Intended for Financial Professional and Institutional Plan Sponsor Use

 

An Advancement in Target Date Retirement Solutions


Through a unique combination of proprietary features, the Legg Mason Total Advantage Funds work to elevate the certainty of outcomes through next-generation diversification and a process of adaptive allocation in a low-cost CIT structure.    


Next-Generation Diversification

The Funds access a diverse array of investment holdings, managed by 16 highly regarded investment managers.

 

Active/Passive

Hybrid investment management approach, combining active styles with low-cost passive investment styles


 

Multi-Manager

Benefit from diversified asset manager specialization across asset classes


 

Stable Value Asset Class

Seeks to reduce market volatility and create a more stable return pattern

 

Adaptive Asset Allocation

Because financial markets are in a constant state of change, these tools are designed to deliver additional value through asset allocation that adapts to evolving market conditions.

 

Tactical Accelerator

Designed to boost return potential through opportunistic asset allocation


 

Retirement Keeper1

Seeks to help reduce exposure to large market losses starting five years before the target retirement date through the end of retirement

 

 

 

 



 

Literature

Investor Guide - Legg Mason Total Advantage Funds

The Legg Mason Total Advantage Funds were designed around two critical objectives — boost return potential for investors saving for retirement and seek to reduce exposure to large market drawdowns.

Pitchbook - Legg Mason Total Advantage Funds

Detailed presentation that includes in-depth product information, including investment approach, portfolio and performance information, and asset allocation.

 

Understanding Collective Investment Trusts

The primary reason why CITs have become popular: CITs are generally less expensive than mutual funds.

 

Fiduciary Prudence and Investments: Historical Track Record - Whitepaper by Geoff Strunk

Whitepaper intended to examine the aspects of the ERISA fiduciary duty of prudence in the context of investments.

 


 



 

1 Retirement Keeper refers to the Dynamic Risk Management Period of the strategy. In rapidly declining markets, significant losses will likely occur.  Conversely, when markets are rapidly accelerating, market appreciation may not be fully realized due to a portfolio’s more conservative allocation. Starting November 5th, 2018, Retirement Keeper will be applied to funds 5 years before their target retirement date and will continue in perpetuity thereafter, as well as to the Total Advantage Retirement Fund at all times. Prior to November 5th, 2018, Retirement Keeper is applied only for the period of 5 years before and 5 years after a fund’s target retirement date and is not applied to the Total Advantage Retirement Fund during any period.

What should I know before investing?

Equity securities are subject to price fluctuation and possible loss of principal. International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. Small- and mid-cap stocks involve greater risks and volatility than large-cap stocks. 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. High-yield bonds possess greater price volatility, illiquidity and possibility of default. In addition to the Funds’ operating expenses, you will indirectly bear the operating expenses of the underlying funds. The Funds and each underlying fund may engage in active and frequent trading, resulting in higher portfolio turnover and transaction costs. Derivatives, such as options and futures, can be illiquid, may disproportionately increase losses, and have a potentially large impact on Fund performance. The model used to manage a Fund’s assets provides no assurance that the recommended allocation will either maximize returns or minimize risks. There is no assurance that a recommended allocation will prove the ideal allocation in all circumstances. In rapidly declining markets, significant losses will likely occur. Conversely, when markets are rapidly accelerating, market appreciation may not be fully realized due to a fund’s more conservative allocation. In addition, because the portfolio invests in underlying funds, QS Investors may not be able to shift allocations in time to capture an immediate or sudden spike in the market. Additional risks may include those risks associated with investing in real estate, commodities and private equity. Please see the Funds’ Investment Policy Statement for more information regarding risks associated with investing in the Funds. While an investor’s retirement age is a central component in deciding which series option is right for the investor, other relative factors should also be considered. For instance, an investor’s individual circumstances, long-term investment goals and risk tolerance — and especially if the investor falls between two retirement years — should all be carefully considered. These and other factors, as well as the Funds’ risks, should be discussed with an investor’s financial professional.

Wilmington Trust, N.A. Collective Investment Funds are trust company-sponsored collective portfolios; they are not mutual funds.The CITs and units therein are exempt from registration under the Securities Act of 1933, as amended, and the Investment Company Act of 1940. Participation in the CITs is limited primarily to qualified defined contribution plans and certain state or local government plans. Investors should consider the investment policy, objectives, risks, charges and expenses of any pooled investment company carefully before investing. The Additional Fund Information and Principal Risk Definitions Contains this and other information about a Collective Investment Trust Fund and is available at http://www.wilmingtontrust.com/repositories/wtc_sitecontent/PDF/Principal_Risk_Definitions.pdf. Also, for a more complete description of the investment strategy and principal risk factors of a CIT, please consult the CIT’s Investment Policy Statement, which is available upon request by calling Legg Mason Shareholder Services at 1-866-807-0886. These documents should be read carefully before investing.

Investments in the CITs are not insured by the FDIC or any other government agency, are not deposits of or other obligations ofor guaranteed by Wilmington Trust, or any other bank or entity, and are subject to risks, including possible loss of the principal amount invested.

All investments involve risk, including possible loss of principal. Additionally, there is no guarantee that the options will provide adequate income at and through retirement.

Investments: Are NOT Deposits | Are NOT FDIC-Insured | Are NOT Insured By Any Federal Government Agency | Have NO Bank Guarantee | May Go Down In Value

The information in this material has been obtained from sources believed to be reliable, but its accuracy and completeness are not guaranteed. Opinions, estimates and projections constitute the judgment of Wilmington Trust and are subject to change without notice. This material is for educational purposes only and is not intended as an offer, recommendation or solicitation for the sale of any financial product or service or as a determination that any investment strategy is suitable for a specific investor. There is no assurance that any investment strategy will be successful. Diversification does not ensure a profit or guarantee against a loss. Past performance is no guarantee of future results. Wilmington Trust is a registered service mark. Wilmington Trust Corporation is a wholly owned subsidiary of M&T Bank Corporation. Wilmington Trust Company (operating in Delaware only), Wilmington Trust, N.A., M&T Bank and certain other affiliates provide various fiduciary and non-fiduciary services, including trustee, custodial, agency, investment management and other services. Wilmington Trust, N.A., serves as the Trustee of the Funds. Third party trademarks and brands are the property of their respective owners.

© 2018 Legg Mason Investor Services, LLC. Member FINRA, SIPC. Legg Mason Investor Services, LLC and all entities mentioned above are subsidiaries of Legg Mason, Inc.

 


 


 

All investments involve risk, including loss of principal. Past performance is no guarantee of future results. Please see each product’s webpage for specific details regarding investment objective, risks associated with hedge funds, alternative investments and other risks, performance and other important information. Review this information carefully before you make any investment decision.