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Important Information:

The views expressed are those of the portfolio managers as of July 29, 2014 and are subject to change based on market and other conditions. These views may differ from other portfolio managers or the firm as a whole, and are not intended to be a forecast of future events, a guarantee of future results or investment advice.

Benchmark: Discussions of “the benchmark”, “the benchmarks” are referring to the Barclays Aggregate Bond Index and sub-sections of the index. (formally known as the Lehman Aggregate Bond Index)

A credit rating is a measure of an issuer’s ability to repay interest and principal in a timely manner. Credit ratings are provided by Standard and Poor’s, Moody’s Investors Service and/or Fitch Ratings, Ltd. Please note that, the Fund itself has not been rated by an independent rating agency.

Duration is a measurement that signals how much the price of a bond is likely to fluctuate when there is a change in interest rates. The higher the duration number, the more sensitive a bond will be to interest rate changes.

The yield curve shows the relationship between yields and maturity dates for a similar class of bonds.

The Federal Reserve Board (“Fed”) is responsible for the formulation of policies designed to promote economic growth, full employment, stable prices, and a sustainable pattern of international trade and payments.

Commercial Mortgage-Backed Securities (CMBS) are a type of mortgage-backed security that is secured by loans on commercial property. A CMBS can provide liquidity to real estate investors and to commercial lenders.

The S&P 500 Index is an unmanaged index of common stock performance. The Barclays U.S. Aggregate Index is a broad-based bond index comprised of government, corporate, mortgage and asset-backed issues, rated investment grade or higher, and having at least one year to maturity. Please note an investor cannot invest directly in an index, and unmanaged index returns do not reflect any fees, expenses or sales charges.

All investments involve risk, including possible loss of principal. Dividends and yields represent past performance, can fluctuate, and there is no guarantee they will continue to be paid. Past performance is no guarantee of future results.

Fixed-income securities involve interest rate, credit, inflation and reinvestment risks; and possible loss of principal. As interest rates rise, the value of fixed-income securities falls. High-yield securities include greater price volatility, illiquidity and possibility of default. International investments are subject to special risks, including currency fluctuations, social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. Derivatives, such as options and futures, can be illiquid, may disproportionately increase losses, and have a potentially large impact on fund performance. The use of leverage may increase volatility and possibility of loss. Potential active and frequent trading may result in higher transaction costs and increased investor liability. Asset-backed, mortgage-backed or mortgage related securities are subject to prepayment and extension risks. Diversification does not guarantee a profit or protect against a loss.

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.

©2014 Legg Mason Investor Services, LLC, member FINRA, SIPC. Legg Mason Investor Services, LLC and Western Asset Management Co. are subsidiaries of Legg Mason, Inc. Asset TV is not affiliated with Legg Mason Investor Services. FN1412871