Benefits of investing in the Western Asset Global Bond Fund

The Fund offers a number of significant benefits:

• Multiple diversified strategies across interest rate duration, yield curve, sector allocation, security selection, country and currency strategies, that benefit in different environments so no one strategy dominates performance;

• professional management of your investment with an experienced global investment manager;

• diversification benefits that would be difficult to achieve through direct investment;

• disciplined portfolio construction; and

• web-based reporting that includes performance, market commentary and portfolio strategy.

Risk level

Medium

Investor suitability

The Fund should be suitable mainly for investors seeking an investment in global fixed income securities with long-term financial goals.

About the Fund

• An actively managed global bond fund that aims to add value through country and currency allocation, sector rotation, duration and yield curve management, as well as issue selection

• Opportunistic allocations to high yield credit and emerging market debt securities

• Risk controlled through broad diversification across markets and sectors, duration management and active hedging of currency exposure

Significant features

The Fund provides exposure to an actively managed diversified portfolio of global fixed income securities.

The investment process applies an active, team-managed strategy that employs a long-term, value-oriented approach. The Fund seeks to add value through duration management, yield curve positioning, sector allocation (rotating across fixed income sectors such as government, corporate, high yield and emerging market bonds), issue selection, country and currency allocation. Portfolio risk is controlled through market and sector diversification, position limits, duration guidelines and active hedging of currency exposures.

A fundamental approach is used to identify inefficiencies and subsequent mispricing opportunities in the global fixed income market.

How we invest your money

The Fund is an actively managed, diversified fixed income fund with exposure to global government and corporate bonds, high yield bonds, mortgage-backed and asset backed securities, emerging market bonds and other similar securities (whether directly, through Funds, or through shares held in limited liability companies or through other collective investment vehicles). Derivatives are also permitted, including, but not limited to, options, futures, swaps and forward currency exchange contracts.

While securities covering the full range of available maturities are acceptable, the average duration of the Fund's portfolio holdings is expected to range between three and ten years.

The Fund generally aims to invest within the following guidelines whether directly or indirectly through an interposed collective investment vehicle:

• At least 85% of the Fund's NAV will invest in investments which are listed or traded on "Regulated Markets located in "OECD member countries which have a long-term debt rating of BBB- or higher by S&P or equivalent rating.

• Up to 15% of the Fund's NAV can be invested in debt securities which are rated below "Investment Grade, but must be rated at least B- by Standard & Poor's (S&P') or its equivalent, or if unrated determined to be of equivalent quality by the investment manager.

Eligible securities, without limit, include collective investment schemes, supranational issuers and obligations issued or guaranteed by investment grade governments, investment grade government agencies, investment grade government-sponsored corporations and agencies.

No more than 10% of any one outstanding issue of issuers not covered in eligible securities above may be held in the Fund.

The Fund will not invest in securities issued by companies involved in the production or distribution of cluster munitions or the manufacture of tobacco products.

The Fund does not use derivatives.

The Fund does not intend to borrow.