SMAeducation

Separately managed accounts and mutual funds both offer the services of professional portfolio managers, but they differ in several fundamental ways:

	SMA	Mutual Fund

Professional portfolio management	Yes	Yes

Customization	Yes	No

Investor owns individual securities	Yes	No

Must hold cash	No	Yes

Individual tax-management capabilities	Yes	No

Low minimum investments	No	Yes

Educational Resources: Learn more about separately managed accounts

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, and cannot be used or relied upon, by any such taxpayer for the purpose of avoiding tax penalties. Tax-related statements, if any, may have been written in connection with the "promotion of 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’s particular circumstances from any independent tax advisor.

This is not a complete list of the features of SMAs and Mutual Funds. Your Financial Advisor can help you consider all the features and limitations of each before you make an investment decision. In addition, your own investment objectives, time horizon and risk tolerance must be considered.

While mutual funds do not generally provide the same level of tax management capabilities that separately managed accounts allow individual investors, certain mutual funds may seek to offer tax advantages. For example, certain mutual funds employ "tax aware" investing techniques designed to minimize the impact of taxes on an investor's returns. Other funds invest with the objective of generating income that is exemptfrom local, state and/or federal income taxes. Ask your tax advisor which is most appropriate for you.

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Client portfolios are managed based on investment instructions provided by one or more of the following Legg Mason-affiliated investment management firms, as indicated in portfolio names or otherwise: ClearBridge Advisors, LLC, Western Asset Management Company, Brandywine Global Investment Management, LLC and Global Currents Investment Management, LLC. Effective April 1, 2008, client portfolios are implemented by a service provider on behalf of Legg Mason Private Portfolio Group ("LMPPG") or, in the case of certain programs, by the program sponsor or its designee.