Western Asset Institutional Money Market Fund

Investment Objective

The Fund seeks maximum current income to the extent consistent with preservation of capital and the maintenance of liquidity.

Investment Strategy

The Fund invests in high quality U.S. dollar denominated short-term debt securities, primarily obligations of U.S. and non-U.S. financial institutions and commercial paper. The Fund may invest more than 25% of its assets in bank obligations, such as certificates of deposit, bankers' acceptances and time deposits.

The Fund may invest in all types of money market instruments, including commercial paper, asset-backed commercial paper and other mortgage- and asset-backed securities, structured investments, other short-term debt securities and repurchase agreements. These instruments may be issued by all types of issuers, including U.S. and foreign private issuers (such as special purpose vehicles), the U.S. Government or any of its agencies or instrumentalities and U.S. states and municipalities. These instruments may pay interest at fixed, floating or adjustable rates. The fund limits foreign investments to U.S. dollar denominated securities of issuers located in major industrialized countries.

Investment Risks

Although the Fund seeks to preserve the value of your investment at one dollar per share, it is possible to lose money by investing in the Fund, or the Fund could underperform other short-term debt instruments or money market funds if:

• interest rates rise sharply;
• an issuer or guarantor of securities held by the fund defaults or has its credit rating downgraded; or
• the manager's judgment about the value or credit quality of a particular security proves to be incorrect.

To the extent that the Fund invests in asset-backed, mortgage-backed or mortgage-related securities, its exposure to prepayment and extension risks may be greater than investments in other money market instruments.

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.

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.