Legg mason cll 112011-final

Asian Debt: From Peripheral toAsian Debt: From Peripheral to Mainstream Asset

Chia-Liang Lian, Head of Investment Management, A i ( J ) W t A t CFAAsia (ex- Japan), Western Asset, CFACitywire Pan-European Conference

B li 16 18 N b 2011Berlin, 16-18 November 2011

This document is for Asset Managers, Fund Distributors and Authorised Intermediaries. Not for use by Private Individuals.

About Western Asset Management Focus

• Fixed-income

• Active managementActive management

• A wholly owned subsidiary of Legg Mason

Statistics (as of September 30, 2011)Statistics (as of September 30, 2011)

• 902 staff members

• 530 client relationships

$433 billi d• $433.5 billion under management

Product Interests

T t l R t U t i d (TRU) B d• Total Return Unconstrained (TRU) Bond

• Global Multi-Sector

• Bank Loans

• Emerging Markets – Sovereign, local, credit

• Long DurationPage 1Source: Western Asset, as at 30 September 2011.

Assets under management in USD (billions).

A i D bt F P i h l T M i t A tAsian Debt: From Peripheral To Mainstream Asset

Page 2

Asian Bonds: 3 Reasons to be Invested in Asia

1. The world is becoming less G-7 centric

2. Asian bonds remain underinvested in international bond portfolios

3. Asian currencies outlook remains supportive particularly when it has a growth and yield advantage over developed markets

Page 3

1. The World is Becoming Less G7-Centric

70G7 Is Now Less Dominant Than In The Past

70

Asia is characterised by strong credit quality and strong fundamentals particularly relative to Western economies

60

65

70

60

65

70

Wor

ld GD

P (%

)

45

50

55

45

50

55

Perce

nt of

W

20

01 02 03 04 05 06 07 08 09 1070 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00

Asia's Growing Influence In The Global Economy20

)

8

12

16

8

12

16

of W

orld

GDP

(%)

0

4

01 02 03 04 05 06 07 08 09 100

4

70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00

Perce

nt o

Page 4Source : World Bank. As of December 2010.


Asia Developed Markets2001 2011 2001 2011

Asia and Developed Markets Sovereign Rating Trajectories Diverge

2001 2011 2001 2011

China BBB AA- Canada AA+ AAA

Hong Kong A+ AAA France AAA AAA

India BB BBB- Italy AA AIndia BB BBB Italy AA A

Indonesia CCC BB+ Germany AAA AAA

Korea BBB+ A Japan AA AA-

Malaysia BBB A- United Kingdom AAA AAA

Philippines BB+ BB United States AAA AA+

Singapore AAA AAA Portugal AA BBB-

Taiwan AA AA- Ireland AAA BBB+

Thailand BBB- BBB+ Greece A CC

Spain AA+ AA-

Page 5Source: Bloomberg, as of 10 November 2011.

1.The World is Becoming Less G7-Centric

7.0 US 5-year Government Bond vs. HSBC ALBI

The Pick-up In Asian Yields Has Significantly Increased Since The Financial Crisis

HSBC Asian Local Bond 5 0

5.5

6.0

6.5

Overall Average Yield

3.5

4.0

4.5

5.0

d (%

)

US 5-year Government Bond Yield

2.0

2.5

3.0

3.5

Yield

0.5

1.0

1.5

0.0Sep 05 Mar 06 Sep 06 Mar 07 Sep 07 Mar 08 Sep 08 Mar 09 Sep 09 Mar 10 Sep 10 Mar 11 Sep 11

Page 6Source: Bloomberg, as of 30 September 2011


450 45002001 September 2011

450 45002001 September 20112001 September 2011

Foreign Reserves Serve as Self Insurance for Asia

389

3202350

400

450

3500

4000

4500

389

3202350

400

450

3500

4000

4500

276303

234

278

3202

250

300

350

ion 2500

3000

3500

USD

276303

234

278

3202

250

300

350

ion 2500

3000

3500

USD

121 112

170

126150

200USD

bill

1500

2000

D billion

121 112

170

126150

200USD

bill

1500

2000

D billion

44

10277

112

33 28 20850

100

500

1000

44

10277

112

33 28 20850

100

500

1000

0India Taiwan South Korea Singapore Hong Kong Thailand Malaysia China

(Right Scale)

00India Taiwan South Korea Singapore Hong Kong Thailand Malaysia China

(Right Scale)

0

Page 7Source: Bloomberg, as of 30 September 2011.


Public Debt* (% of GDP)

Asian Countries have Sound Government Finances

TaiwanIndonesia

ChinaHong Kong

PhilippinesMalaysia

IndiaThailand

United KingdomUnited States

Spain

GreeceItaly

IrelandPortugal

0 20 40 60 80 100 120 140 160 180 200 220

Japan

Percent of GDP (%)

Page 8*Based on 2010 estimates. Source: CIA World Factbook, accessed 6 October 2011.

1. The World is Becoming Less G7-Centric On Monetary Policy, Asia is no Longer a “Price Taker”

1718

1718

China India Indonesia Korea US

13141516

13141516

89

101112

cy R

ate (%

)

89

101112

cy R

ate (%

)

45678

Polic

45678

Polic

01234

01234

2010 20112001 2002 2003 2004 2005 2006 2007 2008 2009

Page 9Source: JP Morgan, Bloomberg, as of 11 November 2011.

2. Asian Bonds Remain Underinvested in International Bond Portfolios

Real GDP Growth12

Consumer Price Inflation8

Asia Tightening Cycle is Probably Behind Us

10

11

12

6

7

8

7

8

9

ver Y

ear A

go (%

)

4

5

6

er Y

ear A

go (%

)

5

6

Perce

nt Ov

2

3

4

Perce

nt Ov

2

3

4

0

1

00 01 02 03 04 05 06 07 08 09 10 11 12 00 01 02 03 04 05 06 07 08 09 10 11 12

Page 10Note: Real GDP growth forecast begins from 3Q11 onwards. Consumer Price Inflation (CPI) forecast begins from 4Q11. Dotted lines denote forecast data. Source: JPMorgan, as at 30 September 2011.


30 September 2010 – 30 September 2011

Currency Performance

4.9

2.5

0.7

Chinese Renminbi CNY

Taiwanese Dollar TWD

Singapore Dollar SGD

0.2

-0.3

-0 5

Philippine Peso PHP

Hong Kong Dollar HKD

Indonesian Rupiah IDR -0.5

-2.7

-3.2

Indonesian Rupiah IDR

Thai Baht THB

Malaysian Ringgit MYR

-3.2

-8.2

South Korean Won KRW

Indian Rupee INR

Page 11Source: Bloomberg, as at 30 September 2011.


120

Singapore Dollar Nominal Effective Exchange Rate

114

116

118

108

110

112

GD N

EER

Top Band

102

104

106SG

Mid Point

96

98

100

Bottom Band

94Sep 01 Sep 02 Sep 03 Sep 04 Sep 05 Sep 06 Sep 07 Sep 08 Sep 09 Sep 10 Sep 11

Page 12Source: Bloomberg. As of 30 September 2011Information shown above is for illustrative purposes only and is not intended to represent the processes, yields or performance for any specific

investment.


USDCNY 3 Month At-The-Money (ATM) Implied Volatility6

US Dollar vs. Chinese Yuan

3

4

5

0

1

2

Sep 10 Oct 10 Nov 10 Dec 10 Jan 11 Feb 11 Mar 11 Apr 11 May 11 Jun 11 Jul 11 Aug 11 Sep 11

1012

Realized Appreciation Over Past 3 Months (1 Month Lag) Implied Appreciation


02468

Perce

nt (%

)

-4-20

Jun 10 Aug 10 Oct 10 Dec 10 Jan 11 Mar 11 May 11 Jul 11 Sep 11

Page 13Source: Bloomberg. As of 30 September 2011.

3. Asian Currencies Outlook Remains Supportive Particularly When they has a Growth and Yield Advantage over Developed Markets

100%Asia

has a Growth and Yield Advantage over Developed MarketsShare of Asia in Global Benchmarks

80%

90%

100%

60%

70%

erce

nt

30%

40%

50%Pe

16.1

7.82.4 0.6

10%

20%

0.60%

Global GDP MSCI Global Barclays Aggregate Citi WGBI

Source: JPMorgan, Morgan Stanley, Barclays Capital and Citi., as at 30 September 2011. Page 14

3. Asian Currencies Outlook Remains Supportive Particularly When they has a Growth and Yield Advantage over Developed Markets

Returns vs. Volatility (USD Unhedged)14

has a Growth and Yield Advantage over Developed MarketsAsian Bonds: High Returns with Contained Volatility

JPMorgan GBI-EM Local Markets

12

JPMorgan EMBI+

Barclays Capital

Barclays Capital US High Yield

B l C it l Gl b l

HSBC Asian Local Bond 8

10

ized r

eturn

%)

JPMorgan CEMBI BroadUS Agg

US Treasuries

Barclays Capital Global Agg

4

6

Rewa

rd (a

nnua

li

S&P 500

US T-Bills (1-3mth)2

4

00 2 4 6 8 10 12 14 16 18 20

Risk (standard deviation %)

Page 15*Source: Bloomberg, from September 2005 to September 2011

Volatility – One Key Consideration Amid A Fluid External Environment

70%75%

Equity* Debt*

50%55%60%65%

ualiz

ed)

35%40%45%50%

ng V

olatili

ty (A

nnu

15%20%25%30%

3-mo

nth R

ollin

0%5%

10%15%

Jan 08 Jul 08 Jan 09 Jul 09 Jan 10 Jul 10 Jan 11 Jul 11

Page 16*Equity represented by the MSCI EM Far East ex-Japan Index, Debt represented by the HSBC Asian Local Bond Index.Source: Morgan Stanley, HSBC. As of 18 Oct 11

Summary

• Asian local bond markets offer significant carry and are supported by strong fundamentals and credit quality

• We believe Asian currencies are on a long term appreciation path

• We believe Asian bonds will grow into a core asset class

Page 17

L M W t A t A i O t iti F dLegg Mason Western Asset Asian Opportunities Fund: Portfolio Performance & Positioning

Page 18

Performance Returns as at 31 October 2011Legg Mason Western Asset Asian Opportunities Fund

Annualised (USD)

Legg Mason Western Asset Asian Opportunities Fund ‐ Class A (Dist) D USD HSBC Asian Local Overall Index

14.76

14

16

9.48 9.6110.20

11.33

8.31

10

12

4.264.73

4.37

6.626.00

4

6

8%

3.26

0

2

4

0

1 Month YTD 1 Year 2 Years 3 Years Since Inception 02 July 2008

Page 19Source: Legg Mason. As at 31 October 2011.Performance is calculated on a NAV to NAV basis. Performance calculations include reinvested dividends, without deduction of withholding tax, and the deduction of the Total Expense Ratio over the calculated period. Sales charges, taxes and other locally applied costs to be paid by an investor have not

been deducted. Based in USD for Class A (Dist) DPast performance is no guide to future returns and may not be repeated.

Relative Duration and Yield Curve PositioningLegg Mason Western Asset Asian Opportunities Fund

Difference (LOCAL Debt) <2yrs 2-4yrs 4-6yrs 6-8yrs 8-10yrs 10-15yrs Total

Korea -0.07 0.32 0.00 -0.02 0.00 -0.08 0.15

Portfolio vs Bench

Korea 0.07 0.32 0.00 0.02 0.00 0.08 0.15Singapore -0.03 -0.05 -0.08 -0.14 0.30 0.27 0.27Hong Kong -0.04 -0.10 -0.13 -0.21 0.03 0.02 -0.43Taiwan 0.01 0.03 -0.05 0.01 -0.06 -0.15 -0.21Sub Total -0.14 0.20 -0.26 -0.36 0.26 0.07 -0.22

M l i 0 02 0 07 0 11 0 00 0 08 0 11 0 20Malaysia -0.02 -0.07 0.11 0.00 0.08 0.11 0.20Thailand -0.02 -0.01 -0.06 -0.02 -0.07 0.04 -0.13Sub Total -0.04 -0.08 0.05 -0.02 0.01 0.16 0.07

India 0.00 -0.05 -0.04 -0.02 0.08 0.01 -0.01 - China (Onshore) -0.03 -0.07 0.00 -0.08 -0.07 -0.10 -0.35( ) - China (Offshore) 0.01 0.11 -0.01 0.00 0.07 0.00 0.18Sub Total -0.02 -0.01 -0.04 -0.10 0.09 -0.09 -0.18

Philippines -0.01 0.05 -0.01 0.03 -0.02 0.03 0.07Indonesia 0.01 0.05 -0.06 -0.20 0.45 -0.10 0.14P ki t 0 00 0 00 0 00 0 00 0 00 0 00 0 00Pakistan 0.00 0.00 0.00 0.00 0.00 0.00 0.00Sri Lanka 0.00 0.00 0.00 0.00 0.00 0.00 0.00Vietnam 0.00 0.00 0.00 0.00 0.00 0.00 0.00Emerging Market Total 0.01 0.10 -0.07 -0.17 0.42 -0.08 0.21

Total (Local Debt) -0.20 0.21 -0.32 -0.65 0.78 0.07 -0.12( )

USD debt 0.00 0.15 -0.10 0.28 -0.54 -0.02 -0.18

Grand Total -0.20 0.36 -0.42 -0.37 0.25 0.04 -0.30

Page 20*Benchmark is represented by the HSBC Asia Local Bond Index (USD Unhedged).Source : Western Asset. As of 30 September 2011.

Currency Allocation as at 31 October 2011Legg Mason Western Asset Asian Opportunities Fund

Benchmark* (%) Portfolio (%)

16.515.0

South Korea

Singapore

17.016.2

South Korea

Singapore

13.3

0.05.6

9.4

Hong Kong

USD

Taiwan

China

11.9-7.0

4.4

14.4

Hong Kong

USD

Taiwan

China

9.37.7

6.3

12.5

Malaysia

Thailand

India

Indonesia

11.0

7.16.4

14.7

Malaysia

Thailand

India

Indonesia

4.5

0.0

Philippines

EUR

5.1-1.2

Philippines

EUR

Benchmark* Portfolio

0 90 9 1 1 1 0

5.35.5

23456

ontrib

ution

(Yea

rs)

Benchmark Portfolio

0.9 0.6 0.5 0.4 0.4 0.4 0.80.3

0.9 1.10.2 0.2 0.2 0.3 0.3

1.00.40.50.7 0.7

-0.1-1012

SouthKorea

Singapore HongKong

USD Taiwan China Malaysia Thailand India Indonesia Philippines Total

Dura

tion C

o

Page 21*Benchmark is represented by the HSBC Asia Local Bond Index (USD Unhedged)Differences in total may be due to rounding. Source: Western Asset as of 31 October 2011.

Korea Kong

Sector Allocation as at 31 October 2011Legg Mason Western Asset Asian Opportunities Fund

Benchmark* (%) Portfolio (%)

84.1Sovereign 65.9SovereignSo e e g

Supranational

Agency

0.3

4.6

g

Supranational

Agency

15.9

Derivatives

Corporate

Cash & FX

-7.3

24.2

12.2

Derivatives

Corporate

Cash & FX


0.8

4.7

0 31.3

5.54.7 5.3

23456

ontrib

ution

(Yea

rs)

Benchmark Portfolio

0.0 0.3 0.0

-1.1-2-101

Sovereign Supranational Agency Derivatives Corporate Cash & FX Total

Dura

tion C

o

Page 22*Benchmark is represented by the HSBC Asia Local Bond Index (USD Unhedged)Differences in total may be due to rounding. Source: Western Asset as of 31 October 2011.

Credit Quality Allocation as at 31 October 2011Legg Mason Western Asset Asian Opportunities Fund

Benchmark* (%) Portfolio** (%)

17.9AAA 11.4AAA

15.9

34.5

6.4

AA

A

BBB

2.1

34.5

8.1

AA

A

BBB

17.0

8.4

0.0

<BBB

NR

Cash

23.8

7.9

12.2

<BBB

NR

Cash


1.70 4

1.10 4

1.2

2.81.5

0 3

5.3

0.9

5.5

1.00 51

23456

ontrib

ution

(Yea

rs)

0.4 0.4

-1.0

0.3 0.0 0.00.5

-2-101

AAA AA A BBB <BBB NR Cash Total

Dura

tion C

o

Page 23*Benchmark is represented by the HSBC Asia Local Bond Index (USD Unhedged). Ratings for government bonds are based on the sovereign rating of the country of issuer where S&P ratings are not available.

**Ratings are based on S&P only. Ratings on derivatives are based on country ratings.Differences in total may be due to rounding. Source: Western Asset as of 31 October 2011.

Asian Regional Outlook – A Shelter Amid Global Vagaries?

Outlook• Recently, most Asian central banks’ concerns have shifted from inflation to slowing global growth

C t l b k lik l t d t ti l i th i th• Central banks are likely to pause and act cautiously in the coming months• Continued loose monetary policy in the US, Europe and Japan will continue to benefit Asian economies and

financial markets over the longer term• Asian currencies will continue to appreciate at a moderate pace over the longer term• Asian currencies will continue to appreciate at a moderate pace over the longer term

Strategy• Maintain exposure to Asian currencies as long as Asia has a growth and yield advantageMaintain exposure to Asian currencies as long as Asia has a growth and yield advantage• Maintain corporate bond exposure by selectively buying issues with compelling valuations

Risk Considerations• Trade protectionism• Failure to rebalance sources of growth• Policy slippage under extreme market conditionsy pp g• European contagion

The above reflects current opinions of Western Asset Management as of 21 October 2011. The views expressed are opinions of the portfolio managers as of the date of this document and are subject to change based on market and other conditions and may differ from other portfolio managers or of the firm as a whole. These opinions are not intended

to be a forecast of future events, a guarantee of future results or investment advice.

Page 24

A diAppendix

Page 25

South Korea

South Korea Government Yields

4.5

5.0

(%)

30 Jun 11

30 Sep 113.5

4.0

4.5

Yield

to M

aturity

(

3.0

1yr 2yr 5yr 10yr 20yr

Maturity (Years)

Y

South Korea Government Yield Changes from 30 Jun 11 to 30 Sep 11310

Maturity (Years)

-12

31-30

-20

-100

d Cha

nges

(bps

)

-31 -33-32

-50

-40

1yr 2yr 5yr 10yr 20 yr

Yield

Page 26Source: Bloomberg, as at 30 September 2011.

26

Singapore Government

2 53.03.5

%)

Singapore Government Yields

30 Jun 11

30 Sep 111.01.52.02.5

Yield

to M

aturity

(%

0.00.5

1yr 2yr 5yr 10yr 20yrMaturity (Years)

Y

Singapore Government Yield Changes from 30 Jun 11 to 30 Sep 110

-29-22

-46-60

-40

-20

Chan

ges (

bps)

-88

-69

-100

-80

1yr 2yr 5yr 10yr 20 yr

Yield

C


Indonesia

Indonesian Government Yields

9

10(%

)

30 Jun 11

30 Sep 11

6

7

8

Yield

to M

aturity

(

5

6


Maturity (Years)

Y

Indonesian Government Yield Changes from 30 Jun 11 to 30 Sep 111330

-26

-51-45-60

-30

0

d Cha

nges

(bps

)

-99-120

-90


Yield


India

India Government Yields

8.8

9.0%

)

30 Jun 11

29 Sep 11

8 2

8.4

8.6

Yield

to M

aturity

(

30 Jun 11

8.0

8.2

1yr 2yr 4yr 5yr 7yr 10yrMaturity (Years)

Y

5 Year Swap Spread*

030

y ( )

5 Year Swap Rate*

-120-90-60-30

Basis

Poin

ts

-180-150


Page 29Source: Bloomberg. As of 30 September 2011.*From 4 Jan 11 to 25 Apr 11, the 6 Year India Government Bond Generic Bid Yield was used as a proxy as for the 5 Year India Government Bond Generic Bid Yield.

Biographies – Investment Team

CHIA LIANG LIAN (18 Years’ Experience, joining 1 October 2011)Chia-Liang has over 18 years of experience, he joins Western Asset from PIMCO in Singapore, where he has spent the last five years as Head of Emerging Asia Portfolio Management. From 2001 to 2005, Chia-Liang worked at JP Morgan as a Vice President responsible for Emerging Markets research. Prior to that, he worked at Merrill Lynch from 1997 to 2001 in a similar capacity and was predominantly a sovereign bond analyst, initially following North Asia, before expanding his coverage to include Southeast Asia. From 1993 to 1997, he was a Senior Economist at the Monetary Authority of Singapore Chia-Liang received his bachelor’s of science in Economics with Direct Upper Second Honors from the Nationalhe was a Senior Economist at the Monetary Authority of Singapore. Chia Liang received his bachelor s of science in Economics with Direct Upper Second Honors from the National University of Singapore. He is a CFA charterholder.

KEITH J. GARDNER (28 Years’ Experience)•Western Asset Management Company – Head of Developing Markets, 1994 - Present•Legg Mason, Inc. – Portfolio Manager, 1992 -1994•T. Rowe Price Associates, Inc. – Portfolio Manager, 1985 - 1992•Salomon Brothers, Inc. – Research Analyst, 1983 - 1985•Emerging Markets Trade Association – Board Member•Emerging Markets Creditors’ Association – Founding and Board Member•State University of New York at Binghamton, B.S.

JULIA HO, CFA (24 Years’ Experience)•Western Asset Management Company Pte. Ltd. – Portfolio Manager/Research Analyst, 2003 - present•Rothschild Asset Management (Singapore) Ltd. – Portfolio Manager/Director, 1995 -2 003•UOB Asset Management – Portfolio Manager, 1988 - 1995•Nomura Securities – Bond Sales Executive, 1987 - 1988•National University of Singapore B B A•National University of Singapore B.B.A.•Chartered Financial Analyst

Page 30

Biographies – Investment TeamADRIAN CHEE (19 Years’ Experience)•Western Asset Management Company Pte. Ltd. – Research Analyst, 2007- present•Standard & Poor’s - Singapore – Director, Corporate Infrastructure and Financial Svcs. Ratings, 2001 - 2007•Standard Chartered Bank – Risk Mgr., Markets and Inst. Risk Mgmt., 1995 - 2001•Tat Lee Bank Ltd Singapore Senior Credit and Mktg Officer 1993 1995•Tat Lee Bank Ltd., Singapore – Senior Credit and Mktg. Officer, 1993 - 1995•Dev & Comm Bank Group, Malaysia – Credit and Mktg. Officer, 1992 - 1993•La Trobe University, B. Economics•Taylor’s College, Malaysia

HENRIETTA P. GOURLAY (12 Years’ Experience)•Western Asset Management Company Pte. Ltd. – Research Analyst, 2003 - present•Merrill Lynch Investment Management – Credit Analyst, 1999 - 2003•University of Edinburgh, M.A. (Hons)

Page 31

Important Information

This is a sub-fund (Fund) of Legg Mason Global Funds plc, an umbrella fund with segregated liability between sub-funds, established as an open-ended investment company with variable capital and incorporated with limited liability under the laws of Ireland with registered number 278601. It qualifies, and is authorised in Ireland by the Central Bank of Ireland as an undertaking for collective investment in transferable securities and is a section 264 Scheme as recognised by the FSA.

This document does not constitute an invitation to invest. Past performance is no guide to future returns and may not be repeated. The value of investments and theThis document does not constitute an invitation to invest. Past performance is no guide to future returns and may not be repeated. The value of investments and the income from them can go down as well as up and investors may not get back the amounts originally invested. The value of investments and the income from them can be affected by changes in interest rates, in exchange rates, general market conditions, political, social and economic developments and other variable factors. Unlike a bank or building society account, your money is at risk. This Fund may invest in ‘non-investment grade’ bonds, which carry a higher degree of default risk than ‘investment grade’ bonds. This Fund may invest in emerging markets that may be less liquid and may have less reliable custody arrangements than mature markets and may involve a higher degree of risk. This Fund may invest in certain types of financial derivative instruments (FDIs) for efficient portfolio management or investment p rposes These instr ments ma in ol e a higher degree of risk Please refer to the Simplified Prospect s and Prospect s doc mentation hich describe the f llpurposes. These instruments may involve a higher degree of risk. Please refer to the Simplified Prospectus and Prospectus documentation, which describe the full objective and risk factors associated with this Fund.

This Fund is offered solely to non-US investors under the terms and conditions of the Fund’s current prospectus – please refer to the Simplified Prospectus and Prospectus documentation, which describe the full objective and risk factors associated with this Fund. Before investing you should carefully read the Prospectus. Copies of prospectuses, simplified prospectus, semi-annual and annual reports, if published, may be obtained at: BNY Mellon Investment Servicing (International) Limited Riverside Two Sir John Rogerson’s Quay Grand Canal Dock Dublin 2 IrelandLimited, Riverside Two, Sir John Rogerson s Quay, Grand Canal Dock, Dublin 2, Ireland.

This document is for use by Professional Clients and Eligible Counterparties. It is not aimed at, or for use by, Retail Clients. This information has been prepared from sources believed reliable but is not guaranteed by Legg Mason Investments (Europe) Limited and is not a complete summary or statement of all available data. Opinions expressed are subject to change without notice and do not take into account the particular investment objectives, financial situation or needs of individual investors.

Issued and approved by Legg Mason Investments (Europe) Limited, registered office 201 Bishopsgate, London, EC2M 3AB. Registered in England and Wales, Company No. 1732037. Authorised and regulated by the Financial Services Authority. Client Services +44 (0) 20 7070 7444.

N b 2011 f 7417November 2011 ref: 7417

Page 32

Economy & Finance

Legg mason cll 112011-final