A SIMPLE, BALANCED APPROACH TO GROWTH

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1 QS Asset Allocation A SIMPLE, BALANCED APPROACH TO GROWTH For investors who prefer a simple and accessible approach to growth-oriented investing, QS Asset Allocation are a smart option. Each of the four professionally managed funds can provide a portfolio with the appropriate mix of risk and potential reward for specific investment profiles. INVESTMENT PRODUCTS: NOTFDIC INSURED NO BANK GUARANTEE MAYLOSE VALUE

2 WHY DIVERSIFY? Because over time, asset classes typically perform differently. The worst-performing investment one year can be the best the next, and vice versa. No one can predict which asset class will come out on top % 11.2% 5.2% 1.8% 40.5% 37.2% 26.9% 25.5% 7.8% 2.6% 17.5% 17.3% 38.8% 34.8% 13.5% 13.2% 5.7% 0.6% 21.3% 17.3% Highest % return 7.0% -33.8% 31.8% 16.7% 0.4% 17.3% 33.5% 13.1% 0.0% 13.8% 5.6% -36.9% 27.2% 15.5% 0.1% 16.4% 32.5% 6.0% -0.8% 7.1% 4.7% -38.4% 19.7% 7.8% -1.6% 15.3% 22.8% 4.9% -2.4% 2.7% -0.2% -1.6% -41.5% -43.4% 5.9% 0.2% 6.5% 0.1% -4.2% -12.1% 4.2% 0.1% 0.1% -2.0% 0.0% -4.9% -3.8% -4.4% 1.0% 0.3% Lowest % return are represented by the Bloomberg Barclays is represented by the Russell U.S. Aggregate Bond Index. A bond is a debt instrument 1000 Index, which measures the performance of through which an investor loans money toan entity those Russell 1000 companies with higher price-to-book (corporate or governmental) that borrows the money for ratios and higher forecasted earnings growth rates. a defined period of time and typically at a fixed interest is represented by the Russell rate. are used by companies, municipalities, 1000 Index, which measures the performance of states, and U.S. and foreign governments to finance those Russell 1000 companies with lower price-to-book a variety of projects and activities. ratios and lower forecasted earnings growthrates. Stocks are represented is represented by the by the MSCI EAFE Index. They are ownership Russell Midcap Index, which invests in stocks securities of companies domiciled in larger non-u.s. of various sizes and mixed characteristics, countries with long-established economies. giving it a middle-of-the-road profile. is represented by the Russell 2000 Index. A small-cap blend strategy generally holds both growth and value stocks, to achieve gains from both styles over the long term. is represented by the Citigroup 3-Month U.S. Treasury Bill Index, which consists of negotiable debt obligations issued by the U.S. government and backed by its full faith and credit, and that have a maturity of one year or less. Investors cannotinvestdirectly in an index.unmanagedindexreturnsdo not reflect anyfees, expensesor sales charges. Source: LeggMason. Returnsare as of December 31 of specifiedyears. Thetableaboveispresentedforinformationalpurposesonlyanddoesnotrepresentperformanceof anyspecificinvestment. Pastperformanceis no guaranteeof future results.diversificationdoesnotguaranteea profitorprotectagainsta loss. 2

3 ELIMINATE THE GUESSWORK QS Asset Allocation take the guesswork out of choosing and combining various asset types to achieve your goals. That makes them a great choice for investors who seek a simple and accessible approach to investing. Offering built-in diversification, the can instantly provide an appropriate balance of risk and potential reward. They invest in a globally diversified mix of underlying assets (fixed income and equities), then dynamically manage this balance over time as market conditions change. Underlying investments may include low-cost exchange-traded funds (ETFs) that track certain markets (asset classes), as well as actively managed funds with a diverse set of strategies and investments, including alternatives (such as commodities, real estate assets and infrastructure assets). Matching risk profiles Each of the four QS Asset Allocation is managed to deliver long-term capital growth against specific risk ranges, which are controlled by strategic and tactical allocations across multiple markets and asset classes. This outcome-oriented focus on long-term risk characteristics is intended to help easily select funds that appropriately match risk profiles. Don t try to time themarket Some people try to get in and out of investments by guessing which way the market is headed. A much more prudent way to diversify your portfolio is by allocating assets strategically based on your investment goals, then making incremental course corrections over time. The ABCs of QS Asset Allocation Aggressive to conservative Select from conservative to aggressive allocations from a high ratio of fixed income/equities for income-focused investing, to a high ratio of equities/fixed income for aggressive, growth-focused investing. and stocks in one fund Each of the four contains underlying mutual funds in two primary asset classes: equity and fixed income securities. A single Fund provides immediate access to investment grade and high yield bonds and domestic and international equities of all types. Control and monitoring It s easy to monitor your investments. Experienced investment managers actively track and rebalance each Fund s holdings. The portfolio s original allocation mix is continually monitored and rebalanced quarterly. The portfolio managers may allocate Fund assets to any underlying fund in varying amounts in a manner consistent with each Fund s investment objective. Each Fund s allocation to each asset class willbe measuredat the time of purchaseandmay vary thereafter as a result of market movements. The portfoliomanagers will seekto maintaina level of risk in theimilarto that of eachfund s composite benchmark. Alternative strategies involve highly speculativeinvestments that employ aggressive investment strategies andcarry substantialrisk. Thereis no assurancethata recommendedallocationwillprovethe idealallocationin all circumstances. Asset allocation doesnot assurea profit or protectagainsta loss. 3

4 FOUR INVESTMENT GOALS, FOUR FUND ALLOCATIONS Real solutions for different investor objectives Each Fund is managed to deliver long-term capital growth against specific risk ranges. Conservative This mix is generally favored by investors who have a shorter time horizon and/or a lower tolerance for short-term market fluctuations. Its asset allocation is weighted more heavily toward lower-risk, current income-generating asset classes, such as bonds. 1 Conservative 2 QS Defensive Fund 1 Share class (Symbol): A (SBCPX), C (LWLAX), I (LMGIX) Balanced QS Conservative Fund 2 Share class (Symbol): A(SBBAX), C (SCBCX), I(LMEIX) Best for investors who Require current income, with long-term capital growth a secondary consideration, and/or Have a short-to-medium-term investment time horizon, and/or Can tolerate minimal risk Best for investors who Are looking for capital growth and current income, and/or Have a medium-term investment time horizon, and/or Can tolerate some risk Investment goal Asset allocation Achieve income as a 15% 45% in underlying primary objective, and long- equity funds, 55% 85% term growth of capital as in underlying fixed a secondary objective income funds Investment goal Achieve an approximate 50/50 ratio of capital growth and current income Asset allocation 35% 65% in underlying equity funds, 35% 65% in underlying fixed income funds Assetallocation (%) as of September 30, 2017 Assetallocation (%) as of September 30, U.S. Large Cap U.S. Small/Mid Cap Equity Inflation-Sensitive Equity International/Global Fixed Income International/Global Source: LeggMason. 1 Prior to June 1, 2015, this Fund followed different investment policies and strategies under the name QS Legg Mason Lifestyle Allocation30%. 2 Prior to June 1, 2015, this Fund followed different investment strategies under the name QS Legg Mason Lifestyle Allocation50% U.S. Large Cap 5.06 U.S. All Cap 0.20 U.S. Small/Mid Cap Inflation-Sensitive Equity International/Global Fixed Income International/Global Sector allocations are subject to change at any time. Percentages are based on total portfolio. This information is provided for information purposes only and should not be construed as a recommendation to purchase or sell any security. Equity securities are subject to price fluctuation and possible loss of principal. International investments are subject to special risks, including currency fluctuations andsocial, economicandpoliticaluncertainties, which couldincreasevolatility. 1.71

5 Access to Legg Mason s entire affiliate fund family provides access to funds with complementary risk/return patterns and a diverse source of alpha. Pairing different active managers gives the QS Asset Allocation greater potential for growth while keeping the overall risk characteristics in line with existing benchmarks. Aggressive This mix is generally favored by investors who have a longer time horizon and/or a higher tolerance for short-term market fluctuations. Its asset allocation is weighted more heavily toward higher-risk, long-term growth-oriented asset classes, such as stocks. 3 4 QS Moderate Fund 3 Share class (Symbol): A(SCGRX), C (SCGCX), I(LLAIX) Aggressive growth QS Fund 4 Share class (Symbol): A(SCHAX), C (SCHCX), I (LANIX) Best for investors who Are focused primarily on long-term capital growth, and/or Have a medium-to-long-term investmenttime horizon, and/or Can tolerate market fluctuations overtime Best for investors who Are focused solely on growth of capital, and/or Have a long-term investment time horizon, and/or Can tolerate potentially significant market fluctuations over time Investment goal Achieve long-term capital growth Asset allocation 55% 85% in underlying equity funds, 15% 45% in underlying fixed income funds Investment goal Achieve capital appreciation Asset allocation 70% 100% in underlying equity funds, 0% 30% in underlying fixed income funds Assetallocation (%) as of September 30, 2017 Assetallocation (%) as of September 30, 2017 U.S. Large Cap U.S. All Cap U.S. Small/Mid Cap Inflation-Sensitive Equity International/Global Fixed Income International/Global These risks are magnified in emerging markets. Small- and mid-cap stocks involve greater risks and volatility than large-cap stocks. Fixed income securities are subject to interest rate, credit, inflation and reinvestment risk. As interest rates rise, the value of fixed income securities falls. In addition to the Fund s operating expenses, you will indirectly bear the operating expenses of the underlying funds. Please refer to the next page for additional risk information. Totals may not add to 100% due to rounding U.S. Large Cap U.S. All Cap U.S. Small/Mid Cap Inflation-Sensitive Equity International/Global Fixed Income International/Global Prior to June 1, 2015, the Fund followed different investment policies and strategies under the name QS Legg Mason Lifestyle Allocation70%. 4 Prior to June 1, 2015, the Fund followed different investment policies and strategies under the name QS Legg Mason Lifestyle Allocation 85%. 5

6 UNDERLYING FUNDS, EXPERIENCED MANAGERS Each of the QS Asset Allocation draws from the expertise of seasoned investment managers. Global value investing Legg Mason BW Diversified Large Cap Fund Quality-focused equity ClearBridge Aggressive Fund ClearBridge Appreciation Fund ClearBridge Mid Cap Fund ClearBridge Small Cap Fund ClearBridge International Fund Volatility-managed QS Global Dividend Fund Global quantitative equity QS International Equity Fund QS U.S. Large Cap EquityFund Inflation-sensitive QS Strategic Real ReturnFund Small-cap equity Royce Fund Fixed income Western Asset Core Bond Fund Western Asset Core Plus BondFund Western Asset High Yield Fund Western Asset Macro OpportunitiesFund The key to long-term success in multi-strategy equity investing is selecting highquality companies through rigorous research and analysis. Scott Glasser Co-Chief Investment Officer ClearBridge Investments Our successful approach emphasizes the pursuit of both growth and income aswe seek to invest in companies with sustainable and growing dividend streams. Stephen Lanzendorf, CFA PortfolioManager QSInvestors Our success in fixed income investing is driven by three essential elements: a teambased approach to management, a deep bench of investment professionals, and a long-term fundamental value approach. Ken Leech Chief Investment Officer Western Asset Each underlying fund may engage in active and frequent trading, resulting in higher portfolio turnover and transaction costs. As a non-diversified fund, it is permitted to invest a higher percentage of its assetsinanyoneissuer thana diversifiedfund,whichmay magnifythefund slossesfrom eventsaffectinga particularissuer.certainof theunderlyingfundsmay engageinshortselling,whichis a speculativestrategythatinvolvesspecialrisks. Unlikethepossiblelossona securitythatispurchased,thereisnolimit ontheamountof lossonanappreciatingsecuritythatis soldshort.themodel used tomanageafund sassetsprovidesnoassurancethattherecommendedallocationwilleithermaximizereturnsor minimizerisks. Thereisnoassurancethatarecommendedallocationwillprovetheideal allocationinallcircumstances. Derivatives, suchas optionsandfutures,canbeilliquid, may disproportionatelyincreaselosses, andhavea potentiallylargeimpactonfundperformance. 6

7 A MULTI-ASSET SPECIALIST INVESTMENT MANAGER The investment manager of the QS Asset Allocation is QS Investors, a global equity and multi-asset class solutions manager with $22.5 billion in assets under management. QS Investors counts thoughtful asset allocation and innovative risk management as two of its core competencies. With significant experience in managing multi-asset class portfolios, the firm employs a consultative approach to global asset management an approach that includes: Market awareness Dynamically weights opportunities in response to changing conditions in the economy and world markets Risk management Combines quantitative research with analysis of behavioral investing patterns to construct diversified portfolios designed to mitigate risk and smooth returns Management team QS Investors portfolio management team, with long-term investment experience, is responsible for day-to-day management of the. Industry since 1996 Adam Petryk, CFA Head of Multi-Asset andsolutions Holds a BS in Computer Engineering from the University of Waterloo, Ontario, Canada and an MS in Electrical Engineering from the University of Waterloo. Thomas Picciochi Head of Multi-Asset PortfolioManagement Implementation Holds a BA and MBA from University of Miami Industry since 1987 Ellen Tessler Portfolio Manager, Member of Portfolio Management Implementation Group Holds a BBA and MBA from PaceUniversity Industry since 1999 As of September 30,

8 Brandywine Global Clarion Partners Legg Mason is a leading global investment company committed to helping clients reach their financial goals through long-term, actively managed investmentstrategies. ClearBridge Investments EnTrustPermal Martin Currie QS Investors RARE Infrastructure Royce & Associates Over $754billion* in assets invested worldwide in a broad mix of equities, fixedincome, alternatives and cash strategies A diverse family of specialized investment managers, each with its own independent approach to research and analysis Over a century of experience in identifying opportunities and delivering astute investment solutions to clients Western Asset LeggMason.com * As of September30, Any information,statementor opinionset forthhereinisgeneralinnature,is not directedtoor basedonthefinancialsituationor needsof any particularinvestor, anddoesnot constitute,andshouldnot beconstruedas, investmentadvice,forecast of futureevents, a guaranteeof future results, or a recommendation with respect to any particular security or investment strategy or type of retirement account. Investors seeking financialadvice regardingthe appropriatenessof investinginany securitiesor investmentstrategiesshouldconsulttheirfinancialprofessional Legg Mason Investor Services, LLC, member FINRA, SIPC. Legg Mason Investor Services, LLC and all investment managers mentioned are subsidiaries of Legg Mason, Inc QSIN /17 BEFORE INVESTING, CAREFULLY CONSIDER A FUND S INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES. YOUCANFIND THIS ANDOTHER INFORMATIONIN EACHPROSPECTUS, AND SUMMARYPROSPECTUS, IF AVAILABLE, AT PLEASE READ THE PROSPECTUS CAREFULLY.