced stocks because those measures do not focus on the value of a business.

Investment Risks

Market risk

The risk that prices of securities will go down because of the interplay of market forces.

Value-style risk

The value approach to investing involves the risk that those stocks deemed to be undervalued by the portfolio manager may remain undervalued.

Concentration risk

The Fund may focus its investments in certain regions or industries, thereby increasing its potential vulnerability to market volatility.

Investment Management

Managed by Legg Mason Capital Management

• Since 1982, invests in companies that appear to be selling at significant discounts to their intrinsic value.
• The Fund is managed by David Nelson, CFA, who has over 32 years of investment industry experience.