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.

LEGG MASON IF MARTIN CURRIEGLOBAL EQUITY INCOME FUND

June 2017

LEGG MASON’SINDEPENDENT EXPERTS

2

Global value investing

Real estate investment specialists

Quality-focused equity

Global alternative investments

Active equity specialists

Systematic investment solutions

Global listed infrastructure

Small cap equity

Fixed Income

Active in all major asset classes No central house view Dedicated specialists in respective asset classes

Legg Mason Global Distribution

Source: Legg Mason

MARTIN CURRIE GLOBAL EQUITY INCOME

We are differentiated as we construct high yielding portfolios that do not compromise on growth

We believe clients need high-yielding, high conviction portfolios that deliver sustainable, growing income

Our portfolios produce strong risk adjusted returns and inflation protected distributions over the long term

THE CASE FOR INCOME INVESTING

4

Equity returns driven by dividend yield and dividend growth over the long-term

11.2

-5.4

15.3

-5.2

6.7 11.5

5.7

-10

-5

0

5

10

15

20

25

1998-2000 2001-2003 2004-2006 2007-2009 2010-2012 2013-2016 1998-2016

Equity Returns (%

)

Dividend Growth

Dividend Yield

Multiple expansion

Total annualised returns

OUR CASE FOR GLOBAL EQUITY INCOME

Past performance is not a guide to future returns. Source: Martin Currie and Factset. *Top: first and second quartile; Bottom: third and fourth quartile. Index: MSCI AWCI. Data shown for 11 year period to 31 December 2016. Data shown for illustrative purposes only. **Return on Equity (ROE) used for financials sector.

5

0.00

0.02

0.04

0.06

0.08

0.10

0.12

0.14

0.16

38 40 43 45 48 50 53 55 58 60 63(%)

1 std dev (68.2%)

2 std devs (95.4%)

3 std devs (99.7%)

Observed value equating to 1 in 400 chance of being from a sample with mean 50%

SectorAnnualised performance

Top ROIC (%)*

Bottom ROIC (%)*

Energy 7.4 5.8Materials 10.4 8.1Telecommunications 7.7 5.7Utilities 7.2 6.5Information technology 8.0 7.2Healthcare 11.5 11.9Consumer staples 11.9 9.8Consumer discretionary 8.0 7.2Industrials 8.6 9.6Financials (ROE)** 5.3 8.6Average 8.6 8.0

Percentage of higher ROIC stocks with higher than average dividend growth (%)

The evidence behind our philosophy

Higher quality companies outperform and have the majority of dividend growth

0.6

0.7

0.8

0.9

Quality incomegrowth

Quality equities Income growthequities

Equity market Corporate bonds Government bonds

WHY WE LOOK TO INVEST IN QUALITY INCOME GROWTH

Past performance is not a guide to future returns.Source: Factset and Martin Currie. *Volatility-adjusted returns shown for a eight year period to 31 December 2016. Quality income growth - Equal weighted higher ROIC and higher dividend growth; Quality equities - Equal weighted higher ROIC; Equity market - Money weighted equity market; Corporate bonds - Bank of America Merrill Lynch US Corporate (AAA); Government bonds - Bank of America Merrill Lynch US Treasury (3-5 year).

6

High quality companies with higher than average dividend growth have outperformed on a risk adjusted basis over the long term*

Ret

urn/

risk

OUR INCOME TEAM

Source: Martin Currie as at 31 May 2017.

7

Income team member Investment experience Role

Mark Whitehead 18 years Head of Income

Alan Porter 25 years Global Income

Ross Watson 33 years European Income

David Forsyth 16 years European Income

Income team member Investment experience Role

Matthew Franklin 20 years Investment Analyst

Pieter van Diepen 8 years Investment Analyst

Laurie Lochtie 4 years Investment Analyst

Portfolio manager/analysts Specialist income analysts

OUR INVESTMENT SYSTEM

Source: Martin Currie. ROIC: Return on invested capital. These are internal limits/ guidelines and are subject to change. *Earnings Growth (IBES Long term)8

Growth

Quality

ValuationSustainable salesCash flow conversionEfficient capital allocation

Attractive ROICDividend stress testing

Credit analysisGovernance & Sustainability analysis

Proprietary financial modellingConsistent income metricsAttractive intrinsic valuationAppropriate relative valuation

Global Equity Income Portfolio

High dividend yield Strong dividend growth

Market comparable earnings growth* Lower volatility

OUR DIFFERENTIATED APPROACH

Our investment approach ensures we select the strongest quality income growth stocks for our

portfolio

Our unique income analysis:

– Uses dividend stress testing to understand under what scenario the dividend is at risk

– Carries out credit analysis to understand the ability of a company to fund its growth

– Helps to identify strong management practices through fully integrated governance and sustainability

analysis

Our resource

– We have a dedicated team focused exclusively on income strategies

Source: Martin Currie. Opinions expressed are subject to change without notice and do not take into account the particular investment objectives, financial situations or needs of investors.

9

UNIQUE INCOME ANALYSIS – DIVIDEND STRESS TESTING

10Past performance is not a guide to future returns. Source: Martin Currie and Factset. Data shown for illustrative purposes only.

INCOME STATEMENT FY2017 FY2018 FY2019 FY2020 FY2021Sales growth (%) 5.0 2.0 2.0 2.0 5.0EBITDA margin (%) 25.2 23.0 18.0 17.0 20.0Depreciation rate as % of sales 3.0 3.0 3.0 3.0 3.0Interest rate on debt (%) 3.5 3.5 3.5 3.5 3.5Tax rate (%) 30.0 30.0 30.0 30.0 30.0Capex as % of sales 5.0 5.0 5.0 5.0 5.0Working capital % of sales 0.0 0.0 0.0 0.0 0.0Dividend payout ratio (%) 50.0 55.0 80.0 85.0 75.0

INCOME STATEMENT FY2017 FY2018 FY2019 FY2020 FY2021Sales growth (%) 5.0 5.0 5.0 5.0 5.0EBITDA margin (%) 25.2 25.4 25.5 25.6 25.7Depreciation rate as % of sales 3.0 3.0 3.0 3.0 3.0Interest rate on debt (%) 3.5 3.5 3.5 3.5 3.5Tax rate (%) 30.0 30.0 30.0 30.0 30.0Capex as % of sales 5.0 5.0 5.0 5.0 5.0Working capital % of sales 0.0 0.0 0.0 0.0 0.0Dividend payout ratio (%) 50.0 50.0 50.0 50.0 50.0

CASH FLOW STATEMENT FY2017 FY2018 FY2019 FY2020 FY2021Net income 14 17 18 19 20Depreciation 3 3 3 4 4Amortisation 0 0 0 0 0Change in working capital: 2 0 0 0 0OPERATING CASH FLOW 19 20 21 23 24Capital expenditures (5) (6) (6) (6) (6)FREE CASH FLOW 14 15 16 16 17Acquisitions and investments 0 0 0 0 0Disposals 0 0 0 0 0Payment of dividends (7) (8) (9) (9) (10)RESIDUAL FREE CASH FLOW 7 6 7 7 7

CASH FLOW STATEMENT FY2017 FY2018 FY2019 FY2020 FY2021Net income 14 15 11 11 14Depreciation 3 3 3 3 4Amortisation 0 0 0 0 0Change in working capital: 2 0 0 0 0OPERATING CASH FLOW 19 18 14 14 17Capital expenditures (5) (5) (5) (6) (6)FREE CASH FLOW 14 12 9 8 11Acquisitions and investments 0 0 0 0 0Disposals 0 0 0 0 0Payment of dividends (7) (8) (9) (9) (10)RESIDUAL FREE CASH FLOW 7 4 0 (1) 1

Base case Dividend stress

Dividend at risk

The stress

Dividend at risk

UNIQUE INCOME ANALYSIS – CREDIT ANALYSIS

11 Source: Martin Currie. Past performance is not a guide to future returns. Source: Martin Currie and Factset. Data shown for illustrative purposes only. *Calendar Year forecasts

Debt servicing/repayment FY1 FY2EBIT / interest expense 17.6x 18.6xNet Debt / EBITDA 0.8x 0.8xFCF / Net debt 0.6x 0.5x

Leverage / capital structure FY1 FY2Debt / IC (%) 46% 44%

Credit metrics

30-Sep-2017 31-Dec-2017Cash & ST investments 4,726 5,689Total liquidity 21,693 21,358

Liquidity summary

Are interest payments manageable?

Is the capital structure appropriate for the nature of the business?

Is there enough liquidity were there to be an unforeseen event?

Is the debt repayment schedule likely to cause any issues?

How do these metrics looks under our stress test?

Long-term debt by maturity

0

2000

4000

6000

2017 2018 2019 2020 2021 2022 2023 2024 2025 >2026

Revolving credit Term loans Notes/Bonds

Year*

UNIQUE INCOME ANALYSIS – GOVERNANCE & SUSTAINABILITY

The trademark shown is that of the respective owner and is used for descriptive and illustrative purposes only. The company trademark shown is not in any way associated, or to be deemed to be associated, with Martin Currie or its group companies. 12

UNPRI signatory – since 2009

Awarded highest possible rating ‘A+’ from PRI – Overall approach to responsible investment

– Integration of responsible investment methods

Categorised as a top rank ‘Tier 1’ signatory to the UK Stewardship Code by the FRC

Active voting record at AGMs/EGMs– Voted 42 times in 2016

– Casting 633 votes

– Voted against management on 41 occasions

FUNDAMENTAL DATA – GLOBAL EQUITY INCOME FRANCHISE

Past performance is not a guide to future returnsSource: Martin Currie and Style Research, as at 30 April 2017. Representative Martin Currie Global Equity Income account. MSCI World High Dividend Yield and MSCI All Countries World indices shown for illustrative purposes only.

13

Securities Trust of Scotland

Global Equity Income

MSCI World HDY

MSCI ACWI

Yield

Dividend yield 3.6% 3.2% 3.6% 2.3%

Growth

Earnings growth (IBES long term) 10.2% 10.1% 6.4% 11.2%

Dividend growth (IBES 1 Year) 9.0% 9.4% 5.6% 8.4%

Quality

RoIC 12.0% 11.9% 11.4% 10.4%

Value

PE (IBES Consensus 1 year forecast) 16.9x 17.1x 15.1x 15.9x

These products are not constructed to replicate either of the representative indices and should be viewed as solutions to client needs and not index relative products

MARTIN CURRIE GLOBAL EQUITY INCOME

We are differentiated as we construct high yielding portfolios that do not compromise on growth

We believe clients need high-yielding, high conviction portfolios that deliver sustainable, growing income

Our portfolios produce strong risk adjusted returns and inflation protected distributions over the long term

14

APPENDIX – ADDITIONAL INFORMATION

1515

PERFORMANCE AND DIVIDEND HISTORY

Past performance is not a guide to future returns.Source: Lipper for Investment Management as at 31 May 2017. Returns shown in £ for Martin Currie Global Equity Income representative account. NAV to NAV basis with net income reinvested over periods shown. These figures do not include initial charges. If these were included, performance figures would be reduced. Inception: 1 November 2010. Manager tenure shown from 31 May 2016.

16

-100

102030405060708090

100

Oct 10 Jun 11 Feb 12 Oct 12 Jun 13 Feb 14 Oct 14 Jun 15 Feb 16 Oct 16 Jun 17

0.0

5.0

10.0

15.0

20.0

25.0

30.0

May 16 Aug 16 Nov 16 Feb 17 May 17

Martin Currie Global Equity Income

IA Global Equity Income

Cumulative performance since inception

Cumulative performance since fund manager tenure

Calendar year dividends paid

3.6 3.63.8 3.9

3.8 3.8

0.0

2.0

4.0

2011 2012 2013 2014 2015 2016

Martin Currie Global Equity Income

IA Global Equity Income

PORTFOLIO CHARACTERISTICS

Past performance is not a guide to future returns.Source: Martin Currie and Factset, February 2017. Representative Martin Currie Global Equity Income account. Data shown for illustrative purposes only. 

17

GrowthDividend growth

Sales growth

Quality

ROIC

ND/EBITDA

Valuation

Dividend yield

FCF yield

0

4

8

12

16

FY‐4 FY‐3 FY‐2 FY‐1 FY0 FY1 FY2 FY3

(%)

‐4

0

4

8

12

FY‐4 FY‐3 FY‐2 FY‐1 FY0 FY1 FY2 FY3

(%)

0

5

10

15

20

25

FY‐4 FY‐3 FY‐2 FY‐1 FY0

(%)

0.0

0.5

1.0

1.5

2.0

FY‐4 FY‐3 FY‐2 FY‐1 FY0 FY1 FY2 FY3

(%)

2.8

3.2

3.6

4.0

FY‐4 FY‐3 FY‐2 FY‐1 FY0 FY1 FY2 FY3

(%)

0

2

4

6

8

FY‐4 FY‐3 FY‐2 FY‐1 FY0 FY1 FY2 FY3

(%)

WACCRoIC

PORTFOLIO CHARACTERISTICS

Past performance is not a guide to future returns.Source: Martin Currie, Style Research and SunGard APT as at 31 May 2017. Data calculated for the representative Martin Currie Global Equity Income account. Index: MSCI ACWI. Active share is a measure of the percentage difference between the portfolio holdings and the index constituents. We generally consider >70% as a high active share. *Please note the forecast yield for Martin Currie Global Equity Income does not include the impact of using options. If this was included the forecast yield would increase.

18

High active share versus MSCI ACWI

Lower forecast volatility versus MSCI ACWI

Higher forecast yield* versus MSCI ACWI

Diversified yield across the portfolio

Vol

atili

ty (%

)

91.4%

0%

20%

40%

60%

80%

100%

MC Global Equity Income

11.4% 12.3%

0

4

8

12

16

MC Global Equity Incomeforecast volatility

MSCI ACWI forecastvolatility

3.4%

2.5%

0%

2%

4%

Portfolio forecast yield MSCI ACWI yieldMC Global Equity Income Forecast Yield

0%

1%

2%

3%

4%

5%

0 10 20 30 40 50

Indi

vidu

al s

tock

co

ntrib

utio

n to

fund

yie

ld

High active share, attractive yield, lower volatility, diversified

SECTOR AND REGION WEIGHTS

Source: Martin Currie as at 31 May 2017. Representative Martin Currie Global Equity Income account. Any differences in relatives are due to rounding. Portfolio characteristics may change without notice.19

Sector weights Portfolio (%)

Financials 16.9

Industrials 11.0

Consumer discretionary 10.9

Information technology 10.4

Healthcare 10.3

Consumer staples 8.8

Materials 8.0

Energy 7.3

Real estate 6.8

Telecommunications 5.8

Utilities 2.0

Cash 1.8

Region weights Portfolio (%)

North America 47.2

Europe 35.9

Pacific ex Japan 9.0

Emerging Markets 6.2

Cash 1.8

TOP 10 PORTFOLIO HOLDINGS

20

Stock Sector Weight (%)

Apple Information technology 3.6

Philip Morris International Consumer staples 3.5

Roche Healthcare 2.9

Chevron Energy 2.8

Deutsche Telekom Telecommunications 2.7

ING Groep Financials 2.7

Waste Management Industrials 2.6

Givaudan Materials 2.5

Taiwan Semiconductor Information technology 2.5

Banca Generali Financials 2.5

Source: Martin Currie as at 31 May 2017. Representative Martin Currie Global Equity Income account. Any differences in relatives are due to rounding. Portfolio characteristics may change without notice. The information provided should not be considered a recommendation to purchase or sell any particular security. It should not be assumed that any of the security transactions discussed here were, or will prove to be, profitable.

KEY TRANSACTIONS

Source: Martin Currie as at 31 May 2017. Representative Martin Currie Global Equity Income account. The information provided should not be considered a recommendation to purchase or sell any particular security. It should not be assumed that any of the security transactions discussed here were, or will prove to be, profitable. 21

Purchases Sales

Q3 2016

BuwogSuncor

DSMCoway

BramblesTaiwan Semicondutor

Kinder MorganSempra Energy

NovartisSSE

Q4 2016 Huntington BancsharesHastings

CTT-Correios de PortugalFibra UnoAB InBev

Intesa SanpaoloDSM (put options)

Q1 2017

MicrosoftDS Smith

AnthemBritvic

ING Groep

PrudentialCaterpillarBrambles

VerizonUnited Parcel Service

Q2 2017

Leggett & PlattSonic Healthcare

ITVInterpublic

PfizerLawson

STOCK EXAMPLE – ANTHEM Anthem is the second largest Managed Care Organization in the USA

‒ US healthcare costs continue to accelerate at an unsustainable rate (circa 7% per annum)

‒ Anthem are part of the solution

Provides exposure to ageing population theme, at a safe distance from the structural pressure across the sector.‒ Medicare Advantage is growing ~8% per annum, and is still significantly under penetrated (only 31%)

‒ Anthem believe they have a $68bn Medicaid pipeline ahead of them (80% of total FY16 sales)

By 2021, we believe the stock can deliver for clients:‒ More than a doubling in earnings

‒ More than a doubling of the dividend

Why do we have conviction?‒ Brand, scale, and pricing power

‒ Demographic trends, and government’s difficulty financing this, are undeniable

Source: Martin Currie and Anthem Inc. Data shown for illustrative purposes only. The information provided should not be considered a recommendation to purchase or sell any particular security. It should not be assumed that any of the security transactions discussed here were, or will prove to be, profitable.

22

STOCK EXAMPLE – ANTHEM

23

Source: Martin Currie and Anthem Inc. Data shown for illustrative purposes only. The information provided should not be considered a recommendation to purchase or sell any particular security. It should not be assumed that any of the security transactions discussed here were, or will prove to be, profitable.

Growth - sales Quality - returns

0%

4%

8%

12%

16%

20%

0.0x

0.5x

1.0x

1.5x

2.0x

2.5x

3.0x

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Asset Turn Assets/Equity Net Profit Margin ROE

Stress test

2018 (F) StressHistoric

standard deviation*

EBITDA margin (%) 7 4.9 0.1

Capex/sales (%) 2 2.9 0.1

FCF/dividend 2.1x 1.0x

$0$20,000$40,000$60,000$80,000

$100,000$120,000$140,000

2014 2015 2016 2017 2018 2019 2020 2021

Valuation Value Discount rate (%)Total value of firm 47,507 Cost of equity 5.9%Less adjustments (8,956) Cost of debt 3.3%Total Equity Value 56,464 Target D/E 38.0%Number of shares 268 Default WACC 4.4%

Override WACC 8.0%Value per share 211Current price 182.3(%) upside 15%

Valuation

INCOME TEAM BIOGRAPHIES

24

Mark WhiteheadHead of Income Investment experience: 18 yearsMark joined Martin Currie as Head of Income in November 2015. He manages the Securities Trust of Scotland, an investment trust with a global equity-income remit, and co-manages the Martin Currie Global Equity Income strategy. Previously, Mark worked at Sarasin & Partners where he constructed and managed a range of income, balanced, growth, and absolute return portfolios; he became lead manager for its thematic funds in the Global Dividend range in 2007, and latterly was appointed Head of Equity Income from 2010. Before Sarasin & Partners, he was a portfolio manager at stockbroker Capel Cure Sharp. Mark started his investment career at NatWest Stockbrokers in 1998 and is a member of the Chartered Institute forSecurities & Investment (CISI).

Alan PorterPortfolio Manager, Global IncomeInvestment experience: 25 yearsAlan co-manages the Martin Currie Global Equity strategy. He joined Martin Currie in 2008, having previously worked in London for, among others, Hill Samuel Asset Management and Insight Investment Management. Alan started his career in 1991 as a trainee fund manager at Scottish Amicable Investment Managers. He is an associate of the UK Society of Investment Professionals (ASIP). Alan has BA in Philosophy from Durham University.

Ross WatsonPortfolio Manager, European Income and CharitiesInvestment experience: 33 yearsRoss joined Martin Currie in 2005. He manages European portfolios and co-manages the European Equity Income Fund with David Forsyth. He also manages the accounts of a number of our charity clients. He joined from Aberdeen Asset Management, where he worked for five years. During his time there, he managed the Murray Income Trust, Jersey Phoenix Trust, Murray Extra Return Investment Trust and The Income & Growth Trust. Before that, Ross worked for Gartmore, where he spent 12 years managing its high-income UK equity portfolios. He has also worked for Dunedin Fund Managers as a UK fund manager. Ross started his investment career in 1983 as a trainee analyst with First Scottish Investment Trust. He has an MA (Hons) in Economics and Economic History from the University of St Andrews.

INCOME TEAM BIOGRAPHIES

25

David Forsyth, CAPortfolio Manager, European Income and Charities Investment experience: 16 yearsDavid joined Martin Currie in 2005 and co-manages our European equity income products as well as providing portfolio-management support to charity portfolios. Prior to this, David co-managed our North American funds. Before joining Martin Currie, David worked on Abbey National Asset Managers’ US desk as an investment manager. He has also worked as an analyst covering Asian markets for Scottish Life. David began his career with Ernst & Young, where he qualified as a chartered accountant (CA). He is an associate of the UK Society of Investment Professionals (ASIP). David has a BA Accounting and Finance from the University of Strathclyde.

Laurie Lochtie, CFAInvestment Analyst, IncomeInvestment experience: 4 yearsLaurie joined Martin Currie in 2012 as a member of our technology, media and telecoms team and currently works as an Investment analyst in our income team. Laurie is a CFA® charterholder and holds the Investment Management Certificate (IMC). He has a first-class MA in Economics from the University of Glasgow.

Matthew FranklinInvestment Analyst, IncomeInvestment experience: 20 yearsMatthew joined Martin Currie in 2012 and is an investment analyst in our income team, focusing on industrials and infrastructure companies. He joined Martin Currie from Schroders, where he began his investment career in 1996. At Schroders, Matthew initially covered emerging markets, relocating to Cape Town in 1999 as portfolio manager for the South African component of the company’s global-emerging-markets strategy. From 2003 to 2005 he covered US-listed industrials and utilities, before becoming a global sector specialist for industrials and materials stocks – a role he held for the seven years prior to joining Martin Currie. Matthew is an associate member of the IIMR. He has an MSc in Psychology from St Andrews University.

Pieter van DiepenInvestment Analyst, IncomeInvestment experience: 8 yearsPieter joined Martin Currie in November 2014 and is an investment analyst in our income team, focusing on technology and financial services companies . Prior to joining Martin Currie, Pieter previously worked for APG Asset Management in the Netherlands where he was a portfolio manager with co-responsibility for the management of a long-only equity portfolio invested in pan-European financials. Prior to this, Pieter completed a traineeship at APG and an internship at Fortis Bank, where he assisted in the process of M&A deal origination and valuation modelling. He is a certified European financial analyst (CEFA). Pieter has an MSc in Business Administration and an MSc in Investment Management, both from VU University Amsterdam.

IMPORTANT INFORMATION

26

This Fund was created from the contribution of all the assets of the no longer existing Martin Currie Global Equity Income Fund established on 01/11/10, a Fund with a substantially similar investment objective and policy. Past performance was calculated using historical performance data of [the Martin Currie Global Equity Income Fund] and it may not be a reliable indicator of the Fund’s future performance. The performance data should be used for illustrative purposes only, as performance prior to the Fund’s inception date has not been adjusted to reflect the fees of the Fund. As at Fund inception, the Fund’s fixed annual expenses for the share class shown above (investment management fees, custody and administration fees and shareholder servicing fees) were around 1.72% in comparison to the predecessor Fund of 1.73% – there may be other variable costs not included in these figures.

This is a sub-fund (“fund”) of Legg Mason Funds ICVC (“the Company”), an umbrella investment company with variable capital, authorised in the UK by the Financial Conduct Authority as an undertaking for collective investment in transferable securities (“UCITS”).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. An investment in a sub-fund should not constitute a substantial proportion of an investor’s investment portfolio and may not be appropriate for all investors. Investors’ attention is drawn to the specific risk factors set out in a fund’s share class key investor information document (“KIID”) and LMGF plc’s prospectus.This material is not intended as a complete summary or analysis. 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. There is no guarantee or assurance that funds will achieve their investment objectives. Individual securities mentioned are intended as examples only and are not to be taken as advice nor are they intended as a recommendation to buy or sell any security or related investment.Opinions expressed are subject to change without notice and do not take into account the particular investment objectives, financial situations or needs of investors. The fund is subject to the following risks which are materially relevant but may not be adequately captured by the indicator: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.Investment in smaller company shares: The fund buys shares in smaller companies. It may be difficult to sell these shares, in which case the fund may not be able to minimise a loss on such shares.Concentrated fund: The fund invests in fewer companies than other funds which invest in shares usually do. This means that the fund does not spread its risk as widely as other funds and will therefore be affected more if an individual company has significant losses.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.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.For further explanation on the risks associated with an investment in the fund, please refer to the section entitled "RISK WARNINGS“ in the prospectus.Charges from capital: The fund?s fees and expenses may be taken from its capital (rather than income). This will result in an increase in income available for distribution to investors. However, this will forego some of the capital that the share class has available for future investment and potential growth.

Before investing investors should read in their entirety the Company’s application form and a 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 from Legg Mason Investment Funds Limited, 201 Bishopsgate, London EC2M 3AB or from www.leggmason.co.uk.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.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.

June 2017