UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-06444

Legg Mason Partners Equity Trust

(Exact name of registrant as specified in charter)

55 Water Street, New York, NY	10041
(Address of principal executive offices)	(Zip code)

Robert I. Frenkel, Esq.

Legg Mason & Co., LLC

300 First Stamford Place, 4^th Floor

Stamford, CT 06902

(Name and address of agent for service)

Registrant’s telephone number, including area code: (800) 451-2010

Date of fiscal year end: December 31,

Date of reporting period: June 30, 2008

ITEM 1. REPORT TO STOCKHOLDERS.

The Semi-Annual Report to Stockholders is filed herewith.

SEMI-ANNUAL REPORT / JUNE 30, 2008

Legg Mason Partners

Investors Value Fund

Managed by CLEARBRIDGE ADVISORS

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

Fund objective

The Fund seeks long-term growth of capital. Current income is a secondary objective.

What’s inside

Letter from the chairman	I
Fund at a glance	1
Fund expenses	2
Schedule of investments	4
Statement of assets and liabilities	8
Statement of operations	9
Statements of changes in net assets	10
Financial highlights	11
Notes to financial statements	15

Legg Mason Partners Fund Advisor, LLC (“LMPFA”) is the Fund’s investment manager and ClearBridge Advisors, LLC (“ClearBridge”) is the Fund’s subadviser. LMPFA and ClearBridge are wholly-owned subsidiaries of Legg Mason, Inc.

Letter from the chairman

R. Jay Gerken, CFA

Chairman, President and Chief Executive Officer

Dear Shareholder,

The U.S. economy was lackluster during the six-month reporting period ended June 30, 2008. Looking back, third quarter 2007 U.S. gross domestic product (“GDP”)ⁱ growth was 4.8%, its strongest showing in four years. However, continued weakness in the housing market, an ongoing credit crunch and soaring oil and food prices then took their toll on the economy. During the fourth quarter of 2007, GDP growth was -0.2%. First quarter 2008 GDP growth was a modest 0.9%. The advance estimate for second quarter 2008 GDP growth was 1.9%.

The debate continues as to whether or not the U.S. will fall into a recession. However, it is a moot point for many people, as the job market continues to weaken and soaring energy and food prices are tempering consumer spending. In terms of the employment picture, the U.S. Department of Labor reported that payroll employment declined in each of the first six months of 2008, and the unemployment rate rose to 5.5% in May, its highest level since October 2004. Oil prices surpassed $140 a barrel in June 2008, with the average price for a gallon of gas exceeding $4 for the first time ever.ⁱⁱ These factors, coupled with a sputtering housing market, contributed to the Consumer Confidence Index falling for the sixth consecutive month in June 2008, reaching its lowest level since 1992.ⁱⁱⁱ

Ongoing issues related to the housing and subprime mortgage markets and seizing credit markets prompted the Federal Reserve Board (“Fed”)^iv to take aggressive and, in some cases, unprecedented actions. Beginning in September 2007, the Fed reduced the federal funds rate^v from 5.25% to 4.75%. This marked the first such reduction since June 2003. The Fed then reduced the federal funds rate on six additional occasions through April 2008, bringing the federal funds rate to 2.00%. However, the Fed then shifted gears in the face of mounting inflationary prices and a weakening U.S. dollar. At its meeting in June, the Fed held rates steady and stated: “Recent information indicates that overall economic activity continues to expand, partly reflecting some firming in household spending. However, labor markets have softened further and financial markets remain under considerable stress. Tight credit conditions, the ongoing housing contraction, and the rise in energy prices are likely to weigh on economic growth over the next few quarters.”

Legg Mason Partners Investors Value Fund I

Letter from the chairman continued

In addition to the interest rate cuts, the Fed took several actions to improve liquidity in the credit markets. In March 2008, the Fed established a new lending program allowing certain brokerage firms, known as primary dealers, to also borrow from its discount window. The Fed also increased the maximum term for discount window loans from 30 to 90 days. Then, in mid-March, the Fed played a major role in facilitating the purchase of Bear Stearns by JPMorgan Chase.

The U.S. stock market was not for the faint of heart during the reporting period. Stock prices fell during the first three months of the reporting period due, in part, to the severe credit crunch, weakening corporate profits, rising inflation and fears of an impending recession. The market then reversed course and posted positive returns in April and May 2008. The market’s rebound was largely attributed to hopes that the U.S. would skirt a recession and that corporate profits would rebound as the year progressed. Stock prices then moved sharply lower in June, with the S&P 500 Index^vi falling 8.43% for the month. This represented its worst monthly performance since September 2002 and its weakest month of June since the Great Depression in 1930. All told, the S&P 500 Index returned -11.91% during the six-month reporting period ended June 30, 2008, and as of that date was almost 20% lower than its peak in October 2007.

Looking at the U.S. stock market more closely, mid-cap stocks outperformed their small- and large-cap counterparts, as the Russell Midcap^vii, Russell 2000^viii and Russell 1000^ix Indexes returned -7.57%, -9.37% and -11.20%, respectively, during the six-month period ended June 30, 2008. From an investment style perspective, growth stocks outperformed value stocks on a relative basis, with the Russell 3000 Growth^x and Russell 3000 Value^xi Indexes returning -9.04% and -13.28%, respectively.

II Legg Mason Partners Investors Value Fund

Performance review

For the six months ended June 30, 2008, Class A shares of Legg Mason Partners Investors Value Fund, excluding sales charges, returned -13.20%. The Fund’s unmanaged benchmarks, the S&P 500 Index and the Russell 1000 Value Index^xii, returned -11.91% and -13.57%, respectively, over the same time frame. The Lipper Large-Cap Value Funds Category Average¹ returned -13.02% for the same period.

PERFORMANCE SNAPSHOT as of June 30, 2008 (excluding sales charges) (unaudited)
	6 MONTHS (not annualized)
Investors Value Fund — Class A Shares	-13.20%
S&P 500 Index	-11.91%
Russell 1000 Value Index	-13.57%
Lipper Large-Cap Value Funds Category Average1	-13.02%
The performance shown represents past performance. Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown above. Principal value and investment returns will fluctuate and investors’ shares, when redeemed, may be worth more or less than their original cost. To obtain performance data current to the most recent month-end, please visit our website at www.leggmason.com/individualinvestors.
Excluding sales charges, Class B shares returned -13.58%, Class C shares returned -13.52% and Class I shares2 returned -13.04% over the six months ended June 30, 2008. All share class returns assume the reinvestment of all distributions, including returns of capital, if any, at net asset value and the deduction of all Fund expenses. Returns have not been adjusted to include sales charges that may apply when shares are purchased or the deduction of taxes that a shareholder would pay on Fund distributions.
Performance figures reflect expense reimbursements and/or fee waivers, without which the performance would have been lower.
TOTAL ANNUAL OPERATING EXPENSES (unaudited)
As of the Fund’s most current prospectus dated April 28, 2008, the gross total operating expenses for Class A, Class B, Class C and Class I shares were 0.86%, 1.62%, 1.57% and 0.57%, respectively.

Special shareholder notice

Effective April 28, 2008, the Fund’s benchmarks are the S&P 500 Index and the Russell 1000 Value Index. Prior to April 28, 2008, the Fund’s sole benchmark was the S&P 500 Index.

¹ Lipper, Inc., a wholly-owned subsidiary of Reuters, provides independent insight on global collective investments. Returns are based on the six-month period ended June 30, 2008, including the reinvestment of all distributions, including returns of capital, if any, calculated among the 576 funds in the Fund’s Lipper category, and excluding sales charges.

² Effective August 17, 2007, all outstanding Class I shares were converted to Class O shares and Class O shares were re-designated as Class I shares. The former Class I shares were terminated. The inception date, performance history and expense waivers/reimbursements of the former Class O shares have been maintained.

Legg Mason Partners Investors Value Fund III

Letter from the chairman continued

Information about your fund

As you may be aware, several issues in the mutual fund industry have come under the scrutiny of federal and state regulators. Affiliates of the Fund’s manager have, in recent years, received requests for information from various government regulators regarding market timing, late trading, fees, and other mutual fund issues in connection with various investigations. The regulators appear to be examining, among other things, the Fund’s response to market timing and shareholder exchange activity, including compliance with prospectus disclosure related to these subjects. The Fund is not in a position to predict the outcome of these requests and investigations.

Important information with regard to recent regulatory developments that may affect the Fund is contained in the “Notes to financial statements” included in this report.

As always, thank you for your confidence in our stewardship of your assets. We look forward to helping you meet your financial goals.

Sincerely,

R. Jay Gerken, CFA

Chairman, President and Chief Executive Officer

July 31, 2008

IV Legg Mason Partners Investors Value Fund

The information provided is not intended to be a forecast of future events, a guarantee of future results or investment advice. Views expressed may differ from those of the firm as a whole.

RISKS: Investments in common stocks are subject to market fluctuations. Foreign securities are subject to certain risks of overseas investing, including currency fluctuations and changes in political and economic conditions. These risks are magnified in emerging markets. The Fund may use derivatives, such as options and futures, which can be illiquid, may disproportionately increase losses, and have a potentially large impact on Fund performance. Please see the Fund’s prospectus for more information on these and other risks.

All index performance reflects no deduction for fees, expenses or taxes. Please note that an investor cannot invest directly in an index.

ⁱ Gross domestic product (“GDP”) is the market value of all final goods and services produced within a country in a given period of time.

ⁱⁱ Source: Bloomberg, 7/08.

ⁱⁱⁱ Source: The Conference Board, 7/08.

^iv 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.

^v The federal funds rate is the rate charged by one depository institution on an overnight sale of immediately available funds (balances at the Federal Reserve) to another depository institution; the rate may vary from depository institution to depository institution and from day to day.

^vi The S&P 500 Index is an unmanaged index of 500 stocks that is generally representative of the performance of larger companies in the U.S.

^vii The Russell Midcap Index measures the performance of the 800 smallest companies in the Russell 1000 Index, which represents approximately 25% of the total market capitalization of the Russell 1000 Index.

^viii The Russell 2000 Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 8% of the total market capitalization of the Russell 3000 Index. The Russell 3000 Index measures the performance of the 3,000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the U.S. equity market.

^ix The Russell 1000 Index measures the performance of the 1,000 largest companies in the Russell 3000 Index, which represents approximately 92% of the total market capitalization of the Russell 3000 Index.

^x The Russell 3000 Growth Index measures the performance of those Russell 3000 Index companies with higher price-to-book ratios and higher forecasted growth values. (A price-to-book ratio is the price of a stock compared to the difference between a company’s assets and liabilities.)

^xi The Russell 3000 Value Index measures the performance of those Russell 3000 Index companies with lower price-to-book ratios and lower forecasted growth values.

^xii The Russell 1000 Value Index measures the performance of those Russell 1000 Index companies with lower price-to-book ratios and lower forecasted growth values.

Legg Mason Partners Investors Value Fund V

Fund at a glance (unaudited)

INVESTMENT BREAKDOWN (%) As a percent of total investments — June 30, 2008

Legg Mason Partners Investors Value Fund 2008 Semi-Annual Report 1

Fund expenses (unaudited)

Example

As a shareholder of the Fund, you may incur two types of costs: (1) transaction costs, including front-end and back-end sales charges (loads) on purchase payments; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

This example is based on an investment of $1,000 invested on January 1, 2008 and held for the six months ended June 30, 2008.

Actual expenses

The table below titled “Based on Actual Total Return” provides information about actual account values and actual expenses. You may use the information provided in this table, together with the amount you invested, to estimate the expenses that you paid over the period. To estimate the expenses you paid on your account, divide your ending account value by $1,000 (for example, an $8,600 ending account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During the Period”.

BASED ON ACTUAL TOTAL RETURN1
	ACTUAL TOTAL RETURN WITHOUT SALES CHARGES2		BEGINNING ACCOUNT VALUE		ENDING ACCOUNT VALUE		ANNUALIZED EXPENSE RATIO		EXPENSES PAID DURING THE PERIOD3
Class A	(13.20	)%	$	1,000.00	$	868.00	0.87	%	$	4.04
Class B	(13.58	)		1,000.00		864.20	1.72			7.97
Class C	(13.52	)		1,000.00		864.80	1.60			7.42
Class I	(13.04	)		1,000.00		869.60	0.54			2.51

¹ For the six months ended June 30, 2008.

² Assumes reinvestment of all distributions, including returns of capital, if any, at net asset value and does not reflect the deduction of the applicable sale charge with respect to Class A shares or the applicable contingent deferred sales charges (“CDSC”) with respect to Class B and C shares. Total return is not annualized, as it may not be representative of the total return for the year. Performance figures may reflect fee waivers and/or expense reimbursements. Past performance is no guarantee of future results. In the absence of fee waivers and/or expense reimbursements, the total return would have been lower.

³ Expenses (net of fee waivers and/or expense reimbursements) are equal to each class’ respective annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, then divided by 366.

2 Legg Mason Partners Investors Value Fund 2008 Semi-Annual Report

Hypothetical example for comparison purposes

The table below titled “Based on Hypothetical Total Return” provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio and an assumed rate of return of 5.00% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use the information provided in this table to compare the ongoing costs of investing in the Fund and other funds. To do so, compare the 5.00% hypothetical example relating to the Fund with the 5.00% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table below are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front-end or back-end sales charges (loads). Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.

BASED ON HYPOTHETICAL TOTAL RETURN1
	HYPOTHETICAL ANNUALIZED TOTAL RETURN		BEGINNING ACCOUNT VALUE		ENDING ACCOUNT VALUE		ANNUALIZED EXPENSE RATIO		EXPENSES PAID DURING THE PERIOD2
Class A	5.00	%	$	1,000.00	$	1,020.54	0.87	%	$	4.37
Class B	5.00			1,000.00		1,016.31	1.72			8.62
Class C	5.00			1,000.00		1,016.91	1.60			8.02
Class I	5.00			1,000.00		1,022.18	0.54			2.72

¹ For the six months ended June 30, 2008.

² Expenses (net of fee waivers and/or expense reimbursements) are equal to each class’ respective annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, then divided by 366.

Legg Mason Partners Investors Value Fund 2008 Semi-Annual Report 3

Schedule of investments (unaudited)

June 30, 2008

LEGG MASON PARTNERS INVESTORS VALUE FUND
SHARES	SECURITY	VALUE
COMMON STOCKS — 93.0%
CONSUMER DISCRETIONARY — 17.1%
	Hotels, Restaurants & Leisure — 3.0%
514,400	McDonald’s Corp.	$	28,919,568
	Internet & Catalog Retail — 1.2%
818,782	Liberty Media Holding Corp., Interactive Group, Series A Shares*		12,085,223
	Media — 10.5%
547,600	DISH Network Corp.*		16,033,728
359,200	E.W. Scripps Co., Class A Shares		14,921,168
696,180	Liberty Media Corp. - Entertainment, Series A*		16,868,441
1,254,990	News Corp., Class B Shares		19,264,097
496,700	SES Global SA, FDR		12,592,663
1,573,000	Time Warner Inc.		23,280,400
	Total Media		102,960,497
	Multiline Retail — 1.2%
255,100	Target Corp.		11,859,599
	Specialty Retail — 1.2%
501,000	Home Depot Inc.		11,733,420
	TOTAL CONSUMER DISCRETIONARY		167,558,307
CONSUMER STAPLES — 10.1%
	Food & Staples Retailing — 2.4%
425,900	Wal-Mart Stores Inc.		23,935,580
	Food Products — 1.3%
454,267	Kraft Foods Inc., Class A Shares		12,923,896
	Household Products — 2.4%
394,500	Kimberly-Clark Corp.		23,583,210
	Tobacco — 4.0%
539,100	Altria Group Inc.		11,083,896
559,700	Philip Morris International Inc.		27,643,583
	Total Tobacco		38,727,479
	TOTAL CONSUMER STAPLES		99,170,165
ENERGY — 13.1%
	Energy Equipment & Services — 3.9%
251,600	Halliburton Co.		13,352,412
165,760	Transocean Inc.*		25,260,166
	Total Energy Equipment & Services		38,612,578
	Oil, Gas & Consumable Fuels — 9.2%
84,380	Devon Energy Corp.		10,139,101
210,800	Royal Dutch Shell PLC, ADR, Class A Shares		17,224,468
289,892	Suncor Energy Inc.		16,848,523

See Notes to Financial Statements.

4 Legg Mason Partners Investors Value Fund 2008 Semi-Annual Report

LEGG MASON PARTNERS INVESTORS VALUE FUND
SHARES	SECURITY	VALUE
	Oil, Gas & Consumable Fuels — 9.2% continued
543,500	Total SA, ADR	$	46,344,245
	Total Oil, Gas & Consumable Fuels		90,556,337
	TOTAL ENERGY		129,168,915
FINANCIALS — 18.7%
	Capital Markets — 1.9%
250,819	Bank of New York Mellon Corp.		9,488,483
275,830	Merrill Lynch & Co. Inc.		8,746,569
	Total Capital Markets		18,235,052
	Commercial Banks — 1.2%
505,100	Wells Fargo & Co.		11,996,125
	Consumer Finance — 3.4%
433,660	American Express Co.		16,335,972
450,200	Capital One Financial Corp.		17,112,102
	Total Consumer Finance		33,448,074
	Diversified Financial Services — 2.1%
602,860	JPMorgan Chase & Co.		20,684,127
	Insurance — 10.1%
214,200	AFLAC Inc.		13,451,760
250,000	American International Group Inc.		6,615,000
323,700	Chubb Corp.		15,864,537
714,500	Loews Corp.		33,510,050
584,619	Marsh & McLennan Cos. Inc.		15,521,634
340,600	Travelers Cos. Inc.		14,782,040
	Total Insurance		99,745,021
	TOTAL FINANCIALS		184,108,399
HEALTH CARE — 5.4%
	Health Care Providers & Services — 1.9%
277,600	UnitedHealth Group Inc.		7,287,000
233,200	WellPoint Inc.*		11,114,312
	Total Health Care Providers & Services		18,401,312
	Pharmaceuticals — 3.5%
300,300	Abbott Laboratories		15,906,891
348,700	Novartis AG, ADR		19,192,448
	Total Pharmaceuticals		35,099,339
	TOTAL HEALTH CARE		53,500,651
INDUSTRIALS — 9.0%
	Aerospace & Defense — 4.1%
155,700	Boeing Co.		10,232,604
288,600	Raytheon Co.		16,242,408

See Notes to Financial Statements.

Legg Mason Partners Investors Value Fund 2008 Semi-Annual Report 5

Schedule of investments (unaudited)continued

June 30, 2008

LEGG MASON PARTNERS INVESTORS VALUE FUND
SHARES	SECURITY	VALUE
	Aerospace & Defense — 4.1% continued
222,600	United Technologies Corp.	$	13,734,420
	Total Aerospace & Defense		40,209,432
	Commercial Services & Supplies — 1.1%
245,300	Avery Dennison Corp.		10,776,029
	Industrial Conglomerates — 3.8%
951,400	General Electric Co.		25,392,866
248,100	Textron Inc.		11,891,433
	Total Industrial Conglomerates		37,284,299
	TOTAL INDUSTRIALS		88,269,760
INFORMATION TECHNOLOGY — 6.3%
	Communications Equipment — 1.7%
673,600	Comverse Technology Inc.*		11,417,520
105,520	EchoStar Corp.*		3,294,334
243,209	Nortel Networks Corp.*		1,999,178
	Total Communications Equipment		16,711,032
	Computers & Peripherals — 1.6%
134,900	International Business Machines Corp.		15,989,697
	Semiconductors & Semiconductor Equipment — 1.6%
543,500	Texas Instruments Inc.		15,304,960
	Software — 1.4%
499,900	Microsoft Corp.		13,752,249
	TOTAL INFORMATION TECHNOLOGY		61,757,938
MATERIALS — 3.7%
	Chemicals — 3.7%
197,500	Air Products & Chemicals Inc.		19,524,850
388,900	E.I. du Pont de Nemours & Co.		16,679,921
	TOTAL MATERIALS		36,204,771
TELECOMMUNICATION SERVICES — 6.8%
	Diversified Telecommunication Services — 5.5%
974,510	AT&T Inc.		32,831,242
446,572	Embarq Corp.		21,109,458
	Total Diversified Telecommunication Services		53,940,700
	Wireless Telecommunication Services — 1.3%
1,364,753	Sprint Nextel Corp.*		12,965,153
	TOTAL TELECOMMUNICATION SERVICES		66,905,853

See Notes to Financial Statements.

6 Legg Mason Partners Investors Value Fund 2008 Semi-Annual Report

LEGG MASON PARTNERS INVESTORS VALUE FUND
SHARES		SECURITY	VALUE
	UTILITIES — 2.8%
		Multi-Utilities — 2.8%
	486,800	Sempra Energy	$	27,479,861
		TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENT (Cost — $793,962,454)		914,124,620
FACE AMOUNT
	SHORT-TERM INVESTMENT — 5.4%
		Repurchase Agreement — 5.4%
$	52,884,000	Interest in $1,000,000,000 joint tri-party repurchase agreement dated 6/30/08 with Greenwich Capital Markets Inc., 2.500% due 7/1/08; Proceeds at maturity $52,887,673; (Fully collateralized by various U.S. government agency obligations, 2.465% to 7.250% due 10/15/08 to 1/15/30; Market value — $53,941,745) (Cost — $52,884,000)		52,884,000
		TOTAL INVESTMENTS — 98.4% (Cost — $846,846,454#)		967,008,620
		Other Assets in Excess of Liabilities — 1.6%		15,740,811
		TOTAL NET ASSETS — 100.0%	$	982,749,431

* Non-income producing security.

# Aggregate cost for federal income tax purposes is substantially the same.

Abbreviations used in this schedule:
ADR	—American Depositary Receipt
FDR	—Foreign Depositary Receipt

See Notes to Financial Statements.

Legg Mason Partners Investors Value Fund 2008 Semi-Annual Report 7

Statement of assets and liabilities (unaudited)

June 30, 2008

ASSETS:
Investments, at value (Cost — $846,846,454)	$	967,008,620
Foreign currency, at value (Cost — $30)		31
Cash		710
Receivable for securities sold		18,314,590
Dividends and interest receivable		1,703,908
Receivable for Fund shares sold		438,923
Prepaid expenses		50,371
Total Assets		987,517,153
LIABILITIES:
Payable for Fund shares repurchased		1,872,229
Investment management fee payable		1,404,717
Distributions payable		978,881
Distribution fees payable		169,582
Trustees’ fees payable		55,777
Accrued expenses		286,536
Total Liabilities		4,767,722
TOTAL NET ASSETS	$	982,749,431
NET ASSETS:
Par value (Note 7)	$	549
Paid-in capital in excess of par value		868,985,430
Undistributed net investment income		13,470
Accumulated net realized loss on investments and foreign currency transactions		(6,417,007	)
Net unrealized appreciation on investments and foreign currencies		120,166,989
TOTAL NET ASSETS	$	982,749,431
Shares Outstanding:
Class A		23,682,201
Class B		1,268,168
Class C		3,703,701
Class I		26,247,326
Net Asset Value:
Class A (and redemption price)		$17.96
Class B1		$17.48
Class C1		$17.56
Class I (offering price and redemption price)		$17.92
Maximum Public Offering Price Per Share:
Class A (based on maximum initial sales charge of 5.75%)		$19.06

¹ Redemption price is NAV of Class B and C shares reduced by a 5.00% and 1.00% CDSC, respectively, if shares are redeemed within one year from purchase payment (See Note 3).

See Notes to Financial Statements.

8 Legg Mason Partners Investors Value Fund 2008 Semi-Annual Report

Statement of operations (unaudited)

For the Six Months Ended June 30, 2008

INVESTMENT INCOME:
Dividends	$	13,356,472
Interest		629,599
Less: Foreign taxes withheld		(353,877	)
Total Investment Income		13,632,194
EXPENSES:
Investment management fee (Note 3)		2,874,786
Distribution fees (Notes 3 and 5)		1,159,601
Transfer agent fees (Note 5)		330,251
Shareholder reports (Note 5)		58,896
Registration fees		41,190
Trustees’ fees		33,410
Audit and tax		18,633
Legal fees		12,880
Insurance		10,261
Custody fees		5,215
Miscellaneous expenses		26,322
Total Expenses		4,571,445
Less: Fee waivers and/or expense reimbursements (Note 3)		(98,722	)
Net Expenses		4,472,723
NET INVESTMENT INCOME		9,159,471
REALIZED AND UNREALIZED LOSS ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS (NOTES 1 AND 4):
Net Realized Loss From:
Investment transactions		(4,344,064	)
Foreign currency transactions		(5,381	)
Net Realized Loss		(4,349,445	)
Change in Net Unrealized Appreciation/Depreciation From:
Investments		(164,978,804	)
Foreign currencies		(84	)
Change in Net Unrealized Appreciation/Depreciation		(164,978,888	)
Net Loss on Investments and Foreign Currency Transactions		(169,328,333	)
DECREASE IN NET ASSETS FROM OPERATIONS	$	(160,168,862	)

See Notes to Financial Statements.

Legg Mason Partners Investors Value Fund 2008 Semi-Annual Report 9

Statements of changes in net assets

FOR THE SIX MONTHS ENDED JUNE 30, 2008 (unaudited) AND THE YEAR ENDED DECEMBER 31, 2007	2008			2007
OPERATIONS:
Net investment income	$	9,159,471		$	21,390,480
Net realized gain (loss)		(4,349,445	)		295,745,431
Change in net unrealized appreciation/depreciation		(164,978,888	)		(215,733,135	)
Increase (Decrease) in Net Assets From Operations		(160,168,862	)		101,402,776
DISTRIBUTIONS TO SHAREHOLDERS FROM (NOTES 1 AND 6):
Net investment income		(9,267,266	)		(22,093,182	)
Net realized gains		(22,927,598	)		(57,651,155	)
Decrease in Net Assets From Distributions to Shareholders		(32,194,864	)		(79,744,337	)
FUND SHARE TRANSACTIONS (NOTE 7):
Net proceeds from sale of shares		22,314,042			136,568,711
Reinvestment of distributions		26,869,366			62,500,910
Cost of shares repurchased		(153,156,680	)		(879,291,553	)
Net assets of shares issued in connection with merger (Note 8)		—			469,842,201
Decrease in Net Assets From Fund Share Transactions		(103,973,272	)		(210,379,731	)
DECREASE IN NET ASSETS		(296,336,998	)		(188,721,292	)
NET ASSETS:
Beginning of period		1,279,086,429			1,467,807,721
End of period*	$	982,749,431		$	1,279,086,429
* Includes undistributed net investment income of:		$13,470			$121,265

See Notes to Financial Statements.

10 Legg Mason Partners Investors Value Fund 2008 Semi-Annual Report

Financial highlights

FOR A SHARE OF EACH CLASS OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH YEAR ENDED DECEMBER 31, UNLESS OTHERWISE NOTED:
CLASS A SHARES1	20082			2007			20063			20053			20043			20033
NET ASSET VALUE, BEGINNING OF PERIOD	$	21.34		$	21.81		$	20.43		$	20.55		$	19.07		$	14.69
INCOME (LOSS) FROM OPERATIONS:
Net investment income		0.15			0.28			0.26			0.23			0.29			0.22
Net realized and unrealized gain (loss)		(2.94	)		0.49			3.29			1.01			1.70			4.38
Total income (loss) from operations		(2.79	)		0.77			3.55			1.24			1.99			4.60
LESS DISTRIBUTIONS FROM:
Net investment income		(0.16	)		(0.28	)		(0.26	)		(0.23	)		(0.28	)		(0.22	)
Net realized gains		(0.43	)		(0.96	)		(1.91	)		(1.13	)		(0.23	)		—
Total distributions		(0.59	)		(1.24	)		(2.17	)		(1.36	)		(0.51	)		(0.22	)
NET ASSET VALUE, END OF PERIOD	$	17.96		$	21.34		$	21.81		$	20.43		$	20.55		$	19.07
Total return4		(13.20	)%		3.50	%		17.63	%		6.15	%		10.50	%		31.59	%
NET ASSETS, END OF PERIOD (000s)		$425,223			$583,441			$304,173			$314,069			$308,990			$270,317
RATIOS TO AVERAGE NET ASSETS:
Gross expenses		0.87	%5		0.86	%		0.91	%6		0.93	%		0.88	%		0.96	%
Net expenses		0.87	5		0.85	7		0.90	6,7		0.93			0.88			0.96
Net investment income		1.53	5		1.23			1.21			1.13			1.46			1.32
PORTFOLIO TURNOVER RATE		7	%		14	%		25	%		53	%		36	%		34	%

¹ Per share amounts have been calculated using the average shares method.

² For the six months ended June 30, 2008 (unaudited).

³ For a share of capital stock outstanding prior to April 16, 2007.

⁴ Performance figures may reflect fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements, the total return would have been lower. Past performance is no guarantee of future results. Total returns for periods of less than one year are not annualized.

⁵ Annualized.

⁶ Included in the expense ratios are certain non-recurring restructuring (and reorganization, if applicable) fees that were incurred by the Fund during the period. Without these fees, the gross and net expense ratios would both have been 0.88%.

⁷ Reflects fee waivers and/or expense reimbursements.

See Notes to Financial Statements.

Legg Mason Partners Investors Value Fund 2008 Semi-Annual Report 11

Financial highlights continued

FOR A SHARE OF EACH CLASS OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH YEAR ENDED DECEMBER 31, UNLESS OTHERWISE NOTED:
CLASS B SHARES1	20082			2007			20063			20053			20043			20033
NET ASSET VALUE, BEGINNING OF PERIOD	$	20.79		$	21.28		$	19.98		$	20.13		$	18.70		$	14.40
INCOME (LOSS) FROM OPERATIONS:
Net investment income		0.06			0.10			0.05			0.03			0.10			0.07
Net realized and unrealized gain (loss)		(2.86	)		0.47			3.21			1.00			1.67			4.31
Total income (loss) from operations		(2.80	)		0.57			3.26			1.03			1.77			4.38
LESS DISTRIBUTIONS FROM:
Net investment income		(0.08	)		(0.10	)		(0.05	)		(0.05	)		(0.11	)		(0.08	)
Net realized gains		(0.43	)		(0.96	)		(1.91	)		(1.13	)		(0.23	)		—
Total distributions		(0.51	)		(1.06	)		(1.96	)		(1.18	)		(0.34	)		(0.08	)
NET ASSET VALUE, END OF PERIOD	$	17.48		$	20.79		$	21.28		$	19.98		$	20.13		$	18.70
Total return4		(13.58	)%		2.67	%		16.49	%		5.16	%		9.46	%		30.52	%
NET ASSETS, END OF PERIOD (000s)		$22,171			$36,423			$31,290			$36,803			$43,386			$49,915
RATIOS TO AVERAGE NET ASSETS:
Gross expenses		1.73	%5		1.62	%		1.84	%6		1.89	%		1.78	%		1.83	%
Net expenses		1.72	5,7,8		1.62	7,8		1.84	6,7		1.89			1.78			1.83
Net investment income		0.65	5		0.44			0.26			0.16			0.51			0.45
PORTFOLIO TURNOVER RATE		7	%		14	%		25	%		53	%		36	%		34	%

¹ Per share amounts have been calculated using the average shares method.

² For the six months ended June 30, 2008 (unaudited).

³ Represents a share of capital stock outstanding prior to April 16, 2007.

⁴ Performance figures may reflect fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements, the total return would have been lower. Past performance is no guarantee of future results. Total returns for periods of less than one year are not annualized.

⁵ Annualized.

⁶ Included in the expense ratios are certain non-recurring restructuring (and reorganization, if applicable) fees that were incurred by the Fund during the period. Without these fees, the gross and net expense ratios would both have been 1.82%.

⁷ Reflects fee waivers and/or expense reimbursements.

⁸ As a result of a contractual expense limitation, effective March 5, 2007 until May 1, 2008, the ratio of expenses, other than brokerage, taxes and extraordinary expenses, to average net assets of Class B shares would not exceed 1.76%.

See Notes to Financial Statements.

12 Legg Mason Partners Investors Value Fund 2008 Semi-Annual Report

FOR A SHARE OF EACH CLASS OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH YEAR ENDED DECEMBER 31, UNLESS OTHERWISE NOTED:
CLASS C SHARES1	20082			2007			20063			20053			20043			20033
NET ASSET VALUE, BEGINNING OF PERIOD	$	20.88		$	21.37		$	20.05		$	20.20		$	18.76		$	14.45
INCOME (LOSS) FROM OPERATIONS:
Net investment income		0.08			0.11			0.07			0.05			0.11			0.08
Net realized and unrealized gain (loss)		(2.88	)		0.48			3.24			0.99			1.68			4.32
Total income (loss) from operations		(2.80	)		0.59			3.31			1.04			1.79			4.40
LESS DISTRIBUTIONS FROM:
Net investment income		(0.09	)		(0.12	)		(0.08	)		(0.06	)		(0.12	)		(0.09	)
Net realized gains		(0.43	)		(0.96	)		(1.91	)		(1.13	)		(0.23	)		—
Total distributions		(0.52	)		(1.08	)		(1.99	)		(1.19	)		(0.35	)		(0.09	)
NET ASSET VALUE, END OF PERIOD	$	17.56		$	20.88		$	21.37		$	20.05		$	20.20		$	18.76
Total return4		(13.52	)%		2.71	%		16.64	%		5.20	%		9.53	%		30.54	%
NET ASSETS, END OF PERIOD (000s)		$65,035			$87,905			$45,553			$52,771			$67,647			$68,296
RATIOS TO AVERAGE NET ASSETS:
Gross expenses		1.60	%5		1.57	%		1.76	%6		1.81	%		1.75	%		1.79	%
Net expenses		1.60	5,7,8		1.57	7,8		1.76	6,7		1.81			1.75			1.79
Net investment income		0.80	5		0.52			0.34			0.24			0.56			0.49
PORTFOLIO TURNOVER RATE		7	%		14	%		25	%		53	%		36	%		34	%

¹ Per share amounts have been calculated using the average shares method.

² For the six months ended June 30, 2008 (unaudited).

³ Represents a share of capital stock outstanding prior to April 16, 2007.

⁴ Performance figures may reflect fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements, the total return would have been lower. Past performance is no guarantee of future results. Total returns for periods of less than one year are not annualized.

⁵ Annualized.

⁶ Included in the expense ratios are certain non-recurring restructuring (and reorganization, if applicable) fees that were incurred by the Fund during the period. Without these fees, the gross and net expense ratios would both have been 1.74%.

⁷ Reflects fee waivers and/or expense reimbursements.

⁸ As a result of a contractual expense limitation, effective March 5, 2007 until May 1, 2008, the ratio of expenses, other than brokerage, taxes and extraordinary expenses, to average net assets of Class C shares would not exceed 1.64%.

See Notes to Financial Statements.

Legg Mason Partners Investors Value Fund 2008 Semi-Annual Report 13

Financial highlights continued

FOR A SHARE OF EACH CLASS OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH YEAR ENDED DECEMBER 31, UNLESS OTHERWISE NOTED:
CLASS I SHARES1	20082		20073		20064		20054		20044		20034
NET ASSET VALUE, BEGINNING OF PERIOD	$21.29		$21.77		$20.40		$20.52		$19.04		$14.66
INCOME (LOSS) FROM OPERATIONS:
Net investment income	0.18		0.34		0.32		0.30		0.34		0.26
Net realized and unrealized gain (loss)	(2.93	)	0.48		3.29		1.01		1.71		4.39
Total income (loss) from operations	(2.75	)	0.82		3.61		1.31		2.05		4.65
LESS DISTRIBUTIONS FROM:
Net investment income	(0.19	)	(0.34	)	(0.33	)	(0.30	)	(0.34	)	(0.27	)
Net realized gains	(0.43	)	(0.96	)	(1.91	)	(1.13	)	(0.23	)	—
Total distributions	(0.62	)	(1.30	)	(2.24	)	(1.43	)	(0.57	)	(0.27	)
NET ASSET VALUE, END OF PERIOD	$17.92		$21.29		$21.77		$20.40		$20.52		$19.04
Total return5	(13.04	)%	3.75	%	17.98	%	6.51	%	10.83	%	32.01	%
NET ASSETS, END OF PERIOD (000s)	$470,320		$571,317		$577,618		$540,992		$789,928		$757,230
RATIOS TO AVERAGE NET ASSETS:
Gross expenses	0.57	%6	0.57	%	0.62	%7	0.58	%	0.60	%	0.67	%
Net expenses	0.54	6,8,9	0.54	8,9	0.62	7,8	0.58		0.60		0.67
Net investment income	1.88	6	1.52		1.49		1.47		1.72		1.60
PORTFOLIO TURNOVER RATE	7	%	14	%	25	%	53	%	36	%	34	%

¹ Per share amounts have been calculated using the average shares method.

² For the six months ended June 30, 2008 (unaudited).

³ As of August 17, 2007, all Class I shares converted to Class O shares and Class O shares were redesignated as Class I shares.

⁴ Represents a share of capital stock outstanding prior to April 16, 2007.

⁵ Performance figures may reflect fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements, the total return would have been lower. Past performance is no guarantee of future results. Total returns for periods of less than one year are not annualized.

⁶ Annualized.

⁷ Included in the expense ratios are certain non-recurring restructuring (and reorganization, if applicable) fees that were incurred by the Fund during the period. Without these fees, the gross and net expense ratios would both have been 0.60%.

⁸ Reflects fee waivers and/or expense reimbursements.

⁹ As a result of a contractual expense limitation, effective March 5, 2007 until May 1, 2008, the ratio of expenses, other than brokerage, taxes and extraordinary expenses, to average net assets of Class I shares would not exceed 0.56%.

See Notes to Financial Statements.

14 Legg Mason Partners Investors Value Fund 2008 Semi-Annual Report

Notes to financial statements (unaudited)

1. Organization and significant accounting policies

Legg Mason Partners Investors Value Fund (the “Fund”) is a separate investment series of Legg Mason Partners Equity Trust (the “Trust”). The Trust, a Maryland business trust, is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company.

The following are significant accounting policies consistently followed by the Fund and are in conformity with U.S. generally accepted accounting principles (“GAAP”). Estimates and assumptions are required to be made regarding assets, liabilities and changes in net assets resulting from operations when financial statements are prepared. Changes in the economic environment, financial markets and any other parameters used in determining these estimates could cause actual results to differ.

(a) Repurchase agreements. When entering into repurchase agreements, it is the Fund’s policy that its custodian or a third party custodian take possession of the underlying collateral securities, the market value of which, at all times, at least equals the principal amount of the repurchase transaction, including accrued interest. To the extent that any repurchase transaction exceeds one business day, the value of the collateral is marked-to-market to ensure the adequacy of the collateral. If the seller defaults, and the market value of the collateral declines or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of the collateral by the Fund may be delayed or limited.

(b) Security transactions and investment income. Security transactions are accounted for on a trade date basis. Interest income, adjusted for amortization of premium and accretion of discount, is recorded on the accrual basis. Dividend income is recorded on the ex-dividend date. Foreign dividend income is recorded on the ex-dividend date or as soon as practical after the Fund determines the existence of a dividend declaration after exercising reasonable due diligence. The cost of investments sold is determined by use of the specific identification method. To the extent any issuer defaults on an expected interest payment, the Fund’s policy is to generally halt any additional interest income accruals and consider the realizability of interest accrued up to the date of default.

(c) Foreign currency translation. Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts based upon prevailing exchange rates at the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts based upon prevailing exchange rates on the respective dates of such transactions.

The Fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations

Legg Mason Partners Investors Value Fund 2008 Semi-Annual Report 15

Notes to financial statements (unaudited)continued

arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from sales of foreign currencies, including gains and losses on forward foreign currency contracts, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities, at the date of valuation, resulting from changes in exchange rates.

Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of U.S. dollar denominated transactions as a result of, among other factors, the possibility of lower levels of governmental supervision and regulation of foreign securities markets and the possibility of political or economic instability.

(d) Distributions to shareholders. Distributions from net investment income for the Fund, if any, are declared and paid on a quarterly basis. Distributions of net realized gains, if any, are declared at least annually. Distributions are recorded on the ex-dividend date and are determined in accordance with income tax regulations, which may differ from GAAP.

(e) Class accounting. Investment income, common expenses and realized/unrealized gain (loss) on investments are allocated to the various classes of the Fund on the basis of daily net assets of each class. Fees relating to a specific class are charged directly to that class.

(f) Federal and other taxes. It is the Fund’s policy to comply with the federal income and excise tax requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies. Accordingly, the Fund intends to distribute substantially all of its taxable income and net realized gains, if any, to shareholders each year. Therefore, no federal income tax provision is required in the Fund’s financial statements.

Management has analyzed the Fund’s tax positions taken on federal income tax returns for all open tax years and has concluded that as of June 30, 2008, no provision for income tax would be required in the Fund’s financial statements. The Fund’s federal and state income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue.

Under the applicable foreign tax laws, a withholding tax may be imposed on interest, dividends and capital gains at various rates.

16 Legg Mason Partners Investors Value Fund 2008 Semi-Annual Report

(g) Reclassification. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share.

2. Investment valuation

Effective January 1, 2008, the Fund adopted Statement of Financial Accounting Standards No. 157 (“FAS 157”). FAS 157 establishes a single definition of fair value, creates a three-tier hierarchy as a framework for measuring fair value based on inputs used to value the Fund’s investments, and requires additional disclosure about fair value. The hierarchy of inputs is summarized below.

• Level 1 — quoted prices in active markets for identical investments

• Level 2 — other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

• Level 3 — significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

Equity securities for which market quotations are available are valued at the last reported sales price or official closing price on the primary market or exchange on which they trade. Debt securities are valued at the mean between the last quoted bid and asked prices provided by an independent pricing service that are based on transactions in debt obligations, quotations from bond dealers, market transactions in comparable securities and various other relationships between securities. When prices are not readily available, or are determined not to reflect fair value, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded, but before the Fund calculates its net asset value, the Fund may value these securities at fair value as determined in accordance with the procedures approved by the Fund’s Board of Trustees. Short-term obligations with maturities of 60 days or less are valued at amortized cost, which approximates fair value.

The following is a summary of the inputs used in valuing the Fund’s assets carried at fair value:

	JUNE 30, 2008		QUOTED PRICES (LEVEL 1)		OTHER SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)
Investments in Securities	$	967,008,620	$	914,124,620	$	52,884,000	—

Legg Mason Partners Investors Value Fund 2008 Semi-Annual Report 17

Notes to financial statements (unaudited)continued

3. Investment management agreement and other transactions with affiliates

Legg Mason Partners Fund Advisor, LLC (“LMPFA”) is the Fund’s investment manager and ClearBridge Advisors, LLC (“ClearBridge”) is the Fund’s subadviser. LMPFA and ClearBridge are wholly-owned subsidiaries of Legg Mason, Inc. (“Legg Mason”).

Under the investment management agreement, the Fund pays a base investment management fee subject to an increase or decrease depending on the extent, if any, to which the investment performance of the Fund exceeds or is exceeded by the investment record of the S&P 500 Index. The base fee is paid quarterly based on the following breakpoint schedule:

AVERAGE DAILY NET ASSETS	ANNUAL RATE
First $350 million	0.650	%
Next $150 million	0.550
Next $250 million	0.525
Next $250 million	0.500
Over $1 billion	0.450

At the end of each calendar quarter, for each percentage point of difference between the investment performance of the class of shares of the Fund which has the lowest performance for the period and the S&P 500 Index over the last prior 12-month period, this base fee is adjusted upward or downward by the product of (i) 1/4 of 0.01% multiplied by (ii) the average daily net assets of the Fund for the 12 month period. If the amount by which the Fund outperforms or underperforms the S&P 500 Index is not a whole percentage point, a pro rata adjustment will be made. However, there will be no performance adjustment unless the investment performance of the Fund exceeds or is exceeded by the investment record of the S&P 500 Index by at least one percentage point. The maximum quarterly adjustment is 0.025%, which would occur if the Fund’s performance exceeds or is exceeded by S&P 500 Index by ten or more percentage points. For the rolling one year periods ended March 31, 2008, and June 30, 2008, the Fund’s performance varied from that of the S&P 500 Index performance by (3.77)% and (3.41)%, respectively. As a result, base management fees were reduced, in aggregate, by $252,432.

LMPFA provides administrative and certain oversight services to the Fund. LMPFA delegates to the subadviser the day-to-day portfolio management of the Fund, except for the management of cash and short-term instruments. For its services, LMPFA pays ClearBridge 70% of the net management fee it receives from the Fund.

Effective March 5, 2007 until May 1, 2008, LMPFA had contractually agreed to waive fees and/or reimburse expenses (other than brokerage, taxes and extraordinary expenses) to limit total annual operating expenses to 1.76% for Class B, 1.64% for Class C, and 0.56% for Class I shares.

18 Legg Mason Partners Investors Value Fund 2008 Semi-Annual Report

During the period ended June 30, 2008, the Fund was reimbursed for expenses amounting to $98,722.

Legg Mason Investor Services, LLC, a wholly-owned broker-dealer subsidiary of Legg Mason, serves as the Fund’s sole and exclusive distributor.

There is a maximum initial sales charge of 5.75% for Class A shares. There is a contingent deferred sales charge (“CDSC”) of 5.00% on Class B shares, which applies if redemption occurs within one year from purchase payment. This CDSC declines by 1.00% per year until no CDSC is incurred. Class C shares also have a 1.00% CDSC, which applies if redemption occurs within one year from purchase payment. In certain cases, Class A shares have a 1.00% CDSC, which applies if redemption occurs within one year from purchase payment. This CDSC only applies to those purchases of Class A shares, which, when combined with current holdings of Class A shares, equal or exceed $1,000,000 in the aggregate. These purchases do not incur an initial sales charge. Class I shares have no initial sales charge or CDSC.

For the six months ended June 30, 2008, LMIS and its affiliates received sales charges of approximately $3,000 on sales of the Fund’s Class A shares. In addition, for the six months ended June 30, 2008, CDSCs paid to LMIS and its affiliates were approximately:

	CLASS A		CLASS B		CLASS C
CDSCs	$	100	$	23,000	$	600

As of the close of business, March 2, 2007, the Fund assumed a liability for deferred compensation in the amount of $28,896 due to the merger with Legg Mason Partners Large Cap Value Fund. As of June 30, 2008, the amount is $21,726.

Certain officers and Trustees of the Trust are employees of Legg Mason or its affiliates and do not receive compensation from the Trust.

4. Investments

During the six months ended June 30, 2008, the aggregate cost of purchases and proceeds from sales of investments (excluding short-term investments) were as follows:

Purchases	$	71,318,075
Sales		217,013,075

At June 30, 2008, the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:

Gross unrealized appreciation	$	211,303,446
Gross unrealized depreciation		(91,141,280	)
Net unrealized appreciation	$	120,162,166

Legg Mason Partners Investors Value Fund 2008 Semi-Annual Report 19

Notes to financial statements (unaudited)continued

5. Class specific expenses

The Fund has adopted a Rule 12b-1 distribution plan and under that plan the Fund pays a service fee with respect to its Class A, B and C shares calculated at the annual rate of 0.25% of the average daily net assets of each respective class. The Fund also pays a service fee with respect to its Class B and C shares calculated at the annual rate of 0.75% of the average daily net assets of each respective class. Distribution fees are accrued daily and paid monthly.

For the six months ended June 30, 2008, class specific expenses were as follows:

	DISTRIBUTION FEES		TRANSFER AGENT FEES		SHAREHOLDER REPORTS EXPENSES
Class A	$	642,860	$	197,535	$	33,285
Class B		140,909		19,111		8,240
Class C		375,832		17,210		9,505
Class I		—		96,395		7,866
Total	$	1,159,601	$	330,251	$	58,896

6. Distributions to shareholders by class

	SIX MONTHS ENDED JUNE 30, 2008		YEAR ENDED DECEMBER 31, 2007
Net Investment Income:
Class A	$	3,892,381	$	8,145,363
Class B		110,567		214,699
Class C		347,760		524,199
Class I (formerly Class O)1		4,916,558		8,988,208
Class I1		—		4,220,713
Total	$	9,267,266	$	22,093,182
Net Realized Gains:
Class A	$	9,904,633	$	24,225,226
Class B		532,930		1,595,909
Class C		1,559,061		3,674,652
Class I (formerly Class O)1		10,930,974		24,999,932
Class I1		—		3,155,436
Total	$	22,927,598	$	57,651,155

¹ Class I shares were converted into Class O shares and redesignated as Class I shares on August 17, 2007.

7. Shares of beneficial interest

At June 30, 2008, the Trust had an unlimited number of shares of beneficial interest authorized with a par value of $0.00001 per share. The Fund has the ability to issue multiple classes of shares. Each share of a class represents an identical interest and has the same rights, except that each class bears certain direct expenses, including those specifically related to the distribution of its shares. Prior to April 16, 2007, the Fund had 1 billion shares of capital stock authorized with a par value of $0.001 per share.

20 Legg Mason Partners Investors Value Fund 2008 Semi-Annual Report

Transactions in shares of each class were as follows:

	SIX MONTHS ENDED JUNE 30, 2008					YEAR ENDED DECEMBER 31, 2007
	SHARES		AMOUNT			SHARES		AMOUNT
Class A
Shares sold	957,572		$	19,049,643		2,443,379		$	54,592,152
Shares issued on reinvestment	651,674			12,208,702		1,321,337			28,782,867
Shares repurchased	(5,273,634	)		(103,562,262	)	(7,924,710	)		(178,264,216	)
Shares issued with merger	—			—		17,559,782			376,626,099
Net increase (decrease)	(3,664,388	)	$	(72,303,917	)	13,399,788		$	281,736,902
Class B
Shares sold	16,712		$	319,744		72,674		$	1,582,987
Shares issued on reinvestment	31,112			567,684		74,297			1,568,738
Shares repurchased	(531,458	)		(10,321,643	)	(1,036,931	)		(22,799,877	)
Shares issued with merger	—			—		1,171,665			24,488,276
Net increase (decrease)	(483,634	)	$	(9,434,215	)	281,705		$	4,840,124
Class C
Shares sold	29,068		$	561,963		70,282		$	1,537,228
Shares issued on reinvestment	92,460			1,694,577		176,843			3,750,014
Shares repurchased	(627,885	)		(12,096,755	)	(1,443,635	)		(31,761,465	)
Shares issued with merger	—			—		3,274,931			68,727,826
Net increase (decrease)	(506,357	)	$	(9,840,215	)	2,078,421		$	42,253,603
Class I (formerly Class O)1
Shares sold	121,180		$	2,382,692		966,391		$	21,142,032
Shares issued on reinvestment	663,136			12,398,403		1,200,404			26,094,209
Shares repurchased	(1,369,629	)		(27,176,020	)	(1,871,740	)		(41,989,462	)
Net increase (decrease)	(585,313	)	$	(12,394,925	)	295,055		$	5,246,779
Class I1
Shares sold	—			—		2,576,142		$	57,714,312
Shares issued on reinvestment	—			—		100,439			2,305,082
Shares repurchased	—			—		(26,060,975	)		(604,476,533	)
Net decrease	—			—		(23,384,394	)	$	(544,457,139	)

¹ Class I shares were converted into Class O shares and redesignated as Class I shares on August 17, 2007.

Legg Mason Partners Investors Value Fund 2008 Semi-Annual Report 21

Notes to financial statements (unaudited)continued

8. Transfer of net assets

On March 2, 2007, the Fund acquired the assets and certain liabilities of the Legg Mason Partners Large Cap Value Fund (the “Acquired Fund”), pursuant to a plan of reorganization approved by the Acquired Fund shareholders. Total shares issued by the Fund and the total net assets of the Acquired Fund and the Fund on the date of the transfer were as follows:

ACQUIRED FUND	SHARES ISSUED BY THE FUND	TOTAL NET ASSETS OF THE ACQUIRED FUND
Legg Mason Partners Large Cap Value Fund	22,006,378	$	469,842,201

The total net assets of the Fund on the date of the transfer were $1,451,580,490.

As part of the reorganization, for each share they held, shareholders of Legg Mason Partners Large Cap Value Fund Class A, Class B, Class C and Class I received 0.819635, 0.837706, 0.834232 and 0.820542 shares of the Fund’s Class A, Class B, Class C and Class I shares, respectively.

The total net assets of the Acquired Fund before acquisition included unrealized appreciation of $116,754,005, accumulated net realized loss of $879,408 and accumulated net investment loss of $42,370. Total net assets of the Fund immediately after the transfer were $1,921,422,691. The transaction was structured to qualify as a tax-free reorganization under the Internal Revenue Code of 1986, as amended.

9. Regulatory matters

On May 31, 2005, the U.S. Securities and Exchange Commission (the “SEC”) issued an order in connection with the settlement of an administrative proceeding against Smith Barney Fund Management LLC (“SBFM”), a wholly-owned subsidiary of Legg Mason and Citigroup Global Markets Inc. (“CGM”), a former distributor of the Fund, relating to the appointment of an affiliated transfer agent for the Smith Barney family of mutual funds (the “Affected Funds”).

The SEC order found that SBFM and CGM willfully violated Section 206(1) of the Investment Advisers Act of 1940, as amended, and the rules promulgated thereunder (the “Advisers Act”). Specifically, the order found that SBFM and CGM knowingly or recklessly failed to disclose to the boards of the Affected Funds in 1999 when proposing a new transfer agent arrangement with an affiliated transfer agent that: First Data Investors Services Group (“First Data”), the Affected Funds’ then-existing transfer agent, had offered to continue as transfer agent and do the same work for substantially less money than before; and that Citigroup Asset Management (“CAM”), the Citigroup business unit that, at the time, included the Affected Funds’ investment manager and other investment advisory companies, had entered into a side letter with First Data under which CAM agreed to recommend the appointment of First Data as subtransfer agent to the affiliated transfer agent in exchange for, among other

22 Legg Mason Partners Investors Value Fund 2008 Semi-Annual Report

things, a guarantee by First Data of specified amounts of asset management and investment banking fees to CAM and CGM. The order also found that SBFM and CGM willfully violated Section 206(2) of the Advisers Act by virtue of the omissions discussed above and other misrepresentations and omissions in the materials provided to the Affected Funds’ boards, including the failure to make clear that the affiliated transfer agent would earn a high profit for performing limited functions while First Data continued to perform almost all of the transfer agent functions, and the suggestion that the proposed arrangement was in the Affected Funds’ best interests and that no viable alternatives existed.

SBFM and CGM do not admit or deny any wrongdoing or liability. The settlement does not establish wrongdoing or liability for purposes of any other proceeding. The SEC censured SBFM and CGM and ordered them to cease and desist from violations of Sections 206(1) and 206(2) of the Advisers Act. The order required Citigroup to pay $208.1 million, including $109 million in disgorgement of profits, $19.1 million in interest, and a civil money penalty of $80 million. Approximately $24.4 million has already been paid to the Affected Funds, primarily through fee waivers. The remaining $183.7 million, including the penalty, has been paid to the U.S. Treasury and will be distributed pursuant to a plan submitted for the approval of the SEC. At this time, there is no certainty as to how the above described proceeds of the settlement will be distributed, to whom such distributions will be made, the methodology by which such distributions will be allocated, and when such distributions will be made. The order also required that transfer agency fees received from the Affected Funds since December 1, 2004, less certain expenses, be placed in escrow and provided that a portion of such fees might be subsequently distributed in accordance with the terms of the order. On April 3, 2006, an aggregate amount of approximately $9 million held in escrow was distributed to the Affected Funds.

The order required SBFM to recommend a new transfer agent contract to the Affected Funds’ Fund boards within 180 days of the entry of the order; if a Citigroup affiliate submitted a proposal to serve as transfer agent or subtransfer agent, SBFM and CGM would have been required, at their expense, to engage an independent monitor to oversee a competitive bidding process. On November 21, 2005, and within the specified timeframe, the Affected Funds’ Boards selected a new transfer agent for the Affected Funds. No Citigroup affiliate submitted a proposal to serve as transfer agent. Under the order, SBFM also must comply with an amended version of a vendor policy that Citigroup instituted in August 2004.

Although there can be no assurance, the manager does not believe that this matter will have a material adverse effect on the Affected Funds.

On December 1, 2005, Citigroup completed the sale of substantially all of its global asset management business, including SBFM, to Legg Mason.

Legg Mason Partners Investors Value Fund 2008 Semi-Annual Report 23

Notes to financial statements (unaudited)continued

10. Legal matters

Beginning in June 2004, class action lawsuits alleging violations of the federal securities laws were filed against CGM, a former distributor of the Fund, and other affiliated funds (collectively, the “Funds”) and a number of its then affiliates, including SBFM and Salomon Brothers Asset Management Inc (“SBAM”), which were then investment adviser or manager to certain of the Funds (the “Managers”), substantially all of the mutual funds then managed by the Managers (the “Defendant Funds”), and Board members of the Defendant Funds (collectively, the “Defendants”). The complaints alleged, among other things, that CGM created various undisclosed incentives for its brokers to sell Smith Barney and Salomon Brothers funds. In addition, according to the complaints, the Managers caused the Defendant Funds to pay excessive brokerage commissions to CGM for steering clients towards proprietary funds. The complaints also alleged that the Defendants breached their fiduciary duty to the Defendant Funds by improperly charging Rule 12b-1 fees and by drawing on fund assets to make undisclosed payments of soft dollars and excessive brokerage commissions. The complaints also alleged that the Defendant Funds failed to adequately disclose certain of the allegedly wrongful conduct. The complaints sought injunctive relief and compensatory and punitive damages, rescission of the Defendant Funds’ contracts with the Managers, recovery of all fees paid to the Managers pursuant to such contracts and an award of attorneys’ fees and litigation expenses.

On December 15, 2004, a consolidated amended complaint (the “Complaint”) was filed alleging substantially similar causes of action. On May 27, 2005, all of the Defendants filed motions to dismiss the Complaint. On July 26, 2006, the court issued a decision and order (1) finding that plaintiffs lacked standing to sue on behalf of the shareholders of the Funds in which none of the plaintiffs had invested and dismissing those Funds from the case (although stating that they could be brought back into the case if standing as to them could be established), and (2) other than one stayed claim, dismissing all of the causes of action against the remaining Defendants, with prejudice, except for the cause of action under Section 36(b) of the 1940 Act, which the court granted plaintiffs leave to repeal as a derivative claim.

On October 16, 2006, plaintiffs filed their Second Consolidated Amended Complaint (“Second Amended Complaint”) which alleges derivative claims on behalf of nine funds identified in the Second Amended Complaint, under Section 36(b) of the 1940 Act, against CAM, SBAM and SBFM as investment advisers to the identified funds, as well as CGM as a distributor for the identified funds (collectively, the “Second Amended Complaint Defendants”). The Fund was not identified in the Second Amended Complaint. The Second Amended Complaint alleges no claims against any of the funds or any of their Board Members. Under Section 36(b), the Second Amended Complaint alleges similar facts and seeks similar relief against the Second Amended Complaint Defendants as the Complaint.

24 Legg Mason Partners Investors Value Fund 2008 Semi-Annual Report

On December 3, 2007, the court granted the Defendants’ motion to dismiss, with prejudice. On January 2, 2008, the plaintiffs filed a notice of appeal to the Second Circuit Court of Appeals.

Additional lawsuits arising out of these circumstances and presenting similar allegations and requests for relief may be filed in the future.

* * *

Beginning in August 2005, five class action lawsuits alleging violations of federal securities laws and state law were filed against CGM and SBFM, (collectively, the “Defendants”) based on the May 31, 2005 settlement order issued against the Defendants by the SEC as described in Note 9. The complaints seek injunctive relief and compensatory and punitive damages, removal of SBFM as the investment manager for the Smith Barney family of funds, rescission of the funds’ management and other contracts with SBFM, recovery of all fees paid to SBFM pursuant to such contracts, and an award of attorneys’ fees and litigation expenses. The five actions were subsequently consolidated, and a consolidated complaint was filed.

On September 26, 2007, the United States District Court for the Southern District of New York issued an order dismissing the consolidated complaint, and judgment was later entered. An appeal has been filed and is pending before the U.S. Court of Appeals for the Second Circuit.

11. Recent accounting pronouncement

In March 2008, Financial Accounting Standards Board issued the Statement of Financial Accounting Standards No. 161, Disclosures about Derivative Instruments and Hedging Activities (“FAS 161”). FAS 161 is effective for fiscal years and interim periods beginning after November 15, 2008. FAS 161 requires enhanced disclosures about the Fund’s derivative and hedging activities, including how such activities are accounted for and their effect on the Fund’s financial position, performance and cash flows. Management is currently evaluating the impact the adoption of FAS 161 will have on the Fund’s financial statements and related disclosures.

Legg Mason Partners Investors Value Fund 2008 Semi-Annual Report 25

Legg Mason Partners Investors Value Fund

Trustees   Paul R. Ades Andrew L. Breech Dwight B. Crane Robert M. Frayn, Jr. R. Jay Gerken, CFA
Chairman Frank G. Hubbard Howard J. Johnson David E. Maryatt Jerome H. Miller Ken Miller John J. Murphy Thomas F. Schlafly Jerry A. Viscione   Investment manager Legg Mason Partners Fund Advisor, LLC   Subadviser ClearBridge Advisors, LLC Distributor Legg Mason Investor Services, LLC   Custodian State Street Bank and Trust Company   Transfer agent PNC Global Investment Servicing (formerly, PFPC Inc.) 4400 Computer Drive Westborough,
Massachusetts 01581   Independent registered public accounting firm KPMG LLP 345 Park Avenue New York, New York 10154

Legg Mason Partners Investors Value Fund

The Fund is a separate investment series of Legg Mason Partners Equity Trust, a Maryland business trust.

LEGG MASON PARTNERS INVESTORS VALUE FUND

Legg Mason Partners Funds

55 Water Street

New York, New York 10041

The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Forms N-Q are available on the SEC’s website at www.sec.gov. The Fund’s Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C., and information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. To obtain information on Form N-Q from the Fund, shareholders can call Legg Mason Partners Shareholder Services at 1-800-451-2010.

Information on how the Fund voted proxies relating to portfolio securities during the prior 12-month period ended June 30th of each year and a description of the policies and procedures that the Fund uses to determine how to vote proxies related to portfolio transactions are available (1) without charge, upon request, by calling 1-800-451-2010, (2) on the Fund’s website at www.leggmason.com/individualinvestors and (3) on the SEC’s website at www.sec.gov.

This report is submitted for the general information of the shareholders of Legg Mason Partners Investors Value Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by a current prospectus.

Investors should consider the Fund’s investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other important information about the Fund. Please read the prospectus carefully before investing.

www.leggmason.com/individualinvestors

^© 2008 Legg Mason Investor Services, LLC

Member FINRA, SIPC

BUILT TO WIN^SM

At Legg Mason, we’ve assembled a collection of experienced investment management firms and empowered each of them with the tools, the resources and, most importantly, the independence to pursue the strategies they know best.

• Each was purposefully chosen for their commitment to investment excellence.

• Each is focused on specific investment styles and asset classes.

• Each exhibits thought leadership in their chosen area of focus.

Together, we’ve built a powerful portfolio of solutions for financial advisors and their clients. And it has made us a world leader in money management.*

In the Pensions & Investments May 27, 2008 ranking, Legg Mason is the 9th largest asset manager in the world based on worldwide assets under management as of December 31, 2007.

www.leggmason.com/individualinvestors

©2008 Legg Mason Investor Services, LLC Member FINRA, SIPC

FDXX011197 8/08 SR08-634

NOT PART OF THE SEMI-ANNUAL REPORT

ITEM 2. CODE OF ETHICS.

Not applicable.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

Not applicable.

ITEM 4. PRINCIPAL ACCOUNTING FEES AND SERVICES.

Not applicable.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable.

ITEM 6. SCHEDULE OF INVESTMENTS.

Included herein under Item 1.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not applicable.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

Not applicable.

ITEM 11. CONTROLS AND PROCEDURES.

(a) The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a- 3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the 1940 Act and 15d-15(b) under the Securities Exchange Act of 1934.

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal half-year (the registrant’s second fiscal half-year in the case of an annual report) that have materially affected, or are likely to materially affect the registrant’s internal control over financial reporting.

ITEM 12. EXHIBITS.

(a) (1) Not applicable.

Exhibit 99.CODE ETH

(a) (2) Certifications pursuant to section 302 of the Sarbanes-Oxley Act of 2002 attached hereto.

Exhibit 99.CERT

(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 attached hereto.

Exhibit 99.906CERT

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this Report to be signed on its behalf by the undersigned, there unto duly authorized.

Legg Mason Partners Equity Trust
By:	/s/ R. Jay Gerken
	R. Jay Gerken
	Chief Executive Officer of Legg Mason Partners Equity Trust

Date: September 2, 2008

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:	/s/ R. Jay Gerken
	R. Jay Gerken
	Chief Executive Officer of Legg Mason Partners Equity Trust

Date: September 2, 2008

By:	/s/ Kaprel Ozsolak
	Kaprel Ozsolak
	Chief Financial Officer of Legg Mason Partners Equity Trust

Date: September 2, 2008