Legg Mason Partners Capital and Income Fund

Investment Objective

The Fund seeks total return that is a combination of income and long-term capital appreciation.

Investment Strategy

A solid mix of income and growth

The Fund seeks total return through investments in both equities and fixed-income securities. The manager directs assets between the equity and fixed-income markets based on his perception of the relative risk vs. reward ratio for each market. Mr. Gendelman manages the equity side of the Fund with a "bottom-up" approach focused on the risk and reward of each investment opportunity. Western Asset manages the fixed-income allocation of the Fund. The Fund aims to produce a pattern of total return that moves with the S&P 500 Index, while managing downside risk through diversification across asset classes.

Managing risk

In addition to diversifying holdings among stocks and bonds, hedging strategies using futures and options are employed to help manage volatility.

Investment Risks

Diversification does not assure against market loss. Stock and bond prices are subject to fluctuation. Investments in bonds are subject to interest rate and credit risks. As interest rates rise, bond prices fall, reducing the value of the Fund's share price. High-yield bonds are rated below investment grade and involve greater credit and liquidity risk than higher-rated securities. The Fund 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. The Fund may focus its investments in certain regions or industries, thereby increasing its potential vulnerability to market volatility.

Investment Management

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.

Managed by ClearBridge Advisors

Established in 2006 with a heritage of over 43 years of asset management experience, offering actively managed U.S. equity products in a wide range of capitalizations and styles that share a focus on research-driven fundamental investing.
The Fund is managed by Robert Gendelman, who has over 24 years of investment industry experience.

Lipper Rankings

Category: Mixed-Asset Target Alloc Moderate Funds

Rankings Details

Symbols

CLASS	NASDAQ	CUSIP
A	SOPAX	52469H636

B	SOPTX	52469H628

C	SBPLX	52469H610

I	SOPYX	52469H594

Recent Commentary

Legg Mason Partners Capital & Income Fund Commentary - Gendelman

Related Resources

Effective December 2, 2006, Western Asset Management Company Limited ("WAML") was appointed as an additional subadvisor of the fixed-income portion of the Fund.

Effective July 17, 2007, Detlev Schlichter joined the portfolio management team comprised of S. Kenneth Leech, Stephen A. Walsh, Jeffrey D. Van Schaick and Keith J. Garder in assuming the day-to-day management responsibilities of the fixed income portion of the Portfolio.

Information on Sales Charges, Breakpoints, Sales Charge Waivers and Exchanges
Click here for more information about:
Class A shares:
- what are the front-end sales loads charged on the purchase of Class A shares
- how to qualify for reduced sales charges or breakpoints
- what kinds of accounts can be combined to qualify for reduced sales charges
- what waivers of front-end sales charges are available
Class B shares:
- what are the contingent deferred sales charges payable upon redemption
- what waivers of deferred sales charges are available
Class C shares:
- what are the contingent deferred sales charges payable upon redemption
- what waivers of deferred sales charges are available
Exchange privileges:
- which funds are exchangeable
- what conditions are applicable
Other share classes may be available for which sales charges, breakpoints, sales charge waivers and exchanges may differ. Please speak to a financial professional or click on the link above.

Exchange Privileges: Many mutual funds that charge front-end sales loads offer a discount on the sales loads for a large investment. The investment levels required to obtain a reduced sales load are commonly referred to as "breakpoints." Typically, you may be entitled to a lower front-end load based on a single transaction if the dollar amount exceeds one or more breakpoints. In addition, some funds offer discounts based on purchases made over time, under a right of accumulation or letter of intent. The criteria for breakpoints for each mutual fund are set out in the fund prospectus and statements of additional information. The NASD recently issued an Investor Alert to ensure that investors better understand how breakpoints work and what you may need to know to make sure that, should you purchase shares eligible for breakpoints, you are charged the lowest possible front-end sales charge. Visit the NASD [note: NASD recently changed name to FINRA] Website to read the NASD Investor Alert.

Diversification does not assure against market risk.

INVESTMENT PRODUCTS: NOT FDIC INSURED / NO BANK GUARANTEE / MAY LOSE VALUE

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.

All investment managers mentioned are subsidiaries of Legg Mason, Inc.

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