1Q 2018 Separately Managed Accounts

CLEARBRIDGEINTERNATIONALVALUE ADRPORTFOLIOS

INVESTMENT PRODUCTS: NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE

Introduction | About Legg Mason

Meet our investment managers

Having honed their expertiseover many decades and marketcycles, our global asset managersoffer specialized capabilitiesacross a scope of asset classesand strategies. Each skilled teamoperates with independentvision to help deliver powerfulfinancial solutions for bothindividuals and institutions.

Global alternative investments One of the world’s largest hedge fund investors, recognized as a global leader in structuring comprehensive alternative investment strategies for institutional and high net worth clients.

Active equity specialists An active equity specialist that builds global, stock-driven portfolios based on fundamental research, devoting all of its resources to delivering optimum investment outcomes and superior client relationships.

Quality-focused equity Global investment manager with over 50 years of experience and long-tenured portfolio managers who seek to build income, high active share or low volatility portfolios.

Investing with conviction Acting with conviction and discipline, we look beyond short-term, conventional thinking to rigorously pursue long-term value across differentiated fixed income, equity, and alternative solutions.

Systematic investment solutions QS Investors is a quantitative asset manager that provides multi-asset class and global equity solutions. Their approach unites intellectual and academic precision with the power of data and technology in their quest to elevate the certainty of outcomes they deliver.

Small-cap equityKnown for its disciplined, value-oriented approach to managing small-caps. An asset class pioneer, the firm’s founder is one of the longest-tenured active managers.

Global listed infrastructure investing RARE is a dedicated infrastructure investment manager focused on global listed infrastructure investments. Established in 2006, RARE has grown to become one of the largest listed infrastructure managers globally.

Fixed incomeOne of the world’s leading global fixed income managers. Founded in 1971, the firm is known for team management, proprietary research and a long-term fundamental value approach.

Real estate investment specialists Clarion Partners is a leading private equity and debt real estate investment manager established in 1982. Clarion invests in the Americas across a broad range of property types and risk profiles, with the goal of consistently creating value for its clients.

Active share is a measure of the percentage of stock holdings in a manager’s portfolio that differs from the benchmark index.

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Introduction | ClearBridge

Long and distinguished history in equity market investing

Well-established globalinvestment manager with alegacy dating back morethan 50 years• Owned by Legg Mason,

operating with investmentindependence

• Offices in New York,Baltimore, San Francisco andWilmington

Boutique Asset Managers

Individual, specialized asset manager firms• Smith Barney Asset

Management• Loeb Rhoades Asset

Management• Davis Skaggs Asset

Management• Shearson Asset

Management• Salomon Brothers

Asset Management

Singular Focus on Investment Managers

Benefits of Scale

Citigroup forms a Combined Asset Management• Citigroup Asset

Management

1962-1997

1998-2005 present

ClearBridge timeline

2005-

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Introduction | ClearBridge

A long-term commitment to fundamental investing

• ClearBridge Investments’ time-tested investment process has guided the Firm throughout its history• An investment philosophy focused on quality businesses: Differentiated business models Sustainable returns Strong financial characteristics Seasoned management teams

• A long-term approach with low turnover.• An investment culture developed over five decades that is dedicated to training and advancement• Independent risk management supported by a team of risk and portfolio analytics professionals• Innovative compensation program aligning ClearBridge with clients

Managers seek to keep portfolio turnover low to allow for the positive compounding effect of dividends over time, although market, security and other investment considerations may cause turnover to be higher from time to time. Also, all capitalization ranges will notnecessarily be represented in an individual account.

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Your investment portfolio | International Value ADR

ClearBridge International Value ADR Portfolios

Overview• ClearBridge International Value ADR Portfolios seek

to provide a value-based, international equitystrategy that will outperform the MSCI EAFE (Net)over 3-5 years, with risk similar to this index.Investments are made from the universe of non-U.S. companies, including emerging markets withpublicly traded ADR securities listed on the majorU.S. exchanges and that have market capitalizationsof greater than $100 million.

Key differentiators• Find quality companies trading at low prices relative

to dynamic intrinsic values Eliminate businesses with undesirable

characteristics

Focus on limited number of companies with thegreatest chance for success

• Opportunistic approach to security selectionenhanced by major dislocation in the markets

• Defined risk management at security and portfoliolevel De-risk stock selection via deep understanding of a

select list of mispriced businesses

Rigorous ongoing review of existing holdings toensure investment case remains intact

Diversification of business models and customerbases throughout portfolio

Explicit limits at portfolio, sector, and country/region level

Portfolio positioning• Designed for investors seeking international

diversification in developed and emerging marketsacross all market sectors and capitalizations.

Philosophy• Focusing on a small number of companies trading at

low prices relative to their dynamic intrinsic valuesleads to enhanced stock selection over time

ObjectivesThe strategy seeks to:• outperform the MSCI EAFE (Net) Index USD over a

full market cycle of 3-5 years, investinginternationally through ADRs.

The MSCI EAFE Index (Europe, Australasia, Far East) is a free-float-adjusted, market capitalization index that is designed to measure developed market equity performance, excluding the U.S. and Canada. As of April 2002 the MSCI EAFE Index consisted of thefollowing 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the UnitedKingdom. It is calculated on a total return basis divided by net dividends, with foreign taxes withheld.An investor cannot invest directly in an index. The index is not managed and not subject to management or brokerage commission. Dividends are subject to reinvestment.Diversification does not assure a profit or protect against market loss.Risks:All investments involve risk, including the loss of principal, and there is no guarantee that investment objectives will be met.The managers invest the portfolios primarily in ADRs, but may also make limited investments in U.S.-traded stocks of non-U.S. and U.S. companies engaged in significant non-U.S. business. These limited investments may include U.S.-traded stocks that result from theconversion of ADRs, as well as other U.S.-traded stocks. The portfolios’ investments in non-U.S. companies may include companies in developed and emerging markets which involve risks in addition to those ordinarily associated with investing in U.S.-traded stocks,including the potentially negative effects of currency fluctuation, political and economic developments, foreign taxation and differences in audition and other financial standards. These risks are magnified in emerging markets.Investments may be made in small- and mid-cap companies, which involve a higher degree of risk and volatility than investments in large-cap companies.

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Your investment portfolio | International Value ADR

ClearBridge International Value ADR Portfolios investment process

6Universe of Securities• Identify publicly traded

ADR securities across11 macro sectors inboth developed andemerging markets,each with a marketcapitalization greaterthan $100 million andsufficient liquidity

Quantitative Modeling• Seek stocks selling

below their normalvaluation levels byemploying aquantitative model thatcompares currentvaluations (asmeasured by price-to-earnings, price-to-bookand price-to-cash flowratios) to historicalvaluations

Company Elimination• Seek to eliminate

stocks with negativecharacteristics andbarriers to success.These factors couldinclude a decliningquality of financialcharacteristics,deteriorating industryconditions orcompetitive position, ora lack of confidence incompany management

Fundamental Analysis• Use a comprehensive

fundamental researchprocess to understandthe business of eachcompany and focus onlong-term value, ratherthan short-term price orearnings forecasts

Client Portfolio• Construct the portfolio

consisting of 60-85holdings. Positions areweighted based uponupside potential,downside risk, ourfundamental conviction,and the impact ondiversification.

Sell DisciplineA security is typicallyreviewed for sale if:• It appreciates to our

predetermined targetprice;

• A change in companyfundamentals results ina failure to meet one ofthe four criteria of ourFocus List eliminationprocess; or

• Value Trap screentriggers acomprehensivereassessment

The investment process may change over time. The characteristics set forth are intended as a general illustration of some of the criteria the strategy team considers in selecting securities for client portfolios. There is no guarantee investment objectives will beachieved.

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Strategy characteristics & performance | Equity Portfolio characteristics

Equity Portfolio characteristics as of March 31, 2018

Sector weightings (%)

Portfolio BM

Financials 26.23 21.05

Materials 15.46 8.01

Consumer Discretionary 13.71 12.61

Health Care 10.30 10.17

Information Technology 9.02 6.57

Industrials 8.94 14.60

Energy 7.47 5.31

Consumer Staples 3.58 11.06

Telecommunication Services 2.41 3.83

Real Estate 0.00 3.53

Utilities 0.00 3.27

Cash 2.88 0.00

Market capitalization (%)

Portfolio BM

Above $50B 46.51 40.89

$25 - $50B 11.47 23.52

$10 - $25B 23.07 22.21

$3 - $10B 13.14 13.19

0 - $3B 5.81 0.20

Characteristics

Portfolio BM

Number of Holdings 71 927

Dividend Yield 2.57 3.11

Forecasted P/E Ratio -1 Year 11.18 14.05

Price/Book Ratio 2.14 2.46

Long-Term EPS Growth 14.45 11.66

Weighted Median Market Capitalization 44.21 39.06

Weighted Average Market Capitalization 56.04 59.43

Source: FactSet. Portfolio characteristics are based on a model portfolio, not an actual client account. The model portfolio is a hypothetical portfolio whereby the portfolio characteristics are based on simulated trading and account activity of a client account invested inthis strategy. The model portfolio assumes no withdrawals, contributions or client-imposed restrictions. Portfolio characteristics of individual client accounts may differ from those of the model portfolio as a result of account size, client-imposed restrictions, the timingof client investments, market conditions, contributions, withdrawals and other factors. Please see Endnotes for additional information. Please see appendix for term definitions.P/E ratio Year 1 and Long-term EPS growth are provided by I/B/E/S, are inherently limited and should not be used as an indication of future performance.Yields and dividends represent past performance and there is no guarantee they will continue to be paid.

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Strategy characteristics & performance | Equity Portfolio characteristics

Equity Portfolio characteristics as of March 31, 2018

Top country weightings (%)

Portfolio BM

United Kingdom 21.37 14.62

Japan 12.09 24.57

France 9.16 10.14

Germany 8.54 9.72

Switzerland 7.33 8.47

United States 4.72 0.06

China 3.95 0.04

Spain 3.92 3.19

Italy 3.92 2.17

Brazil 3.86 0.00

Top equity holdings (%)

Honda Motor Co Ltd 2.70

Rio Tinto PLC 2.62

BP PLC 2.55

AXA SA 2.54

Akzo Nobel NV 2.41

TOTAL SA 2.35

Hitachi Ltd 2.31

Wienerberger AG 2.21

Banco Santander SA 2.19

BNP Paribas SA 2.06

Total 23.94

Source: FactSet. Portfolio characteristics are based on a model portfolio, not an actual client account. The model portfolio is a hypothetical portfolio whereby the portfolio characteristics are based on simulated trading and account activity of a client account invested inthis strategy. The model portfolio assumes no withdrawals, contributions or client-imposed restrictions. Portfolio characteristics of individual client accounts may differ from those of the model portfolio as a result of account size, client-imposed restrictions, the timingof client investments, market conditions, contributions, withdrawals and other factors. Please see Endnotes for additional information. Please see appendix for term definitions.P/E ratio Year 1 and Long-term EPS growth are provided by I/B/E/S, are inherently limited and should not be used as an indication of future performance.Yields and dividends represent past performance and there is no guarantee they will continue to be paid.

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Strategy characteristics & performance | Performance

Performance

Calendar-year total returns – gross and net of fees (%) ending December 31

2017 2016 2015 2014 2013 2012 2011 2010 2009 2008

Intl Value ADR (gross) 24.95 5.72 1.25 -7.87 29.93 20.87 -12.45 7.47 33.70 -40.33

Intl Value ADR (net) 21.37 2.64 -1.70 -10.58 26.22 17.39 -15.04 4.34 29.88 -42.15

MSCI EAFE Index (Net) 25.03 1.00 -0.81 -4.90 22.78 17.32 -12.14 7.75 31.78 -43.38

MSCI World ex. US 24.81 3.29 -2.60 -3.88 21.57 17.02 -11.78 9.43 34.39 -43.23

S&P 500 Index 21.83 11.96 1.38 13.69 32.39 16.00 2.11 15.06 26.46 -37.00

Annualized rates of return – gross and net of fees (%) as of March 31, 2018 – PRELIMINARY

MTH QTR YTD 1-year 3-year 5-year 7-year 10-year 15-year 20-year

Intl Value ADR (gross) -3.42 -2.40 -2.40 13.10 7.69 8.37 7.03 4.54 9.96 5.89

Intl Value ADR (net) -3.67 -3.13 -3.13 9.83 4.56 5.23 3.92 1.49 6.77 2.81

MSCI EAFE Index (Net) -1.80 -1.53 -1.53 14.80 5.55 6.50 5.31 2.74 8.62 4.45

MSCI World ex. US -1.63 -1.92 -1.92 14.46 5.81 6.55 5.24 3.10 9.14 4.99

S&P 500 Index -2.54 -0.76 -0.76 13.99 10.78 13.31 12.71 9.49 10.10 6.46

The strategy returns shown are preliminary composite returns, subject to future revision (downward or upward). Please visit www.leggmason.com for the latest performance figures. YTD numbers are not annualized. Investors cannotinvest directly in an index and unmanaged index returns do not reflect any fees, expenses or sales charges.Past performance is no guarantee of future results. YTD numbers are not annualized. Gross performance shown does not reflect the deduction of investment management fees and certain transaction costs, which will reduce portfolio performance. Netperformance includes the deduction of a 3.0% annual wrap fee, which is the maximum anticipated wrap fee for equity and balanced portfolios. Actual fees may vary. For fee schedules, contact your financial professional, or if you enter into an agreement directly withLegg Mason Private Portfolio Group, LLC (“LMPPG”), refer to LMPPG’s Form ADV disclosure document. Returns reflect the reinvestment of dividends and other earnings. Please see GIPS® Endnotes for additional important information regarding theportfolio’s performance and for effects of fees. Management and performance of individual accounts may vary for reasons that include the existence of different implementation and model requirements in different investment programs.

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Strategy characteristics & performance | Performance

Risk/return profile (%)

Gross of fees (based on 10-year period ending March 31, 2018)

0 5 10 15 20 250

5

10

15

20

Intl Value ADR MSCI EAFE Index (Net) MSCI World ex. US

Ann

ualiz

ed r

ate

of r

etur

n (%

)

Risk (% annualized standard deviation)

Modern portfolio statistics as of March 31, 2018

InternationalValue ADR

MSCI EAFEIndex (Net)

MSCI Worldex. US

Annualized return (%) 4.54 2.74 3.10

Annualized standard deviation (%) 17.47 18.38 18.30

Sharpe ratio 0.33 0.22 0.24

Beta 0.93 N/A N/A

Alpha 1.88 N/A N/A

R-squared 0.96 N/A N/A

The strategy returns shown are preliminary composite returns, subject to future revision (downward or upward). Please visit www.leggmason.com for the latest performance figures. YTD numbers are not annualized. Investors cannotinvest directly in an index and unmanaged index returns do not reflect any fees, expenses or sales charges.Past performance is no guarantee of future results. Investments involve risk of loss. Alpha, Beta, and R-squared are shown versus the MSCI EAFE (net) Index. Investors cannot invest directly in an index and unmanaged index returns do not reflect any fees,expenses or sales charges. Please see appendix for term definitions.Gross performance shown does not reflect the deduction of investment management fees and certain transaction costs, which will reduce portfolio performance. Actual fees may vary. For fee schedules, contact your financial professional, or if you enter into anagreement directly with Legg Mason Private Portfolio Group, LLC (“LMPPG”), refer to LMPPG’s Form ADV disclosure document. Please see GIPS® Endnotes for additional important information regarding the portfolio’s performance and for effects offees. Management and performance of individual accounts may vary for reasons that include the existence of different implementation and model requirements in different investment programs.

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Strategy characteristics & performance | Performance

Up/Down market capture ratios (%)

Gross of fees (based on 10-year period ending March 31, 2018)

0.99

0.93

1.00

1.00

2

1

0

1

2

Intl Value ADR MSCI EAFE Index (Net)

Up64 positive months

Down56 negative months

The strategy returns shown are preliminary composite returns, subject to future revision (downward or upward). Please visit www.leggmason.com for the latest performance figures. YTD numbers are not annualized. Investors cannotinvest directly in an index and unmanaged index returns do not reflect any fees, expenses or sales charges.Gross performance shown does not reflect the deduction of investment management fees and certain transaction costs, which will reduce portfolio performance. Actual fees may vary. For fee schedules, contact your financial professional, or if you enter into anagreement directly with Legg Mason Private Portfolio Group, LLC (“LMPPG”), refer to LMPPG’s Form ADV disclosure document. Please see appendix for term definitions.Please see GIPS® Endnotes for additional important information regarding the portfolio’s performance and for effects of fees. Management and performance of individual accounts may vary for reasons that include the existence ofdifferent implementation and model requirements in different investment programs. Past performance is no guarantee of future results.

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Strategy characteristics & performance | Performance

Growth of $100,000

Gross of fees (based on 10-year period ending March 31, 2018)

2008 2010 2012 2014 2016 2018$0

$50,000

$100,000

$150,000

$200,000Intl Value ADR MSCI EAFE Index (Net) $155,889 $131,004

For illustrative purposes only. Assumes no withdrawals or contributions. These statistics are based on gross-of-fees quarterly composite returns, were calculated assuming reinvestment of dividends and income, and take into account both realized and unrealizedcapital gains and losses. Past performance is no guarantee of future results. All investments involve risk, including the loss of principal.Gross performance shown does not reflect the deduction of investment management fees and certain transaction costs, which will reduce portfolio performance. Actual fees may vary. For fee schedules, contact your financial professional, or if you enter into anagreement directly with Legg Mason Private Portfolio Group, LLC (“LMPPG”), refer to LMPPG’s Form ADV disclosure document. Please see GIPS® Endnotes for additional important information regarding the portfolio’s performance and for effects of fees.Management and performance of individual accounts may vary for reasons that include the existence of different implementation and model requirements in different investment programs.

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Appendix | Investment Management Team

Investment management team

Paul D. Ehrlichman,§Managing Director, Portfolio Manager• Industry since 1983

• Firm since 2008

• Head of Global Value

• LaSalle University — BS in Finance & Quantitative Analysis cumlaude

• Provident Capital Management, Inc. as Assistant Vice Presidentand Portfolio

• Manager - (1984-1988)

• First Pennsylvania Bank as a Securities Analyst (1983-1984)§§

Sean M. Bogda§

CFA, Managing Director, Portfolio Manager• Industry since 1993

• Firm since 2008

• University of Colorado — BS in Finance

Safa R. Muhtaseb§

CFA, Managing Director, Portfolio Manager• Industry since 1988

• Firm since 2008

• University of Tennessee at Knoxville — MBA in Finance

• Old Dominion University — BS cum laude in BusinessAdministration

• Goldman Sachs Asset Management - Portfolio Manager(2001-2004)

• Virginia Retirement System’s Investment - Oversaw theinvestment in international

• equities and managed its U.S. Mid Cap Growth Portfolio(1999-2001)

• CalPERS - Portfolio Manager

Grace Su§

Managing Director, Portfolio Manager• Industry since 2001

• Firm since 2008

• MBA in Finance from the Wharton School at the University ofPennsylvania

• BS in Business Administration from the Haas School of Business,University of California, Berkeley

• Brandywine Global - Research Analyst

• Bear Stearns & Co. - Equity Research Assistant

• Mitchell Madison Group - Business Analyst

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Appendix | Performance Endnotes

GIPS® Endnotes

ClearBridge International Value ADR SMA Inception Date: October 1994. Composite Creation Date: January 2002. Reporting Currency: USD

PeriodTotal Return

(Net, %)Total Return

(*Pure Gross, %)

MSCI EAFE (Net)(USD)

BenchmarkReturn

Number ofPortfolios

% of BundledFee Portfolios inthe Composite

CompositeDispersion (%)

Composite 3 Yr.St. Dev. (%)

Benchmark 3 Yr.St. Dev. (%)

Total CompositeAssets at End of

Period (USDmillion)

Percentage ofFirm Assets

Total FirmAssets at End of

Period (USDmillion)

2017 21.37 24.95 25.03 138 100 0.44 11.55 12.00 143.3 0.1 119,187.1

2016 2.64 5.72 1.00 159 100 0.41 12.25 12.64 103.3 0.1 100,936.9

2015 -1.70 1.25 -0.81 207 100 0.42 11.75 12.64 152.9 0.2 92,536.4

2014 -10.58 -7.87 -4.90 131 100 0.38 12.67 13.21 134.0 0.1 100,721.5

2013 26.22 29.93 22.78 125 100 0.30 15.57 16.48 143.7 0.2 85,024.7

2012 17.39 20.87 17.32 572 100 0.76 18.33 19.65 166.9 9.4 1,772.5

2011 -15.04 -12.45 -12.14 930 100 0.70 21.27 22.75 323.3 15.2 2,128.1

2010 4.34 7.47 7.75 1,473 100 0.84 n/a n/a 534.6 12.8 4,175.6

2009 29.88 33.70 31.78 1,964 100 1.19 n/a n/a 580.2 11.2 5,177.3

2008 -42.15 -40.33 -43.38 2,477 100 1.62 n/a n/a 512.4 11.8 4,334.0

*Pure gross of fee returns do not reflect the deduction of any expenses, including transaction costs, and are presented as supplemental to the net of fee returns.Compliance Statement:§ClearBridge Investments, LLC claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. ClearBridge Investments, LLC has been independently verified for theperiods January 1, 1997 - December 31, 2016. The verification reports are available upon request.Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance with theGIPS standards. Verification does not ensure the accuracy of any specific composite presentation.Firm Information:§ClearBridge Investments, LLC (“ClearBridge”) is a wholly owned subsidiary of Legg Mason, Inc. (“Legg Mason”). The investment advisory business now known as ClearBridge was registered in September 2005 to facilitate Legg Mason’s acquisition of substantially allthe equity asset management businesses known as Citigroup Asset Management. These former businesses serve as the foundation of ClearBridge and its claim of GIPS compliance for institutional accounts through predecessor firms, effective as of January 1997. InJune 2008, ClearBridge combined this business with its retail business to form a single GIPS firm. As of April 1, 2013 and January 1, 2016, ClearBridge’s affiliates, Global Currents Investment Management, LLC, and ClearBridge, LLC, respectively, have become part ofthe ClearBridge GIPS firm.Composite Information:§The ClearBridge International Value ADR SMA composite consists of discretionary wrap accounts with an account minimum of US $25,000. Accounts within the composite seek to provide a value-based, international equity strategy that will outperform the MSCI EAFEIndex over 3-5 years with risk similar to the Index. Investments are primarily in ADRs of companies in both developed and emerging markets. ClearBridge uses WM/Reuters daily FX rates taken at 4 p.m. London time, which may vary from Benchmark indices’ exchangerates periodically. The main risks of this strategy are General Investment Risk, Small Cap Risk, Mid Cap Risk, and Non-U.S. Investment Risk. Prior to August 2015, there was no account minimum.Input and Calculation Data:§The fee schedule currently in effect is 3.00% on all assets. Net of fee composite returns are calculated by reducing each monthly composite pure gross rate of return by the highest “bundled” fee charged (3.00%) annually, prorated to a monthly ratio. The “bundled” feeincludes transaction costs, investment management, custodial, and other administrative fees. Effective January 1, 2013, the number of portfolios reflects a change from prior periods due to an aggregation of accounts as reported by one sponsor. The internal dispersionof annual returns is measured by the asset-weighted standard deviation of portfolio returns included in the composite for the entire year. Total firm assets prior to 2013 represents Global Currents Investment Management, LLC. A list of composite descriptions isavailable upon request. Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request. Past performance is not necessarily indicative of future results.Benchmark Information:§The MSCI EAFE® measures total market performance, including price appreciation and income from net-dividend payments. The “Net” Index series assumes that dividends are reinvested after the deduction of withholding tax. The index uses withholding tax ratesapplicable to Luxembourg holding companies.

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Appendix | Index Definitions

Definitions

Index DefinitionsThe Bloomberg Barclays U.S. Government/Credit Bond Indextracks the performance of the overall bond market and is a broadmeasure of the performance of government and corporate fixed-ratedebt issues.

The FTSE 3-Month U.S. Treasury Bill Index is an index based uponthe average monthly yield of the 90-Day Treasury Bills. Treasury billsare secured by the full faith and credit of the U.S. Government andoffer a fixed rate of return.

The MSCI EAFE Index (Europe, Australasia, Far East) is anunmanaged index of common stocks of companies located inEurope, Australasia and the Far East.

The MSCI World Index is a free float-adjusted market capitalizationweighted index that is designed to measure the equity marketperformance of developed markets.

The MSCI World ex. US Index consists of the following 22developed market country indexes: Australia, Austria, Belgium,Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland,Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal,Singapore, Spain, Sweden, Switzerland, and, the United Kingdom.

The Russell 1000 Index consists of the 1000 largest securities in theRussell 3000 Index, and this large cap (market-oriented) index ishighly correlated with the S&P 500 Index.

The Russell 1000 Growth Index measures the performance ofthose Russell 1000 Index companies with higher price-to-book ratiosand higher forecasted growth values. (A priceto-book ratio is theprice of a stock compared to the difference between a company’sassets and liabilities).

The Russell 1000 Value Index measures the performance of thoseRussell 1000 Index companies with lower price-to-book ratios andlower forecasted growth values.

The Russell 2000 Index is comprised of the 2,000 smallestcompanies in the Russell 3000 Index.

The Russell 2000 Growth Index measures the performance ofthose Russell 2000 Index companies with higher price-to-book ratiosand higher forecasted growth values.

The Russell 2000 Value Index measures the performance of thoseRussell 2000 Index companies with lower price-to-book ratios andlower forecasted growth values.

The Russell 3000 Index is comprised of the 3,000 largest U.S.companies based on total market capitalization, and represents thevast majority of the investable U.S. market.

The Russell 3000 Growth Index measures the performance ofthose Russell 3000 Index companies with higher price-to-book ratiosand higher forecasted growth values.

The Russell MidCap Index consists of the 800 smallest companiesin the Russell 1000 Index as ranked by total market capitalization.

The Russell MidCap Growth Index measures the performance ofthose Russell MidCap companies with higher price-to-book ratiosand higher forecasted growth values.

The Russell MidCap Value Index measures the performance ofthose Russell MidCap companies with lower price-to-book ratios andlower forecasted growth values. The stock are also members of theRussell 1000 Value Index.

The S&P 500 Index is a capitalization weighted, composite index of500 stocks designed to measure performance of the broad domesticeconomy through changes in the aggregate market value of 500stocks representing all major industries.

The S&P 500/FTSE Value Index is an index of stocks representingapproximately half of the market capitalization of the stocks in theS&P 500 Index that, on a growth-value spectrum, have beenidentified as falling either wholly or partially within the value half ofthe spectrum based on a number of factors. Until December 16,2005, when Standard & Poor’s changed both the name of the indexand its calculation methodology, the index was called the S&P 500/BARRA Value Index.

Investors cannot invest directly in an index and unmanaged indexreturns do not reflect any fees, expenses or sales charges.

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Appendix | Term Definitions

Definitions

Term definitionsMarket Capitalization measures the number of outstandingcommon shares of a given corporation multiplied by the latest priceper share.

Weighted Median Market Capitalization represents the value atwhich half the portfolio’s market capitalization weight falls above andhalf falls below.

Weighted Average Market Capitalization represents the averagevalue of the companies held in the portfolio. When that figure isweighted, the impact of each company’s capitalization on the overallaverage is proportional to the total market value of its shares.

Dividend Yield is determined by dividing a stock’s annual dividendsper share by the current market price per share. Dividend yield is afinancial ratio that shows how much a company pays out individends.

P/E (Year 1) is the previous day’s closing price of the stock dividedby the consensus earnings per share (EPS) of fiscal year 1 (FY1)provided by I/B/E/S. Forecasts are inherently limited and should notbe relied upon as indicators of future performance.§

The Price-to-Book ratio (P/B) is a stock’s price divided by the stock’sper share book value.

Earnings Per Share (EPS) is the portion of a company’s profitallocated to each outstanding share of a common stock.

The Sharpe Ratio is a risk-adjusted measure, calculated usingstandard deviation and excess return to determine reward per unit ofrisk. The higher the Sharpe Ratio, the better the portfolio’s historicaladjusted performance.

Alpha is a measure of the difference between actual returns andexpected performance, given the level of risk as measured by Beta,where Beta measures sensitivity to benchmark movements.

R-Squared measures the strength of the linear relationship betweenthe portfolio and its benchmark. R-squared at 1.0 implies perfectlinear relationship and zero implies no relationship exists.§

Standard Deviation is based on quarterly data. Standard deviation isa measure of the variability of returns; the higher the standarddeviation, the greater the range of performance (i.e., volatility).

The Capture Ratios measure a manager’s composite performancerelative to the benchmark, considering only those quarters that areeither positive (Up) or negative (Down) for the benchmark.

An Up Market Capture Ratio greater than 1.0 indicates a managerwho has outperformed the benchmark in the benchmark’s positivequarters.

A Down Market Capture Ratio of less than 1.0 indicates a managerwho has outperformed the relative benchmark in the benchmark’snegative quarters.§

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Brandywine Global

Clarion Partners

ClearBridge Investments

EnTrustPermal

Martin Currie

QS Investors

RARE Infrastructure

Royce & Associates

Western Asset leggmason.com

Legg Mason is a leading global investment company committed to helping clients reach their financial goals through long-term, actively managed investment strategies.

• A broad mix of equities, fixed-income, alternatives and cash strategies invested worldwide

• A diverse family of specialized investment managers, each with its own independent approach to research and analysis

• Over a century of experience in identifying opportunities and delivering astute investment solutions to clients

Separately Managed Accounts (SMAs) are investment services provided by Legg Mason Private Portfolio Group, LLC (LMPPG), a federally registered investment adviser. Client portfolios are managed based oninvestment instructions or advice provided by one or more of the following Legg Mason-affiliated sub-advisers: ClearBridge Investments, LLC. and Western Asset Management Company. Management isimplemented by LMPPG, the designated subadviser or, in the case of certain programs, the program sponsor or its designee.Investments for the program(s) discussed herein are traded primarily in U.S. markets and unless otherwise noted, equity and fixed-income investments for such program(s) are primarily of U.S. issuers. In addition,unless otherwise noted, indexes referred to herein represent groups of securities that are issued primarily by U.S. issuers.IMPORTANT TAX INFORMATION:§Legg Mason, Inc., its affiliates, and its employees are not in the business of providing tax or legal advice to taxpayers. These materials and any tax-related statements are not intended or written to be used, andcannot be used or relied upon, by any such taxpayer for the purpose of avoiding tax penalties or complying with any applicable tax laws or regulations. Tax-related statements, if any, may have been written inconnection with the “promotion or marketing” of the transaction(s) or matter(s) addressed by these materials, to the extent allowed by applicable law. Any such taxpayer should seek advice based on the taxpayer’sparticular circumstances from an independent tax advisor.Gross of fees performance results shown herein do not reflect deduction for investment management fees and transaction costs. The performance of individual client accounts will vary and will be reduced by suchfees and costs. Please review the effect of fees and transaction costs on account performance with your financial professional.Investments are not obligations of, and are not guaranteed by, LMPPG or any other Legg Mason Inc affiliate or subsidiary; are not FDIC or government insured; and are subject to risks,including possible loss of the principal amount invested. Professional money management may not be suitable for all investors.Any information, statement or opinion set forth herein is general in nature, is not directed to or based on the financial situation or needs of any particular investor, and does not constitute,and should not be construed as, investment advice, forecast of future events, a guarantee of future results, or a recommendation with respect to any particular security or investment strategyor type of retirement account. Investors seeking financial advice regarding the appropriateness of investing in any securities or investment strategies should consult their financialprofessional.©2018 Legg Mason Investor Services, LLC, member FINRA, SIPC. Legg Mason Investor Services, LLC and ClearBridge Investments are subsidiaries of Legg Mason, Inc. FN1313149 SMA0030 PPG-Q118-V1§