For broker/dealer use only. Not for distribution to the public.

INVESTMENTPRODUCTS:NOTFDICINSURED•NOTINSUREDBYANYFEDERALGOVERNMENTAGENCY•NOBANKGUARANTEE•MAYLOSEVALUE

Good intentions get good results. Do your clientswant to earn returns and help to make the world a better place? They can potentially accomplish both through socially aware investing (“SAI”). Legg Mason’s ClearBridge Advisors is among the leading — and most experienced — SAI investment managers.

Q410 | Separately Managed Accounts

Difference in annualized returns of MSCI KLD 400 Social Index and S&P 500 Index (%) forperiodsendingDecember31,2010

Past performance is no guarantee of future results.SociallyawarestocksarerepresentedbytheMSCIKLD400SocialIndex,andthebroadstockmarketisrepresentedbytheS&P500Index.Investorscannotinvestdirectlyinanindex.Sources:LeggMasonandMSCI.com.

* InceptiondateofMSCIKLD400SocialIndexisMay1,1990.

SAI aims to maximize both financial return and social good. It favors companies that promote best practices concerning the environment, social issues and corporate governance. As companies increasingly adopt SAI priorities into their business practices, these priorities become critical to competitiveness and profitability — which ultimately drive stock prices.

It’s widely believed that returns suffer when SAI criteria are added to the investment process. But precisely the opposite is true: SAI-related stocks have outperformed the broad stock market over the medium and longer terms.

Socially aware stocks have historically outperformed

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1- Year 3- Year 5- Year 10- Year Since MSCI KLD400 inception*

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ClearBridge Advisors: a pioneer of socially aware investing. ClearBridgeAdvisors, Legg Mason’s largest equity manager, was among the first — and largest — mainstream investment managers to commit to socially aware investing. It has managed SAI portfolios since 1987.

As a firm, ClearBridge has focused on high-quality companies, active manage-ment and careful stock selection dating back to its origins over 45 years ago. Its SAI process neatly fits into this approach in two key ways:

SAI-specific portfolio managers and research analysts are fully integrated into ClearBridge’s style-based invest-ment teams.1 2

The ClearBridge SAI investment process seeks best-in-class socially aware companies

In SAI portfolios, SAI investment criteria are as essential to the stock selection process as a style team’s own fundamental criteria.

Monitor continuouslySector analysts and portfolio managers review portfolio holdings and engage companies on fundamental and SAI issues

Select securities and construct portfolio• Uses fundamental and SAI criteria to evaluate stocks• Select stocks defined “best in class” according to fundamental and SAI criteria

Conduct fundamental analysisRefines investment universe byeliminating less-attractive companies

Define initial investment universeConsiders companies whose market cap is similar to those in the S&P 500 Index, Russell 1000 and Russell 3000 indices

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What should I know before investing?Client portfolios are managed based on investment instructions or advice provided by one or more of the following Legg Mason affiliated investment management firms, as indicated in portfolio names or otherwise: ClearBridge Advisors, LLC, Western Asset Management Company, Brandywine Global Investment Management, LLC, Global Currents Investment Management, LLC and Legg Mason Capital Management, Inc. (“LMCM”). Management is implemented by Legg Mason Private Portfolio Group, LLC or, in the case of certain programs, by the program sponsor or its designee.

The program manager(s) may, to a limited extent, invest in other securities entailing additional risks beyond those highlighted in this presentation. All investments are subject to risk, including the pos-sible loss of principal, and there is no guarantee that these investment objectives will be achieved.

Where can I find more information?Financial Advisorswww.myleggmason.com

Individual Investorswww.leggmason.com/individualinvestors

Institutional Investorswww.leggmason.com/institutional

Follow us on Twitterwww.twitter.com/leggmason

For broker/dealer use only. Not for distribution to the public.

©2011LeggMasonInvestorServices,LLC.MemberFINRA,SIPC.LeggMasonInvestorServices,LLCandClearBridgeAdvisors,LLCaresubsidiariesofLeggMason,Inc.404850CBAX0130712/11FN1012596

To learn more about how SAI might help your clients’ investment goals, call 888-891-7226.

The ClearBridge commitment. When it comes to socially aware investing,ClearBridge offers a singular combination of five key advantages:

Mary Jane McQuillen

DirectorandPortfolioManagerHeadofSociallyAwareInvestmentProgram(SAI),ClearBridgeAdvisors

Karoline BarwinskiAssistantVicePresidentandResearchAssociate

“At ClearBridge, socially aware investing is much more than something we do. It’s something we believe in.”

— Mary Jane McQuillen

Mary Jane McQuillen is a board member of the New York Society of Security Analysts (NYSSA); a former member of the board of the Social Investment Forum (SIF); a board member of the IRRC Institute; a Steering Committee member of SIF’s Sustainable Investment Research Analyst Network working group; and a longstanding member of the United Nations Environment Program Finance Initiative Asset Management Working Group. She joined ClearBridge in 1996 and has 14 years of investment industry experience.

SAI principles instituted across entire firm, not just within the SAI team

Active participation in prominent SAI initiatives such as the Principles for Responsible Investing and the Social Investment Forum

Deep experience over a wide range of market conditions

In-house portfolio management and research professionals

Analyst-driven SAI-focused meetings directly with portfolio companies

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