0000764624
2011-08-02
2012-08-01
0000764624
lmpit27:S000016649Member
2011-08-02
2012-08-01
Other
2011-12-31
LEGG MASON PARTNERS INCOME TRUST
0000764624
false
2012-11-28
2012-11-28
2012-08-01
<font style="font-family:ARIAL" size="2"><b>LEGG MASON PARTNERS INCOME TRUST </b></font><p style="margin-top:12px;margin-bottom:0px"><font style="font-family:ARIAL" size="2"><b>SUPPLEMENT DATED NOVEMBER 28, 2012 </b></font></p> <p style="margin-top:0px;margin-bottom:0px"><font style="font-family:ARIAL" size="2"><b>TO THE SUMMARY PROSPECTUS AND PROSPECTUS, </b></font></p> <p style="margin-top:0px;margin-bottom:0px"><font style="font-family:ARIAL" size="2"><b>EACH DATED AUGUST 1, 2012, OF </b></font></p> <p style="margin-top:0px;margin-bottom:0px"><font style="font-family:ARIAL" size="2"><b>WESTERN ASSET MORTGAGE BACKED SECURITIES FUND </b></font></p><p style="margin-top:10px;margin-bottom:0px"><font style="font-family:ARIAL" size="2"><b>Effective as of January 1, 2013, the following text replaces any inconsistent information in the section titled “Fees and expenses of the fund” in the fund’s Summary Prospectus and Prospectus: </b></font></p> <p style="font-size:10px;margin-top:0px;margin-bottom:0px"> </p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style="BORDER-COLLAPSE:COLLAPSE" align="center"> <tr> <td width="85%"></td> <td valign="bottom" width="1%"></td> <td width="14%"></td></tr> <tr bgcolor="#cceeff"> <td valign="bottom" colspan="3"><font style="font-family:ARIAL" size="1"><b>Shareholder fees </b>(fees paid directly from your investment)<b></b></font></td></tr> <tr> <td valign="bottom" style="BORDER-BOTTOM:1px solid #b2b2b2"><font size="1"> </font></td> <td valign="bottom" style="BORDER-BOTTOM:1px solid #b2b2b2"><font size="1"> </font></td> <td valign="bottom" align="center" style="BORDER-BOTTOM:1px solid #b2b2b2"><font style="font-family:ARIAL" size="1">Class 1</font></td></tr> <tr bgcolor="#cceeff"> <td valign="top" style="BORDER-BOTTOM:1px solid #b2b2b2"> <div style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="1">Maximum sales charge (load) imposed on purchases (as a % of offering price) (%)</font></div></td> <td valign="bottom" style="BORDER-BOTTOM:1px solid #b2b2b2"><font size="1"> </font></td> <td valign="bottom" align="center" style="BORDER-BOTTOM:1px solid #b2b2b2"><font style="font-family:ARIAL" size="1">N/A</font></td></tr> <tr> <td valign="top" style="BORDER-BOTTOM:1px solid #b2b2b2"> <div style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="1">Maximum deferred sales charge (load) (as a % of the lower of net asset value at purchase or redemption) (may be reduced over time) (%)</font></div></td> <td valign="bottom" style="BORDER-BOTTOM:1px solid #b2b2b2"><font size="1"> </font></td> <td valign="top" align="center" style="BORDER-BOTTOM:1px solid #b2b2b2"><font style="font-family:ARIAL" size="1">None</font></td></tr> <tr bgcolor="#cceeff"> <td valign="top" style="BORDER-BOTTOM:1px solid #b2b2b2"> <div style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="1">Small account fee<sup style="vertical-align:baseline; position:relative; bottom:.8ex">1</sup></font></div></td> <td valign="bottom" style="BORDER-BOTTOM:1px solid #b2b2b2"><font size="1"> </font></td> <td valign="bottom" align="center" style="BORDER-BOTTOM:1px solid #b2b2b2"><font style="font-family:ARIAL" size="1">$15</font></td></tr> </table> <p style="font-size:10px;margin-top:0px;margin-bottom:0px"> </p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style="BORDER-COLLAPSE:COLLAPSE" align="center"> <tr> <td width="85%"></td> <td valign="bottom" width="1%"></td> <td width="14%"></td></tr> <tr bgcolor="#cceeff"> <td valign="bottom" colspan="3"><font style="font-family:ARIAL" size="1"><b>Annual fund operating expenses </b>(expenses that you pay each year as a percentage of the value of your investment) <b>(%)</b></font></td></tr> <tr> <td valign="top" style="BORDER-BOTTOM:1px solid #b2b2b2"> <div style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="1">Management fees<sup style="vertical-align:baseline; position:relative; bottom:.8ex">2</sup></font></div></td> <td valign="bottom" style="BORDER-BOTTOM:1px solid #b2b2b2"><font size="1"> </font></td> <td valign="bottom" align="center" style="BORDER-BOTTOM:1px solid #b2b2b2"><font style="font-family:ARIAL" size="1">0.50</font></td></tr> <tr bgcolor="#cceeff"> <td valign="top" style="BORDER-BOTTOM:1px solid #b2b2b2"> <div style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="1">Distribution and service (12b-1) fees</font></div></td> <td valign="bottom" style="BORDER-BOTTOM:1px solid #b2b2b2"><font size="1"> </font></td> <td valign="bottom" align="center" style="BORDER-BOTTOM:1px solid #b2b2b2"><font style="font-family:ARIAL" size="1">None</font></td></tr> <tr> <td valign="top" style="BORDER-BOTTOM:1px solid #b2b2b2"> <div style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="1">Other expenses</font></div></td> <td valign="bottom" style="BORDER-BOTTOM:1px solid #b2b2b2"><font size="1"> </font></td> <td valign="top" align="center" style="BORDER-BOTTOM:1px solid #b2b2b2"><font style="font-family:ARIAL" size="1">0.24</font></td></tr> <tr bgcolor="#cceeff"> <td valign="top" style="BORDER-BOTTOM:1px solid #b2b2b2"> <div style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="1">Total annual fund operating expenses<sup style="vertical-align:baseline; position:relative; bottom:.8ex">2</sup></font></div></td> <td valign="bottom" style="BORDER-BOTTOM:1px solid #b2b2b2"><font size="1"> </font></td> <td valign="bottom" align="center" style="BORDER-BOTTOM:1px solid #b2b2b2"><font style="font-family:ARIAL" size="1">0.74</font></td></tr> <tr> <td valign="top" style="BORDER-BOTTOM:1px solid #b2b2b2"> <div style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="1">Fees waived and/or expenses reimbursed</font></div></td> <td valign="bottom" style="BORDER-BOTTOM:1px solid #b2b2b2"><font size="1"> </font></td> <td valign="bottom" align="center" style="BORDER-BOTTOM:1px solid #b2b2b2"><font style="font-family:ARIAL" size="1">—<sup style="vertical-align:baseline; position:relative; bottom:.8ex">3</sup></font></td></tr> <tr bgcolor="#cceeff"> <td valign="top" style="BORDER-BOTTOM:1px solid #b2b2b2"> <div style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="1">Total annual fund operating expenses after waiving fees and/or reimbursing expenses<sup style="vertical-align:baseline; position:relative; bottom:.8ex">2</sup></font></div></td> <td valign="bottom" style="BORDER-BOTTOM:1px solid #b2b2b2"><font size="1"> </font></td> <td valign="bottom" align="center" style="BORDER-BOTTOM:1px solid #b2b2b2"><font style="font-family:ARIAL" size="1">0.74</font></td></tr> </table> <p style="font-size:4px;margin-top:0px;margin-bottom:0px"> </p> <table style="BORDER-COLLAPSE:COLLAPSE" border="0" cellpadding="0" cellspacing="0" width="100%"> <tr> <td width="1%"><font size="1"> </font></td> <td width="2%" valign="top" align="left"><font style="font-family:ARIAL" size="1"><sup style="vertical-align:baseline; position:relative; bottom:.8ex">1</sup> </font></td> <td align="left" valign="top"> <font style="font-family:ARIAL" size="1">If your shares are held in a direct account and the value of your account is below $1,000 ($250 for retirement plans that are not employer-sponsored), the fund may charge you a fee of $3.75 per account that is determined and assessed quarterly (with an annual maximum of $15.00 per account). Direct accounts generally include accounts held in the name of the individual investor on the fund’s books and records. </font></td></tr></table> <p style="font-size:4px;margin-top:0px;margin-bottom:0px"> </p> <table style="BORDER-COLLAPSE:COLLAPSE" border="0" cellpadding="0" cellspacing="0" width="100%"> <tr> <td width="1%"><font size="1"> </font></td> <td width="2%" valign="top" align="left"><font style="font-family:ARIAL" size="1"><sup style="vertical-align:baseline; position:relative; bottom:.8ex">2</sup> </font></td> <td align="left" valign="top"> <font style="font-family:ARIAL" size="1">The management fees and total annual fund operating expenses have been restated to reflect current management fees. </font></td></tr></table> <p style="font-size:4px;margin-top:0px;margin-bottom:0px"> </p> <table style="BORDER-COLLAPSE:COLLAPSE" border="0" cellpadding="0" cellspacing="0" width="100%"> <tr> <td width="1%"><font size="1"> </font></td> <td width="2%" valign="top" align="left"><font style="font-family:ARIAL" size="1"><sup style="vertical-align:baseline; position:relative; bottom:.8ex">3</sup> </font></td> <td align="left" valign="top"><font style="font-family:ARIAL" size="1">The manager has agreed to waive fees and/or reimburse operating expenses (other than interest, brokerage, taxes, extraordinary expenses and acquired fund fees and expenses) so that total annual operating expenses for Class 1 shares are not expected to exceed total annual operating expenses for Class A shares. This arrangement cannot be terminated prior to December 31, 2014 without the Board of Trustees’ consent. </font></td></tr></table> <p style="margin-top:18px;margin-bottom:0px"><font style="font-family:ARIAL" size="2"><b>Example </b></font></p> <p style="margin-top:4px;margin-bottom:0px"><font style="font-family:ARIAL" size="2">This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes: </font></p> <p style="font-size:4px;margin-top:0px;margin-bottom:0px"> </p> <table style="BORDER-COLLAPSE:COLLAPSE" border="0" cellpadding="0" cellspacing="0" width="100%"> <tr> <td width="1%"><font size="1"> </font></td> <td width="2%" valign="top" align="left"><font style="font-family:ARIAL" size="2">•</font></td> <td width="1%" valign="top"><font size="1"> </font></td> <td align="left" valign="top"><font style="font-family:ARIAL" size="2">You invest $10,000 in the fund for the time periods indicated </font></td></tr></table> <p style="font-size:4px;margin-top:0px;margin-bottom:0px"> </p> <table style="BORDER-COLLAPSE:COLLAPSE" border="0" cellpadding="0" cellspacing="0" width="100%"> <tr> <td width="1%"><font size="1"> </font></td> <td width="2%" valign="top" align="left"><font style="font-family:ARIAL" size="2">•</font></td> <td width="1%" valign="top"><font size="1"> </font></td> <td align="left" valign="top"><font style="font-family:ARIAL" size="2">Your investment has a 5% return each year and the fund’s operating expenses remain the same </font></td></tr></table> <p style="font-size:4px;margin-top:0px;margin-bottom:0px"> </p> <table style="BORDER-COLLAPSE:COLLAPSE" border="0" cellpadding="0" cellspacing="0" width="100%"> <tr> <td width="1%"><font size="1"> </font></td> <td width="2%" valign="top" align="left"><font style="font-family:ARIAL" size="2">•</font></td> <td width="1%" valign="top"><font size="1"> </font></td> <td align="left" valign="top"><font style="font-family:ARIAL" size="2">You reinvest all distributions and dividends without a sales charge </font></td></tr></table> <p style="margin-top:10px;margin-bottom:0px"><font style="font-family:ARIAL" size="2">Although your actual costs may be higher or lower, based on these assumptions your costs would be: </font></p> <p style="font-size:10px;margin-top:0px;margin-bottom:0px"> </p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style="BORDER-COLLAPSE:COLLAPSE" align="center"> <tr> <td width="57%"></td> <td valign="bottom" width="1%"></td> <td width="6%"></td> <td valign="bottom" width="2%"></td> <td width="7%"></td> <td valign="bottom" width="2%"></td> <td width="7%"></td> <td valign="bottom" width="2%"></td> <td width="8%"></td></tr> <tr bgcolor="#cceeff"> <td valign="bottom"><font style="font-family:ARIAL" size="1"><b>Number of years you own your shares ($)</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="font-family:ARIAL" size="1"><b>1 year</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="font-family:ARIAL" size="1"><b>3 years</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="font-family:ARIAL" size="1"><b>5 years</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom" align="center"><font style="font-family:ARIAL" size="1"><b>10 years</b></font></td></tr> <tr> <td valign="top"> <div style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="1">Class 1 (with or without redemption at end of period)</font></div></td> <td valign="bottom"><font size="1"> </font></td> <td valign="top" align="center"> <div style="margin-left:1.00em; text-indent:-1.00em" align="center"><font style="font-family:ARIAL" size="1">76</font></div></td> <td valign="bottom"><font size="1"> </font></td> <td valign="top" align="center"> <div style="margin-left:1.00em; text-indent:-1.00em" align="center"><font style="font-family:ARIAL" size="1">237</font></div></td> <td valign="bottom"><font size="1"> </font></td> <td valign="top" align="center"> <div style="margin-left:1.00em; text-indent:-1.00em" align="center"><font style="font-family:ARIAL" size="1">412</font></div></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom" align="center"><font style="font-family:ARIAL" size="1">919</font></td></tr> </table>
<font style="font-family:ARIAL" size="2"><b>LEGG MASON PARTNERS INCOME TRUST </b></font><p style="margin-top:12px;margin-bottom:0px"><font style="font-family:ARIAL" size="2"><b>SUPPLEMENT DATED NOVEMBER 28, 2012 </b></font></p> <p style="margin-top:0px;margin-bottom:0px"><font style="font-family:ARIAL" size="2"><b>TO THE SUMMARY PROSPECTUS AND PROSPECTUS, </b></font></p> <p style="margin-top:0px;margin-bottom:0px"><font style="font-family:ARIAL" size="2"><b>EACH DATED AUGUST 1, 2012, OF </b></font></p> <p style="margin-top:0px;margin-bottom:0px"><font style="font-family:ARIAL" size="2"><b>WESTERN ASSET MORTGAGE BACKED SECURITIES FUND </b></font></p><p style="margin-top:10px;margin-bottom:0px"><font style="font-family:ARIAL" size="2"><b>Effective as of January 1, 2013, the following text replaces any inconsistent information in the section titled “Fees and expenses of the fund” in the fund’s Summary Prospectus and Prospectus: </b></font></p> <p style="font-size:10px;margin-top:0px;margin-bottom:0px"> </p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style="BORDER-COLLAPSE:COLLAPSE" align="center"> <tr> <td width="85%"></td> <td valign="bottom" width="1%"></td> <td width="14%"></td></tr> <tr bgcolor="#cceeff"> <td valign="bottom" colspan="3"><font style="font-family:ARIAL" size="1"><b>Shareholder fees </b>(fees paid directly from your investment)<b></b></font></td></tr> <tr> <td valign="bottom" style="BORDER-BOTTOM:1px solid #b2b2b2"><font size="1"> </font></td> <td valign="bottom" style="BORDER-BOTTOM:1px solid #b2b2b2"><font size="1"> </font></td> <td valign="bottom" align="center" style="BORDER-BOTTOM:1px solid #b2b2b2"><font style="font-family:ARIAL" size="1">Class 1</font></td></tr> <tr bgcolor="#cceeff"> <td valign="top" style="BORDER-BOTTOM:1px solid #b2b2b2"> <div style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="1">Maximum sales charge (load) imposed on purchases (as a % of offering price) (%)</font></div></td> <td valign="bottom" style="BORDER-BOTTOM:1px solid #b2b2b2"><font size="1"> </font></td> <td valign="bottom" align="center" style="BORDER-BOTTOM:1px solid #b2b2b2"><font style="font-family:ARIAL" size="1">N/A</font></td></tr> <tr> <td valign="top" style="BORDER-BOTTOM:1px solid #b2b2b2"> <div style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="1">Maximum deferred sales charge (load) (as a % of the lower of net asset value at purchase or redemption) (may be reduced over time) (%)</font></div></td> <td valign="bottom" style="BORDER-BOTTOM:1px solid #b2b2b2"><font size="1"> </font></td> <td valign="top" align="center" style="BORDER-BOTTOM:1px solid #b2b2b2"><font style="font-family:ARIAL" size="1">None</font></td></tr> <tr bgcolor="#cceeff"> <td valign="top" style="BORDER-BOTTOM:1px solid #b2b2b2"> <div style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="1">Small account fee<sup style="vertical-align:baseline; position:relative; bottom:.8ex">1</sup></font></div></td> <td valign="bottom" style="BORDER-BOTTOM:1px solid #b2b2b2"><font size="1"> </font></td> <td valign="bottom" align="center" style="BORDER-BOTTOM:1px solid #b2b2b2"><font style="font-family:ARIAL" size="1">$15</font></td></tr> </table> <p style="font-size:10px;margin-top:0px;margin-bottom:0px"> </p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style="BORDER-COLLAPSE:COLLAPSE" align="center"> <tr> <td width="85%"></td> <td valign="bottom" width="1%"></td> <td width="14%"></td></tr> <tr bgcolor="#cceeff"> <td valign="bottom" colspan="3"><font style="font-family:ARIAL" size="1"><b>Annual fund operating expenses </b>(expenses that you pay each year as a percentage of the value of your investment) <b>(%)</b></font></td></tr> <tr> <td valign="top" style="BORDER-BOTTOM:1px solid #b2b2b2"> <div style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="1">Management fees<sup style="vertical-align:baseline; position:relative; bottom:.8ex">2</sup></font></div></td> <td valign="bottom" style="BORDER-BOTTOM:1px solid #b2b2b2"><font size="1"> </font></td> <td valign="bottom" align="center" style="BORDER-BOTTOM:1px solid #b2b2b2"><font style="font-family:ARIAL" size="1">0.50</font></td></tr> <tr bgcolor="#cceeff"> <td valign="top" style="BORDER-BOTTOM:1px solid #b2b2b2"> <div style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="1">Distribution and service (12b-1) fees</font></div></td> <td valign="bottom" style="BORDER-BOTTOM:1px solid #b2b2b2"><font size="1"> </font></td> <td valign="bottom" align="center" style="BORDER-BOTTOM:1px solid #b2b2b2"><font style="font-family:ARIAL" size="1">None</font></td></tr> <tr> <td valign="top" style="BORDER-BOTTOM:1px solid #b2b2b2"> <div style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="1">Other expenses</font></div></td> <td valign="bottom" style="BORDER-BOTTOM:1px solid #b2b2b2"><font size="1"> </font></td> <td valign="top" align="center" style="BORDER-BOTTOM:1px solid #b2b2b2"><font style="font-family:ARIAL" size="1">0.24</font></td></tr> <tr bgcolor="#cceeff"> <td valign="top" style="BORDER-BOTTOM:1px solid #b2b2b2"> <div style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="1">Total annual fund operating expenses<sup style="vertical-align:baseline; position:relative; bottom:.8ex">2</sup></font></div></td> <td valign="bottom" style="BORDER-BOTTOM:1px solid #b2b2b2"><font size="1"> </font></td> <td valign="bottom" align="center" style="BORDER-BOTTOM:1px solid #b2b2b2"><font style="font-family:ARIAL" size="1">0.74</font></td></tr> <tr> <td valign="top" style="BORDER-BOTTOM:1px solid #b2b2b2"> <div style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="1">Fees waived and/or expenses reimbursed</font></div></td> <td valign="bottom" style="BORDER-BOTTOM:1px solid #b2b2b2"><font size="1"> </font></td> <td valign="bottom" align="center" style="BORDER-BOTTOM:1px solid #b2b2b2"><font style="font-family:ARIAL" size="1">—<sup style="vertical-align:baseline; position:relative; bottom:.8ex">3</sup></font></td></tr> <tr bgcolor="#cceeff"> <td valign="top" style="BORDER-BOTTOM:1px solid #b2b2b2"> <div style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="1">Total annual fund operating expenses after waiving fees and/or reimbursing expenses<sup style="vertical-align:baseline; position:relative; bottom:.8ex">2</sup></font></div></td> <td valign="bottom" style="BORDER-BOTTOM:1px solid #b2b2b2"><font size="1"> </font></td> <td valign="bottom" align="center" style="BORDER-BOTTOM:1px solid #b2b2b2"><font style="font-family:ARIAL" size="1">0.74</font></td></tr> </table> <p style="font-size:4px;margin-top:0px;margin-bottom:0px"> </p> <table style="BORDER-COLLAPSE:COLLAPSE" border="0" cellpadding="0" cellspacing="0" width="100%"> <tr> <td width="1%"><font size="1"> </font></td> <td width="2%" valign="top" align="left"><font style="font-family:ARIAL" size="1"><sup style="vertical-align:baseline; position:relative; bottom:.8ex">1</sup> </font></td> <td align="left" valign="top"> <font style="font-family:ARIAL" size="1">If your shares are held in a direct account and the value of your account is below $1,000 ($250 for retirement plans that are not employer-sponsored), the fund may charge you a fee of $3.75 per account that is determined and assessed quarterly (with an annual maximum of $15.00 per account). Direct accounts generally include accounts held in the name of the individual investor on the fund’s books and records. </font></td></tr></table> <p style="font-size:4px;margin-top:0px;margin-bottom:0px"> </p> <table style="BORDER-COLLAPSE:COLLAPSE" border="0" cellpadding="0" cellspacing="0" width="100%"> <tr> <td width="1%"><font size="1"> </font></td> <td width="2%" valign="top" align="left"><font style="font-family:ARIAL" size="1"><sup style="vertical-align:baseline; position:relative; bottom:.8ex">2</sup> </font></td> <td align="left" valign="top"> <font style="font-family:ARIAL" size="1">The management fees and total annual fund operating expenses have been restated to reflect current management fees. </font></td></tr></table> <p style="font-size:4px;margin-top:0px;margin-bottom:0px"> </p> <table style="BORDER-COLLAPSE:COLLAPSE" border="0" cellpadding="0" cellspacing="0" width="100%"> <tr> <td width="1%"><font size="1"> </font></td> <td width="2%" valign="top" align="left"><font style="font-family:ARIAL" size="1"><sup style="vertical-align:baseline; position:relative; bottom:.8ex">3</sup> </font></td> <td align="left" valign="top"><font style="font-family:ARIAL" size="1">The manager has agreed to waive fees and/or reimburse operating expenses (other than interest, brokerage, taxes, extraordinary expenses and acquired fund fees and expenses) so that total annual operating expenses for Class 1 shares are not expected to exceed total annual operating expenses for Class A shares. This arrangement cannot be terminated prior to December 31, 2014 without the Board of Trustees’ consent. </font></td></tr></table> <p style="margin-top:18px;margin-bottom:0px"><font style="font-family:ARIAL" size="2"><b>Example </b></font></p> <p style="margin-top:4px;margin-bottom:0px"><font style="font-family:ARIAL" size="2">This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes: </font></p> <p style="font-size:4px;margin-top:0px;margin-bottom:0px"> </p> <table style="BORDER-COLLAPSE:COLLAPSE" border="0" cellpadding="0" cellspacing="0" width="100%"> <tr> <td width="1%"><font size="1"> </font></td> <td width="2%" valign="top" align="left"><font style="font-family:ARIAL" size="2">•</font></td> <td width="1%" valign="top"><font size="1"> </font></td> <td align="left" valign="top"><font style="font-family:ARIAL" size="2">You invest $10,000 in the fund for the time periods indicated </font></td></tr></table> <p style="font-size:4px;margin-top:0px;margin-bottom:0px"> </p> <table style="BORDER-COLLAPSE:COLLAPSE" border="0" cellpadding="0" cellspacing="0" width="100%"> <tr> <td width="1%"><font size="1"> </font></td> <td width="2%" valign="top" align="left"><font style="font-family:ARIAL" size="2">•</font></td> <td width="1%" valign="top"><font size="1"> </font></td> <td align="left" valign="top"><font style="font-family:ARIAL" size="2">Your investment has a 5% return each year and the fund’s operating expenses remain the same </font></td></tr></table> <p style="font-size:4px;margin-top:0px;margin-bottom:0px"> </p> <table style="BORDER-COLLAPSE:COLLAPSE" border="0" cellpadding="0" cellspacing="0" width="100%"> <tr> <td width="1%"><font size="1"> </font></td> <td width="2%" valign="top" align="left"><font style="font-family:ARIAL" size="2">•</font></td> <td width="1%" valign="top"><font size="1"> </font></td> <td align="left" valign="top"><font style="font-family:ARIAL" size="2">You reinvest all distributions and dividends without a sales charge </font></td></tr></table> <p style="margin-top:10px;margin-bottom:0px"><font style="font-family:ARIAL" size="2">Although your actual costs may be higher or lower, based on these assumptions your costs would be: </font></p> <p style="font-size:10px;margin-top:0px;margin-bottom:0px"> </p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style="BORDER-COLLAPSE:COLLAPSE" align="center"> <tr> <td width="57%"></td> <td valign="bottom" width="1%"></td> <td width="6%"></td> <td valign="bottom" width="2%"></td> <td width="7%"></td> <td valign="bottom" width="2%"></td> <td width="7%"></td> <td valign="bottom" width="2%"></td> <td width="8%"></td></tr> <tr bgcolor="#cceeff"> <td valign="bottom"><font style="font-family:ARIAL" size="1"><b>Number of years you own your shares ($)</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="font-family:ARIAL" size="1"><b>1 year</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="font-family:ARIAL" size="1"><b>3 years</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom"><font style="font-family:ARIAL" size="1"><b>5 years</b></font></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom" align="center"><font style="font-family:ARIAL" size="1"><b>10 years</b></font></td></tr> <tr> <td valign="top"> <div style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="1">Class 1 (with or without redemption at end of period)</font></div></td> <td valign="bottom"><font size="1"> </font></td> <td valign="top" align="center"> <div style="margin-left:1.00em; text-indent:-1.00em" align="center"><font style="font-family:ARIAL" size="1">76</font></div></td> <td valign="bottom"><font size="1"> </font></td> <td valign="top" align="center"> <div style="margin-left:1.00em; text-indent:-1.00em" align="center"><font style="font-family:ARIAL" size="1">237</font></div></td> <td valign="bottom"><font size="1"> </font></td> <td valign="top" align="center"> <div style="margin-left:1.00em; text-indent:-1.00em" align="center"><font style="font-family:ARIAL" size="1">412</font></div></td> <td valign="bottom"><font size="1"> </font></td> <td valign="bottom" align="center"><font style="font-family:ARIAL" size="1">919</font></td></tr> </table>