2Q 2021 Separately Managed Accounts

LEGG MASON

ALTERNATIVE COMPLETION PORTFOLIOS

Investment overviewThe Legg Mason Alternative Completion Portfolios are an optimized, global allocation that seeks to complement traditional equity and fixed income by investing in affiliated funds and third party ETFs that offer more flexibility from traditional investment constraints.

Investment objectiveSeeks long-term capital appreciation by providing a complementary portfolio of lowly correlated return streams that provides return potential regardless of market direction.

Investment philosophyQS believes an allocation to strategies that are lowly correlated with traditional indices increases diversification and improves the return/risk profile of a portfolio.

Key differentiators• A global portfolio of non-traditional fixed income and equity strategies that offer

lower correlation to traditional asset classes and may be used to generate alpha, manage risk and complete asset allocations.

• Leverages the asset allocation expertise of QS Investors, a multi-asset class solutions manager with a singular mission to elevate the certainty of outcomes they deliver to investors through a deeper understanding of investment and human dynamics.

• Provides ease of access to the expertise of a diverse group of specialist investment managers including Western Asset and Brandywine Global, and third party ETFs – in a single portfolio.

Management teamQS Investors is a quantitative asset manager that provides multi-asset class and global equity solutions. Their approach unites intellectual and academic precision with the power of data and technology in their quest to elevate the certainty of outcomes they deliver.

QS Investors team-managed approachDiverse team of scientists, mathematicians, engineers, finance and investment experts work together to build and manage portfolios.

Risks: All investments involve risk, including the loss of principal, and there is no guarantee that investment objectives will be met.Fixed income securities involve interest rate, credit, inflation and reinvestment risks; and possible loss of principal. As interest rates rise, the value of fixed income securities falls. High-yield bonds are subject to greater price volatility, illiquidity and possibility of default.Asset-backed, mortgage-backed or mortgage-related securities are subject to prepayment and extension risks.International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets.Equity securities are subject to price fluctuation and possible loss of principal.Derivatives, such as options and futures, can be illiquid, may disproportionately increase losses, and have a potentially large impact on Portfolio performance.Certain underlying strategies may use derivatives to a significant extent, which could result in substantial losses and greater volatility in the Portfolio’s net assets.Leverage may increase volatility and possibility of loss.Short selling is a speculative strategy. Unlike the possible loss on a security that is purchased, there is no limit on the amount of loss on an appreciating security that is sold short.Active and frequent trading may increase a shareholder’s tax liability and transaction costs, which could detract from Portfolio performance.Some underlying strategies may be classified as non-diversified, which means they may be permitted to invest a higher percentage of its assets in any one issuer than a diversified Portfolio, which may magnify the strategy’s losses from events affecting a particular issuer.The managers’ investment style may become out of favor and/or the manager’s selection process may prove incorrect, which may have a negative impact on strategy performance.Active management does not ensure gains or protect against market declines.Diversification does not assure a profit or protect against market loss.

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

Investment processQS Investors uses a systematic investment process for portfolio construction. The multi-strategy process incorporates sophisticated statistical techniques to build a complementary portfolio with exposure to global fixed income – including credit and sovereigns – hedge fund strategies and mergers/acquisitions using the available universe of affiliated strategies and third party liquid alternative ETFs.

Identify the universe of uncorrelated, alpha-generating strategies among both affiliated managers and external third party ETF managers. Choose strategies based on: historical performance, sources of risk and consistency of alpha. Ensure managers are delivering the risk that is expected.

Combine multiple managers with dedicated expertise and differentiated styles to help provide portfolio diversification and manage risk.

Optimize allocations to balance exposure across managers, styles and regions.

Review allocations annually.

Performance

Annualized rates of return - gross and net of fees (%) as of June 30, 2021 - PRELIMINARY Incep: 4/30/2018

Jun ‘21 Q2 ‘21 YTD 1-year 2-year 3-yearSince

InceptionAlternative Completion (pure gross) 0.75 2.77 1.51 9.78 4.16 3.97 2.39Alternative Completion (net) 0.51 2.02 0.02 6.60 1.13 0.94 -0.60HFRX Global Hedge Fund Index 0.38 2.41 3.73 12.01 7.46 4.22 3.95

Calendar-year total returns - pure gross and net of fees (%) ending December 31

2020 2019Alternative Completion (pure gross) 4.89 5.50Alternative Completion (net) 1.84 2.43HFRX Global Hedge Fund Index 6.81 8.62

The strategy returns shown are preliminary composite returns, subject to future revision (downward or upward). Please visit www.leggmason.com for the latest performance figures. Investors cannot invest directly in an index, and unmanaged index returns do not reflect any fees, expenses or sales charges.

Fees: Returns for periods less than one year are not annualized. Pure gross of fee returns do not reflect the deduction of any expenses, including transaction costs. Net performance includes the deduction of a 3.0% annual wrap fee, which is the maximum anticipated wrap fee for equity and balanced portfolios. Actual fees vary. For fee schedules, contact your financial professional, or if you enter into an agreement directly with Legg Mason Private Portfolio Group (LMPPG), refer to LMPPG’s Form ADV disclosure document. Returns reflect the reinvestment of dividends and other earnings. All performance is reported in US dollars.

The performance shown for the Legg Mason Alternative Completion strategy reflects the performance of an account that is invested in the Class IS shares of the Legg Mason mutual funds that are included in the portfolios. Sponsor firms offering the Legg Mason Alternative Completion strategy on their platform may request that QS Investors, LLC (QS) provide a model portfolio for the Legg Mason Alternative Completion strategy utilizing the Class I share of the Legg Mason mutual funds. Because Class IS shares have a lower expense ratio than Class I shares, the performance shown for the strategy is higher than it would have been had Class I shares been utilized.

Past performance is not a guarantee of future results. To obtain specific information on available products and services or a GIPS® Report, contact your Franklin Templeton separately managed account sales team at (800) 822-8464. QS Investors, LLC claims compliance with the Global Investment Performance Standards (GIPS®). GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein. Management and performance of individual accounts may vary for reasons that include the existence of different implementation practices and model requirements in different investment programs.The investment process may change over time. The characteristics set forth above are intended as a general illustration of some of the criteria the strategy team considers in selecting securities for client portfolios. There is no guarantee that investment objectives will be achieved.

Portfolio information as of June 30, 2021

Target allocation (%)

IQ Hedge Multi-Strategy Tracker ETF 30IQ Merger Arbitrage ETF 20BrandywineGLOBAL - Global Unconstrained Bond Fund 20BrandywineGLOBAL - Alternative Credit Fund 18Western Asset Macro Opportunities Fund 12

Characteristics (%)

Number of Holdings 5Weighted Average Underlying Expense Ratio 1.04

Performance statistics (pure gross of fees)1 — Preliminary (based on 3-year period ended June 30, 2021)

Risk/return profile (%)

0 2 4 6 8

0

2

4

6

8

Ann

ualiz

ed r

ate

of r

etur

n (%

)

Risk (% annualized standard deviation)

Alternative Completion

Rate of return 3.97

Standard deviation 6.59

HFRX Global Hedge Fund Index

Rate of return 4.22

Standard deviation 5.72

Growth of $100,0002

2018 2019 2020 20210K

20K

40K

60K

80K

100K

120K

Alternative CompletionHFRX Global Hedge Fund Index

$112,378 $113,217

The strategy returns shown are preliminary composite returns, subject to future revision (downward or upward). Please visit www.leggmason.com for the latest performance figures. Investors cannot invest directly in an index, and unmanaged index returns do not reflect any fees, expenses or sales charges.

The targeted allocation is subject to change at any time. Actual client weightings of individual client portfolios in the program may differ from those shown. This information does not constitute and should not be construed as, investment advice or recommendations with respect to the securities listed.Portfolio characteristics are subject to change at any time and are based on a representative portfolio. Portfolio characteristics of individual client portfolios in the program may differ, sometimes significantly, from those shown. This information does not constitute, and should not be construed as, investment advice or recommendations with respect to the securities and sectors listed.

1 Source: Franklin Resources, Inc.2 For illustrative purposes only. Assumes no withdrawals or contributions. These statistics are based on pure gross-of-fees quarterly composite returns, were calculated assuming reinvestment of dividends

and income, and take into account both realized and unrealized capital gains and losses.

At Franklin Templeton, everything we do has a single focus: to deliver better client outcomes.

• We have deep expertise across equity, fixed income, alternatives, multi-asset solutions and cash strategies

• We offer an unmatched range of specialist investment managers, consisting of more than 1,300 investment professionals

• Over 70 years of experience in identifying opportunities and delivering investment solutions to clients.

leggmason.com

Any information, statement or opinion set forth herein is general in nature, is not directed to or based on the financial situation or needs of any particular investor, and does not constitute, and should not be construed as, investment advice, forecast of future events, a guarantee of future results, or a recommendation with respect to any particular security or investment strategy or type of retirement account. Investors seeking financial advice regarding the appropriateness of investing in any securities or investment strategies should consult their financial professional. Separately Managed Accounts (SMAs) are investment services provided by Legg Mason Private Portfolio Group, LLC (LMPPG), a federally registered investment advisor. Client portfolios are managed based on investment instructions or advice provided by one or more of the following Franklin Templeton affiliated subadvisors: QS Investors, LLC. Management is implemented by LMPPG, the designated subadvisor or, in the case of certain programs, the program sponsor or its designee. These materials are being provided for illustrative and informational purposes only. The information contained herein is obtained from multiple sources that are believed to be reliable. However, such information has not been verified, and may be different from the information included in documents and materials created by the sponsor firm in whose investment program a client participates. Some sponsor firms may require that these materials be preceded or accompanied by investment profiles or other documents or materials prepared by such sponsor firms, which will be provided upon request. For additional information, documents and/or materials, please speak to your Financial Professional or contact your sponsor firm. www.leggmason.com ©2021 Franklin Distributors, LLC. Member FINRA/SIPC. Franklin Distributors, LLC and QS Investors, LLC (which combined October 1, 2020 with Franklin Templeton Multi-Asset Solutions (FTMAS) to form Franklin Templeton Investment Solutions (FTIS)) are Franklin Templeton affiliated companies. 1000869 AMXX605119 LMACP FF