* Data as of 12/31/2007. CWGBIxUS = Citigroup World Government Bond Index (Ex-U.S.).

Please refer to our GIPS compliant presentation, which includes performance footnotes, fee schedules, index descriptions and disclosures. The data represent the aggregate characteristics of all securities held in the representative portfolio, an actual account not subject to taxation. Data is obtained from FactSet and Bloomberg. Duration and quality allocations are included for informational purposes only and should not be perceived as investment recommendations. The duration and quality allocations of any particular account may vary based on any investment restrictions applicable to the account. International securities may be subject to market and currency fluctuations and other investment risk. Bond fund values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. High-yield securities have a greater risk of default and tend to be more volatile than higher-rated debt securities. The use of derivatives may reduce returns and/or increase volatility.

Representative Region & Currency Weights *

* Data as of 12/31/2007. CWGBIxUS = Citigroup World Government Bond Index (Ex-U.S.).

The data represent the aggregate characteristics of all securities held in the representative portfolio, an actual account not subject to taxation. Data is obtained from FactSet and Bloomberg. Region & currency weights are included for informational purposes only and should not be perceived as investment recommendations. It should not be assumed that investments in any regions or currencies listed were or will prove to be profitable. The region and currency weights of any particular account may vary based on any investment restrictions applicable to the account. International securities may be subject to market and currency fluctuations and other investment risk.

Quarterly Portfolio Manager Commentary

You should not assume that investments or strategies discussed in this commentary were or will be profitable, or that the investment decisions Brandywine Global makes in the future will be profitable or equal to the investment performance discussed in this commentary. The data and information presented in a Brandywine Global commentary is believed to be accurate and reliable as of the date recorded. Brandywine Global will not undertake to update the data and information presented at a later date. This commentary may not reflect the current views of the featured speaker and may not reflect current or sudden market activity.

Annualized Composite Returns *

Calendar Year Composite Returns *

* Data as of 12/31/2007. CWGBIxUS = Citigroup World Government Bond Index (Ex-U.S.), LGABxUS = Lehman Global Aggregate Bond Index (Ex-U.S.).

** Supplemental Information.

Organization: Brandywine Global Investment Management, LLC (the "Firm") is a wholly owned, independently operated, subsidiary of Legg Mason, Inc. The Firm has prepared and presented this report in compliance with the Global Investment Performance Standards (GIPS®). For the periods July 1, 2000 through June 30, 2006, the Firm has been verified by Kreischer Miller. A verification includes assessing whether the Firm (1) complied with the composite construction requirements of the GIPS standards on a firm-wide basis, and (2) designed its processes and procedures to calculate and present performance results in compliance with the GIPS standards. Kreischer Miller has also performed an examination of the composite performance presentation from the composite Inception Date through June 30, 2006. A composite examination includes testing a specific composite in order to assess whether that composite's performance presentation is presented, in all material respects, in conformity with the GIPS standards. Copies of the verification and composite examination reports are available upon request. Disclosed total firm assets represent the total market value of all discretionary and nondiscretionary, fee-paying and non-fee-paying assets under the Firm's management. Composite Description: International Fixed Income Composite (the "Composite") Inception date: October 1, 1997. Creation date: October 1, 1997. The Composite includes all fully discretionary, fee-paying, actively managed International Fixed Income accounts. The Composite utilizes forward exchange rate contracts to manage its currency exposure and are valued daily using closing forward exchange rates, matched to the settlement day of the contract. These instruments involve credit risk from the possible inability of counterparties to meet the terms of their contracts. Brandywine uses WM/Reuters daily FX rates taken at 4 p.m. London time, which may vary from Benchmark indices' exchange rates periodically. The Composite returns are benchmarked to the Citigroup World Government Bond Ex-U.S. Index (CWGBI Ex-U.S.®) and Lehman Brothers Global Aggregate ex-U.S. Index (LB Global Agg ex-U.S.®). The CWGBI Ex-U.S. measures the developed countries' fixed income markets, invested in debt issues of non-U.S. governmental entities and supra-nationals. The CWGBI Ex-U.S. base includes 21 countries. The LB Global Agg ex-U.S. Index provides a broad-based measure of the global, excluding the U.S., investment-grade fixed income markets, by including agencies, corporates and asset backed issues. Performance Calculation: Preliminary data, if so noted, reflects unreconciled data for the most recent reporting period. Portfolios are valued daily on a trade date basis and include dividends and interest as well as all realized and unrealized capital gains and losses. Return calculations at the portfolio level are time-weighted to account for periodic contributions and withdrawals. Performance results are calculated on a before tax, total return basis. Prior to July 1, 2007, portfolios were included in the Composite beginning with the first full quarter of performance through the last full quarter of performance. After July 1, 2007, portfolios are included in the Composite beginning with the first full month of performance through the last full month of performance. The Composite returns consist of size-weighted portfolio returns using beginning of period values to weight the portfolio returns. Monthly linking of interim performance results is used to calculate quarterly and annual returns. Composite's valuations and returns are computed in U.S. Dollars ("USD"). The results are presented in USD or in other currencies (to accommodate overseas investors), the latter by converting monthly USD returns into other currency returns using the appropriate currency exchange rate returns. Gross returns reflect the deduction of trading expenses. Net of fee returns reflect the deduction of trading expenses and the highest investment management fees charged within the composite membership as stated in the fee schedule below. Composite dispersion is calculated using the asset-weighted standard deviation method for all portfolios that were in the Composite for the entire year. Composite dispersion is not presented for periods with five or fewer portfolios. The number of accounts and market values are as of the end of the period. Past performance is no guarantee of future results. A complete list describing the Firm's composites as well as any additional information regarding the Firm's policies for calculating and reporting performance results is available upon request. Fee Schedule: Institutional Client Separate Account Management Fee Schedule (minimum initial investment: $50 million): 0.450% on the first $50 million; 0.400% on the next $50 million, and 0.350% on any portion of assets in excess of $200 million. Institutional Client Commingled Account Management Group Trust Fee Schedule (minimum initial investment: $1 million): 0.550% flat fee on all assets. Institutional Client Commingled Account Management Investment Trust Fee Schedule (minimum initial investment: $1 million): 0.450% on the first $50 million; 0.400% on the next $50 million, and 0.350% on any portion of the assets in excess of $100 million. Additional information on the Firm's fee schedule can be found in Form ADV Part II which is available upon request.

Portfolio Team

Stephen S. Smith
Managing Director & Portfolio Manager

Steve is co-lead portfolio manager for the firm's Global Fixed Income and related strategies. He joined the firm in 1991, bringing with him 23 years of industry experience. Previously, Steve was with Mitchell Hutchins Asset Management, Inc. as managing director of taxable fixed income (1988-1991); Provident Capital Management, Inc. as senior vice president overseeing taxable fixed income (1984-1988); Munsch & Smith Management as a founding partner (1980-1984), and First Pennsylvania Bank as vice president and portfolio manager in the fixed income division (1976-1980). Steve earned a B.S. in Economics and Business Administration from Xavier University. He is a member of the firm's Executive Board.

David F. Hoffman, CFA
Managing Director & Portfolio Manager

David is co-lead portfolio manager for the firm's Global Fixed Income and related strategies. He joined the firm in 1995, bringing with him 20 years of industry experience. Previously, David was president of Hoffman Capital, a global financial futures investment firm (1991-1995); head of fixed income investments at Columbus Circle Investors (1983-1990); senior vice president and portfolio manager at INA Capital Management (1979-1982), and fixed income portfolio manager at Provident National Bank (1975-1979). David is a CFA charterholder and earned a B.A. in Art History from Williams College. He is a member of the firm's Executive Board, currently serving as the Board's chair.

Jack P. McIntyre, CFA
Associate Portfolio Manager, Senior Research Analyst

As associate portfolio manager and senior research analyst for the firm's Global Fixed Income and related strategies, Jack provides valuable analytical and strategic insight. He joined the firm in 1998, bringing with him 11 years of industry experience. Previously, he held positions as market strategist with McCarthy, Crisanti & Maffei, Inc. (1995-1998); senior fixed income analyst with Technical Data, a division of Thomson Financial Services (1992-1995); quantitative associate with Brown Brothers Harriman & Co. (1990), and investment analyst with the Public Employee Retirement Administration of Massachusetts (1987-1989). Jack is a CFA charterholder and earned an M.B.A. in Finance from the Leonard N. Stern Graduate School of Business at New York University and a B.B.A. in Finance from the University of Massachusetts, Amherst.

Francis A. Scotland
Director of Global Macro Research

As Brandywine Global's director of global macro research, Francis contributes his extensive knowledge toward development of the firm's proprietary macro research facility and the furtherance of its Global Fixed Income and related strategies. He joined the firm in January 2006, bringing with him 25 years of industry experience. Previously, he was editor-in-chief, chief global strategist and former principal of the BCA Research Group, one of the world's leading independent research and investment strategy firms (1984-2005), and an economist with the Bank of Canada (1977-1984). Francis earned an M.A. in Economics from the University of Western Ontario and a B.A. in Economics from Queen's University in Ontario.

Dennis W. Dow
Head Trader, Fixed Income

Dennis is the head trader for the firm's Global Fixed Income and related strategies. He joined Brandywine Global in 2000, bringing with him eight years of industry experience. Previously, Dennis was with Merrill Lynch Asset Management as vice president and portfolio manager (1992-1999). He holds his Series 3 license and earned a B.A. in Accounting, with a concentration in Finance, from Rutgers University School of Business.

Bryan C. Raynor
Quantitative Analyst/Fixed Income Trader

Bryan joined the firm's Global Fixed Income team in 2003 and is responsible for providing quantitative analysis for the Global Fixed Income and related strategies as well as trade execution. Previously, he held positions with Prudential Financial (1997-2003) as an associate both with the quantitative modeling & research group and on the global bond desk. Bryan is a 2008 Level III CFA candidate, holds his Series 3, and earned both a M.S. and B.A. in Physics from Rutgers University.

Brian Hess
Research Analyst

Brian is a research analyst for the firm's Global Fixed Income and related strategies. In this role, he is responsible for tracking and analyzing economic and market data. Prior to joining Brandywine Global in 2003, he served as a trading assistant at Bear Stearns & Co (2003) and on the analytics desk at Bloomberg LP (2002). Brian earned a B.A. in both Economics and Politics from Ursinus College.

Min Tian
Global Macro Research Specialist

As a global macro research specialist, Min provides support to Francis Scotland, director of macroeconomic research. Min maintains a financial/economic database and internal website, which are used to support research tasks as well as respond to research requests from members of the Global Fixed Income team. Min joined the firm in October 2006. Previously, she worked as a data analyst for the Bank of New York (2006) and as a research assistant for the University of Delaware (2005-2006). Min earned a M.S. in Agricultural Economics from the University of Delaware and a B.S. in Pharmacy from West China University of Medical Science.

John Tsao
Director, Client Service-Singapore

John is a client service professional for Brandywine Global Investment Management (Asia) Pte. Ltd. and is responsible for maintaining and enhancing our relationship with clients based in Singapore and throughout Asia. He also serves as a research analyst for Brandywine Global's Global Fixed Income and related strategies, covering Asia and emerging market securities. John joined the firm in 2003, bringing with him 23 years of industry experience. Previously, he was with J.P. Morgan Chase Bank as vice president and senior economist (1999-2002), Chemical/Chase Bank as a vice president (1994-1999), Manufacturers Hanover Trust/Chemical Bank as senior economist (1981-1993), and Brooklyn College of the City of New York as an instructor in the Economics Department (1980-1981). John earned an M.A. in Economics from the Graduate Facility, New School for Social Research and a B.A. in Economics from Hobart and William Smith Colleges.

Travis Crumley
Assistant Trader, Fixed Income

Travis is an assistant trader for the firm's Global Fixed Income and related strategies. Prior to joining the trading group in June 2008, he provided quantitative and fundamental analysis and support as a fixed income client service associate. His additional experience within the industry includes serving as funds investor services assistant with Legg Mason (2004-2005). Travis earned a B.A. in Communications from the University of Delaware. He is also commercially licensed and instrumented rated by the Federal Aviation Administration to operate single and multi engine aircraft.

Renato Latini
Junior Trader, Fixed Income

Renato is the junior trader for the firm's Global Fixed Income and related strategies. He joined the firm in October 2006. Previously, Renato was with Watson Wyatt Investment Consulting as an investment analyst (2004-2006). He is a Level III CFA candidate and earned a B.A. in Physics and Economics from the University of Pennsylvania.