BWG - BrandywineGLOBAL -

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1 2Q 2018 Product Commentary BWG - BrandywineGLOBAL - GLOBAL INCOME OPPORTUNITIES FUND INC. Team-managed Average annual total returns (%) as of June 30, 2018Average annual total returns and fund expenses (%) 3-mo YTD 1-yr 3-yr 5-yr 10-yr Since Incept. (3/28/12) NAV Market Price 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 sold, may be worth more or less than the original cost. Returns are based on Market Price or NAV and assume the reinvestment of all distributions at the Dividend Reinvestment Plan Price or NAV, respectively. All returns include the deduction of management fees, operating expenses and all other Fund expenses, and do not reflect the deduction of brokerage commissions or taxes that investors may pay on distributions or the sale of shares. Performance data of less than one year are cumulative figures and are not annualized. For current month-end performance, visit Executive summary In Brandywine Global s view, high level global macro influences, such as growth in the U.S. and China, should continue to drive the direction of the global economy and financial markets. Despite the return of strength in the second quarter, Brandywine continues to believe the U.S. dollar remains on a multi-year down trend as it remains one of the most expensive currencies in its universe. Brandywine Global s outlook for emerging markets remains constructive based on valuations, while being supported by global growth and commodity prices. According to Brandywine Global, credit markets also present value, particularly after the significant spread widening that occurred during the first half of Brandywine Global believes global inflation rates will converge, as inflation expectations in the emerging world are anchored too high. Global macro review and outlook In Brandywine Global s view, high level global macro influences, such as growth in the U.S. and China, should continue to drive the direction of the global economy and financial markets. The global expansion remains on solid footing, but the growth rate should not be as robust as the back half of After experiencing above-average growth in 2017, Brandywine feels eurozone growth should level off around the historic annualized growth rate of 1%. With the European Central Bank ready to sunset its bond purchasing program, Brandywine believes there is significant price risk across core European bond markets, as short- and long-term rates across the continent should rise. The Bank of Japan will likely remain committed to unorthodox monetary policy for the foreseeable future, as its inflation objective has not been met. Brandywine feels the Japanese economy should experience a near-term rebound after a soft start to Despite strengthening in the second quarter, Brandywine continues to believe the U.S. dollar remains on a multi-year down trend, as it remains one of the most expensive currencies in its universe. Solid U.S. economic fundamentals provided a INVESTMENT PRODUCTS: NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE

2 soft landing for corporate credit in the first half of the year, in an otherwise risk averse period. Looking ahead, Brandywine expects more frequent periods of risk aversion, with a corresponding uptick in equity market volatility. Brandywine Global s outlook for emerging markets remains constructive based on valuations, while being supported by global growth and commodity prices. With inflation-adjusted yields near decade highs, emerging market valuations remain attractive. Current market conditions warrant selectivity as U.S. protectionism and a slowdown in Chinese growth are key risks for these markets. Brandywine prefers the currencies and bonds of emerging countries with commodity-oriented economies. According to Brandywine, credit markets also present value, particularly after the significant spread widening that occurred during the first half of Brandywine Global s corporate credit default outlook remains benign. However, the deterioration in issuer fundamentals, particularly in the U.S., has their attention. Key themes and risks Brandywine has a global view of inflation and is particularly interested in the divergence between developed and emerging market inflation rates. They believe inflation rates will converge, as inflation expectations in the emerging world are anchored too high. Brandywine Global expects cyclical inflation forces will drive developed market rates higher as business cycle factors point toward better growth. In the U.S., economic activity has been strong as late-cycle fiscal stimulus has supercharged growth. That being said, Brandywine is monitoring risk factors like protectionism, a flattening Treasury yield curve, Federal Reserve Board ( Fed ) tightening and resurgent U.S. dollar strength. A weaker U.S. dollar should be a function of the Trump administration s efforts to improve the U.S. trade balance. While volatility at this stage of the Fed tightening cycle is par for the course, they strongly urge Chair Jerome Powell to take a gradualist approach to monetary policy. Risk influences have become more significant as volatility stems from a wide range of policymaking, from trade to central banking. Policymaking could become an issue if the global growth backdrop deteriorates, particularly as a result of a rise in protectionism. Europe should be the canary in the coal mine given the region s exposure to global influences. U.S. corporate credit valuations seem reasonable, as high yield and investment grade spreads are at or near their widest levels in Longer-term headwinds for these sectors include the deterioration of corporate fundamentals via higher leverage ratios and poor covenant quality. Near-term default expectations remain low. European credit spreads have widened significantly over the past 12 months, although valuation challenges remain. Brandywine therefore remains cautious of this segment of the global credit market. They remain generally constructive on residential mortgage-backed securities in both the U.S. and Europe given a host of constructive factors, such as solid housing and borrower fundamentals and lower interest-rate sensitivity. Emerging markets continue to present compelling investment opportunities and are in the midst of a multi-year catch up to developed market valuations. Real yields in those markets look compelling as inflation expectations in emerging market bond universe are, by and large, still too high. Economic stability in China remains a key pillar to Brandywine Global s constructive view of emerging market assets. Therefore, risks to global trade, commodity prices and Chinese growth could complicate its emerging market outlook. Fund positioning Emerging markets: Brandywine continues to favor the high nominal- and real-yielding currencies of Brazil, Indonesia, South Africa and India. However, they have grown more selective of their exposures and, therefore, closed or significantly reduced their positions in the Egyptian pound, Colombian peso, Mexican peso, Peruvian sol and Turkish lira. In terms of emerging market sovereign bonds, Brandywine maintained positions in long-duration bonds in Brazil, Indonesia, India and South Africa.

3 Developed markets: Although Brandywine believes the U.S. dollar will come under pressure in the long term, they tactically increased their overall U.S. dollar exposure in light of tax cuts and higher growth prospects for the U.S. economy. As a risk-off ballast, they added back exposure to the Japanese yen. Sovereign bond exposure: Brandywine increased its exposure to long-dated U.S. Treasury bonds as a risk-off hedge. Credit exposure: Brandywine added to positions in U.S. dollar-denominated corporate debt with shorter-duration profiles, as they continue to present reasonable valuations and are supported by a positive economic backdrop in the U.S. discussed are those of indexes or asset classes and are not those of the funds. For more information about any of our closed-end funds, including long-term performance, risks, expenses and fund objectives, please visit Portfolio allocations, holdings and characteristics referenced in this commentary are as of June 30, 2018 and are subject to change at any time. Asset Allocation (%): Government 51.5 Global High Yield Corporate Bonds 17.0 Mortgage-Backed Securities 14.2 Global Investment Grade 11.6 Bank Loans 0.2 Cash & Other Securities 5.5 Prior to December 29, 2017, this fund was known as BWG - Legg Mason BW Global Income Opportunities Fund Inc. Past performance is no guarantee of future results. Opinions shared in this commentary are current as of July 30, 2018 and are subject to change based on markets and other conditions. These opinions do not constitute, and should not be construed as, investment advice or recommendations. The opinions expressed are those of the portfolio managers indicated and may differ from the views of other managers or the firm as a whole. And they are not intended to be a forecast of future events or a guarantee of future results. Discussions of individual securities are intended to inform shareholders as to the basis (in whole or in part) for previously made decisions by a portfolio manager to buy, sell or hold a security in a portfolio. References to specific securities are not intended, and should not be relied upon, as the basis for anyone to buy, sell or hold any security. Investors seeking financial advice regarding the appropriateness of investing in any securities or investment strategies should consult their financial professional. Forecasts are inherently limited and should not be relied upon as an indication of actual or future performance. The closed-end funds are not sold or distributed by Legg Mason Investor Services, LLC (LMIS) or any affiliate of Legg Mason, Inc. Unlike open-end funds, shares are not continually offered. Like other public companies, closed-end funds have a one-time initial public offering, and once their shares are first issued, they are generally bought and sold through non-affiliated broker/dealers and trade on nationally recognized stock exchanges. Share prices will fluctuate with market conditions and, at the time of sale, may be worth more or less than your original investment. Shares of exchange-traded closed-end funds may trade at a discount or premium to their original offering price, and they often trade at a discount to their net asset value. Net asset value (NAV) is total assets less total liabilities divided by the number of shares outstanding. Market price, which is determined by supply and demand, is the price at which an investor purchases or sells a fund. Investment return, market price and net asset value will fluctuate with changes in market conditions. The funds are subject to investment risks, including the possible loss of principal invested. Any performance discussed is past performance, and past performance is no guarantee of future results. Unless otherwise stated, all yields and returns Top Currency exposure (%) includes currency hedging: US Dollar 56.9 Brazil Real 9.5 Mexico Peso 7.6 Indonesia Rupiah 6.9 Euro 6.2 India Rupee 4.7 South African Rand 3.7 Egyptian Pound 2.6 New Turkish Lira 1.4 Britain Pound 0.5 Top 5 countries (%): United States 55.8 Brazil 12.9 Mexico 7.6 Indonesia 6.9 European Union -7.7 Distribution rates (%): Market price 8.1 NAV 6.9 Distribution rate is calculated by annualizing the most recent distribution amount paid, excluding special distributions, divided by the closing market price or NAV as of 6/30/18. The fund estimates that the distributions will be paid from: 31.5% investment income; 0% realized capital gains; and 68.5% return of capital. These estimates are not for tax purposes and a 1099 will be issued following yearend. The Distribution Rate is subject to change and

4 is not a quotation of Fund performance. The Board of Directors may terminate or suspend the managed distribution policy at any time. Any such termination or suspension could have an adverse effect on the market price of the Fund s shares. A return of capital is not taxable and results in a reduction in the tax basis of a shareholder s investment. For more information about a distribution s composition refer to the Fund s distribution press release or, if applicable, the Section 19 notice located in the press release section of our website. of an investment s credit worthiness, or risk of default. The credit quality ratings provided by ratings agencies such as Standard and Poor s (S&P), Moody s Investors Service and/or Fitch Ratings, Ltd. typically range from AAA (highest) to D (lowest). These ratings are updated monthly and may change over time. Please see or for details. Please note that the Fund itself has not been rated by an independent rating agency. Glossary Duration is a measure of the price sensitivity of a fixed income security to an interest rate change. It is calculated as the weighted average of the present values for all cash flows, and it is measured in years. Disinflation is a slowing in the rate of price inflation. Purchasing Managers Indexes (PMI) measure the manufacturing and services sectors in an economy, based on survey data collected from a representative panel of manufacturing and services firms. Investment-grade bonds are generally rated AAA - BBB. A below investmentgrade bond or high-yield security has a rating of BB or lower, and generally pays a higher yield to compensate for its greater risk. Credit quality is a measurement of a bond issuer's ability to pay interest on the bond in a timely manner; it informs investors

5 Brandywine Global Clarion Partners ClearBridge Investments EnTrustPermal Martin Currie QS Investors RARE Infrastructure Royce & Associates Western Asset Management leggmasonfunds.com Legg Mason is a leading global investment company committed to helping clients reach their financial goals through long-term, actively managed investment strategies. A broad mix of equities, fixed income, alternatives and cash strategies invested worldwide A diverse family of specialized investment managers, each with its own independent approach to research and analysis What should I know before investing? Over a century of experience in identifying opportunities and delivering astute investment solutions to clients All investments are subject to risk, including possible loss of principal. Fixed income securities are subject to various risks, including but not limited to, credit, inflation, income, prepayment and interest rates risks. As interest rates rise, the value of fixed income securities falls. High yield ("junk bonds") are subject to additional credit risk and a greater risk of default. International investments are subject to additional risks due to currency fluctuations, changes in interest rates and other factors. These risks are greater for emerging markets securities. The Fund's investments in mortgage-backed securities involve additional risks. The Fund may invest in foreign currencies or currency derivatives which may increase the risk and volatility of the Fund. The Fund may invest in illiquid securities and securities/investments that have a leveraging effect on the portfolio which will increase the risks of the Fund. The Fund may make significant investments in derivative instruments. Derivative instruments can be illiquid, may disproportionately increase losses and have a potentially large impact on Fund performance. Distributions are not guaranteed and are subject to change. Any information, statement or opinion set forth herein is general in nature, is not directed to or based on the financial situation or needs of any particular investor, and does not constitute, and should not be construed as, investment advice, a forecast of future events, a guarantee of future results, or a recommendation with respect to any particular security or investment strategy or type of retirement account. Investors seeking financial advice regarding the appropriateness of investing in any securities or investment strategies should consult their financial professional. The information provided is intended solely to describe the managers management style, investment strategies and securities selection process, and it does not have regard to the specific investment objectives, financial situation and particular needs of any specific person who may receive it. Legg Mason Investor Services, LLC and Brandywine Global Investment Management, LLC are subsidiaries of Legg Mason, Inc Legg Mason Investor Services, LLC. Member FINRA, SIPC.