Private Asset Management

Foreign Equity Funds

LMC GC International Equity Fund*

Investment Objective

The investment objective for the LMC GC International Equity Fund is to provide long term growth by investing primarily in a diversified portfolio of common shares of companies participating in the world economy that are listed on exchanges located outside of Canada and the United States. Investments are primarily in companies based in Europe, the Pacific Rim, Japan, and may also include those in emerging markets.

Investment Strategy

A strict bottom-up stock selection process uses rigorous independent analysis that focuses on the long term and that targets quality. This approach consistently selects those companies that have the greatest ability to create value for shareholders. Quantitative screens based on price-to-current-earnings, price-to-book, and price-to-cash flow ratios reduce the universe of securities to those that meet Global Currents’ definition of value. In-depth fundamental analysis further refines the universe from which the most attractive stocks are selected.

The focus is on stock selection rather than on top-down analysis. Global Currents aggregates the most attractive stocks and compares their valuations in each market and sector to then overweight those with the most upside potential and the least downside risk. The weight for each stock holding ranges from 1% to 4% at cost and is impacted by upside potential, fundamental conviction, impact upon diversification, and client-directed guidelines. In general, 14 to 18 countries are represented to form portfolios of 65 to 80 foreign stocks.

Returns for the Period ended: June 30, 2010¹

	1 Mth. %	3 Mth. %	Year to Date %	1 Yr. %	3 Yrs.² %	5 Yrs.² %	10 Yrs.² %	Since Inception² %
LMC GC International Equity Fund	-1.5	-9.4	-11.5	-2.0	-14.2	-2.3	-4.9	N/A
MSCI EAFE TR³	0.3	-9.9	-12.1	-3.1	-13.4	-2.0	-3.1

Calendar Year Returns

	2009 %	2008 %	2007 %	2006 %	2005 %
LMC GC International Equity Fund	9.9	-30.3	-6.6	24.9	16.7
MSCI EAFE TR³	11.9	-29.2	-5.7	25.9	10.7

^* Legg Mason Canada Inc. is the manager and portfolio adviser of Legg Mason GC International Equity Fund (LMC International Equity Fund). The manager has hired Global Currents Investment Management, LLC as portfolio sub-adviser to manage the fund’s portfolio. Global Currents Investment Management, LLC and Legg Mason Canada Inc. are wholly-owned subsidiaries of Legg Mason, Inc., a global asset management firm listed on the New York Stock Exchange.

The offering of the fund is not, and under no circumstances is to be construed as, an advertisement or a public offering of such securities. The fund is offered to Canadian resident investors pursuant to certain securities laws exemptions available to investors in their particular province or territory of residence. The fund is offered only in those jurisdictions where it may be lawfully offered for sale. An eligible investor should obtain and refer to the Confidential Offering Memorandum for the Legg Mason Canada Pooled Funds before investing. No securities commissions or similar authority in Canada has reviewed or in any way passed upon this document or the merits of the securities described therein, and any representations to the contrary is an offence.

¹ The rates of return are used only to illustrate the effects of the compound growth rate and are not intended to reflect future values of the mutual funds or returns on the investment in the mutual funds. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing.

² Sceptre Private Asset Management Fund Units are available for institutional and high net worth investors including other funds. Only investors who meet our discretionary account requirements and minimum investment levels will be eligible to purchase these Units.

³In Canadian dollar terms.