Western Asset Institutional Municipal Money Market Fund

Investment Objective

The Fund seeks maximum current income that is exempt from regular federal income taxes to the extent consistent with preservation of capital and the maintenance of liquidity.

Investment Strategy

Under normal circumstances the Fund invests at least 80% of its net assets in high quality, short-term investment grade municipal securities whose interest is exempt from regular federal income taxes. Although municipal obligations that may be purchased by the Fund are issued by states and their political subdivisions, agencies, public authorities, and certain other qualifying issuers such as Puerto Rico, the Virgin Islands and Guam, payments of principal and interest on these securities may not be backed by the issuers themselves, but may be derived solely from revenues from certain facilities, mortgages or private industries. The interest rate on these securities normally is lower than it would be if the securities were subject to regular federal income tax. These securities may pay interest at fixed, variable or floating rates. The Fund may invest more than 25% of its assets in participation interests in municipal obligations that are issued by banks and/or backed by bank obligations. The Fund may invest up to 20% of its assets in three types of structured securities that have elements of derivative instruments: tender option bonds, partnership interests and swap-based securities. The Fund may also invest up to 20% of its net assets in securities the interest on which is subject to regular federal income tax.

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.

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.