The Funds announced that the board of directors of each Fund has set a record date of March 9, 2020 for determining those stockholders of each Fund entitled to notice of and to vote at the special meeting of stockholders, or at any adjournment thereof, to be held on or about June 5, 2020 at the offices of the Funds.
As was previously announced, Franklin Resources, Inc. (“Franklin Resources”) and Legg Mason, Inc. (“Legg Mason”) have entered into a definitive agreement for Franklin Resources to acquire Legg Mason. The Funds’ investment manager, Legg Mason Partners Fund Advisor, LLC (the “Manager”), is a wholly-owned subsidiary of Legg Mason and would become a wholly-owned subsidiary of Franklin Resources as a result of the transaction. The Funds are sub-advised by other affiliates of Legg Mason that also would be acquired by Franklin Resources as a result of the transaction. The transaction is subject to approval by Legg Mason’s shareholders and customary closing conditions, including receipt of applicable regulatory approvals. Subject to such approvals and the satisfaction of the other conditions, the transaction is expected to be consummated later this year.
Under the Investment Company Act of 1940, consummation of the transaction will result in the automatic termination of each Fund’s investment management contract with the Manager, and any related sub-advisory contract(s), where applicable. Therefore, at the special meeting stockholders of each Fund will be asked to consider a new investment management contract for each Fund (and any new sub-advisory contract(s), if applicable).
In connection with the proposal to approve the new investment management contract for each Fund (any new sub-advisory contract(s), if applicable), each Fund intends to file a definitive proxy statement with the Securities and Exchange Commission (the “SEC”). Stockholders are advised to read their Fund’s proxy statement when it becomes available because it will contain important information. When filed with the SEC, the proxy statement and other documents filed by the Funds will become available for free on the SEC website, www.sec.gov. Copies of the proxy statement will also be mailed to each stockholder of record as of the record date for the special stockholder meeting.
An investment in a Fund involves risk, including loss of principal. Investment return and the value of shares will fluctuate. Any data and commentary provided in this press release are for informational purposes only.
This press release may contain statements regarding plans and expectations for the future that constitute forward-looking statements within the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on each Fund’s current plans and expectations, and are subject to risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Additional information concerning such risks and uncertainties are contained in each Fund’s filings with the SEC.
For more information, please call Investor Relations: 1-888-777-0102, or consult the Funds’ web site at www.lmcef.com. The information contained on the Funds’ web site is not part of this press release. Hard copies of the Funds’ complete audited financial statements are available free of charge upon request.