Legg Mason Investment Trust, Inc.
Legg Mason Opportunity Trust
PRIMARY CLASS PROSPECTUS December 23, 1999
(Revised September 11, 2000)
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THE ART OF INVESTING SM
As with all mutual funds, the Securities and Exchange Commission has not passed
upon the accuracy or adequacy of this prospectus, nor has it approved or
disapproved these securities. It is a criminal offense to state otherwise.
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T A B L E O F C O N T E N T S
A b o u t t h e f u n d:
1 Investment objective
2 Principal risks
5 Fees and expenses of the fund
7 Management
A b o u t y o u r i n v e s t m e n t:
8 How to invest
10 How to sell your shares
11 Account policies
12 Services for investors
13 Distributions and taxes
14 Financial Highlights
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[icon] I N V E S T M E N T O B J E C T I V E
Legg Mason Opportunity Trust:
Investment objective: Long-term growth of capital.
Principal investment strategies:
The fund invests in securities that, in the adviser's opinion, offer the
opportunity for long-term capital appreciation. Although not limited to the
following securities, the fund's adviser typically seeks: securities that the
adviser believes are priced at large discounts relative to their intrinsic
value; securities of companies the adviser believes have prospects for
accelerating growth in revenues, free cash flows, or earnings; securities of
companies undergoing financial restructurings or involved in takeover or
arbitrage situations; or securities where special circumstances apply, such as
actual or anticipated changes in a company's management or strategy, a basic
change in the industry or regulatory environment, the prospect of new products
or technologies, or the prospect or effect of the sale of a portion of the
business or the entire business. Intrinsic value, according to the adviser, is
the value of the company measured, to different extents depending on the type of
company, on factors such as, but not limited to, the discounted value of its
projected future free cash flows, the company's ability to earn returns on
capital in excess of its cost of capital, private market values of similar
companies, and the costs to replicate the business. Qualitative factors, such as
an assessment of the company's products, competitive positioning, strategy,
industry economics and dynamics, regulatory frameworks and more, are also
important.
The fund's adviser exercises a flexible strategy in the selection of securities,
not limited by investment style or by the issuer's location, size, market
capitalization, or industry sector. Although the fund will invest the majority
of its assets in the common stock of U.S. issuers, the fund may also invest in
the common stock of foreign issuers and in other U.S. and foreign securities,
including securities convertible into common stock, debt securities, futures,
options, derivatives, and other instruments. Further, the fund may sell
securities short. Although the fund's adviser considers ratings in determining
whether securities convertible into common stock or debt securities are
appropriate investments for the fund, such securities may include investments
rated below investment grade, commonly referred to as junk bonds.
The fund's adviser may decide to sell securities given a variety of
circumstances, such as when a security no longer appears to the adviser to offer
the potential for long-term growth of capital, when an investment opportunity
arises that the adviser believes is more compelling, or to realize gains or
limit losses.
When cash is temporarily available, or for temporary defensive purposes, when
the adviser believes such action is warranted by abnormal market, economic, or
other situations, the fund may invest without limit in cash, money market
instruments, bonds or other debt securities. If the fund invests substantially
in such instruments, the fund may not be pursuing its principal investment
strategies and the fund may not achieve its investment objective.
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[icon] P R I N C I P A L R I S K S
In general:
There is no assurance that the fund will meet its investment objective;
investors could lose money by investing in the fund. As with all mutual funds,
an investment in this fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Equity securities:
Prices of equity securities generally fluctuate more than those of other
securities, such as debt securities.
Market risk, the risk that prices of securities will go down because of the
interplay of market forces, may affect a single issuer, an industry or a sector
of the economy, or may affect the market as a whole. The fund may experience a
substantial or complete loss on individual stocks.
It is anticipated that some of the portfolio's securities may not be widely
traded, and that the fund's position in such securities may be substantial in
relation to the market for such securities. Accordingly, it may be difficult for
the fund to dispose of such securities quickly at prevailing market prices.
The adviser may at times emphasize a value approach to investing, and may at
other times emphasize a growth approach:
The value approach to investing involves the risk that those stocks may
remain undervalued. Value stocks as a group may be out of favor for a
long period of time, while the market concentrates on "growth" stocks.
Moreover, at different times, the value approach may favor certain
industries or sectors over others, making fund performance especially
subject to the performance of the specific industries and sectors that
are selected by the adviser.
The growth approach to investing involves the risk that those stocks
may react with greater volatility to negative forecasts concerning
particular stocks, industries, sectors or the economy in general.
Growth stocks as a group may be out of favor for a long period of time,
while the market concentrates on "value" stocks.
Company risk:
The fund invests in securities that often involve certain special circumstances
which the adviser believes offer the opportunity for long-term capital
appreciation. Each of these types of investments may involve greater risks of
loss than investments in securities of well-established companies with a history
of consistent operating patterns. Additionally, investments in securities of
companies being restructured involve special risks, including difficulty in
obtaining information as to the financial condition of such issuers and the fact
that the market prices of such securities are subject to above-average price
volatility. Whereas there is always a risk that the adviser will not properly
assess the potential for an issuer's future growth, or that the issuer will not
realize that potential, this risk is especially true in connection with these
issuers.
Small and mid-sized company securities:
Investing in the securities of small and mid-sized companies involves special
risks. Small companies may have limited product lines, markets or financial
resources, or they may be dependent upon a limited management group. Among other
risks, the prices of securities of small and mid-sized companies generally are
more volatile than those of larger companies; the securities of small companies
generally are less liquid; and small companies generally are more likely to be
adversely affected by poor economic or market conditions.
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Foreign securities risk:
Investments in foreign securities (including those denominated in U.S. dollars)
involve certain risks not typically associated with investments in domestic
issuers. These risks can include political and economic instability, foreign
taxation issues, different or lower standards in accounting, auditing and
financial reporting, less-developed securities regulation and trading systems,
fluctuations in foreign currency exchange rates, and the risk that a country may
impose controls on the exchange or repatriation of foreign currency.
Debt securities:
Debt securities are subject to interest rate risk, which is the possibility that
the market prices of the fund's investments may decline due to an increase in
market interest rates. Generally, the longer the maturity of a fixed income
security, the greater is the effect on its value when rates change.
Debt securities are also subject to credit risk, i.e., the risk that an issuer
of securities will be unable to pay principal and interest when due, or that the
value of the security will suffer because investors believe the issuer is less
able to pay. This is broadly gauged by the credit ratings of the securities in
which the fund invests. However, ratings are only the opinions of the agencies
issuing them and are not absolute guarantees as to quality.
Debt securities rated BBB/Baa or better, and unrated securities considered by
the fund's adviser to be of equivalent quality, are considered investment grade.
Debt securities rated below BBB/Baa, which the fund may purchase from time to
time, are deemed by the ratings agencies to be speculative and may involve major
risk or exposure to adverse conditions. Those in the lowest rating categories
may involve a substantial risk of default or may be in default. Changes in
economic conditions or developments regarding the individual issuer are more
likely to cause price volatility and weaken the capacity of such securities to
make principal and interest payments than is the case for higher grade debt
securities.
Securities rated below BBB/Baa may be less liquid than higher-rated securities,
which means a fund may have difficulty selling them at times, and may have to
apply a greater degree of judgment in establishing a price.
Convertible securities:
A convertible security is a bond, debenture, note, preferred stock or other
security that may be converted into or exchanged for a prescribed amount of
common stock of the same or a different issuer within a particular period of
time at a specified price or formula.
The value of a convertible security is a function of (1) its yield in comparison
with the yields of other securities of comparable maturity and quality that do
not have a conversion privilege and (2) its worth, at market value, if converted
into the underlying common stock. Convertible securities are typically issued by
smaller capitalized companies whose stock prices may be volatile. The price of a
convertible security often reflects such variations in the price of the
underlying common stock in a way that non-convertible debt does not.
Non-diversification risk:
The fund is non-diversified. This means that the percentage of its assets
invested in any single issuer is not limited by the Investment Company Act of
1940. When the fund's assets are invested in the securities of a limited number
of issuers or it holds a large portion of its assets in a few issuers, the value
of its shares will be more susceptible to any single economic, political, or
regulatory event than shares of a diversified fund.
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Short sales:
A short sale involves the sale by the fund of a security that it does not own,
i.e., that is borrowed from a third party, with the hope of purchasing the same
security at a later date at a lower price. The fund may suffer significant
losses if securities which the fund sells short appreciate rather than
depreciate in value. Such transactions may also involve a cost of borrowing the
security.
Portfolio turnover:
Although the fund's adviser does not anticipate a turnover rate in excess of
100%, the possibility exists. High turnover rates can result in increased
trading costs and higher levels of realized capital gains.
Performance:
The fund is newly organized and, as of the date of this prospectus, does not
have a calendar year of performance.
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[icon] F E E S A N D E X P E N S E S O F T H E F U N D
The table below describes the fees and expenses you will incur directly or
indirectly as an investor in the fund. The fund pays operating expenses directly
out of its assets. Other expenses include transfer agency, custody, professional
and registration fees. The Primary Class has no initial sales charge, but it is
subject to a deferred sales charge and 12b-1 fees. The fees and expenses are
calculated as a percentage of average net assets.
The fund currently offers two classes of shares: Primary Class shares and
Navigator Class shares.
Shareholder fees:
(fees paid directly from your investment)
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Primary Class Shares
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Maximum Deferred Sales Charge 1.00%(a)
(Load) (as a % of net asset value)
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(a) Applies only to shares redeemed within 12 months of purchase. This deferred
sales charge is not applicable where the investor's broker-dealer of record
notifies the distributor prior to the time of investment that the broker-dealer
waives the compensation otherwise payable to it.
Annual fund operating expenses:
(expenses that are deducted from fund assets)
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Primary Class Shares
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Management Fees 1.00%
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Distribution and Service (12b-1) Fees 1.00%
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Other Expenses (a) 0.39%
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Total Annual Fund Operating Expenses 2.39%
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Fee Waivers and Expense Reimbursement (b) -0.40%
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Net Annual Fund Operating Expenses 1.99%
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(a) "Other expenses" are based on estimated expenses for the fiscal year
ending December 31, 2000.
(b) The manager has contractually agreed to waive fees and reimburse other
expenses so that fund expenses (exclusive of taxes, interest, brokerage and
extraordinary expenses) do not exceed an annual rate of 1.99% of average
daily net assets for the Primary Class until December 31, 2000. The fund
has agreed to pay the manager for waived fees and reimbursed expenses
provided that payment does not cause the fund's annual operating expenses
to exceed 1.99% of its average net assets and the payment is made within
three years after the year in which the manager earned the fee or incurred
the expense.
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Example:
This example helps you compare the cost of investing in the fund with the cost
of investing in other mutual funds. Although your actual costs may be higher or
lower, you would pay the following expenses on a $10,000 investment in the fund,
assuming (1) a 5% return each year, (2) the fund's operating expenses remain the
same as shown in the table above, and (3) you redeem all of your shares at the
end of the time periods shown. Actual returns may be higher or lower than 5% per
year. This example also assumes that the deferred sales charge is imposed on
redemptions made within the first year after purchase of Primary Class shares.
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Opportunity Trust--Primary Class 1 Year 3 Years
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Assuming redemption $302 $707
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Assuming no redemption $202 $707
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[icon] M A N A G E M E N T
Management and advisers:
LMM, LLC ("LMM") provides the fund with investment advisory and management
services and is responsible for overseeing the fund's relationship with outside
service providers, such as the sub-advisor, administrator, custodian, transfer
agent, accountants, and lawyers. Under its advisory and management agreement
with LMM, the fund pays LMM a fee calculated daily and paid monthly of 1.00% of
its average daily net assets up to $100 million and 0.75% of its average daily
net assets in excess of $100 million. LMM has delegated certain administrative
responsibilities to Legg Mason Fund Adviser, Inc. ("LMFA"). On August 1, 2000,
LMM delegated certain advisory responsibilities for the fund to Legg Mason Funds
Management, Inc. ("LMFM") that previously had been performed by LMFA. The same
individuals who performed these services at LMFA now perform these services at
LMFM.
LMFM and LMM are newly organized; however, each entity's principal employee has
been an adviser to investment companies since 1982. LMM was the sole investor in
the fund prior to the public offering of its shares.
LMM, LMFM, and LMFA are each located at 100 Light Street, Baltimore, Maryland
21202.
Portfolio management:
Bill Miller, CFA, Managing Member of LMM and CEO of LMFM, is portfolio manager
of the fund. Mr. Miller has been the manager of Legg Mason Value Trust, Inc.
since 1990; from its inception in 1982 to 1990, he served as co-manager. Mr.
Miller was co-manager of Legg Mason Total Return Trust, Inc. from 1992 to 1997;
from 1990 to 1992, he served as manager. Since its inception in 1985, Mr. Miller
has also been primarily responsible for the day-to-day management of Legg Mason
Special Investment Trust, Inc. Since its inception in 1998, Mr. Miller has been
manager of LM Value Institutional Portfolio.
Distributor of the fund's shares:
Legg Mason Wood Walker, Inc. ("Legg Mason"), 100 Light Street, Baltimore,
Maryland 21202, is the distributor of the fund's shares. The fund has adopted a
plan that allows it to pay distribution fees and shareholder service fees for
the sale of its shares and for services provided to shareholders. Under the
plan, the fund may pay the distributor an annual distribution fee equal to 0.75%
of the fund's average daily net assets and an annual service fee equal to 0.25%
of its average daily net assets attributable to Primary Class shares. Because
these fees are paid out of the fund's assets on an ongoing basis, over time
these fees will increase the cost of your investment and may cost you more than
paying other types of sales charges.
The distributor may enter into agreements with other brokers to sell Primary
Class shares of the fund. The distributor pays these brokers up to 100% of the
distribution and service fees that it receives from the fund for those sales.
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[icon] H O W T O I N V E S T
To open a regular account or a retirement account contact a Legg Mason Financial
Advisor, Legg Mason Funds Investor Services ("FIS"), or another entity that has
entered into an agreement with the fund's distributor to sell shares of the
fund. The minimum initial investment is $1,000 and the minimum for each purchase
of additional shares is $100.
Retirement accounts include traditional IRAs, spousal IRAs, Education IRAs, Roth
IRAs, simplified employee pension plans, savings incentive match plans for
employees and other qualified retirement plans. The investment amount for an
Education IRA is $500. Contact your financial adviser, FIS, or other entity
offering the fund to discuss which one might be appropriate for you.
Certain investment methods (for example, through certain retirement plans) may
be subject to lower minimum initial and additional investments. Arrangements may
also be made with some employers and financial institutions for regular
automatic monthly investments of $50 or more in shares of the fund. Contact your
financial adviser or FIS with any questions regarding your investment options.
Once your account is open, you may use the following methods to purchase shares
of the fund:
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In Person Give your financial adviser a check for $100 or more
payable to the fund.
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Mail Mail your check, payable to the fund, for $100 or more
to your financial adviser or to Legg Mason Funds
Investor Services at P.O. Box 17023, Baltimore,
Maryland 21297-0356.
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Telephone or Call your financial adviser or FIS at 1-800-822-5544
Wire to transfer available cash balances in your brokerage
account or to transfer money from your bank directly.
Wire transfers may be subject to a service charge by
your bank.
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Internet or FIS clients may purchase shares of the fund through
TeleFund Legg Mason's Internet site at
http://www.leggmasonfunds.com or through a telephone
account management service "TeleFund" at
1-877-6-LMFUNDS.
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Future First Contact a Legg Mason Financial Advisor to enroll in
Systematic Legg Mason's Future First Systematic Investment Plan.
Investment Plan Under this plan, you may arrange for automatic monthly
investments in a fund of $50 or more. The transfer
agent will transfer funds monthly from your Legg Mason
account or from your checking/savings account to
purchase shares of the desired fund.
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Automatic Arrangements may be made with some employers and
Investments financial institutions for regular automatic monthly
investments of $50 or more in shares of the fund. You
may also reinvest dividends from certain unit
investment trusts in shares of the fund.
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<PAGE>
Investments made through entities other than Legg Mason may be subject to
transaction fees or other purchase conditions established by those entities. You
should consult their program literature for further information.
Purchase orders received by your financial adviser, FIS or other authorized
entity before the close of the New York Stock Exchange ("Exchange") (normally
4:00 p.m., Eastern time) will be processed at the fund's net asset value as of
the close of the Exchange on that day. Orders received after the close of the
Exchange will be processed at the fund's net asset value as of the close of the
Exchange on the next day the Exchange is open. Payment must be made within three
business days to Legg Mason.
Navigator Class shares, which are not subject to a Rule 12b-1 fee, are offered
through a separate prospectus only to certain investors.
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[icon] H O W T O S E L L Y O U R S H A R E S
You may use any of the following methods to sell shares of the fund:
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Telephone Call your financial adviser or FIS at 1-800-822-5544 or
entity offering the fund and request redemption. Please have
the following information ready when you call: the name of
the fund, the number of shares (or dollar amount) to be
redeemed and your shareholder account number.
Proceeds will be credited to your brokerage account or a
check will be sent to you, at your direction, at no charge to
you. Wire requests will be subject to a fee of $12. Be sure
that your financial adviser has your bank account information
on file.
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Internet or FIS clients may request a redemption of fund shares through
TeleFund Legg Mason's Internet site at http://www.leggmasonfunds.com
or through TeleFund at 1-877-6-LMFUNDS.
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Mail Send a letter to the fund requesting redemption of your
shares. The letter should be signed by all of the owners of
the account and their signatures guaranteed without
qualification. You may obtain a signature guarantee from most
banks or securities dealers.
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The fund will follow reasonable procedures to ensure the validity of any
telephone or Internet redemption request, such as requesting identifying
information from callers or employing identification numbers. Unless you specify
that you do not wish to have telephone redemption privileges, you may be held
responsible for any fraudulent telephone order.
Fund shares will be sold at the next net asset value calculated after your
redemption request is received by your financial adviser or FIS or other entity
offering the fund.
Redemption orders will be processed promptly. You will generally receive the
proceeds within a week. Payment of redemptions proceeds with respect to shares
that were recently purchased by check or acquired through reinvestment of
distributions on such shares may be delayed for up to 10 days from the purchase
date in order to allow for the check to clear.
Additional documentation may be required from corporations, executors,
partnerships, administrators, trustees or custodians.
Redemptions made through entities other than Legg Mason may be subject to
transaction fees or other conditions established by those entities. You should
consult their program literature for further information.
The fund has reserved the right under certain conditions to redeem its shares in
kind by distributing portfolio securities in payment for redemptions.
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[icon] A C C O U N T P O L I C I E S
Calculation of net asset value:
Net asset value per Primary Class share is determined daily as of the close of
the Exchange, on every day the Exchange is open. The Exchange is normally closed
on all national holidays and Good Friday. To calculate the fund's Primary Class
share price, the fund's assets attributable to that class of shares are valued
and totaled, liabilities attributable to Primary Class shares are subtracted,
and the resulting net assets are divided by the number of Primary Class shares
outstanding. The fund's securities are valued on the basis of market quotations
or, lacking such quotations, at fair value as determined under policies approved
by the Board of Directors. The fund may use fair value pricing instead of market
quotations to value a security if the fund's Valuation Committee believes that,
because of special circumstances, doing so would more accurately reflect the
price the fund could realize on the current sale of the security.
Where a security is traded on more than one market, which may include foreign
markets, the securities are generally valued on the market considered by the
adviser to be the primary market. The fund will value its foreign securities in
U.S. dollars on the basis of the then-prevailing exchange rates. Fixed income
securities generally are valued using market quotations or independent pricing
services that use prices provided by market makers or estimates of market
values. Securities with remaining maturities of 60 days or less are valued at
amortized cost.
To the extent that the fund has portfolio securities that are primarily listed
on foreign exchanges that trade on days when the fund does not price its shares,
the net asset value of the fund may change on days when shareholders will not be
able to purchase or redeem the fund's shares.
Other:
Fund shares may not be held in, or transferred to, an account with any firm that
does not have an agreement with Legg Mason.
If your account falls below $500, the fund may ask you to increase your balance.
If, after 60 days, your account is still below $500, the fund may close your
account and send you the proceeds. The fund will not redeem accounts that fall
below $500 solely as a result of a reduction in net asset value per share.
The fund reserves the right to:
o Reject any order for shares or suspend the offering of shares for a period
of time.
o Change its minimum investment amounts.
o Delay sending out redemption proceeds for up to seven days. This generally
applies only in cases of very large redemptions, excessive trading or
during unusual market conditions. The fund may delay redemptions beyond
seven days, or suspend redemptions, only as permitted by the Securities and
Exchange Commission (SEC).
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[icon] S E R V I C E S F O R I N V E S T O R S
For further information regarding any of the services below, please contact your
financial adviser or other entity offering the fund for sale.
Confirmations and account statements:
You will receive from Legg Mason a confirmation after each transaction involving
Primary Class shares (except a reinvestment of dividends, capital gain
distributions and purchases made through a transfer of funds from a financial
institution). Legg Mason or the entity through which you invest will send you
account statements monthly unless there has been no activity in the account, in
which case a statement will be sent to you quarterly. Legg Mason will send you
statements quarterly if you participate in the Future First Systematic
Investment Plan, or if you purchase shares through automatic investments.
Systematic Withdrawal Plan:
If you are purchasing or already own shares with a net asset value of $5,000 or
more, you may elect to make systematic withdrawals from the fund. The minimum
amount for each withdrawal is $50. You should not purchase shares of the fund
when you are a participant in the plan.
Exchange Privilege:
Primary Class shares of the fund may be exchanged for Primary Class shares of
any of the other Legg Mason funds, provided these funds are eligible for sale in
your state of residence. You can request an exchange in writing or by phone. Be
sure to read the current prospectus for any fund into which you are exchanging.
There is currently no fee for exchanges; however, you may be subject to a sales
charge when exchanging into a fund that has one. An exchange of the fund's
shares will be treated as a sale of the shares and any gain on the transaction
may be subject to tax.
The fund reserves the right to:
o terminate or limit the exchange privilege of any shareholder who makes more
than four exchanges from the fund in one calendar year
o terminate or modify the exchange privilege after 60 days' notice to
shareholders
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[icon] D I S T R I B U T I O N S A N D T A X E S
The fund declares dividends and distributions of any net capital gains to
holders of Primary Class shares annually.
Your dividends and other distributions will be automatically reinvested in
additional Primary Class shares of the fund unless you elect to receive your
dividends and/or other distributions in cash. To change your election, you must
notify the fund at least 10 days before the next dividend and/or other
distribution is to be paid.
If the postal or other delivery service is unable to deliver your distribution
check, your distribution option will automatically be converted to having all
dividends and other distributions reinvested in fund shares. No interest will
accrue on amounts represented by uncashed distribution or redemption checks.
Fund dividends and other distributions are taxable to investors (other than
retirement plans and other tax-exempt investors) whether received in cash or
reinvested in additional shares of the fund. Dividends from investment company
taxable income (which includes net investment income and net short-term capital
gains) are taxable as ordinary income. Distributions of the fund's net capital
gain are taxable as long-term capital gain, regardless of how long you have held
your fund shares.
The sale or exchange of fund shares may result in a taxable gain or loss,
depending on whether the proceeds are more or less than the cost of your shares.
A tax statement is sent to you after the end of each year detailing the tax
status of your distributions.
The fund will withhold 31% of all dividends, capital gain distributions and
redemption proceeds payable to individuals and certain other non-corporate
shareholders who do not provide the fund with a valid taxpayer identification
number. The fund will also withhold 31% of all dividends and capital gain
distributions payable to shareholders who are otherwise subject to backup
withholding.
Because each investor's tax situation is different, please consult your tax
adviser about federal, state and local tax considerations.
<PAGE>
F I N A N C I A L H I G H L I G H T S
The financial highlights table is intended to help you understand the fund's
financial performance for the past year. Total return represents the rate that
an investor would have earned (or lost) on an investment in the fund, assuming
reinvestment of all dividends and distributions. This information has been
audited by the fund's independent auditors, Ernst & Young LLP, whose report,
along with the fund's financial statements, is incorporated by reference into
the Statement of Additional Information (see back cover) and is included in the
annual report. The annual report is available upon request by calling toll-free
1-800-822-5544.
Period ended December 31, 1999(a)
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The following information reflects financial results for a single share of the
fund:
Net asset value,
beginning of period $10.00
------
Income from investment operations:
Net investment income ----
Net realized and unrealized gain on
investments ----
Distributions:
Dividends from net investment income ----
Dividends from net realized gain on
investments ----
Net asset value, end of period $10.00
======
Total return N.M.
Ratios/Supplemental Data
Ratio of total expenses to average net assets
1.99% (b,c)
Ratio of net investment income to average
net assets N.M.
Portfolio turnover rate --%
Net assets, end of period (in thousands) $146,093.00
(a) For the period December 30, 1999 (commencement of operations) to December
31, 1999.
(b) Net of fees waived pursuant to an expense limitation of 1.99% of average
daily net assets through December 31, 2000. If no fees had been waived by LMM,
the annualized ratio of expenses to average daily net assets for the period
would have been 2.39%.
(c) Annualized.
N.M. - Not meaningful.
<PAGE>
L e g g M a s o n O p p o r t u n i t y T r u s t
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The following additional information about the fund is available upon request
and without charge:
Statement of Additional Information (SAI) - The SAI is filed with the SEC and is
incorporated by reference into (is considered part of) this prospectus. The SAI
provides further information and additional details about the fund and its
policies.
Annual and Semi-annual Reports - Additional information about the fund's
investments will be available in the fund's annual and semi-annual reports to
shareholders. These reports will provide detailed information about the fund and
its policies.
To request the SAI or any reports to shareholders, or to obtain more
information:
o call toll-free 1-800-822-5544
o visit us on the Internet via http://www.leggmasonfunds.com
o write to us at: Legg Mason Wood Walker, Incorporated
100 Light Street, P.O. Box 1476
Baltimore, Maryland 21203-1476
Information about the fund, including the SAI, can be reviewed and copied at the
SEC's public reference room in Washington, D.C. Information on the operation of
the Public Reference Room may be obtained by calling the SEC at 1-202-942-8090.
Reports and other information about the fund are available on the SEC's Internet
site at http://www.sec.gov. Investors may also obtain this information, after
paying a duplicating fee, by electronic request at the following e-mail address:
[email protected] or by writing the SEC's Public Reference Section, Washington,
D.C. 20549-0102.
LMF-077 SEC file number: 811-9613
