INVESTMENT MANAGER
Legg Mason Fund Adviser, Inc. REPORT TO SHAREHOLDERS
Baltimore, MD
FOR THE QUARTER ENDED
MARCH 31, 1996
INVESTMENT ADVISER
Batterymarch Financial Management, Inc.
Boston, MA
THE
BOARD OF DIRECTORS
John F. Curley, Jr., Chairman LEGG MASON
Edward A. Taber, III, President
Richard G. Gilmore GLOBAL
Charles F. Haugh
Arnold L. Lehman EQUITY
Dr. Jill E. McGovern
T. A. Rodgers TRUST
TRANSFER AND SHAREHOLDER SERVICING AGENT
Boston Financial Data Services
Boston, MA
CUSTODIAN
State Street Bank & Trust Company
Boston, MA
COUNSEL
Kirkpatrick & Lockhart LLP
Washington, DC
INDEPENDENT ACCOUNTANTS PUTTING YOUR FUTURE FIRST
Coopers & Lybrand L.L.P.
Baltimore, MD [Legg Mason Funds Logo]
THIS REPORT IS NOT TO BE DISTRIBUTED UNLESS PRECEDED OR
ACCOMPANIED BY A PROSPECTUS.
LEGG MASON WOOD WALKER, INCORPORATED
111 South Calvert Street
P.O. Box 1476, Baltimore, MD 21203-1476
410 (Bullet) 539 (Bullet) 0000
LMF-070
<PAGE>
TO OUR SHAREHOLDERS,
The Legg Mason Global Equity Trust's net asset value increased
from $10.70 to $11.32 during the three months ended March 31, 1996.
The fund's total return of 5.79% (appreciation plus reinvested
dividends), surpassed the 4.19% total return of its benchmark, the
Morgan Stanley Capital International All Country World Index, for the
same period.
In developing their investment strategies, many of our
shareholders use asset allocation, which combines an investor's goals
and risk preferences to develop a recommended mix of investments in
stocks and bonds in various markets around the world. A purely
international fund -- one which does not invest in U. S.
securities -- provides investors with the ability to make a controlled
decision to include international investments in their personal
portfolios. The Legg Mason Global Equity Trust began as an
international fund and we believe returning it to its original
investment mandate of investing only in companies located outside the
United States strengthens its value as part of an asset allocation
strategy. The fund's investment emphasis has always been on foreign
securities and the U. S. component of the portfolio has been small.
Consequently, your fund's Board of Directors has determined that,
effective May 1, 1996, the fund's name will become the Legg Mason
International Equity Trust and its investment objective to seek
maximum long-term total return will be pursued by investing
substantially all the fund's assets in common stocks of companies
located outside the United States. (When cash becomes available, or
for temporary defensive purposes, the fund also may invest in
short-term debt instruments.) Related portfolio changes will be made
in an orderly manner as market conditions permit.
On the following pages, we have provided a summary of the fund's
country and industry diversification.
At March 31, 1996, 12,000 investors have become shareholders and
the fund's assets were $105.2 million. Investments in international
equities should be considered a core part of any well-diversified
investment portfolio. We hope you will consider using the fund for
investments of additional funds as they become available. Some
shareholders take advantage of Legg Mason's Future First Systematic
Investment Plan. Under this plan, you may arrange for automatic
monthly investments in the fund of $50 or more by authorizing the
fund's transfer agent, Boston Financial Data Services, to prepare a
check each month drawn on your checking account. Please contact your
Investment Executive for further information.
Sincerely,
/s/ Edward A Taber, III
Edward A. Taber, III
President
April 19, 1996
<PAGE>
LEGG MASON GLOBAL EQUITY TRUST , INC.
Country Breakdown
Percentage of Fund invested in the following countries:
Developed Markets -- 60.39% [BAR GRAPH HERE]
Australia -- 1.41%
Belgium -- 1.90
Canada -- 0.49
Switzerland -- 1.19
Germany -- 0.56
Denmark -- 1.42
Spain -- 3.10
Finland -- 1.41
France -- 3.56
United Kingdom -- 6.45
Hong Kong -- 3.10
Ireland -- 0.78
Italy -- 3.22
Japan -- 24.60
Malaysia -- 2.67
Netherlands -- 1.97
Norway -- 1.30
New Zealand -- 0.10
Singapore -- 0.94
Sweden -- 0.22
United States -- 10.47%
Emerging Markets -- 24.38%
Argentina -- 1.32%
Brazil -- 3.52
Chile -- 1.24
China -- 1.74
Colombia -- 0.27
Croatia -- 0.46
Czech Republic -- 0.73
Greece -- 0.50
India -- 2.45
Indonesia -- 1.88
Mexico -- 2.85
Peru -- 0.66
Phillipines -- 1.60
Pakistan -- 0.29
Portugal -- 1.02
Russia -- 0.58
S. Africa -- 0.61 [PIE CHART HERE}
S. Korea -- 0.42
Taiwan -- 0.65
Thailand -- 1.59
Cash/U.S. Denominated -- 4.76%
Developed Markets -- 60.39%
United States -- 10.47%
Emerging Markets -- 24.38%
Cash -- 4.76%
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TOP 10 HOLDINGS:
Companhia Brasileira de Distribuicao
Grupo Pao de Acucar ADS
Daiwa Securities Company Ltd.
Canon Incorporated
Fuji Photo Film Company
Fomento Economico Mexicano, SA de C.V.
Telecom Italia S.p.A.
Takeda Chemical Industries
ALFA, S.A. de C.V.
Bridgestone Corporation
IRSA Inversiones y Representaciones S.A.
INDUSTRY DIVERSIFICATION
PERCENTAGE OF FUND INVESTED IN THE FOLLOWING INDUSTRIES:
Finance 8.6%
Electronics 7.2
Banks 6.3
Construction 5.7
Telecommunications 5.5
Chemicals 5.0
Electric Utilities 4.0
Drugs/Medicine 3.8
Producer Goods 3.7
Business Machines 2.8
Beverages 2.7
Real Property 2.7
Services 2.6
Agriculture/Food 2.5
Miscellaneous Metals 2.4
Retail (Non-Food) 2.4
Motor Vehicles 2.4
Life Insurance 2.2
Iron & Steel 2.1
Retail (Food) 1.6
Domestic Oil Reserves 1.6
Containers 1.5
Air Transport 1.4
Miscellaneous 1.4
Tire & Rubber 1.3%
Hotel/Restaurant 1.2
Gas Utilities 1.1
Photo/Optical 1.0
Oil Refining/Distribution 0.8
Other Insurance 0.8
Apparel/Textiles 0.8
Publishing 0.7
Health (Non-Drug) 0.7
Water Transport 0.6
Tobacco 0.6
Paper 0.6
Liquor 0.5
Aluminum 0.5
Consumer Durables 0.5
Coal & Uranium 0.4
Leisure/Luxury 0.2
Forest Products 0.2
Railroads/Transit 0.2
Trucking/Freight 0.2
Media 0.1
Soap/Housewares 0.1
Aerospace 0.1
Cash/U.S. Denominated 4.7
3
