EnTrustPermal
Alternative Core Fund
Share class (Symbol): A (LPTAX), C (LPTCX), I (LPTIX), IS (LPTSX), FI (LPTFX)
C
ONSIDER THE ALTERNATIVE
With so many alternative strategies to
choose from, selecting the right one can
be as challenging as timing the markets.
The chart below shows how important, and difficult, strategy selection
can be. Investors need the expertise of a seasoned alternatives manager
to successfully navigate the vast universe and manage through market
cycles. Consider EnTrustPermal Alternative Core Fund.
Wide dispersion in alternative index returns
As of December 31, 2016
2009
Multi-Strategy
14.4
Emerging Markets
30.0
Global Macro
13.5
Fixed Income
Arbitrage
27.4
Fixed Income
Arbitrage
12.5
Distressed
20.9
Managed Futures
12.2
Multi-Strategy
19.9
Emerging Markets
11.3
Broad Hedge
Fund Index
18.6
Convertible
Arbitrage
11.0
Broad Hedge
Fund Index
10.9
Risk Arbitrage
12.0
2011
2012
2013
2014
Global Macro
6.4
Distressed
11.8
Long/Short Equity
17.7
Managed Futures
18.4
Fixed Income
Arbitrage
4.7
Equity Market
Neutral
4.5
Dedicated
Short Bias
3.8
Convertible
Arbitrage
1.1
Fixed Income
Arbitrage
11.0
Distressed
16.0
Long/Short Equity
5.5
Emerging Markets
10.3
Multi-Strategy
15.3
Multi-Strategy
10.1
Long/Short Equity
8.2
Broad Hedge
Fund Index
9.7
Equity Market
Neutral
9.3
Fixed Income
Arbitrage
4.4
Broad Hedge
Fund Index
4.1
Global Macro
3.1
2015
2016
Long/Short Equity
3.6
Convertible
Arbitrage
6.6
Dedicated
Short Bias
2.4
Equity Market
Neutral
1.7
Convertible
Arbitrage
0.8
Fixed Income
Arbitrage
0.6
Distressed
6.4
Risk Arbitrage
5.9
Emerging Markets
4.5
Fixed Income
Arbitrage
4.3
Broad Hedge
Fund Index
-2.5
Convertible
Arbitrage
7.8
Broad Hedge
Fund Index
7.7
Distressed
10.3
Managed Futures
-4.2
Global Macro
4.6
Risk Arbitrage
4.9
Multi-Strategy
1.1
Emerging Markets
-0.2
Broad Hedge
Fund Index
1.2
Global Macro
11.6
Long/Short Equity
9.3
Distressed
-4.2
Risk Arbitrage
2.8
Global Macro
4.3
Equity Market
Neutral
-1.2
Broad Hedge
Fund Index
-0.7
Long/Short Equity
-3.4
Equity Market
Neutral
4.1
Risk Arbitrage
3.2
Emerging Markets
-6.7
Equity Market
Neutral
0.9
Fixed Income
Arbitrage
3.8
Risk Arbitrage
-1.3
Managed Futures
-0.9
Equity Market
Neutral
-4.6
Long/Short Equity
-7.3
Managed Futures
-2.9
Managed Futures
-2.6
Distressed
-5.3
Managed Futures
-6.8
Multi-Strategy
-12.0
Dedicated
Short Bias
-20.4
Dedicated
Short Bias
-24.9
Multi-Strategy
-6.7
Dedicated
Short Bias
-16.9
Long/Short Equity
19.5
Managed Futures
-6.6
Dedicated
Short Bias
-25.0
2010
Convertible
Arbitrage
47.3
Equity Market
Neutral
-0.8
Dedicated
Short Bias
-22.5
Risk Arbitrage
0.8
Emerging Markets
8.8
Distressed
2.5
Risk Arbitrage
0.4
Global Macro
3.6
Convertible
Arbitrage
6.0
Emerging Markets
1.5
Global Macro
0.2
Multi-Strategy
1.3
Convertible
Arbitrage
-1.7
Dedicated
Short Bias
-5.6
The chart shows the Credit Suisse Hedge Fund Indices which represent the primary strategies used across the entire universe of approximately 7,600 hedge funds. Index definitions are listed
below. These results do not predict the future return of any specific product. Performance shown does not include fees, expenses or sales charges. If included, performance shown would be
lower. An investor cannot invest in an index. Hedge funds are highly speculative investments that employ aggressive investment strategies and carry substantial risk. Investments in hedge
funds are generally illiquid, difficult to value and may carry significant restrictions for transferring assets.
INVESTMENT PRODUCTS: NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
Brandywine Global
Clarion Partners
ClearBridge Investments
EnTrustPermal
Martin Currie
QS Investors
RARE Infrastructure
Legg Mason is a leading global investment company committed to helping clients reach
their financial goals through long-term, actively managed investment strategies.
•
Over $710 billion*
in assets invested
worldwide in a broad
mix of equities, fixedincome, alternatives
and cash strategies
•
A diverse family of
specialized investment
managers, each with
its own independent
approach to research
and analysis
•
Over a century of
experience in identifying
opportunities and
delivering astute
investment solutions
to clients
Royce & Associates
Western Asset
leggmason.com
What should I know before investing?
All investments are subject to risk, including the possible loss of principal. The Fund is a
newly organized, open-end investment company with a limited history of operations. In
addition to the Fund’s operating expenses, you will indirectly bear the operating expenses
of the underlying funds. The Fund may invest in unregistered hedge funds which are
highly speculative investments that employ aggressive investment strategies and carry
substantial risk. Investments in hedge funds are generally illiquid, difficult to value and may
carry significant restrictions for transferring assets. Some of the underlying funds employ
leverage, which increases the volatility of investment returns and subjects the Fund to
magnified losses if an underlying fund’s investments decline in value. The Fund and some
of the underlying funds 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. Some of the underlying funds may employ short selling, 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. The Fund and each underlying fund may
engage in active and frequent trading, resulting in higher portfolio turnover and transaction
costs. There is no assurance that these and other strategies used by the Fund or underlying
funds will be successful. Equity securities are subject to price fluctuation. International
investments are subject to special risks including currency fluctuations, social, economic and
political uncertainties, which could increase volatility. These risks are magnified in emerging
markets. Small-and mid-cap stocks involve greater risks and volatility than large-cap stocks.
Fixed income securities involve interest rate, credit, inflation, and reinvestment risks. As
interest rates rise, the value of fixed income securities fall. High yield bonds possess greater
price volatility, illiquidity, and possibility of default. Please see the prospectus for a more
complete discussion of the Fund’s risks. Diversification does not assure a profit or protect
against market loss.
The Credit Suisse Convertible Arbitrage
Hedge Fund Index is a subset of the Credit
Suisse Hedge Fund Index that measures
the aggregate performance of convertible
arbitrage funds. The Credit Suisse
Emerging Markets Hedge Fund Index is a
subset of the Credit Suisse Hedge Fund Index
that measures the aggregate performance of
emerging markets funds. The Fixed Income
Arbitrage Hedge Fund Index is a subset
of the Credit Suisse Hedge Fund Index that
measures the aggregate performance of fixed
income arbitrage funds. The Credit Suisse
Event Driven Distressed Hedge Fund
Index is a subset of the Credit Suisse Hedge
Fund Index that measures the aggregate
performance of event driven funds that focus
on distressed situations. The Credit Suisse
Event Driven Multi-Strategy Hedge Fund
Index is a subset of the Credit Suisse Hedge
Fund Index that measures the aggregate
performance of multi-strategy event driven
funds. The Credit Suisse Long/Short Equity
Hedge Fund Index is a subset of the Credit
Suisse Hedge Fund Index that measures the
aggregate performance of long/short equity
funds. The Credit Suisse Hedge Fund Index
is an asset-weighted hedge fund index and
includes only funds, as opposed to separate
accounts. The Credit Suisse Event Driven
Risk Arbitrage Hedge Fund Index is a
subset of the Credit Suisse Hedge Fund Index
that measures the aggregate performance
of risk arbitrage funds. The Credit Suisse
Global Macro Hedge Fund Index is a
subset of the Credit Suisse Hedge Fund Index
* As of December 31, 2016.
that measures the aggregate performance
of global macro funds. The Credit Suisse
Past performance is no guarantee of future results.
Equity Market Neutral Hedge Fund
Diversification does not guarantee a profit or protect against a loss.
Index is a subset of the Credit Suisse Hedge 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
Fund Index that measures the aggregate
particular investor, and does not constitute, and should not be construed as, investment advice, forecast of future events, a guarantee of future
performance of equity market neutral funds.
results, or a recommendation with respect to any particular security or investment strategy or type of retirement account. Investors seeking
The Credit Suisse Managed Futures
financial advice regarding the appropriateness of investing in any securities or investment strategies should consult their financial professional.
Hedge Fund Index is a subset of the Credit
Suisse Hedge Fund Index that measures the
© 2017 Legg Mason Investor Services, LLC. Member FINRA, SIPC. Legg Mason Investor Services, LLC is a subsidiary of Legg Mason, Inc.
aggregate performance of managed futures
692343 PRML341232 2/17
funds. The Credit Suisse Dedicated Short
Bias Hedge Fund Index is a subset of the
BEFORE INVESTING, CAREFULLY CONSIDER A FUND’S INVESTMENT OBJECTIVES, RISKS, CHARGES AND
Credit Suisse Hedge Fund Index that measures
EXPENSES. YOU CAN FIND THIS AND OTHER INFORMATION IN EACH PROSPECTUS, AND SUMMARY
the aggregate performance of dedicated short
PROSPECTUS, IF AVAILABLE, AT WWW.LEGGMASON.COM. PLEASE READ THE PROSPECTUS CAREFULLY.
bias funds.