Western Asset Institutional AMT Free Municipal Money Market Fund

Investment Objective

The Fund seeks current income that is exempt from federal income tax 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 assets in short-term high quality "municipal securities." Municipal securities include debt obligations issued by any of the 50 states and their political subdivisions, agencies and public authorities, certain other qualifying governmental issuers (such as Puerto Rico, the Virgin Islands and Guam) or other qualifying issuers, participation or other interests in these securities and other structured securities. Although municipal securities are issued by qualifying issuers, payments of principal and interest on municipal securities may be derived solely from revenues from certain facilities, mortgages or private industries, and may not be backed by the issuers themselves.

The Fund may invest in participation or other interests in municipal securities that are issued by banks, insurance companies or other financial institutions. The Fund may invest more than 25% of its assets in interests in municipal obligations that are issued by banks and/or backed by bank obligations.

The interest paid on municipal securities is excluded from gross income for regular federal income tax purposes, although it may be subject to the federal alternative minimum tax. As a result, the rate of interest paid on these securities normally is lower than the rate of interest paid on fully taxable securities.

Subject to the Fund's 80% policy, the Fund may purchase other municipal obligations and other high quality securities that pay interest that is subject to federal and state income taxes.

Some of the Fund's distributions may be subject to regular federal income tax and distributions generally will be subject to state income taxation.

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. Certain investors may be subject to the Federal Alternative Minimum Tax (AMT), and state and local taxes may apply. Capital gains, if any, are fully taxable. 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.