1. Legg Mason Investment Forum: The Power of Choice
Sean Mackley
Head of Wealth Management March 27-28, 2018
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2. Expanding Client Choice:
Asset Class and Investment Strategies
Acquired 2016
Merger 2016
Acquired 2014
Acquired 2014
Acquired 2015

3. Expanding Client Choice:
Investment Product and Vehicles
Mutual Funds
SMAs
ETFs
Active ETFs
CITs
Private Funds
UCITS 1
1 Minority investment (with an option to purchase a majority position)

4. Expanding Client Choice:
Distribution and Client Access
Global Distribution 1
1 Minority investment

5. Agenda
Tuesday, March 27
1:00pm – 1:50pm Fears and Fundamentals in Today’s Bond Market
Kenneth Leech, Chief Investment Officer, Western Asset
1:50pm – 2:40pm Short-Term Volatility, Long-Term Opportunity
Evan Bauman, Portfolio Manager, ClearBridge Investments
2:40pm – 2:55pm Break
2:55pm – 3:35pm Breakout Roundtable 1
Please refer to the back of your name badges for your breakout assignments based on your registration selections
4:40pm – 4:20pm Breakout Roundtable 2
4:25pm – 5:05pm Breakout Roundtable 3
5:10pm – 5:50pm Breakout Roundtable 4
5:50pm – 6:30pm Cocktails – Western Asset Lobby
6:30pm Dinner – Alexander’s Steakhouse – adjacent to the Westin Hotel

6. Agenda Wednesday, March 28 7:30am – 8:00am Breakfast
The Westin Hotel, Courtyard
8:15am – 9:15am Promoting Sustainability Through Integration and Engagement
MJ McQuillen, Portfolio Manager, Head of ESG Investment Program, ClearBridge Investments
Steve Lippman, Director of Technology and Corporate Responsibility, Microsoft
9:15am – 10:15am What’s Inside the Wrapper? Legg Mason’s Approach to ETFs
Moderated by Josh Greco, QS Investors
Brandon Clark, ETF Product Management, Legg Mason
Tim Gilligan, ETF Product Specialist, Legg Mason
Mike LaBella, Portfolio Manager, Equity Strategist, QS Investors
10:15am – 10:30am Break

7. Wednesday, March 28 continued…
Agenda
Wednesday, March 28 continued…
10:30am – 11:15am International Stocks: Still Room to Run
Kim Catechis, Head of Global Emerging Markets, Martin Currie
Elisa Mazen, Head of Global Growth, Portfolio Manager, ClearBridge Investments
Mark Rayner, Portfolio Manager, Royce & Associates
11:15am – 11:45am Key Themes Driving Real Estate in 2018
Tim Wang, Head of Investment Research, Clarion Partners
11:45am – 12:30pm Innovation, Technology and Product Design
Roger Paradiso, Head of Alternative Distribution Strategies, Legg Mason Ann Doyle, Head of Product Analytics and Reporting, Legg Mason
12:30pm – 1:00pm Meeting Wrap-up
1:00pm Lunch & Departures

8. Polling Questions:
1) In addition to client objective/goals what considerations do you consider when constructing a portfolio? (rank in order of importance)
Style box diversification ( nine style box)
Factor exposures (value, quality, momentum, low volatility, size, etc….)
Fee budget
Risk budget
Macro environment
Recent investment strategy risk/return profile
Long term Investment strategy performance risk/return profile
2) How would you describe the U.S. equity allocation in your portfolios today?
Overweight
Underweight
Neutral
3) Which of the following so you see as major risks to be addressed when managing your client’s asset allocations over the next 12 months? (select all that apply)
Inflation
Ability to find investments to meet return requirements to meet clients’ goals
Rising rates
Ability to generate an appropriate level of income
Volatility
Geopolitics
Traditional asset classes being highly correlated
4) Based on those worries - what asset class do you think you will increase over the next twelve months? (select all that apply)
Domestic Equities
Developed Non-US Equities
Emerging Market Equities
ESG Portfolios
Domestic Fixed Income
Global Fixed Income
Emerging Market Debt
High Yield
Alternatives (Long/Short Equity and Debt, Global Macro, Managed Futures, ect….)
Real Assets (Real Estate, Infrastructure, Commodities, etc….)
Private Assets (Private Equity, Venture Capital, Private Debt, etc….)
Cash 1

9. Polling Questions:
5) Based on those worries - what asset classes do you think you will reduce over the next twelve months? (select all that apply)
Domestic Equities
Developed Non-US Equities
ESG Portfolios
Emerging Market Equities
Domestic Fixed Income
Global Fixed Income
Emerging Market Debt
High Yield
Alternatives (Long/Short Equity and Debt, Equity Market Neutral, Global Macro, Managed Futures, ect….)
Real Assets (Real Estate, Infrastructure, Commodities, etc….)
Private Assets (Private Equity, Venture Capital, Private Debt, etc….)
Cash
6) Which alternative investment strategies or asset classes provide the most benefits to investors? (rank in order of benefits – high to low)
Long/Short Equity
Equity Market Neutral
ESG portfolios
Global Macro
Managed Futures
Private Real Estate
Private Infrastructure
Commodity Strategies
Private Equity
Venture Capital
Mezzanine Debt
Publicly Listed Infrastructure Equity and REITs
7) Which investment vehicles will be found in your clients’ portfolios 12 months from now? (rank in order of potential usage)
________Mutual Funds
________ETFs
________Separately Managed Accounts (SMAs)
________Interval Funds
________Private Vehicles
8. What is the biggest disconnect you have today between what you are advising clients to do and what they are doing? 1