HOW STRONG IS YOUR CORE?
*Institutional Share Class I. Overall Morningstar Star Ratings are based on risk adjusted returns and are derived from a weighted average of the performance figures associated with a fund’s 3-5 and 10 year (as applicable) rating metrics. Percentile rankings are based on total returns. Class I star ratings/percentile rankings are based on 999 funds for the 1 year period, 858 funds for the 3 year period, 784 for the 5 year period and 561 funds for the 10-year period. Star Ratings and Percentile Rankings are based off of the Morningstar Intermediate-Term Bond Fund Category and are as of 3/31/18. All investments involve risk, including loss of principal. Fund ranking and rating based on the institutional share class which is not broadly available to retail investors.
Fixed Income Investing:
Active to the Core
Market environments change. Western's investment process does not. Western’s philosophy of combining long-term fundamental value with multiple diversified strategies has historically provided solid opportunities for investors.
• Long-term fundamental value
• Diversified sources of return
• A time-tested approach
Performance shown represents past performance and is no guarantee of future results.
Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, so shares, when redeemed, may be worth more or less than the original cost. Performance for other share classes will vary due to differences in sales charge structure and class expenses. Total returns assume the reinvestment of all distributions at net asset value and the deduction of all Fund expenses. Total return figures are based on the NAV per share applied to shareholder subscriptions and redemptions, which may differ from the NAV per share disclosed in Fund shareholder reports. Performance would have been lower if fees had not been waived in various periods. To obtain the most recent month-end information, please visit www.LeggMason.com. Current to the most recent prospectus, the Fund’s gross/net expense ratio for the Class I shares of the Fund is 0.52%/0.45%. Gross expenses are the Fund’s total annual operating expenses for the share class(es) shown. Net expenses for Class I reflect contractual fee waivers and/or reimbursements, where these reductions reduce the Fund’s gross expenses, which cannot be terminated prior to December 31, 2018 without Board consent.
Effective June 1, 2017, the Fund changed its security pricing methodology to now use the mean value of the bid and ask prices (of underlying fund holdings) to calculate the NAV. Funds may show a one-time increase of the NAV, which is due to this change in pricing methodology. Investors cannot invest directly in an index, and unmanaged index returns do not reflect any fees, expenses or sales charges.
All investments involve risk, including loss of principal. Past performance is no guarantee of future results. Fixed income securities involve interest rate, credit, inflation and reinvestment risks; and possible loss of principal. As interest rates rise, the value of fixed income securities falls. Tapering of the Federal Reserve Board’s quantitative easing program and a general rise in interest rates may lead to increased portfolio volatility. Active management and diversification do not ensure gains or protect against market declines.
Morningstar Star Ratings: The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history, and subject to change monthly. Current monthly ratings can be found at leggmason.com. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total return, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total return. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Ratings do not take into account the effects of sales charges and loads. A 4- or 5-star rating does not necessarily imply that a fund achieved positive results for the period. Morningstar Rating is for the specified share class only; other classes may have different performance characteristics. Past performance is no guarantee of future results.
Morningstar Percentile Rankings: The rankings are based on a fund’s total returns (including the effects of sales charges, loads and redemption fees) for the specified time period relative to all funds in the same category. The highest (or most favorable) percentile rank is 1 and the lowest (or least favorable) percentile rank is 100. The top-performing fund in a category will always receive a rank of 1. Class I percentile ranks of the Fund were 3% (25/999 funds) for the 1-year period, 2% (15/858 funds) for the 3-year period, 2% (12/784 funds) for the 5-year period and 1% (2/561 funds) for the 10-year period. Mutual funds and exchange-traded funds are considered a single population for comparative purposes. Morningstar proprietary ratings are as of March 31, 2018 and are subject to change every month.
IMPORTANT INFORMATION: All investments involve risk, including loss of principal. Past performance is no guarantee of future results. Please see each product’s web page for specific details regarding investment objective, risks, performance and other important information. Review this information carefully before you make any investment decision.
Carefully consider a fund’s investment objectives, risks, charges and expenses before investing. Please view the prospectus or summary prospectus for this and other information. Read it carefully.
FINANCIAL ADVISORS: Please note that not all share classes may be available for sale at your firm. Please call the Legg Mason Sales Desk 1-800-822-5544 or your Legg Mason Sales contact for more information.