Q1 2014
Mutual Funds | U.S. Equity | Small-Cap
CLEARBRIDGE SMALL CAP VALUE FUND
Growth of $10,000
Class A shares – Inception through Mar. 31, 2014
Excluding the effects of sales charges
Investment overview
Invests primarily in small-cap equities with attractive valuations
Seeks long-term capital growth using both quantitative and fundamental methods to select stocks with
“value” attributes and strong free cash flow generation
Emphasizes individual security selection while diversifying among industries and sectors
60K
$46,172
50K
40K
30K
Average annual total returns & fund expenses^ (%) as of Mar. 31, 2014
Without sales charges
Class A
Class C
Class I
Benchmark
1-Yr
3-Yr
23.45
22.67
23.90
22.65
11.33
10.48
11.69
12.74
5-Yr 10-Yr Inception
24.00
22.99
24.40
23.33
7.73
6.84
8.10
8.07
20K
With maximum sales charges
10.67
9.78
11.41
–
1-Yr
3-Yr
16.37
21.67
23.90
22.65
9.16
10.48
11.69
12.74
5-Yr 10-Yr Inception
22.53
22.99
24.40
23.33
7.10
6.84
8.10
8.07
10.23
9.78
11.41
–
Expenses
10K
Gross
Net
Inception
date
1.34
2.05
1.00
1.34
2.05
1.00
02/26/99
02/26/99
04/14/03
2006
11.38
10.43
11.77
23.48
2005
6.60
5.71
7.01
4.71
Cumulative total returns (%) as of Mar. 31, 2014 (without sales charges)
Class A
Class C
Class I
Benchmark
^
3 Mo
3.67
3.48
3.75
1.78
YTD
3.67
3.48
3.75
1.78
2013
34.26
33.37
34.74
34.52
2012
15.29
14.29
15.50
18.05
2011
-7.13
-7.85
-6.70
-5.50
2010
24.93
23.95
25.40
24.50
2009
32.87
31.65
33.35
20.58
2008
-35.94
-36.54
-35.82
-28.92
2007
-2.55
-3.33
-2.14
-9.78
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 redeemed, may be worth
more or less than the original cost. Class A shares have a maximum front-end sales charge of 5.75%. Class C shares have a one-year
CDSC of 1.0%. If sales charges were included, performance shown would be lower. Total returns assume the reinvestment of all
distributions at net asset value and the deduction of all Fund expenses. Total return figures are based on the NAV per share applied to
shareholder subscriptions and redemptions, which may differ from the NAV per share disclosed in Fund shareholder reports.
Performance would have been lower if fees had not been waived in various periods. YTD is calculated from January 1 of the reporting
year. All classes of shares may not be available to all investors or through all distribution channels. For the most recent month-end
information, please visit www.leggmasonfunds.com.
Gross expenses are the Fund’s total annual operating expenses for the share class(es) shown. Net expenses for Class(es) I reflect
contractual fee waivers and/or reimbursements, where these reductions reduce the Fund’s gross expenses, which cannot be
terminated prior to Dec 31, 2015 without Board consent. For Class(es) A & C, there are currently no fee waivers in effect, so gross and
net expenses are identical.
0
1999
2003
2008
2014
Share class codes
Symbol CUSIP
A SBVAX 52469G513
C SBVLX 52469G489
Symbol CUSIP
I SMCYX 52469G471
IS LCBIX 52471R697
Benchmark (BM)
Russell 2000 Value Index
Fund facts as of Mar. 31, 2014
Dividend frequency, if any
Lipper category
Turnover (fiscal yr)
Annual, if any
Small-Cap Core Funds
32%
Sector allocation (%) as of Mar. 31, 2014
Financials
Information Technology
Industrials
Energy
Consumer Discretionary
Materials
Utilities
Consumer Staples
Health Care
Other
Telecommunication Services
Cash
Fund
38.5
15.5
15.0
7.3
7.1
6.4
3.6
2.1
1.8
1.5
–
1.2
Benchmark
39.8
10.6
13.2
7.5
10.2
4.6
6.3
2.5
4.8
–
0.5
–
INVESTMENT PRODUCTS: NOT FDIC INSUREDt NO BANK GUARANTEEt MAY LOSE VALUE
Sector allocation and top holdings percentages are based on
total portfolio as of quarter-end and are subject to change at any
time. For informational purposes only and not to be considered a
recommendation to purchase or sell any security.
Q114 | Mutual Funds | U.S. Equity | Small-Cap
CLEARBRIDGE SMALL CAP VALUE FUND
Top 10 holdings (%) as of Mar. 31, 2014
Statistics as of Mar. 31, 2014
Fund
3.6
2.9
2.7
2.6
2.6
2.4
2.3
2.1
2.0
2.0
25.2
SVB Financial Group
Waddell + Reed Financial A
Wintrust Financial Corp
Affiliated Managers Group, Inc.
Iberiabank Corp
Signature Bank
Huntington Ingalls Industrie C
Park Electrochemical Corp
Allied World Assurance Co
Teradyne Inc
Total
Fund
$253.6M
106
$3.0B
$2.2B
Net assets
Number of holdings
Weighted average cap
Weighted median cap
Benchmark
–
1374
$1.6B
$1.4B
ClearBridge Investments is a well-established global
investment manager focusing on proprietary research
and fundamental investing. With over 45 years of
experience building portfolios for clients seeking
income solutions, high active share or low volatility,
long-tenured portfolio managers provide strong
leadership in a centralized investment structure.
Legg Mason’s unique structure provides you with
access to this specialized expertise. We offer a
powerful portfolio of solutions through our independent
investment management firms.
Risk statistics as of Mar. 31, 2014
Measures based on Class A. Benchmark = Russell 2000 Value Index.
1-Yr
3-Yr
Beta
R-squared
Sharpe ratio
Standard deviation
(%)
Alpha
M-squared
Information ratio
Tracking error
Portfolio management
Peter Hable (industry since 1983) is the portfolio
manager for your Fund. He’s part of the investment
team at ClearBridge Investments, Legg Mason’s largest
equity manager.
5-Yr
10-Yr
Fund
Benchmark
Fund
Benchmark
Fund
Benchmark
Fund
Benchmark
0.90
0.94
1.95
1.00
1.00
1.76
1.05
0.97
0.70
1.00
1.00
0.82
1.04
0.97
1.17
1.00
1.00
1.20
0.99
0.96
0.40
1.00
1.00
0.42
11.19
2.68
23.44
0.27
2.99
12.02
0.00
21.25
–
0.00
17.38
-1.74
11.47
-0.43
3.27
16.26
0.00
13.33
–
0.00
20.13
-0.20
22.40
0.19
3.47
19.04
0.00
22.92
–
0.00
19.90
-0.18
9.40
-0.08
4.19
19.71
0.00
9.76
–
0.00
What should I know before investing?
Equity securities are subject to price fluctuation and
possible loss of principal. Small-cap stocks involve
greater risks and volatility than large-cap stocks.
International investments are subject to special risks
including currency fluctuations, social, economic and
political uncertainties, which could increase volatility.
Short selling is a speculative strategy. Unlike the
possible loss on a security that is purchased, there is
no limit on the amount of loss on an appreciating
security that is sold short. Derivatives, such as options
and futures, can be illiquid, may disproportionately
increase losses, and have a potentially large impact on
fund performance. The Manager’s investment style may
become out of favor and/or the Manager’s selection
process may prove incorrect; which may have a
negative impact on the fund’s performance.
Additional risks may include those risks associated
with investing in fixed income securities. Please see
the prospectus for more information.
Where can I find more information?
You’ll find the most current performance data,
commentary, prospectus and more information on each
of our managers and products at
www.leggmasonfunds.com.
Beta measures the sensitivity of an investment to the movement of its benchmark. A beta higher than 1.0 indicates the investment has
been more volatile than the benchmark and a beta of less than 1.0 indicates that the investment has been less volatile than the
benchmark. R-squared measures the strength of the linear relationship between the Fund and its benchmark. R Squared at 1 implies
perfect linear relationship and zero implies no relationship exists. Sharpe ratio is a risk-adjusted measure, calculated using standard
deviation and excess return to determine reward per unit of risk. The higher the sharpe ratio, the better the fund’s historical riskadjusted performance. Standard deviation measures the risk or volatility of an investment’s return over a particular time period; the
greater the number, the greater the risk. Alpha measures performance vs. a benchmark on a risk-adjusted basis. A positive alpha of
1.0 means the portfolio has outperformed its benchmark index by 1%. Correspondingly, a similar negative alpha would indicate an
underperformance of 1%. Tracking Error is the dispersal of differences between the returns obtained by the Fund and the benchmark
variation. Information Ratio is the ratio of annualized expected residual return to residual risk. M-squared is a measure of the riskadjusted returns of the investment portfolio. It measures the returns of the portfolio, adjusted for the risk of the portfolio relative to the
benchmark. Turnover is a measure of the Fund’s trading activity which represents the portion of the Fund’s holdings that has changed
over a year. There is no assurance that the Fund will maintain its current level of turnover.
The Russell 2000 Value Index measures the performance of those Russell 2000 Index companies with lower price-to-book ratios and
lower forecasted growth values. Investors cannot invest directly in an index and unmanaged index returns do not reflect any fees,
expenses or sales charges.
Active share is a measure of the percentage of stock holdings in a manager’s portfolio that differs from the benchark index.
©2014 Legg Mason Investor Services, LLC, member FINRA, SIPC. Legg Mason Investor Services, LLC and ClearBridge Investments, LLC
are subsidiaries of Legg Mason, Inc.
Before investing, carefully consider a Fund’s investment objectives, risks, charges and expenses. You
can find this and other information in each prospectus, or summary prospectus, if available, which is
available at www.leggmasonfunds.com. Please read it carefully.
410578 FD01921 FN1314144 D7267