Definitive Materials Filed by Investment Companies. (497)
12 Dezembro 2012 - 12:23PM
Edgar (US Regulatory)
LEGG MASON PARTNERS EQUITY TRUST
SUPPLEMENT DATED DECEMBER 12, 2012
TO THE STATEMENT OF
ADDITIONAL INFORMATION,
DATED SEPTEMBER 30, 2012, OF
LEGG MASON ESEMPLIA EMERGING MARKETS LONG-SHORT FUND
The following supplements the section of the
funds Statement of Additional Information titled Investment Management and Other Services Portfolio Manager Other Accounts Managed by the Portfolio Manager and is as of December 12, 2012:
Other Accounts Managed by the Portfolio Managers
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Type of
Account
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Number of
Accounts
Managed
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Total Assets
Managed ($ in
millions)
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Number of
Accounts
Managed for
which Advisory
Fee is
Performance-
Based
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Assets
Managed for
which Advisory
Fee is
Performance-
Based ($ in
millions)
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Stavros
Triantafilidis
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Registered Investment Companies
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0
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0
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0
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0
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Other pooled investment vehicles
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4
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484
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1
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24.5
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Other accounts
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5
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857
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0
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0
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Michael
Bourke
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Registered Investment Companies
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0
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0
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0
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0
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Other pooled investment vehicles
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4
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484
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1
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24.5
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Other accounts
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5
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857
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0
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0
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Eric
Curiel
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Registered Investment Companies
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0
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0
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0
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0
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Other pooled investment vehicles
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4
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484
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1
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24.5
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Other accounts
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5
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857
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0
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0
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1
The following supplements the section of the funds Statement of Additional Information titled
Investment Management and Other Services Portfolio Manager Portfolio Manager Securities Ownership and is as of December 12, 2012:
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Portfolio Managers
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Dollar Range of Ownership of
Securities ($)
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Stavros Triantafilidis
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0
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Michael Bourke
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0
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Eric Curiel
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0
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The following replaces the section of the funds Statement of Additional Information titled Investment Management and
Other Services Portfolio Manager Portfolio Manager Compensation Structure:
Portfolio Managers Compensation Structure
Esemplia investment professionals receive base salary, other employee benefits and are eligible to receive incentive compensation. Base salary is
fixed and typically determined based on market factors and the skill and experience of individual investment personnel.
Esemplia has implemented an
investment management incentive and deferred compensation plan (the Plan) for its investment professionals, including the funds portfolio managers. Each investment professional works as part of an investment team. The Plan is
designed to align the objectives of Esemplia investment professionals with those of fund shareholders and other Esemplia clients. Under the Plan, a base incentive pool is established each year comprising a fixed floor with an additional incremental
pool calculated based upon a percentage of Esemplias revenue. The firms revenues are typically expected to increase or decrease depending on the firms investment performance as well as inflows and outflows.
The allocation of the incentive pool is then adjusted to reflect its ranking among a peer group of other investment managers in the industry and Esemplias
pre-tax investment performance against the applicable product benchmark (
e.g.
, a securities index and, with respect to the fund, the benchmark set forth in the funds Prospectus to which the funds average annual total returns are
compared or, if none, the benchmark set forth in the funds annual report). The peer group of investment managers is defined by the product style/ type, vehicle type and geography and selected by independent vendors that track and provide
relevant peer group performance and ranking data. Longer-term (5-year) performance will be more heavily weighted than shorter-term (1-year) performance in the calculation of the performance adjustment factor.
The incentive pool may also be adjusted based on other qualitative factors. The allocation of the incentive pool is a matter to be considered by
Esemplias remuneration committee with input and recommendations as appropriate within the firm.
A minimum 15% of an eligible employees
annual incentive compensation is subject to deferral and vests over a period of four years, 25% in each year.
Please retain this
supplement for future reference.
LMFX015196
2