497 1 d497.htm LMP EQUITY TRUST -- LM TARGET RETIREMENT LMP Equity Trust -- LM Target Retirement

 

LEGG MASON PARTNERS EQUITY TRUST

SUPPLEMENT DATED MARCH 22, 2010 TO THE

PROSPECTUS DATED MAY 31, 2009 OF

LEGG MASON TARGET RETIREMENT 2015

LEGG MASON TARGET RETIREMENT 2020

LEGG MASON TARGET RETIREMENT 2025

LEGG MASON TARGET RETIREMENT 2030

LEGG MASON TARGET RETIREMENT 2035

LEGG MASON TARGET RETIREMENT 2040

LEGG MASON TARGET RETIREMENT 2045

LEGG MASON TARGET RETIREMENT 2050

LEGG MASON TARGET RETIREMENT FUND

The following information replaces the Fee tables and Examples found in the Funds’ prospectus under the heading “Investments, risks and performance”:

Legg Mason Target Retirement 2015:

Fee table

This table sets forth the fees and expenses you may pay if you invest in fund shares. Expense ratios for the current fiscal year may be higher than those shown in the “Annual fund operating expenses” table—for example, if average net assets decrease. Net assets are more likely to decrease and fund expense ratios are more likely to increase when markets are volatile.

SHAREHOLDER FEES (PAID DIRECTLY FROM YOUR INVESTMENT)

 

    CLASS
A		     CLASS
C		     CLASS
FI		   CLASS
R		   CLASS
R1		   CLASS
I		   CLASS
IS

Maximum sales charge (load) imposed on purchases (as a % of offering price)

   5.75 %    None      None   None   None   None   None

Maximum contingent deferred sales charge (load) (as a % of the lower of net asset value at purchase or redemption)

   None 1    1.00 %    None   None   None   None   None

 

ANNUAL FUND OPERATING EXPENSES (PAID BY THE FUND AS A % OF NET ASSETS)

 

    CLASS
A		     CLASS
C		     CLASS
FI		     CLASS
R		     CLASS
R1		     CLASS
I		     CLASS
IS		  

Management fee

   0.10 %    0.10 %    0.10 %    0.10 %    0.10 %    0.10 %    0.10 % 

Distribution and service (12b-1) fees

   0.25 %    1.00 %    0.25 %    0.50 %    1.00 %    None      None   

Other expenses2

   10.75 %    10.72 %    10.71 %    10.75 %    10.75 %    10.75 %    10.75 % 

Total expenses incurred directly by the fund

   11.10 %    11.82 %    11.06 %    11.35 %    11.85 %    10.85 %    10.85 % 

Acquired fund fees and expenses (fees and expenses of underlying funds)3

   0.57 %    0.57 %    0.57 %    0.57 %    0.57 %    0.57 %    0.57 % 

Total annual fund operating expenses

   11.67 %    12.39 %    11.63 %    11.92 %    12.42 %    11.42 %    11.42 % 

Less contractual fee waiver and/or expense reimbursement4

   (10.68 )%    (10.65 )%    (10.64 )%    (10.68 )%    (10.68 )%    (10.68 )%    (10.72 )% 

Total net annual fund operating expenses4

   0.99 %    1.74 %    0.99 %    1.24 %    1.74 %    0.74 %    0.70 % 

Example

This example helps you compare the costs of investing in the fund with the costs of investing in other mutual funds. Your actual costs may be higher or lower. The example assumes:

 

  •  

You invest $10,000 in the fund for the period shown

 

  •  

Your investment has a 5% return each year — the assumption of a 5% return is required by the Securities and Exchange Commission (the “SEC”) for purposes of this example and is not a prediction of the fund’s future performance

 

  •  

You reinvest all distributions and dividends without a sales charge

 

  •  

The fund’s operating expenses, after giving effect to the contractual fee waivers and/or expense reimbursements in effect through December 31, 2011, remain the same as shown in the fee table

 

  •  

The expenses of the underlying funds are reflected

 

NUMBER OF YEARS YOU OWN YOUR SHARES

    1 YEAR    3 YEARS

Class A (with or without redemption)

    $ 670    $ 2,808

Class C (redemption at end of period)

    $ 277    $ 2,550

Class C (no redemption)

    $ 177    $ 2,550

 

2

 

     1 YEAR    3 YEARS

Class FI (with or without redemption)

    $ 101    $ 2,363

Class R (with or without redemption)

    $ 126    $ 2,431

Class R1 (with or without redemption)

    $ 177    $ 2,555

Class I (with or without redemption)

    $ 76    $ 2,306

Class IS (with or without redemption)

    $ 72    $ 2,304

 

1

You may buy Class A shares in amounts of $1,000,000 or more at net asset value (without an initial sales charge) but if you redeem those shares within 12 months of their purchase, you will pay a contingent deferred sales charge of 1.00%.

2

“Other expenses” have been estimated for the current fiscal year. Actual expenses may differ from estimates.

3

Acquired fund fees and expenses (fees and expenses of underlying funds) are based on an estimation of the fund’s allocation to underlying funds for the current fiscal year.

4

Management has contractually agreed to waive fees and reimburse expenses to limit such expenses to 0.99% for Class A shares, 1.74% for Class C shares, 0.99% for Class FI shares, 1.24% for Class R shares, 1.74% for Class R1 shares, 0.74% for Class I shares and 0.70% for Class IS shares until December 31, 2011. Taxes, extraordinary expenses and brokerage commissions (other than brokerage commissions paid on purchases and sales of shares of ETFs) are excluded from this waiver/reimbursement agreement. Acquired fund fees and expenses are subject to the agreement, and are calculated based on an average of the net expense ratio (as shown in the most recent prospectus or shareholder report for each underlying fund as of the date of the Prospectus) of the class of shares of each underlying fund held by the fund, weighted in proportion to the fund’s investment allocation among the underlying funds.

Legg Mason Target Retirement 2020

Fee table

This table sets forth the fees and expenses you may pay if you invest in fund shares. Expense ratios for the current fiscal year may be higher than those shown in the “Annual fund operating expenses” table—for example, if average net assets decrease. Net assets are more likely to decrease and fund expense ratios are more likely to increase when markets are volatile.

SHAREHOLDER FEES (PAID DIRECTLY FROM YOUR INVESTMENT)

 

    CLASS
A		     CLASS
C		     CLASS
FI		   CLASS
R		   CLASS
R1		   CLASS
I		   CLASS
IS

Maximum sales charge (load) imposed on purchases (as a % of offering price)

   5.75 %    None      None   None   None   None   None

Maximum contingent deferred sales charge (load) (as a % of the lower of net asset value at purchase or redemption)

   None 1    1.00 %    None   None   None   None   None

 

3

 

ANNUAL FUND OPERATING EXPENSES (PAID BY THE FUND AS A % OF NET ASSETS)

 

    CLASS
A		     CLASS
C		     CLASS
FI		     CLASS
R		     CLASS
R1		     CLASS
I		     CLASS
IS		  

Management fee

   0.10 %    0.10 %    0.10 %    0.10 %    0.10 %    0.10 %    0.10 % 

Distribution and service (12b-1) fees

   0.25 %    1.00 %    0.25 %    0.50 %    1.00 %    None      None   

Other expenses2

   10.67 %    10.61 %    10.63 %    10.67 %    10.67 %    10.66 %    10.67 % 

Total expenses incurred directly by the fund

   11.02 %    11.71 %    10.98 %    11.27 %    11.77 %    10.76 %    10.77 % 

Acquired fund fees and expenses (fees and expenses of underlying funds)3

   0.58 %    0.58 %    0.58 %    0.58 %    0.58 %    0.58 %    0.58 % 

Total annual fund operating expenses

   11.60 %    12.29 %    11.56 %    11.85 %    12.35 %    11.34 %    11.35 % 

Less contractual fee waiver and/or expense reimbursement4

   (10.61 )%    (10.55 )%    (10.57 )%    (10.61 )%    (10.61 )%    (10.60 )%    (10.65 )% 

Total net annual fund operating expenses4

   0.99 %    1.74 %    0.99 %    1.24 %    1.74 %    0.74 %    0.70 % 

Example

This example helps you compare the costs of investing in the fund with the costs of investing in other mutual funds. Your actual costs may be higher or lower. The example assumes:

 

  •  

You invest $10,000 in the fund for the period shown

 

  •  

Your investment has a 5% return each year — the assumption of a 5% return is required by the SEC for purposes of this example and is not a prediction of the fund’s future performance

 

  •  

You reinvest all distributions and dividends without a sales charge

 

  •  

The fund’s operating expenses, after giving effect to the contractual fee waivers and/or expense reimbursements in effect through December 31, 2011, remain the same as shown in the fee table

 

  •  

The expenses of the underlying funds are reflected

 

NUMBER OF YEARS YOU OWN YOUR SHARES

    1 YEAR    3 YEARS

Class A (with or without redemption)

    $ 670    $ 2,797

Class C (redemption at end of period)

    $ 277    $ 2,534

Class C (no redemption)

    $ 177    $ 2,534

Class FI (with or without redemption)

    $ 101    $ 2,351

 

4

 

     1 YEAR    3 YEARS

Class R (with or without redemption)

    $ 126    $ 2,419

Class R1 (with or without redemption)

    $ 177    $ 2,543

Class I (with or without redemption)

    $ 76    $ 2,293

Class IS (with or without redemption)

    $ 72    $ 2,291

 

1

You may buy Class A shares in amounts of $1,000,000 or more at net asset value (without an initial sales charge) but if you redeem those shares within 12 months of their purchase, you will pay a contingent deferred sales charge of 1.00%.

2

“Other expenses” have been estimated for the current fiscal year. Actual expenses may differ from estimates.

3

Acquired fund fees and expenses (fees and expenses of underlying funds) are based on an estimation of the fund’s allocation to underlying funds for the current fiscal year.

4

Management has contractually agreed to waive fees and reimburse expenses to limit such expenses to 0.99% for Class A shares, 1.74% for Class C shares, 0.99% for Class FI shares, 1.24% for Class R shares, 1.74% for Class R1 shares, 0.74% for Class I shares and 0.70% for Class IS shares until December 31, 2011. Taxes, extraordinary expenses and brokerage commissions (other than brokerage commissions paid on purchases and sales of shares of ETFs) are excluded from this waiver/reimbursement agreement. Acquired fund fees and expenses are subject to the agreement, and are calculated based on an average of the net expense ratio (as shown in the most recent prospectus or shareholder report for each underlying fund as of the date of the Prospectus) of the class of shares of each underlying fund held by the fund, weighted in proportion to the fund’s investment allocation among the underlying funds.

Legg Mason Target Retirement 2025

Fee table

This table sets forth the fees and expenses you may pay if you invest in fund shares. Expense ratios for the current fiscal year may be higher than those shown in the “Annual fund operating expenses” table—for example, if average net assets decrease. Net assets are more likely to decrease and fund expense ratios are more likely to increase when markets are volatile.

SHAREHOLDER FEES (PAID DIRECTLY FROM YOUR INVESTMENT)

 

    CLASS
A		     CLASS
C		     CLASS
FI		   CLASS
R		   CLASS
R1		    CLASS
I		   CLASS
IS

Maximum sales charge (load) imposed on purchases (as a % of offering price)

   5.75 %    None      None   None   None    None   None

Maximum contingent deferred sales charge (load) (as a % of the lower of net asset value at purchase or redemption)

   None 1    1.00 %    None   None   None    None   None

 

5

 

ANNUAL FUND OPERATING EXPENSES (PAID BY THE FUND AS A % OF NET ASSETS)

 

    CLASS
A		     CLASS
C		     CLASS
FI		     CLASS
R		     CLASS
R1		     CLASS
I		     CLASS
IS		  

Management fee

   0.10 %    0.10 %    0.10 %    0.10 %    0.10 %    0.10 %    0.10 % 

Distribution and service (12b-1) fees

   0.25 %    1.00 %    0.25 %    0.50 %    1.00 %    None      None   

Other expenses2

   10.88 %    10.70 %    10.85 %    10.90 %    10.90 %    10.90 %    10.90 % 

Total expenses incurred directly by the fund

   11.23 %    11.80 %    11.20 %    11.50 %    12.00 %    11.00 %    11.00 % 

Acquired fund fees and expenses (fees and expenses of underlying funds)3

   0.58 %    0.58 %    0.58 %    0.58 %    0.58 %    0.58 %    0.58 % 

Total annual fund operating expenses

   11.81 %    12.38 %    11.78 %    12.08 %    12.58 %    11.58 %    11.58 % 

Less contractual fee waiver and/or expense reimbursement4

   (10.82 )%    (10.64 )%    (10.79 )%    (10.84 )%    (10.84 )%    (10.84 )%    (10.88 )% 

Total net annual fund operating expenses4

   0.99 %    1.74 %    0.99 %    1.24 %    1.74 %    0.74 %    0.70 % 

Example

This example helps you compare the costs of investing in the fund with the costs of investing in other mutual funds. Your actual costs may be higher or lower. The example assumes:

 

  •  

You invest $10,000 in the fund for the period shown

 

  •  

Your investment has a 5% return each year — the assumption of a 5% return is required by the SEC for purposes of this example and is not a prediction of the fund’s future performance

 

  •  

You reinvest all distributions and dividends without a sales charge

 

  •  

The fund’s operating expenses, after giving effect to the contractual fee waivers and/or expense reimbursements in effect through December 31, 2011, remain the same as shown in the fee table

 

  •  

The expenses of the underlying funds are reflected

 

NUMBER OF YEARS YOU OWN YOUR SHARES

    1 YEAR    3 YEARS

Class A (with or without redemption)

    $ 670    $ 2,830

Class C (redemption at end of period)

    $ 277    $ 2,548

Class C (no redemption)

    $ 177    $ 2,548

 

6

 

     1 YEAR    3 YEARS

Class FI (with or without redemption)

    $ 101    $ 2,388

Class R (with or without redemption)

    $ 126    $ 2,458

Class R1 (with or without redemption)

    $ 177    $ 2,582

Class I (with or without redemption)

    $ 76    $ 2,335

Class IS (with or without redemption)

    $ 72    $ 2,331

 

1

You may buy Class A shares in amounts of $1,000,000 or more at net asset value (without an initial sales charge) but if you redeem those shares within 12 months of their purchase, you will pay a contingent deferred sales charge of 1.00%.

2

“Other expenses” have been estimated for the current fiscal year. Actual expenses may differ from estimates.

3

Acquired fund fees and expenses (fees and expenses of underlying funds) are based on an estimation of the fund’s allocation to underlying funds for the current fiscal year.

4

Management has contractually agreed to waive fees and reimburse expenses to limit such expenses to 0.99% for Class A shares, 1.74% for Class C shares, 0.99% for Class FI shares, 1.24% for Class R shares, 1.74% for Class R1 shares, 0.74% for Class I shares and 0.70% for Class IS shares until December 31, 2011. Taxes, extraordinary expenses and brokerage commissions (other than brokerage commissions paid on purchases and sales of shares of ETFs) are excluded from this waiver/reimbursement agreement. Acquired fund fees and expenses are subject to the agreement, and are calculated based on an average of the net expense ratio (as shown in the most recent prospectus or shareholder report for each underlying fund as of the date of the Prospectus) of the class of shares of each underlying fund held by the fund, weighted in proportion to the fund’s investment allocation among the underlying funds.

Legg Mason Target Retirement 2030

Fee table

This table sets forth the fees and expenses you may pay if you invest in fund shares. Expense ratios for the current fiscal year may be higher than those shown in the “Annual fund operating expenses” table—for example, if average net assets decrease. Net assets are more likely to decrease and fund expense ratios are more likely to increase when markets are volatile.

SHAREHOLDER FEES (PAID DIRECTLY FROM YOUR INVESTMENT)

 

    CLASS
A		     CLASS
C		     CLASS
FI		   CLASS
R		   CLASS
R1		   CLASS
I		   CLASS
IS

Maximum sales charge (load) imposed on purchases (as a % of offering price)

   5.75 %    None      None   None   None   None   None

Maximum contingent deferred sales charge (load) (as a % of the lower of net asset value at purchase or redemption)

   None 1    1.00 %    None   None   None   None   None

 

7

 

ANNUAL FUND OPERATING EXPENSES (PAID BY THE FUND AS A % OF NET ASSETS)

 

    CLASS
A		     CLASS
C		     CLASS
FI		     CLASS
R		     CLASS
R1		     CLASS
I		     CLASS
IS		  

Management fee

   0.10 %    0.10 %    0.10 %    0.10 %    0.10 %    0.10 %    0.10 % 

Distribution and service (12b-1) fees

   0.25 %    1.00 %    0.25 %    0.50 %    1.00 %    None      None   

Other expenses2

   11.06 %    10.99 %    10.87 %    11.06 %    11.06 %    11.06 %    11.06 % 

Total expenses incurred directly by the fund

   11.41 %    12.09 %    11.22 %    11.66 %    12.16 %    11.16 %    11.16 % 

Acquired fund fees and expenses (fees and expenses of underlying funds)3

   0.59 %    0.59 %    0.59 %    0.59 %    0.59 %    0.59 %    0.59 % 

Total annual fund operating expenses

   12.00 %    12.68 %    11.81 %    12.25 %    12.75 %    11.75 %    11.75 % 

Less contractual fee waiver and/or expense reimbursement4

   (11.01 )%    (10.94 )%    (10.82 )%    (11.01 )%    (11.01 )%    (11.01 )%    (11.05 )% 

Total net annual fund operating expenses4

   0.99 %    1.74 %    0.99 %    1.24 %    1.74 %    0.74 %    0.70 % 

Example

This example helps you compare the costs of investing in the fund with the costs of investing in other mutual funds. Your actual costs may be higher or lower. The example assumes:

 

  •  

You invest $10,000 in the fund for the period shown

 

  •  

Your investment has a 5% return each year — the assumption of a 5% return is required by the SEC for purposes of this example and is not a prediction of the fund’s future performance

 

  •  

You reinvest all distributions and dividends without a sales charge

 

  •  

The fund’s operating expenses, after giving effect to the contractual fee waivers and/or expense reimbursements in effect through December 31, 2011, remain the same as shown in the fee table

 

  •  

The expenses of the underlying funds are reflected

 

NUMBER OF YEARS YOU OWN YOUR SHARES

    1 YEAR    3 YEARS

Class A (with or without redemption)

    $ 670    $ 2,861

Class C (redemption at end of period)

    $ 277    $ 2,598

Class C (no redemption)

    $ 177    $ 2,598

 

8

 

     1 YEAR    3 YEARS

Class FI (with or without redemption)

    $ 101    $ 2,394

Class R (with or without redemption)

    $ 126    $ 2,487

Class R1 (with or without redemption)

    $ 177    $ 2,610

Class I (with or without redemption)

    $ 76    $ 2,364

Class IS (with or without redemption)

    $ 72    $ 2,360

 

1

You may buy Class A shares in amounts of $1,000,000 or more at net asset value (without an initial sales charge) but if you redeem those shares within 12 months of their purchase, you will pay a contingent deferred sales charge of 1.00%.

2

“Other expenses” have been estimated for the current fiscal year. Actual expenses may differ from estimates.

3

Acquired fund fees and expenses (fees and expenses of underlying funds) are based on an estimation of the fund’s allocation to underlying funds for the current fiscal year.

4

Management has contractually agreed to waive fees and reimburse expenses to limit such expenses to 0.99% for Class A shares, 1.74% for Class C shares, 0.99% for Class FI shares, 1.24% for Class R shares, 1.74% for Class R1 shares, 0.74% for Class I shares and 0.70% for Class IS shares until December 31, 2011. Taxes, extraordinary expenses and brokerage commissions (other than brokerage commissions paid on purchases and sales of shares of ETFs) are excluded from this waiver/reimbursement agreement. Acquired fund fees and expenses are subject to the agreement, and are calculated based on an average of the net expense ratio (as shown in the most recent prospectus or shareholder report for each underlying fund as of the date of the Prospectus) of the class of shares of each underlying fund held by the fund, weighted in proportion to the fund’s investment allocation among the underlying funds.

Legg Mason Target Retirement 2035

Fee table

This table sets forth the fees and expenses you may pay if you invest in fund shares. Expense ratios for the current fiscal year may be higher than those shown in the “Annual fund operating expenses” table—for example, if average net assets decrease. Net assets are more likely to decrease and fund expense ratios are more likely to increase when markets are volatile.

SHAREHOLDER FEES (PAID DIRECTLY FROM YOUR INVESTMENT)

 

    CLASS
A		     CLASS
C		     CLASS
FI		   CLASS
R		   CLASS
R1		   CLASS
I		   CLASS
IS

Maximum sales charge (load) imposed on purchases (as a % of offering price)

   5.75 %    None      None   None   None   None   None

Maximum contingent deferred sales charge (load) (as a % of the lower of net asset value at purchase or redemption)

   None 1    1.00 %    None   None   None   None   None

 

9

 

ANNUAL FUND OPERATING EXPENSES (PAID BY THE FUND AS A % OF NET ASSETS)

 

    CLASS
A		     CLASS
C		     CLASS
FI		     CLASS
R		     CLASS
R1		     CLASS
I		     CLASS
IS		  

Management fee

   0.10 %    0.10 %    0.10 %    0.10 %    0.10 %    0.10 %    0.10 % 

Distribution and service (12b-1) fees

   0.25 %    1.00 %    0.25 %    0.50 %    1.00 %    None      None   

Other expenses2

   11.63 %    11.57 %    11.58 %    11.63 %    11.63 %    11.63 %    11.63 % 

Total expenses incurred directly by the fund

   11.98 %    12.67 %    11.93 %    12.23 %    12.73 %    11.73 %    11.73 % 

Acquired fund fees and expenses (fees and expenses of underlying funds)3

   0.57 %    0.57 %    0.57 %    0.57 %    0.57 %    0.57 %    0.57 % 

Total annual fund operating expenses

   12.55 %    13.24 %    12.50 %    12.80 %    13.30 %    12.30 %    12.30 % 

Less contractual fee waiver and/or expense reimbursement4

   (11.56 )%    (11.50 )%    (11.51 )%    (11.56 )%    (11.56 )%    (11.56 )%    (11.60 )% 

Total net annual fund operating expenses4

   0.99 %    1.74 %    0.99 %    1.24 %    1.74 %    0.74 %    0.70 % 

Example

This example helps you compare the costs of investing in the fund with the costs of investing in other mutual funds. Your actual costs may be higher or lower. The example assumes:

 

  •  

You invest $10,000 in the fund for the period shown

 

  •  

Your investment has a 5% return each year — the assumption of a 5% return is required by the SEC for purposes of this example and is not a prediction of the fund’s future performance

 

  •  

You reinvest all distributions and dividends without a sales charge

 

  •  

The fund’s operating expenses, after giving effect to the contractual fee waivers and/or expense reimbursements in effect through December 31, 2011, remain the same as shown in the fee table

 

  •  

The expenses of the underlying funds are reflected

 

NUMBER OF YEARS YOU OWN YOUR SHARES

    1 YEAR    3 YEARS

Class A (with or without redemption)

    $ 670    $ 2,948

Class C (redemption at end of period)

    $ 277    $ 2,691

Class C (no redemption)

    $ 177    $ 2,691

 

10

 

     1 YEAR    3 YEARS

Class FI (with or without redemption)

    $ 101    $ 2,510

Class R (with or without redemption)

    $ 126    $ 2,579

Class R1 (with or without redemption)

    $ 177    $ 2,700

Class I (with or without redemption)

    $ 76    $ 2,457

Class IS (with or without redemption)

    $ 72    $ 2,454

 

1

You may buy Class A shares in amounts of $1,000,000 or more at net asset value (without an initial sales charge) but if you redeem those shares within 12 months of their purchase, you will pay a contingent deferred sales charge of 1.00%.

2

“Other expenses” have been estimated for the current fiscal year. Actual expenses may differ from estimates.

3

Acquired fund fees and expenses (fees and expenses of underlying funds) are based on an estimation of the fund’s allocation to underlying funds for the current fiscal year.

4

Management has contractually agreed to waive fees and reimburse expenses to limit such expenses to 0.99% for Class A shares, 1.74% for Class C shares, 0.99% for Class FI shares, 1.24% for Class R shares, 1.74% for Class R1 shares, 0.74% for Class I shares and 0.70% for Class IS shares until December 31, 2011. Taxes, extraordinary expenses and brokerage commissions (other than brokerage commissions paid on purchases and sales of shares of ETFs) are excluded from this waiver/reimbursement agreement. Acquired fund fees and expenses are subject to the agreement, and are calculated based on an average of the net expense ratio (as shown in the most recent prospectus or shareholder report for each underlying fund as of the date of the Prospectus) of the class of shares of each underlying fund held by the fund, weighted in proportion to the fund’s investment allocation among the underlying funds.

Legg Mason Target Retirement 2040

Fee table

This table sets forth the fees and expenses you may pay if you invest in fund shares. Expense ratios for the current fiscal year may be higher than those shown in the “Annual fund operating expenses” table—for example, if average net assets decrease. Net assets are more likely to decrease and fund expense ratios are more likely to increase when markets are volatile.

SHAREHOLDER FEES (PAID DIRECTLY FROM YOUR INVESTMENT)

 

    CLASS
A		     CLASS
C		     CLASS
FI		   CLASS
R		   CLASS
R1		   CLASS
I		   CLASS
IS

Maximum sales charge (load) imposed on purchases (as a % of offering price)

   5.75 %    None     None   None   None   None   None

Maximum contingent deferred sales charge (load) (as a % of the lower of net asset value at purchase or redemption)

   None 1    1.00 %    None   None   None   None   None

 

11

 

ANNUAL FUND OPERATING EXPENSES (PAID BY THE FUND AS A % OF NET ASSETS)

 

    CLASS
A		     CLASS
C		     CLASS
FI		     CLASS
R		     CLASS
R1		     CLASS
I		     CLASS
IS		  

Management fee

   0.10 %    0.10 %   0.10 %    0.10 %    0.10 %    0.10 %    0.10 % 

Distribution and service (12b-1) fees

   0.25 %    1.00 %    0.25 %    0.50 %    1.00 %    None      None   

Other expenses2

   11.49 %    10.88 %    10.85 %    10.90 %    10.90 %    10.90 %    10.90 % 

Total expenses incurred directly by the fund

   11.84 %    11.98 %    11.20 %    11.50 %    12.00 %    11.00 %    11.00 % 

Acquired fund fees and expenses (fees and expenses of underlying funds)3

   0.59 %    0.59 %    0.59 %    0.59 %    0.59 %    0.59 %    0.59 % 

Total annual fund operating expenses

   12.43 %    12.57 %    11.79 %    12.09 %    12.59 %    11.59 %    11.59 % 

Less contractual fee waiver and/or expense reimbursement4

   (11.44 )%    (10.83 )%    (10.80 )%    (10.85 )%    (10.85 )%    (10.85 )%    (10.89 )% 

Total net annual fund operating expenses4

   0.99 %    1.74 %    0.99 %    1.24 %    1.74 %    0.74 %    0.70 % 

Example

This example helps you compare the costs of investing in the fund with the costs of investing in other mutual funds. Your actual costs may be higher or lower. The example assumes:

 

  •  

You invest $10,000 in the fund for the period shown

 

  •  

Your investment has a 5% return each year — the assumption of a 5% return is required by the SEC for purposes of this example and is not a prediction of the fund’s future performance

 

  •  

You reinvest all distributions and dividends without a sales charge

 

  •  

The fund’s operating expenses, after giving effect to the contractual fee waivers and/or expense reimbursements in effect through December 31, 2011, remain the same as shown in the fee table

 

  •  

The expenses of the underlying funds are reflected

 

NUMBER OF YEARS YOU OWN YOUR SHARES

    1 YEAR    3 YEARS

Class A (with or without redemption)

    $ 670    $ 2,929

Class C (redemption at end of period)

    $ 277    $ 2,580

Class C (no redemption)

    $ 177    $ 2,580

 

12

 

     1 YEAR    3 YEARS

Class FI (with or without redemption)

    $ 101    $ 2,390

Class R (with or without redemption)

    $ 126    $ 2,460

Class R1 (with or without redemption)

    $ 177    $ 2,584

Class I (with or without redemption)

    $ 76    $ 2,337

Class IS (with or without redemption)

    $ 72    $ 2,333

 

1

You may buy Class A shares in amounts of $1,000,000 or more at net asset value (without an initial sales charge) but if you redeem those shares within 12 months of their purchase, you will pay a contingent deferred sales charge of 1.00%.

2

“Other expenses” have been estimated for the current fiscal year. Actual expenses may differ from estimates.

3

Acquired fund fees and expenses (fees and expenses of underlying funds) are based on an estimation of the fund’s allocation to underlying funds for the current fiscal year.

4

Management has contractually agreed to waive fees and reimburse expenses to limit such expenses to 0.99% for Class A shares, 1.74% for Class C shares, 0.99% for Class FI shares, 1.24% for Class R shares, 1.74% for Class R1 shares, 0.74% for Class I shares and 0.70% for Class IS shares until December 31, 2011. Taxes, extraordinary expenses and brokerage commissions (other than brokerage commissions paid on purchases and sales of shares of ETFs) are excluded from this waiver/reimbursement agreement. Acquired fund fees and expenses are subject to the agreement, and are calculated based on an average of the net expense ratio (as shown in the most recent prospectus or shareholder report for each underlying fund as of the date of the Prospectus) of the class of shares of each underlying fund held by the fund, weighted in proportion to the fund’s investment allocation among the underlying funds.

Legg Mason Target Retirement 2045

Fee table

This table sets forth the fees and expenses you may pay if you invest in fund shares. Expense ratios for the current fiscal year may be higher than those shown in the “Annual fund operating expenses” table—for example, if average net assets decrease. Net assets are more likely to decrease and fund expense ratios are more likely to increase when markets are volatile.

SHAREHOLDER FEES (PAID DIRECTLY FROM YOUR INVESTMENT)

 

    CLASS
A		     CLASS
C		     CLASS
FI		   CLASS
R		   CLASS
R1		   CLASS
I		   CLASS
IS

Maximum sales charge (load) imposed on purchases (as a % of offering price)

   5.75 %    None      None   None   None   None   None

Maximum contingent deferred sales charge (load) (as a % of the lower of net asset value at purchase or redemption)

   None 1    1.00 %    None   None   None   None   None

 

13

 

ANNUAL FUND OPERATING EXPENSES (PAID BY THE FUND AS A % OF NET ASSETS)

 

    CLASS
A		     CLASS
C		     CLASS
FI		     CLASS
R		     CLASS
R1		     CLASS
I		     CLASS
IS		  

Management fee

   0.10 %    0.10 %    0.10 %    0.10 %    0.10 %    0.10 %    0.10 % 

Distribution and service (12b-1) fees

   0.25 %    1.00 %    0.25 %    0.50 %    1.00 %    None      None   

Other expenses2

   11.49 %    11.48 %    11.45 %    11.49 %    11.49 %    11.49 %    11.49 % 

Total expenses incurred directly by the fund

   11.84 %    12.58 %    11.80 %    12.09 %    12.59 %    11.59 %    11.59 % 

Acquired fund fees and expenses (fees and expenses of underlying funds)3

   0.59 %    0.59 %    0.59 %    0.59 %    0.59 %    0.59 %    0.59 % 

Total annual fund operating expenses

   12.43 %    13.17 %    12.39 %    12.68 %    13.18 %    12.18 %    12.18 % 

Less contractual fee waiver and/or expense reimbursement4

   (11.44 )%    (11.43 )%    (11.40 )%    (11.44 )%    (11.44 )%    (11.44 )%    (11.48 )% 

Total net annual fund operating expenses4

   0.99 %    1.74 %    0.99 %    1.24 %    1.74 %    0.74 %    0.70 % 

Example

This example helps you compare the costs of investing in the fund with the costs of investing in other mutual funds. Your actual costs may be higher or lower. The example assumes:

 

  •  

You invest $10,000 in the fund for the period shown

 

  •  

Your investment has a 5% return each year — the assumption of a 5% return is required by the SEC for purposes of this example and is not a prediction of the fund’s future performance

 

  •  

You reinvest all distributions and dividends without a sales charge

 

  •  

The fund’s operating expenses, after giving effect to the contractual fee waivers and/or expense reimbursements in effect through December 31, 2011, remain the same as shown in the fee table

 

  •  

The expenses of the underlying funds are reflected

 

NUMBER OF YEARS YOU OWN YOUR SHARES

    1 YEAR    3 YEARS

Class A (with or without redemption)

    $ 670    $ 2,929

Class C (redemption at end of period)

    $ 277    $ 2,679

Class C (no redemption)

    $ 177    $ 2,679

 

14

 

     1 YEAR    3 YEARS

Class FI (with or without redemption)

    $ 101    $ 2,491

Class R (with or without redemption)

    $ 126    $ 2,560

Class R1 (with or without redemption)

    $ 177    $ 2,681

Class I (with or without redemption)

    $ 76    $ 2,436

Class IS (with or without redemption)

    $ 72    $ 2,434

 

1

You may buy Class A shares in amounts of $1,000,000 or more at net asset value (without an initial sales charge) but if you redeem those shares within 12 months of their purchase, you will pay a contingent deferred sales charge of 1.00%.

2

“Other expenses” have been estimated for the current fiscal year. Actual expenses may differ from estimates.

3

Acquired fund fees and expenses (fees and expenses of underlying funds) are based on an estimation of the fund’s allocation to underlying funds for the current fiscal year.

4

Management has contractually agreed to waive fees and reimburse expenses to limit such expenses to 0.99% for Class A shares, 1.74% for Class C shares, 0.99% for Class FI shares, 1.24% for Class R shares, 1.74% for Class R1 shares, 0.74% for Class I shares and 0.70% for Class IS shares until December 31, 2011. Taxes, extraordinary expenses and brokerage commissions (other than brokerage commissions paid on purchases and sales of shares of ETFs) are excluded from this waiver/reimbursement agreement. Acquired fund fees and expenses are subject to the agreement, and are calculated based on an average of the net expense ratio (as shown in the most recent prospectus or shareholder report for each underlying fund as of the date of the Prospectus) of the class of shares of each underlying fund held by the fund, weighted in proportion to the fund’s investment allocation among the underlying funds.

Legg Mason Target Retirement 2050

Fee table

This table sets forth the fees and expenses you may pay if you invest in fund shares. Expense ratios for the current fiscal year may be higher than those shown in the “Annual fund operating expenses” table—for example, if average net assets decrease. Net assets are more likely to decrease and fund expense ratios are more likely to increase when markets are volatile.

SHAREHOLDER FEES (PAID DIRECTLY FROM YOUR INVESTMENT)

 

    CLASS
A		     CLASS
C		     CLASS
FI		   CLASS
R		   CLASS
R1		   CLASS
I		   CLASS
IS

Maximum sales charge (load) imposed on purchases (as a % of offering price)

   5.75 %    None      None   None   None   None   None

Maximum contingent deferred sales charge (load) (as a % of the lower of net asset value at purchase or redemption)

   None 1    1.00 %    None   None   None   None   None

 

15

 

ANNUAL FUND OPERATING EXPENSES (PAID BY THE FUND AS A % OF NET ASSETS)

 

    CLASS
A		     CLASS
C		     CLASS
FI		     CLASS
R		     CLASS
R1		     CLASS
I		     CLASS
IS		  

Management fee

   0.10 %    0.10 %    0.10 %    0.10 %    0.10 %    0.10 %    0.10 % 

Distribution and service (12b-1) fees

   0.25 %    1.00 %    0.25 %    0.50 %    1.00 %    None      None   

Other expenses2

   11.18 %    11.41 %    11.39 %    11.44 %    11.44 %    11.44 %    11.44 % 

Total expenses incurred directly by the fund

   11.53 %    12.51 %    11.74 %    12.04 %    12.54 %    11.54 %    11.54 % 

Acquired fund fees and expenses (fees and expenses of underlying funds)3

   0.59 %    0.59 %    0.59 %    0.59 %    0.59 %    0.59 %    0.59 % 

Total annual fund operating expenses

   12.12 %    13.10 %    12.33 %    12.63 %    13.13 %    12.13 %    12.13 % 

Less contractual fee waiver and/or expense reimbursement4

   (11.13 )%    (11.36 )%    (11.34 )%    (11.39 )%    (11.39 )%    (11.39 )%    (11.43 )% 

Total net annual fund operating expenses4

   0.99 %    1.74 %    0.99 %    1.24 %    1.74 %    0.74 %    0.70 % 

Example

This example helps you compare the costs of investing in the fund with the costs of investing in other mutual funds. Your actual costs may be higher or lower. The example assumes:

 

  •  

You invest $10,000 in the fund for the period shown

 

  •  

Your investment has a 5% return each year — the assumption of a 5% return is required by the SEC for purposes of this example and is not a prediction of the fund’s future performance

 

  •  

You reinvest all distributions and dividends without a sales charge

 

  •  

The fund’s operating expenses, after giving effect to the contractual fee waivers and/or expense reimbursements in effect through December 31, 2011, remain the same as shown in the fee table

 

  •  

The expenses of the underlying funds are reflected

 

NUMBER OF YEARS YOU OWN YOUR SHARES

    1 YEAR    3 YEARS

Class A (with or without redemption)

    $ 670    $ 2,880

Class C (redemption at end of period)

    $ 277    $ 2,668

Class C (no redemption)

    $ 177    $ 2,668

 

16

 

     1 YEAR    3 YEARS

Class FI (with or without redemption)

    $ 101    $ 2,481

Class R (with or without redemption)

    $ 126    $ 2,550

Class R1 (with or without redemption)

    $ 177    $ 2,673

Class I (with or without redemption)

    $ 76    $ 2,429

Class IS (with or without redemption)

    $ 72    $ 2,425

 

1

You may buy Class A shares in amounts of $1,000,000 or more at net asset value (without an initial sales charge) but if you redeem those shares within 12 months of their purchase, you will pay a contingent deferred sales charge of 1.00%.

2

“Other expenses” have been estimated for the current fiscal year. Actual expenses may differ from estimates.

3

Acquired fund fees and expenses (fees and expenses of underlying funds) are based on an estimation of the fund’s allocation to underlying funds for the current fiscal year.

4

Management has contractually agreed to waive fees and reimburse expenses to limit such expenses to 0.99% for Class A shares, 1.74% for Class C shares, 0.99% for Class FI shares, 1.24% for Class R shares, 1.74% for Class R1 shares, 0.74% for Class I shares and 0.70% for Class IS shares until December 31, 2011. Taxes, extraordinary expenses and brokerage commissions (other than brokerage commissions paid on purchases and sales of shares of ETFs) are excluded from this waiver/reimbursement agreement. Acquired fund fees and expenses are subject to the agreement, and are calculated based on an average of the net expense ratio (as shown in the most recent prospectus or shareholder report for each underlying fund as of the date of the Prospectus) of the class of shares of each underlying fund held by the fund, weighted in proportion to the fund’s investment allocation among the underlying funds.

Legg Mason Target Retirement Fund

Fee table

This table sets forth the fees and expenses you may pay if you invest in fund shares. Expense ratios for the current fiscal year may be higher than those shown in the “Annual fund operating expenses” table—for example, if average net assets decrease. Net assets are more likely to decrease and fund expense ratios are more likely to increase when markets are volatile.

SHAREHOLDER FEES (PAID DIRECTLY FROM YOUR INVESTMENT)

 

    CLASS
A		     CLASS
C		     CLASS
FI		   CLASS
R		   CLASS
R1		   CLASS
I		   CLASS
IS

Maximum sales charge (load) imposed on purchases (as a % of offering price)

   5.75 %    None      None   None   None   None   None

Maximum contingent deferred sales charge (load) (as a % of the lower of net asset value at purchase or redemption)

   None 1    1.00 %    None   None   None   None   None

 

17

 

ANNUAL FUND OPERATING EXPENSES (PAID BY THE FUND AS A % OF NET ASSETS)

 

    CLASS
A		     CLASS
C		     CLASS
FI		     CLASS
R		     CLASS
R1		     CLASS
I		     CLASS
IS		  

Management fee

   0.10 %    0.10 %    0.10 %    0.10 %    0.10 %    0.10 %    0.10 % 

Distribution and service (12b-1) fees

   0.25 %    1.00 %    0.25 %    0.50 %    1.00 %    None      None   

Other expenses2

   10.07 %    10.05 %    10.02 %    10.07 %    10.07 %    10.07 %    10.07 % 

Total expenses incurred directly by the fund

   10.42 %    11.15 %    10.37 %    10.67 %    11.17 %    10.17 %    10.17 % 

Acquired fund fees and expenses (fees and expenses of underlying funds)3

   0.53 %    0.53 %    0.53 %    0.53 %    0.53 %    0.53 %    0.53 % 

Total annual fund operating expenses

   10.95 %    11.68 %    10.90 %    11.20 %    11.70 %    10.70 %    10.70 % 

Less contractual fee waiver and/or expense reimbursement4

   (9.96 )%    (9.94 )%    (9.91 )%    (9.96 )%    (9.96 )%    (9.96 )%    (10.00 )% 

Total net annual fund operating expenses4

   0.99 %    1.74 %    0.99 %    1.24 %    1.74 %    0.74 %    0.70 % 

Example

This example helps you compare the costs of investing in the fund with the costs of investing in other mutual funds. Your actual costs may be higher or lower. The example assumes:

 

  •  

You invest $10,000 in the fund for the period shown

 

  •  

Your investment has a 5% return each year — the assumption of a 5% return is required by the SEC for purposes of this example and is not a prediction of the fund’s future performance

 

  •  

You reinvest all distributions and dividends without a sales charge

 

  •  

The fund’s operating expenses, after giving effect to the contractual fee waivers and/or expense reimbursements in effect through December 31, 2011, remain the same as shown in the fee table

 

  •  

The expenses of the underlying funds are reflected

 

NUMBER OF YEARS YOU OWN YOUR SHARES

    1 YEAR    3 YEARS

Class A (with or without redemption)

    $ 670    $ 2,691

Class C (redemption at end of period)

    $ 277    $ 2,431

Class C (no redemption)

    $ 177    $ 2,431

 

18

 

     1 YEAR    3 YEARS

Class FI (with or without redemption)

    $ 101    $ 2,236

Class R (with or without redemption)

    $ 126    $ 2,308

Class R1 (with or without redemption)

    $ 177    $ 2,434

Class I (with or without redemption)

    $ 76    $ 2,182

Class IS (with or without redemption)

    $ 72    $ 2,178

 

1

You may buy Class A shares in amounts of $1,000,000 or more at net asset value (without an initial sales charge) but if you redeem those shares within 12 months of their purchase, you will pay a contingent deferred sales charge of 1.00%.

2

“Other expenses” have been estimated for the current fiscal year. Actual expenses may differ from estimates.

3

Acquired fund fees and expenses (fees and expenses of underlying funds) are based on an estimation of the fund’s allocation to underlying funds for the current fiscal year.

4

Management has contractually agreed to waive fees and reimburse expenses to limit such expenses to 0.99% for Class A shares, 1.74% for Class C shares, 0.99% for Class FI shares, 1.24% for Class R shares, 1.74% for Class R1 shares, 0.74% for Class I shares and 0.70% for Class IS shares until December 31, 2011. Taxes, extraordinary expenses and brokerage commissions (other than brokerage commissions paid on purchases and sales of shares of ETFs) are excluded from this waiver/reimbursement agreement. Acquired fund fees and expenses are subject to the agreement, and are calculated based on an average of the net expense ratio (as shown in the most recent prospectus or shareholder report for each underlying fund as of the date of the Prospectus) of the class of shares of each underlying fund held by the fund, weighted in proportion to the fund’s investment allocation among the underlying funds.

 

 

 

19

 

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