Legg Mason Balanced Income with Munis Portfolios

Investment Overview

Legg Mason Balanced Income W/ Munis Portfolios pursue an objective of long-term growth and high current income through a combination of asset allocation and fundamental security analysis. Legg Mason’s ClearBridge Investments subsidiary determines the portfolios’ allocations among equities, fixed income securities and cash equivalents and also selects equity investments for the portfolios. Fixed income investments are managed on the basis of investment instructions furnished by Western Asset.


Investment Objective

The strategy seeks to:

  • achieve long term capital growth. provide a high level of current income some of which is taxable and some of which is exempt from regular U.S. income tax

Investment Philosophy

We believe:

  • combination of conservative capital growth and steady income can be achieved in a single portfolio by investing in high-quality, undervalued companies and high quality municipal securities
  • blending top-down macroeconomic research with bottom-up fundamental analysis may enhance the portfolio’s overall return.


Define the investment universe

  • Consider high-quality, tax-exempt municipal bonds best suited to client’s objectives

Determine portfolio position

  • Determine interest-rate outlook by actively monitoring market and other data

Select securities and construct portfolio

  • Select municipal bonds from well-known, active issuers whose bonds have good market access and a large number of market makers

Ongoing monitoring

  • Actively manage the portfolio and adjust holdings as necessary to respond to changes in economic and market conditions and client’s profile

The investment process may change over time. The characteristics set forth above are intended as a general illustration of some of the criteria the strategy team considers in selecting securities for client portfolios.



meet your manager

One of the world’s leading global fixed income managers. Founded in 1971, the firm is known for team management, proprietary research and long-term fundamental value approach.

Global investment manager with over 50 years of experience and long-tenured portfolio managers who seek to build income, high active share or low volatility portfolios.

Mark McAllister, CFA

Managing Director, Portfolio Manager

Peter Vanderlee, CFA

Managing Director, Portfolio Manager

Active share is a measure of the percentage of stock holdings in a manager's portfolio that differs from the benchmark index.

To find out more about the Legg Mason Balanced Income w/ Municipals Portfolios, talk to your financial advisor.


What I Should Know
Before Investing

All investments involve risk, including loss of principal and there is no guarantee that investment objectives will be met.  Investments may be made in small- and mid-cap companies, which involve a higher degree of risk and volatility than investments in large-cap companies.  While most investments are in U.S. companies, investments may also be made in ADRs and other securities of non-U.S. companies in developed and emerging markets which involve risks in addition to those ordinarily associated with investing in domestic securities, including the potentially negative effects of currency fluctuation, political and economic developments, foreign taxation and differences in auditing and other financial standards. These  risks are magnified in emerging markets.  Fixed income securities are subject to illiquidity risk, which is the risk that securities may be difficult to sell at certain prices when no market participants are willing to purchase the securities at such prices.  Fixed income securities are subject to interest rate and credit risk, which is a possibility that the issuer of a security will be unable to make interest payments and repay the principal on its debt. As interest rates rise, the price of fixed income securities falls.  Investments may include ETFs representing U.S. securities markets, industry and market capitalization sectors, non-U.S. country and regional markets, and other types of non-U.S. markets and sectors. In addition, a client will bear a proportionate share of the separate fees and expensed incurred by any ETF in which the clients’ account is invested. 



Legg Mason Balanced Income W/Munis Portfolios composite performance has the approximate target allocation of: 70% equity and 30% fixed income components. The Index Mix is comprised of 70% Russell 1000 Value and 30% Bloomberg Barclays Municipal Bond indices, rebalanced monthly. Unlike the indices included in the Index Mix, investment styles included in balanced portfolios are not automatically rebalanced each month.

Performance returns for periods prior to January 2006 are based on the performance of a composite of accounts from a formerly-affiliated sponsor channel, which represented an overwhelming majority of the strategy’s retail assets under management during such periods. Such pre-2006 returns were calculated on an equal-weighted basis where each portfolio contributed an equal weight to the resulting composite return regardless of its asset size. Performance returns for periods subsequent to January 2006 are based on the composite performance of all discretionary retail managed accounts in the strategy. Such post-2005 returns were calculated on an asset-weighted basis where each portfolio contributed to the resulting composite return proportionately based on asset size.

IMPORTANT INFORMATION: Past performance is no guarantee of future results. Management and performance of individual accounts may vary for reasons that include the existence of different implementation practices and model requirements in different investment programs.

Pure Gross performance shown does not reflect the deduction of investment management fees and certain transaction costs, which will reduce portfolio performance. Net Performance includes the deduction of a 3% annual wrap fee for equity and balanced portfolios and a 1.5% annual wrap fee for fixed income portfolios. These deducted fees amounts are the maximum anticipated wrap fees. Actual fees may vary. For fee schedules, contact your financial professional or, if you enter into an agreement directly with Legg Mason Private Portfolio Group, LLC ("LMPPG"), refer to LMPPG's Form ADV disclosure document. Returns reflect the reinvestment of dividends and other earnings.

An investor cannot invest directly in an index. Unmanaged index returns do not reflect any fees, expenses or sales charges.

Performance Source: Legg Mason

Hypothetical growth of dollars: For illustrative purposes only. Assumes no withdrawals or contributions. The performance results shown were calculated assuming reinvestment of dividends and income and take into account both realized and unrealized capital gains and losses.

IMPORTANT INFORMATION: Separately Managed Accounts (SMAs) are investment services provided by Legg Mason Private Portfolio Group, LLC (LMPPG), a federally registered investment adviser. Client portfolios are managed based on investment instructions or advice provided by one or more of the following Legg Mason-affiliated sub-advisers: ClearBridge Investments, and Western Asset Management Company. Management is implemented by LMPPG, the designated sub-adviser or, in the case of certain programs, the program sponsor or its designee.

Professional money management may not be suitable for all investors. Factual information relating to the securities discussed was obtained from sources believed to be reliable, but there can be no guarantee as to its accuracy. It should not be assumed that investments made in the future will be profitable or will equal the performance of the securities discussed in the material.


Holdings, sector weightings, market capitalization and portfolio characteristics are subject to change at any time and are based on a representative portfolio. Holdings, sector weightings, market capitalization and portfolio characteristics of individual client portfolios in the program may differ, sometimes significantly, from those shown. This information does not constitute, and should not be construed as, investment advice or recommendations with respect to the securities and sectors listed. 

GIPS End Notes Not Applicable
Not Applicable

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.