EnTrustPermal Hedge Strategies Fund I

Highlights

Uncertain markets are leading some investors to alternative paths, and to investments that can provide a way to potentially diversify an overall portfolio and dampen volatility. EnTrustPermal Hedge Strategies Fund offers a diversified portfolio with a fixed-income focus and a proactive approach to allocating capital among credit and non-credit related strategies, based on EnTrustPermal's market views.

  • Multi-manager and multi-strategy portfolio of hedge funds.
  • Seeks capital appreciation while attempting to limit risk and volatility.
  • Access to a broad range of investment strategies with a fixed-income focus.

EnTrustPermal Hedge Strategies Fund I and EnTrustPermal Hedge Strategies Fund II (“Funds”) have announced that the Board of Trustees of each Fund has approved the termination and liquidation of each Fund in accordance with the Maryland Statutory Trust Act.  It is anticipated that non-Legg Mason shareholder assets will be redeemed by the end of November 2017. Tender offers previously accepted pursuant to Offers to Purchase dated December 22, 2016 and March 27, 2017 will be completed as scheduled pursuant to the terms of the applicable Offer to Purchase.

Effective immediately, the Funds suspended the sale of the Institutional Shares, Service Shares and Broker Shares and suspended the dividend reinvestment plan.

Prior to May 31, 2013, the Fund was known as the Permal Hedge Strategies Fund. On June 12, 2013, Advisor Shares were renamed Institutional Shares.
Prior to May 31, 2013, the Fund was known as the Permal Hedge Strategies Fund. On June 12, 2013, Advisor Shares were renamed Institutional Shares.
Prior to May 31, 2013, the Fund was known as the Permal Hedge Strategies Fund. On June 12, 2013, Advisor Shares were renamed Institutional Shares.

meet your managers

EnTrustPermal is one of the world’s largest hedge fund investors and recognized as a leading global alternative asset manager. Headquartered in New York, NY, we offer both institutional and high net worth clients comprehensive investment solutions across an array of alternative asset classes and strategies seeking to capitalize on opportunities wherever they may occur.


Meet Your Managers

Javier F. Dyer (industry since 1997) and Alexander Pillersdorf (industry since 2005) co-manage your Fund. 

Javier F. Dyer

Senior Investment Officer

Alexander Pillersdorf

Senior Vice President, Investment Research

To find out more about the EnTrustPermal Hedge Strategies Fund, talk to your Financial Advisor.

Learn more about how to invest with Legg Mason 

Eligible Investors

U.S. accredited investors

  • Individuals with income in excess of $200,000 in each of the two most recent years, or joint income with a spouse in excess of $300,000 in each of those years.
  • Individuals having a net worth (or joint net worth with his or her spouse) of at least $1 million, excluding the value of such individuals' primary residence.
  • Available to tax exempts, including IRAs.
  • Institutions or entities having total assets of at least $5 million or entities all of whose beneficial owners are themselves accredited investors.

Please refer to the prospectus / Offering Materials for a complete description/ understanding of investor requirements and risks associated with the Fund.

Terms snapshot

Strategy: Multi-Manager, Multi-Strategy

Fund inception: February 1, 2012

Subscriptions: Monthly on the 1st

Minimum investment: $25,000 initial; $10,000 subsequent

Liquidity1: Quarterly

Tax reporting: Form 1099

Distributions2: Annual income, capital gains, and return of capital. See prospectus for details.

Incentive fee3: None

Lock-up fee4: None

 

1 The Fund expects to repurchase shares from shareholders quarterly during the tender period, which ends 65 days prior to the valuation date, with such repurchases based on Fund valuations as of each March 31, June 30, September 30 and December 31 (or if the date is not a business day, with such repurchases to occur as of the immediately preceding business day). All tender offers are subject to approval of board of trustees and will generally be for 5-25% of the Fund's net assets. There is no guarantee that any such tender offer shall occur. Therefore, a shareholder may not be able to tender its shares.

2 Distributions will be reinvested unless the investor opts for cash distributions. There is no guarantee to the frequency or amount of any future distributions.

3 Incentive fees are fees paid to the manager of a fund, which are usually relative to a benchmark index.

4 Lock-up fees are fees paid by an investor when redeeming.

For information on the portfolio’s schedule of investments, please see the Annual Report, Semiannual Report or Form N-Q.

What I Should Know
Before Investing

All investments are subject to risk, including the possible loss of principal. In addition to the Fund's operating expenses, you will indirectly bear the operating expenses of the underlying funds, which can be substantially higher than fees associated with mutual funds. The Fund may invest in unregistered hedge funds which are highly speculative investments that employ aggressive investment strategies, and carry substantial risk. Investments in hedge funds are generally illiquid, difficult to value and may carry significant restrictions for transferring assets. Some of the underlying funds employ leverage, which increases the volatility of investment returns and subjects the Fund to magnified losses if an underlying fund's investments decline in value. The Fund and some of the underlying funds may use derivatives, such as options and futures, which can be illiquid, may disproportionately increase losses, and have a potentially large impact on Fund performance. Some of the underlying funds may employ short selling, a speculative strategy. Unlike the possible loss on a security that is purchased, there is no limit on the amount of loss on an appreciating security that is sold short. The Fund and each underlying fund may engage in active and frequent trading, resulting in higher portfolio turnover and transaction costs. There is no assurance that these and other strategies used by the Fund or underlying funds will be successful. Equity securities are subject to price fluctuation. International investments are subject to special risks including currency fluctuations, 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. As interest rates rise, the value of fixed income securities fall. High-yield bonds possess greater price volatility, illiquidity, and possibility of default. Asset-backed, mortgage-backed or mortgage related securities are subject to additional risks such as prepayment and extension risks. Please see the prospectus for a more complete discussion of the Fund's risks.

Top

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. Fund performance figures reflect fee waivers and/or expense reimbursements, without which the performance would have been lower. For the period prior to January 1, 2013, the performance shown is that of the Fund’s Service Shares incepted on February 1, 2012.

Fund performance figures are net of fees, including a 1.10% management fee, acquired fund (underlying manager) fees, and other Fund expenses. Performance results for the Fund are short-term and may not provide an adequate basis for evaluating performance potential over varying market conditions or market cycles. 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.

Net Asset Value (NAV): An investment option’s net asset value (“NAV”) per unit or unit price is calculated by dividing the value of its net assets by the total number of units outstanding. 

**Gross expenses are the Fund's total annual operating expenses for the share class(es) shown. Net expenses for Class(es) Institutional & Service reflect contractual fee waivers and/or reimbursements, where these reductions reduce the Fund's gross expenses, which cannot be terminated prior to Dec 31, 2017 without Board consent. The Gross and Net Expenses listed include 4.21 of Acquired Fund Fees and Expenses ("AFFE") that are required to be shown in the Fund's prospectus. AFFE reflects the Fund's pro rata share of fees and expenses relating to its investments in acquired funds; however, AFFE are not incurred directly by the Fund. Therefore, AFFE are not reflected in the Fund's audited financial statements or financial highlights.

Underlying manager fees: In addition to the Fund's operating expenses, Fund shareholders will indirectly bear the operating expenses of the underlying funds. Generally, underlying manager fees include 1% to 3% management fee and a 15% to 25% incentive fee.

Top

Weighted Average Life (WAL) is the average number of years for which each dollar of unpaid principal on a loan or mortgage remains outstanding. Once calculated, WAL tells how many years it will take to pay half of the outstanding principal. 

Effective duration is a duration calculation for bonds with embedded options. Effective duration takes into account that expected cash flows will fluctuate as interest rates change. Duration measures the sensitivity of price (the value of principal) of a fixed-income investment to a change in interest rates. The higher the duration number, the more sensitive a fixed-income investment will be to interest rate changes.

Top

IMPORTANT HOLDINGS INFORMATION: Portfolio holdings are based on total portfolio, and are subject to change at any time. Holdings are provided for informational purposes only and should not be construed as a recommendation to purchase or sell any security. Any negative allocations or allocations in excess of 100% are primarily due to unsettled trade activities.

Derivatives, such as options and futures, which can be illiquid, may disproportionately increase losses and have a potentially large impact on Fund performance.

Top

The per share distribution amounts presented above reflect the distribution rates that were paid to shareholders on the indicated payable dates. The character of distributions for certain funds may have been subsequently adjusted for tax purposes. Shareholders can determine which funds may have reclassified the tax character of distributions by visiting the Tax Center in Account Services. Information on reclassifications for distributions paid during the current calendar year will not be available until the first quarter of the following year.

An XBRL file is not a fund's complete prospectus. XBRL is an interactive data format and is provided in addition to a fund's prospectus and annual and semi-annual reports linked to this page. An XBRL file is not viewable without a viewer tool. A viewer tool is available on the SEC website at www.sec.gov. You can download an XBRL zip file and view it on the SEC website or use the data for analysis with any comparison tool.

IMPORTANT INFORMATION: An investment in the Fund is not suitable for all investors, is illiquid and should be considered speculative. An investment in the Fund entails unique risks because the Portfolio Funds in which the Fund will invest are private entities with limited regulatory oversight and disclosure obligations. Because the Fund invests in underlying Portfolio Funds, the managers may not be able to shift allocations in time to capture an immediate or sudden spike in the market. Diversification does not guarantee a profit or protect against a loss.

The information shown above relates to Permal Hedge Strategies Portfolio, the registered investment company in which the Fund invests substantially all of its investable assets. The Fund utilizes a master/feeder structure by investing all of its assets in the Permal Hedge Strategies Portfolio. Assets are reported at the master portfolio level.

Tapering of the Federal Reserve Board's quantitative easing program and a general rise in interest rates may lead to increased portfolio volatility.

Top