Legg Mason : Launches Global Infrastructure ETF

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Maria Rosati

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LEGG MASON LAUNCHES GLOBAL INFRASTRUCTURE ETF Focused Exposure to Listed Global Infrastructure Expands Opportunities BALTIMORE, MD - January 9, 2017 - Legg Mason Inc., (NYSE:LM), today announced that it has launched the Legg Mason Global Infrastructure ETF (Nasdaq:INFR) which is sub-advised by RARE Infrastructure, a Legg Mason affiliate. The ETF seeks to provide income and capital appreciation through a diversified portfolio of global infrastructure securities across developed and emerging markets.

Infrastructure investments represent an increasingly important asset class for the market and are expected to grow 124 percent, to $110 trillion by 2030i which has generated greater interest from investors actively seeking alternative options that can provide risk-adjusted returns while offering growth, income and diversification greater than many equity and fixed income products.

Infrastructure assets are essential services that serve communities around the world such as airports, roads, rails, water, electrical and gas lines that local, national and global economies require to function and prosper by creating jobs and generating increased productivity. Infrastructure has the potential for attractive characteristics that are desirable to investors, which can include a strong risk/return profile, income, lower correlation to traditional asset classes and the potential for inflation sensitive returns.

Expansion in infrastructure will be driven by both developed markets and emerging markets - developed markets need to update an aging infrastructure while emerging markets are growing as a result of rising populations, urbanization and the demand for cleaner energy and better transport links.

"We see many attractive long-term opportunities in listed infrastructure. Fundamental values remain strong in many infrastructure subsectors, with favorable operating conditions and predictable cash flows. Many companies have had strong earnings and dividend growth and have had lower long-term correlations to other asset classes which can lead to diversification benefits and downside management. We have drawn on our specialist knowledge and experience to design the Legg Mason Global Infrastructure ETF. This rules based investment vehicle dynamically weights between two broad categories of utilities and economically-sensitive assets in seeking to achieve strong risk adjusted returns to equity through an economic cycle," said Charles Hamieh, Portfolio Manager of the fund.

# # # About RARE Infrastructure

Established in 2006, RARE is a dedicated infrastructure investment manager focused on global listed infrastructure. Our investment approach is reflected in our name - Risk Adjusted Returns to Equity (RARE). RARE provides investors with high quality portfolios of listed infrastructure securities, focused around three key areas: global value, emerging markets and yield. Headquartered in Sydney, with offices in Melbourne, London and Chicago.

About Legg Mason

Legg Mason is a global asset management firm with $707 billion in assets under management as of November 30, 2016. The Company provides active asset management in many major investment centers throughout the world. Legg Mason is headquartered in Baltimore, Maryland, and its common stock is listed on the New York Stock Exchange (symbol: LM).

The Fund is newly organized, with a limited history of operations. Equity securities are subject to price fluctuation and possible loss of principal. Income and yields will fluctuate and are not guaranteed. Diversification does not guarantee a profit or protect against loss. Companies in the infrastructure industry may be subject to a variety of factors that could adversely affect their business or operations, including high interest costs in connection with capital construction programs, high degrees of leverage, costs associated with governmental, environmental and other regulations, the effects of economic slowdowns, increased competition from other providers of services, uncertainties concerning costs, the level of government spending on infrastructure projects, and other factors. 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. In rising markets, the value of large-cap stocks may not rise as much as smaller- cap stocks. Small- and mid-cap stocks involve greater risks and volatility than large-cap stocks. The Fund may focus its investments in certain industries, increasing its vulnerability to market volatility. There is no guarantee that the Fund will achieve a high degree of correlation to the index it seeks to track. The Fund does not seek to outperform the index it tracks, and does not seek temporary defensive positions when markets decline or appear overvalued. Derivatives, such as options and futures, can be illiquid, may disproportionately increase losses and have a potentially large impact on Fund performance.

Before investing, carefully consider a Fund's investment objectives, risks, charges and expenses. You can find this and other information in each prospectus, or summary prospectus, if available, which is available at www.leggmason.com/etf. Please read it carefully.

All investments involve risk, including loss of principal. Past performance is no guarantee of future results. Fixed income securities involve interest rate, credit, inflation and reinvestment risks; and possible loss of principal. As interest rates rise, the value of fixed income securities falls.

Any information, statements and opinions set forth herein are general in nature, are not directed to or based on the financial situation or needs of any particular investor, and does not constitute, and should not be construed as, investment advice, forecast of future events, a guarantee of future results, or a recommendation with respect to any particular security or investment strategy. Investors seeking financial advice regarding the appropriateness of investing in any securities or investment strategies should consult their financial professional.

2017 Legg Mason Investor Services, LLC, member FINRA, SIPC. Legg Mason Investor Services, LLC and RARE Infrastructure, LLC are subsidiaries of Legg Mason, Inc.

INVESTMENT PRODUCTS: NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE

Dividends are not guaranteed, and a company may reduce or eliminate its dividend at any time.

i Research conducted by David Hale in December 2014.