March 1, 2013
Summary
Prospectus
Legg Mason
Capital Management
Value Trust
Class : Ticker Symbol
Before you invest,
you may want to review the funds Prospectus, which contains more information about the fund and its risks. You can find the funds Prospectus and other information about the fund, including the funds statement of additional
information and shareholder reports, online at http://www.leggmason.com/individualinvestors/prospectuses (click on the name of the fund). You can also get this information at no cost by calling the fund at 1-877-721-1926 or by sending an e-mail
request to prospectus@leggmason.com, or from your financial intermediary. The funds Prospectus, dated March 1, 2013, as may be amended or supplemented, the funds statement of additional information, dated March 1, 2013, as may be amended
or supplemented, and the independent registered public accounting firms report and financial statements in the funds annual report to shareholders, dated October 31, 2012, are incorporated by reference into this Summary Prospectus.
INVESTMENT PRODUCTS: NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE
VALUE
Investment objective
Long-term growth of capital.
Fees and expenses of the fund
The accompanying table describes the fees and expenses that you may pay if you buy and hold shares of the fund.
You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $25,000 in funds sold by Legg
Mason Investor Services, LLC (LMIS), the funds distributor. More information about these and other discounts is available from your financial intermediary, in the funds Prospectus on page 18 under the heading Sales
charges and in the funds statement of additional information (SAI) on page 37 under the heading Sales Charge Waivers and Reductions.
The fund no longer offers Class R1 shares for purchase by new or existing investors.
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Shareholder fees
(paid directly from your investment)
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Class A
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Class C
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Class FI
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Class R
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Class R1
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Class I
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Maximum sales charge (load) imposed on purchases (as a % of offering price)
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5.75
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None
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None
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None
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None
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None
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Maximum deferred sales charge (load) (as a % of the lower of net asset value at purchase or redemption) (may be reduced over time)
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Generally,
none
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0.95
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None
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None
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None
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None
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Annual fund operating expenses
(expenses that you pay each year as a percentage of the
value
of your investment)
(%)
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Class A
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Class C
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Class FI
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Class R
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Class R1
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Class I
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Management fees
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0.68
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0.68
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0.68
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0.68
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0.68
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0.68
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Distribution and/or service (12b-1) fees
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0.25
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0.95
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0.25
1
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0.50
1
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1.00
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None
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Other expenses
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0.11
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0.17
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0.14
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0.26
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0.26
2
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0.13
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Total annual fund operating expenses
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1.04
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1.80
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1.07
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1.44
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1.94
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0.81
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1
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The 12b-1 fee shown in the table reflects the amount at which the Board of Trustees (the Board) has currently limited payments under
the funds Class FI and R Distribution Plans. Pursuant to the Distribution Plans, the Board may authorize payments of up to 0.40% and 0.75% of the funds Class FI and R shares average net assets, respectively, without shareholder
approval.
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2
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Other expenses for Class R1 shares are based on estimated amounts for the current fiscal year. Actual expenses may differ from
estimates.
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Example
This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes:
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You invest $10,000 in the fund for the time periods indicated
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Your investment has a 5% return each year and the funds operating expenses remain the same
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You reinvest all distributions and dividends without a sales charge
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Although your actual costs may be higher or lower, based on these assumptions your costs would be:
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Number of years you own your shares ($)
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1 year
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3 years
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5 years
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10 years
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Class A (with or without redemption at end of period)
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674
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886
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1,115
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1,771
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Class C (with redemption at end of period)
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277
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566
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974
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2,115
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Class C (without redemption at end of period)
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182
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566
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974
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2,115
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Class FI (with or without redemption at end of period)
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109
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340
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589
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1,304
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Class R (with or without redemption at end of period)
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147
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456
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788
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1,726
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Class R1 (with or without redemption at end of period)
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196
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608
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1,046
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2,263
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Class I (with or without redemption at end of period)
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82
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258
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449
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1,002
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Portfolio turnover.
The fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio turnover rate indicates higher transaction
costs and may result in higher taxes when shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the funds performance. During the most recent fiscal year, the
funds portfolio turnover rate was 40% of the average value of its portfolio.
Principal investment
strategies
The fund invests primarily in equity securities that, in the portfolio managers opinion, offer the potential for
capital growth. The portfolio managers follow a value discipline in selecting securities, and therefore seek to purchase securities at large discounts to the portfolio managers assessment of their issuers intrinsic value. Intrinsic
value, according to the portfolio managers, is the value of the company measured, to different extents depending on the type of company, on factors such as, but not limited to, the discounted value of its projected future free cash flows, the
companys ability to earn returns on capital in excess of its cost of capital, private market values of similar companies and the costs to replicate the business. The portfolio managers take a long-term approach to investing, and the
funds portfolio turnover tends to be lower than the average equity mutual fund. The fund generally invests in companies with market capitalizations greater than $5 billion, but may invest in companies of any size.
The fund may also invest in debt securities. The fund may invest up to 25% of its total assets in long-term debt securities. Up to 10% of its total
assets may be invested in debt securities rated below investment grade (i.e., below BBB/Baa), commonly known as junk bonds, and unrated securities judged by the adviser to be below investment grade.
The fund may take temporary defensive and cash management positions; in such a case, the fund will
not be pursuing its principal investment strategies and may not achieve its investment objective.
Certain risks
Risk is inherent in all investing. There is no
assurance that the fund will meet its investment objective. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly. You may lose part or all of your investment in the
fund or your investment may not perform as well as other similar investments. The following is a summary description of certain risks of investing in the fund.
Stock market and equity securities risk.
The securities markets
are volatile and the market prices of the funds securities may decline generally. Securities fluctuate in price based on changes in a companys financial condition and overall market and economic conditions. If the market prices of the
securities owned by the fund fall, the value of your investment in the fund will decline. The financial crisis that began in 2008 has caused a significant decline in the value and liquidity of many securities of issuers worldwide. In response to the
crisis, the U.S. and other governments and the Federal Reserve and certain foreign central banks have taken steps to support financial markets. These market conditions may continue, worsen or spread, including in the United States, Europe and
beyond. The withdrawal of this support, failure of efforts to respond to the crisis, or investor perception that such efforts are not succeeding could also negatively affect financial markets generally as well as the value and liquidity of certain
securities. Whether or not the fund invests in securities of issuers located in or with significant exposure to countries experiencing economic and financial difficulties, the value and liquidity of the funds investments may be negatively
affected by the conditions in the countries experiencing the difficulties. In addition, policy and legislative changes in the United States and in other countries are changing many aspects of financial regulation. The impact of these changes on the
markets, and the practical implications for market participants, may not be fully known for some time.
Issuer risk.
The value of a security can go up or down more than the market as a whole and can perform differently from the
value of the market as a whole, often due to disappointing earnings reports by the issuer, unsuccessful products or services, loss of major customers, major litigation against the issuer or changes in government regulations affecting the issuer or
the competitive environment. The fund may experience a substantial or complete loss on an individual security. Historically, the prices of securities of small and medium capitalization companies have generally gone up or down more than those of
large capitalization companies, although even large capitalization companies may fall out of favor with investors.
Risk of investing in fewer issuers.
To the extent the fund invests its assets in a small number of issuers, the fund will be
more susceptible to negative events affecting those issuers.
Market
sector risk.
To the extent the fund invests more heavily in particular market sectors, its performance will be especially sensitive to developments that significantly affect those
market sectors. Individual market sectors may move up and down more than the broader market. The several industries that constitute a market sector may all react in the same way to economic, political or regulatory events.
Portfolio selection risk.
The value of your investment may decrease if the advisers judgment about the attractiveness or value of or market trends affecting a particular security, industry, sector, or region, or about
interest rates is incorrect.
Model risk.
The advisers investment models may not adequately take into account certain factors and may result in the fund having a lower return than if the fund were managed using another model or
investment strategy.
Value investing risk.
The value approach to investing involves the risk that stocks may remain undervalued or decline in price. Value stocks may underperform the overall equity market while the market concentrates on
growth stocks. Although the fund will not concentrate its investments in any one industry or industry group, it may, like many value funds, weight its investments toward certain industries, thus increasing its exposure to factors adversely affecting
issuers within those industries.
Large capitalization company
risk.
Large capitalization companies may fall out of favor with investors.
Small and medium capitalization company risk.
The fund will be
exposed to additional risks as a result of its investments in the securities of small and medium capitalization companies. Small and medium capitalization companies may fall out of favor with investors; may have limited product lines, operating
histories, markets or financial resources; or may be dependent upon a limited management group. The prices of securities of small and medium capitalization companies generally are more volatile than those of large capitalization companies and are
more likely to be adversely affected than large capitalization companies by changes in earnings results and investor expectations or poor economic or market conditions, including those experienced during a recession. Securities of small and medium
capitalization companies may underperform large capitalization companies, may be harder to sell at times and at prices the portfolio managers believe appropriate and may offer greater potential for losses.
Foreign investments risk.
The funds investments in securities of foreign issuers or issuers with significant exposure to foreign markets involve additional risk. Foreign countries in which the fund may invest may have
markets that are less liquid, less regulated and more volatile than U.S. markets. The value of the funds investments may decline because of factors affecting the particular issuer as well as foreign markets and issuers generally, such as
unfavorable government actions, and political or financial instability. Lack of information may also affect the value of these securities.
The risks of foreign investments are heightened when investing in issuers in emerging market
countries. Because the value of a depositary receipt is dependent upon the market price of an underlying foreign security, depositary receipts are subject to most of the risks associated with investing in foreign securities directly.
Currency
risk.
The value of investments in securities denominated in foreign currencies increases or decreases as the rates of exchange between those currencies and the U.S. dollar change.
Currency conversion costs and currency fluctuations could erase investment gains or add to investment losses. Currency exchange rates can be volatile, and are affected by factors such as general economic conditions, the actions of the U.S. and
foreign governments or central banks, the imposition of currency controls and speculation.
Convertible securities risk.
Convertible securities are subject to market and interest rate risk and credit risk. When the
market price of the equity security underlying a convertible security decreases, the convertible security tends to trade on the basis of its yield and other fixed income characteristics, making the convertible security more susceptible to credit and
interest rate risks. When the market price of such an equity security rises, the convertible security tends to trade on the basis of its equity conversion features and be more exposed to market risk. Convertible securities are typically issued by
smaller capitalized companies whose stock prices may be volatile.
Special risks of companies undergoing reorganization or restructuring.
Investing in companies undergoing reorganization or restructuring involves special risks including that the transaction may not be completed on the terms or time frame contemplated (if at all), it
may be difficult to obtain information on the financial condition of such companies, the issuers management may be addressing a type of situation with which it has little experience, and the fact that the market prices of such securities are
subject to above-average price volatility.
Cash management and
defensive investing risk.
The value of the investments held by the fund for cash management or defensive investing purposes can fluctuate. Like other fixed income securities, they
are subject to risk, including market, interest rate and credit risk. If the fund holds cash uninvested it will be subject to the credit risk of the depository institution holding the cash. If the fund holds cash uninvested, the fund will not earn
income on the cash. If a significant amount of the funds assets are used for cash management or defensive investing purposes, it may not achieve its investment objective.
Valuation risk.
The sales price the fund could receive for any
particular portfolio investment may differ from the funds valuation of the investment, particularly for securities that trade in thin or volatile markets or that are valued using a fair value methodology. Investors who purchase or redeem fund
shares on days when the fund is holding fair-valued securities may receive fewer or more shares or lower or higher redemption proceeds than they would have received if the fund had not fair-valued the security or had used a different valuation
methodology.
Risk of increase in expenses.
Your actual costs of investing in the fund may be higher than the expenses shown in Annual fund operating expenses for a variety of reasons. For example, expense ratios may be higher
than those shown if a fee limitation is changed or terminated or 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.
Funds of funds investments risk.
The fund may be an investment option for other Legg Mason-advised mutual funds that are managed as funds of funds. As a result, from time to time, the fund may experience relatively
large redemptions or investments and could be required to sell securities or to invest cash at a time when it is not advantageous to do so.
Fixed income securities risk.
Fixed income securities are
subject to a number of risks, including credit, market and interest rate risks. Credit risk is the risk that the issuer or obligor will not make timely payments of principal and interest. Changes in an issuers credit rating or the
markets perception of an issuers creditworthiness may also affect the value of the funds investment in that issuer. Market risk is the risk that the fixed income markets may become volatile and less liquid, and the market
value of an investment may move up or down, sometimes quickly or unpredictably. Interest rate risk is the risk that the value of a fixed income security will fall when interest rates rise. In general, the longer the maturity and the lower the
credit quality of a fixed income security, the more likely its value will decline.
High yield or junk bond risk.
Debt securities that are below investment grade, often called junk bonds,
are speculative, have a higher risk of default or may be in default, tend to be less liquid and are more difficult to value than higher grade securities. Junk bonds tend to be volatile and more susceptible to the effects of adverse events and
negative sentiments.
* * *
These risks are discussed in more detail in the funds Prospectus or in the SAI.
Performance
The accompanying bar chart and table provide some indication of the risks of investing in the fund. The bar chart shows changes in the funds performance from year to year for Class C shares.
The table shows the average annual total returns of each class of the fund that has been in operation for at least one full calendar year and also compares the funds performance with the average annual total returns of an index or other
benchmark. Performance for classes other than those shown may vary from the performance shown to the extent the expenses for those classes differ. The fund makes updated performance information available at the funds website,
http://www.leggmason.com/individualinvestors/products/mutual-funds/annualized_performance (select share class), or by calling the fund at 1-877-721-1926.
The funds past performance (before and after taxes) is not necessarily an indication
of how the fund will perform in the future.
Sales charges are not reflected in the accompanying bar chart, and if those
charges were included, returns would be less than those shown.
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Total returns
(before
taxes)
(%)
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Best quarter
(ended 06/30/2009): 29.04
Worst quarter
(ended 12/31/2008):
(28.97)
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Average annual total returns
(for periods ended December 31, 2012)
(%)
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1 year
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5 years
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10 years
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Since
inception
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Inception
date
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Class C
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Return before taxes
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14.14
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(5.71)
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2.22
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Return after taxes on distributions
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13.88
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(5.98)
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1.94
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Return after taxes on distributions and sale of fund shares
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9.19
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(4.81)
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1.94
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Other Classes (Return before taxes only)
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Class A
1
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9.30
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N/A
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N/A
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15.28
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2/2/09
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Class FI
1
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15.96
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(5.07)
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2.91
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Class R
1
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15.53
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(5.36)
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N/A
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(5.58)
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12/28/06
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Class I
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16.24
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(4.78)
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3.24
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S&P 500 Index (reflects no deduction for fees, expenses or taxes)
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16.00
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1.66
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7.10
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1
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For the period February 2, 2009 (commencement of operations of Class A) to December 31, 2012 and the period December 28, 2006
(commencement of operations of Class R) to December 31, 2012, the average annual total return of the S&P 500 Index was
17.56% and
2.21%, respectively.
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The after-tax returns are
shown only for Class C shares, are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investors tax situation and
may differ from those shown, and the after-tax returns shown are not relevant to investors who hold their fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns for classes other than
Class C will vary from returns shown for Class C. Returns after taxes on distributions and sale of fund shares are higher than returns before taxes for certain periods shown because they reflect the tax benefit of capital losses realized on the
redemption of fund shares.
Management
Manager:
Legg Mason Capital Management, LLC
Portfolio managers:
Sam Peters, CFA, is the portfolio manager for the fund and has day-to-day responsibility for managing the funds portfolio. Mr. Peters is Chief Investment Officer for LMCM and has been a
portfolio manager for the fund since November 2010.
Mary Chris Gay is assistant portfolio manager for the fund. Ms. Gay is a
Senior Vice President for LMCM and has been assistant portfolio manager for the fund since March 2006. Ms. Gay provides the portfolio manager with research and investment assistance.
Purchase and sale of fund shares
You may purchase, redeem or exchange shares of the fund each day the New York Stock Exchange (NYSE) is open, at the funds net asset value determined after receipt of your request
in good order, subject to any applicable sales charge.
The funds initial and subsequent investment minimums generally are as
follows:
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Investment minimum initial/additional investment ($)
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Class A
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Class C
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Class FI
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Class R
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Class R1
1
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Class I
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General
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1,000/50
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1,000/50
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N/A
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N/A
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N/A
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1 million/None*
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Uniform Gifts or Transfers to Minor Accounts
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1,000/50
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1,000/50
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N/A
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N/A
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N/A
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1 million/None*
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IRAs
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250/50
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250/50
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N/A
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N/A
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N/A
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1 million/None*
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SIMPLE IRAs
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None/None
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None/None
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N/A
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N/A
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N/A
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1 million/None*
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Systematic Investment Plans
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50/50
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50/50
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N/A
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N/A
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N/A
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1 million/None*
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Clients of Eligible Financial Intermediaries
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None/None
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N/A
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None/None
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None/None
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N/A
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None/None
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Eligible Investment Programs
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None/None
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N/A
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None/None
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None/None
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None/None
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None/None
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Retirement Plans with omnibus accounts held on the books of the fund and certain rollover IRAs
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None/None
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None/None
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None/None
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None/None
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None/None
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None/None
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Other Retirement Plans
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None/None
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None/None
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N/A
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N/A
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N/A
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1 million/None*
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Institutional Investors
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1,000/50
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1,000/50
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N/A
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N/A
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N/A
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1 million/None
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1
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Class R1 shares are closed to all new purchases and incoming exchanges.
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*
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Available to investors investing directly with the fund.
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Your financial intermediary may impose different investment minimums.
For more
information about how to purchase, redeem or exchange shares, and to learn which classes of shares are available to you, you should contact your financial intermediary, or, if you hold your shares or plan to purchase shares through the fund, you
should contact the fund by phone at 1-877-721-1926 or by mail at Legg Mason Funds, P.O. Box 55214, Boston, MA 02205-8504.
Tax
information
The funds distributions are taxable as ordinary income or capital gain, except when your investment is through an IRA,
401(k) or other tax-advantaged account.
Payments to broker/dealers and other financial intermediaries
The funds related companies may pay broker/dealers or other financial intermediaries (such as a bank) for the sale of fund shares and related
services. These payments create a conflict of interest by influencing your broker/dealer or other intermediary or its employees or associated persons to recommend the fund over another investment. Ask your financial adviser or salesperson or visit
your financial intermediarys or salespersons website for more information.
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