MULTI-ASSET SOLUTIONS FROM LEGG MASON

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1 Legg Mason QS Investors Multi-Asset Fund range MULTI-ASSET SOLUTIONS FROM LEGG MASON Three balanced investment portfolios, built for long-term capital growth within specific risk parameters A strong long-term track record of performance growth Experienced multi-asset team Diversified approach through a range of asset classes, including equities and fixed income investments MAY 2015 FOR PROFESSIONAL OR QUALIFIED INVESTORS ONLY. NOT TO BE DISTRIBUTED TO THE PUBLIC OR END INVESTORS.PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.

2 THE LEGG MASON APPROACH We offer three multi-asset funds designed to help investors achieve their financial goals Conservative, Balanced and Performance. For greater flexibility, each portfolio has the option of a euro or US dollar share class. Conservative Balanced Performance The funds have three key objectives: Consistent long-term risk characteristics to match a variety of customer risk profiles Diversification across a range of markets and asset classes Suitability at the point of purchase and over the long term Each of the three funds is managed to deliver long-term capital growth against specific risk ranges. These ranges are controlled by strategic and tactical allocations across a number of markets and asset classes. This outcomeoriented focus on long-term risk characteristics is intended to help you easily pair your clients with funds that appropriately match their risk profiles. How the funds work The funds invest in a globally diversified mix of different underlying assets. This mix is dynamically managed over time in view of changing market conditions, as different types of investments will behave differently over time. The underlying investments may include low-cost exchange-traded funds that track certain markets (asset classes), as well as actively managed funds. Our multiasset funds may invest in any sector and may include underlying funds investing in property. A solid track record Our multi-asset funds performance rankings within their respective Morningstar peer group are shown below. As at 31 January 2015, each of the funds has delivered top quartile (top 25%) performance in their respective peer group over the following periods: one, three and five years. Historical ranking of Legg Mason Multi-Asset funds within their respective Morningstar peer group Peer Group: EUR Moderate Allocation (Global) Quartile ranking 1 Year 3 Years 5 Years Legg Mason Multi-Manager Balanced EUR A Acc Legg Mason Multi-Manager Performance EUR A Acc Peer Group: EUR Cautious Allocation (Global) Legg Mason Multi-Manager Conservative EUR A Acc Peer Group: USD Cautious Allocation Legg Mason Multi-Manager Conservative USD C Acc Peer Group: USD Moderate Allocation Legg Mason Multi-Manager Balanced USD A Acc Legg Mason Multi-Manager Performance USD A Acc Source: Morningstar quartile rankings as at 31 January Morningstar peer groups are shown in bold text in the left-hand column. These are cross-border peer group categories. Note that above-mentioned range of funds has since been renamed and are now collectively referred to as the Legg Mason QS Investors Multi Asset funds. Please see disclaimer at end of document for full disclosure of changes Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar;(2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. These funds were created from the contribution of all the assets of the no longer existing Luxembourg SICAV Legg Mason Multi-Manager Funds established on 30 November 2004, funds with a substantially similar investment objective and policy. Past performance was calculated using the historical performance data of the Luxembourg SICAV and it may not be a reliable indicator of the funds future performance. The performance data should be used for illustrative purposes only. Past performance is no guarantee of future results. 1

3 REAL SOLUTIONS FUNDS THAT CAN BE MATCHED TO A CLIENT S RISK TOLERANCE Three distinctive investment options providing the right balance of risk and return potential to suit particular client profiles. Risk and potential rewards Conservative Fund Expected long-term volatility range: 6-8% Asset classes: equity, fixed income, alternatives, money market instruments Minimum exposure to underlying bond funds: 60% Minimum exposure to underlying equity funds: 20% Maximum exposure to emerging market bonds: 10% Maximum exposure to emerging market equity: 10% Morningstar peer sector: Cautious Allocation Balanced Fund Expected long-term volatility range: 8-10% Asset classes: equity, fixed income, alternatives, money market instruments Minimum exposure to underlying bond funds: 40% Minimum exposure to underlying equity funds: 40% Maximum exposure to emerging market bonds: 10% Maximum exposure to emerging market equity: 10% Morningstar peer sector: Moderate Allocation Higher Potential investment return Lower Lower CONSERVATIVE Expected long-term volatility of 6-8% BALANCED Expected long-term volatility of 8-10% Long-term volatility (Risk) PERFORMANCE Expected long-term volatility of 10-12% Higher Performance Fund Expected long-term volatility range: 10-12% Asset classes: equity, fixed income, alternatives, money market instruments Minimum exposure to underlying bond funds: 25% Minimum exposure to underlying equity funds: 55% Maximum exposure to emerging market bonds: 10% Maximum exposure to emerging market equity: 10% Morningstar peer sector: Moderate Allocation A broad mix of underlying investment options exposures () 100% bond funds can include investments in global government bonds, corporate bonds and securitised debt such as asset-backed and mortgage-backed securities equity funds can include investments in global equities as well as so-called alternatives property, private equity and commodityrelated instruments Global Government Bonds Global Corporate Bonds PORTFOLIO Asset-backed securities Global Equities Alternatives (property, private equity, commodities) 0% bond funds 60% equity funds 20% CONSERVATIVE bond funds 40% BALANCED equity funds 40% bond funds 25% equity funds 55% PERFORMANCE 2 3

4 AN EXPERIENCED, SPECIALIST INVESTMENT MANAGER The investment manager of the Legg Mason multi-asset range is QS Investors. QS Investors, a wholly owned subsidiary of Legg Mason, has significant experience in managing multi-asset class portfolios and considers thoughtful asset allocation and innovative risk management as two of its core competencies. The portfolio management team responsible for the day-to-day management of the funds have, on average, more than 22 years investment experience. Y. Wayne Lin Tom Picciochi, CAIA Ellen Tesler Wayne is Head of Multi-Asset Portfolio Management Strategy at QS Investors. He holds a BA in Economics from the University of Chicago and an MBA (Honours) in Finance and Management of Organisations from Columbia Business School, New York. His investment experience dates back to August Tom is Head of Multi-Asset Portfolio Management Implementation at QS Investors. He holds a BA from University of Miami and an MBA from University of Miami. His investment experience dates back to March Ellen is a Portfolio Manager and member of the Portfolio Management Implementation group at QS Investors. She holds a BBA and MBA from Pace University. Her investment experience dates back to June Consistent, risk-controlled returns QS Investors seeks to deliver consistent, repeatable and risk-controlled investment returns and dynamically weights opportunities in response to changing conditions in the economy and in world markets. Risk management is an intrinsic part of their investment process. Diversified Systematic Adaptive Not all ideas work all of the time. Diversify across multiple ideas and asset classes All ideas are tested and efficiently implemented Designed to respond to changing market environments Potential benefits Consistent, repeatable and riskcontrolled returns The Legg Mason range standing out from the competition Suitability. While it is true that multi-asset funds from our competitors can be riskrated at any given point in time (and therefore suitable at the time of purchase), it is only by introducing a longterm volatility target that investors and advisers can feel confident that a multiasset portfolio will remain in line with a specific client s risk profile over the long term. Simplicity. The investment process follows a systematic approach that aims to promote the best ideas. This repeatable yet adaptive process helps to avoid the destructive behavioural or emotional biases inherent in the fear and greed cycle. Performance. Legg Mason s multi-asset funds have delivered consistently strong performance in recent years. Past performance is no guarantee of future results. 4

5 SHARE CLASSES IN THE MULTI-ASSET RANGE Full names and share classes of funds in Legg Mason s multi-asset range Balanced Fund - Class A Euro Accumulating Balanced Fund - Class A Euro Distributing (A) Balanced Fund - Class B Euro Accumulating Balanced Fund - Class E Euro Accumulating Balanced Fund - Class E Euro Distributing (A) Currency ISIN SEDOL CUSIP VALOR (Swiss) WKN (German) EUR IE00BQQPSJ58 BQQPSJ5 G5450C A12A9D EUR IE00BQQPSK63 BQQPSK6 G5450C A12A9E EUR IE00BQQPSL70 BQQPSL7 G5450C A12A9F EUR IE00BQQPSM87 BQQPSM8 G5450C A12A9G EUR IE00BVRZ8443 BVRZ844 G5450C A14M6V Conservative Fund - Class A Euro Accumulating Conservative Fund - Class A Euro Distributing (A) Conservative Fund - Class B Euro Accumulating Conservative Fund - Class E Euro Accumulating Conservative Fund - Class E Euro Distributing (A) EUR IE00BQQPS958 BQQPS95 G5450C A12A86 EUR IE00BQQPSB72 BQQPSB7 G5450C A12A87 EUR IE00BQQPSC89 BQQPSC8 G5450C A12A88 EUR IE00BQQPSD96 BQQPSD9 G5450C A12A89 EUR IE00BVRZ8336 BVRZ833 G5450C A14M6U Performance Fund - Class A Euro Accumulating Performance Fund - Class A Euro Distributing (A) Performance Fund - Class E Euro Accumulating Performance Fund - Class E Euro Distributing (A) EUR IE00BQQPSR33 BQQPSR3 G5450C A12A9L EUR IE00BQQPSS40 BQQPSS4 G5450C A12A9M EUR IE00BQQPST56 BQQPST5 G5450C A12A9N EUR IE00BVRZ8559 BVRZ855 G5450C A14M6W Balanced Fund - Class A US$ Accumulating Balanced Fund - Class A US$ Distributing (A) Balanced Fund - Class E US$ Accumulating USD IE00BQQPSN94 BQQPSN9 G5450C A12A9H USD IE00BQQPSP19 BQQPSP1 G5450C A12A9J USD IE00BQQPSQ26 BQQPSQ2 G5450C A12A9K Conservative Fund - Class A US$ Accumulating Conservative Fund - Class A US$ Distributing (A) Conservative Fund - Class E US$ Accumulating USD IE00BQQPSF11 BQQPSF1 G5450C A12A9A USD IE00BQQPSG28 BQQPSG2 G5450C A12A9B USD IE00BQQPSH35 BQQPSH3 G5450C A12A9C Performance Fund - Class A US$ Accumulating Performance Fund - Class A US$ Distributing (A) Performance Fund - Class E US$ Accumulating USD IE00BQQPSV78 BQQPSV7 G5450C A12A9P USD IE00BQQPSW85 BQQPSW8 G5450C A12A9Q USD IE00BQQPSX92 BQQPSX9 G5450C A12A9R 5

6 Brandywine Global ClearBridge Investments LMM Martin Currie Permal QS Investors Royce & Associates Western Asset Management leggmasonglobal.com Legg Mason Best Group over 3 Years (Mixed Assets Large) UK: +44 (0) France/Benelux: Germany/Austria: Italy: Switzerland: Spain: Legg Mason Global Solutions plc ( LMGS plc ) is an umbrella fund with segregated liability between sub-funds, established as an open-ended investment company with variable capital, organised as an undertaking for collective investment in transferable securities ( UCITS ) under the laws of Ireland as a public limited company pursuant to the Irish Companies Acts and UCITS regulations. LMGS plc is authorised in Ireland by the Central Bank of Ireland. It should be noted that the value of investments and the income from them may go down as well as up. Investing in a sub-fund involves investment risks, including the possible loss of the amount invested. Past performance is not a reliable indicator of future results. The information and data in this material has been prepared from sources believed reliable but is not guaranteed in any way by any Legg Mason, Inc. company or affiliate (together Legg Mason ). No representation is made that the information is correct as of any time subsequent to its date. Before investing investors should read in their entirety LMGS plc s application form and a sub-fund s share class KIID and the Prospectus (which describe the investment objective and risk factors in full). These and other relevant documents may be obtained free of charge in English, French, German, Greek, Italian, Norwegian and Spanish from LMGS plc s registered office at Riverside Two, Sir John Rogerson s Quay, Grand Canal Dock, Dublin 2, Ireland, from LMGS plc s administrator, BNY Mellon Investment Servicing (International) Limited, at the same address or from The sub-funds in the LMGS umbrella fund were, prior to 24 February 2015, known by other names: 1 The Conservative Fund was called the Legg Mason Multi-Manager Conservative EUR Fund. The objective and investment policy of the fund remain unchanged. 2 The Conservative Fund was called the Legg Mason Multi-Manager Conservative USD Fund. The objective and investment policy of the fund remain unchanged. 3 The Balanced Fund was called the Legg Mason Multi-Manager Balanced EUR Fund. The objective and investment policy of the fund remain unchanged. 4 The Balanced Fund was called the Legg Mason Multi-Manager Balanced USD Fund. The objective and investment policy of the fund remain unchanged. 5 The Performance Fund was called the Legg Mason Multi-Manager Performance EUR Fund. The objective and investment policy of the fund remain unchanged. 6 The Performance Fund was called the Legg Mason Multi-Manager Performance USD Fund. The objective and investment policy of the fund remain unchanged. Bonds: There is a risk that issuers of bonds held by the fund may not be able to repay the bond or pay the interest due on it, leading to losses for the fund. Liquidity: In certain circumstances it may be difficult to sell the fund s investments because there may not be enough demand for them in the markets, in which case the fund may not be able to minimise a loss on such investments. Investment in company shares: The fund invests in shares of companies, and the value of these shares can be negatively affected by changes in the company, its industry or the economy in which it operates. Emerging markets investment: The fund may invest in the markets of countries which are smaller, less developed and regulated, and more volatile than the markets of more developed countries. Fund currency: Changes in exchange rates between the currencies of investments held by the fund and the fund s base currency may negatively affect the value of an investment and any income received from it. Interest rates: Changes in interest rates may negatively affect the value of the fund. Typically as Interest rates rise, bond values fall. Fund counterparties: The fund may suffer losses if the parties that it trades with cannot meet their financial obligations. Fund operations: The fund is subject to the risk of loss resulting from inadequate or failed internal processes, people or systems or those of third parties such as those responsible for the custody of its assets, especially to the extent that it invests in developing countries. Fund of Funds: The fund is subject to the overall costs, investment objectives or policy changes, performance and investment valuations of the underlying funds in which it invests which could result in a loss to the fund. This material is not intended for any person or use that would be contrary to local law or regulation. Legg Mason is not responsible and takes no liability for the onward transmission of this material. This material does not constitute an offer or solicitation by anyone in any jurisdiction in which such offer or solicitation is not lawful or in which the person making such offer or solicitation is not qualified to do so or to anyone to whom it is unlawful to make such offer or solicitation. Issued and approved by Legg Mason Investments (Europe) Limited, registered office 201 Bishopsgate, London, EC2M 3AB. Registered in England and Wales, Company No Authorised and regulated by the UK Financial Conduct Authority. This information is only for use by professional clients, eligible counterparties or qualified investors. It is not aimed at, or for use by, retail clients. C15038_Multi-Asset_Brochure_10924v6