Western Asset Legg Mason U.S. Money Market Fund Western Asset Global Funds Plc U.S. Core Bond Fund Western Asset Euro Core Bond Fund

Semi-Annual Report (Unaudited) Western Asset Diversified Strategic Income Bond For the period ended August 31, 2005 Fund

Western Asset Global Multi Strategy Fund

Western Asset U.S. High Yield Bond Fund

Western Asset Emerging Markets Bond Fund

Brandywine Global Opportunities Bond Fund

Legg Mason Growth Fund

Legg Mason Value Fund

Royce U.S. Small Cap Equity Fund

Royce 100 Equity Fund

Batterymarch European Equity Fund

Batterymarch Pacific Equity Fund

Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Table of Contents

Introduction – Legg Mason Global Funds Plc 2

Market Commentary & Fund Reviews 4

Portfolio of Investments – Western Asset U.S. Money Market Fund 9 Portfolio of Investments – Western Asset U.S. Core Bond Fund 11 Portfolio of Investments – Western Asset Euro Core Bond Fund 16 Portfolio of Investments – Western Asset Diversified Strategic Income Bond Fund 19 Portfolio of Investments – Western Asset Global Multi Strategy Fund 23 Portfolio of Investments – Western Asset U.S. High Yield Bond Fund 31 Portfolio of Investments – Western Asset Emerging Markets Bond Fund 35 Portfolio of Investments – Brandywine Global Opportunities Bond Fund 37 Portfolio of Investments – Legg Mason Growth Fund 38 Portfolio of Investments – Legg Mason Value Fund 39 Portfolio of Investments – Royce U.S. Small Cap Equity Fund 40 Portfolio of Investments – Royce 100 Equity Fund 44 Portfolio of Investments – Batterymarch European Equity Fund 46 Portfolio of Investments – Batterymarch Pacific Equity Fund 47

Statement of Assets and Liabilities – Legg Mason Global Funds Plc 50 Statement of Operations – Legg Mason Global Funds Plc 54 Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating Shares – Legg Mason Global Funds Plc 56

Notes to Financial Statements – Legg Mason Global Funds Plc 62 Financial Information – Legg Mason Global Funds Plc 82

Statement of Major Portfolio Changes – Western Asset U.S. Money Market Fund 83 Statement of Major Portfolio Changes – Western Asset U.S. Core Bond Fund 84 Statement of Major Portfolio Changes – Western Asset Euro Core Bond Fund 85 Statement of Major Portfolio Changes – Western Asset Diversified Strategic Income Bond Fund 85 Statement of Major Portfolio Changes – Western Asset Global Multi Strategy Fund 86 Statement of Major Portfolio Changes – Western Asset U.S. High Yield Bond Fund 87 Statement of Major Portfolio Changes – Western Asset Emerging Markets Bond Fund 87 Statement of Major Portfolio Changes – Brandywine Global Opportunities Bond Fund 88 Statement of Major Portfolio Changes – Legg Mason Growth Fund 88 Statement of Major Portfolio Changes – Legg Mason Value Fund 89 Statement of Major Portfolio Changes – Royce U.S. Small Cap Equity Fund 89 Statement of Major Portfolio Changes – Royce 100 Equity Fund 90 Statement of Major Portfolio Changes – Batterymarch European Equity Fund 91 Statement of Major Portfolio Changes – Batterymarch Pacific Equity Fund 92

Directors and Other Information 93

1 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Introduction

Legg Mason Global Funds Plc Western Asset Management One of the world's premier fixed income managers. Legg Mason Investments are pleased to present the semi-annual Western Asset believes significant inefficiencies exist in fixed income report and accounts for Legg Mason Global Funds Plc for the six- markets and seeks to exploit these inefficiencies across all sectors of month period ending August 31, 2005. Legg Mason Global Funds the global markets. By devoting all of its resources to fixed income, Plc is an Irish domiciled open-ended investment company with Western Asset adds unique value to this asset class through active variable capital and is organised in the form of an umbrella fund management of fixed income portfolios. Western Asset uses long with fourteen constituent sub-funds. term value-driven investment strategies, including sector rotation and issue selection, to maximise returns while at the same time Access to highly regarded investment capabilities managing risk by avoiding any one strategy overwhelming its Legg Mason Investments is part of Legg Mason, Inc., a U.S. based investment performance. financial services company with US$398 billion* under Batterymarch Financial Global investment manager management and offers investors a wide spectrum of investment Management with expertise across U.S., UK, styles through a range of sub-funds within Legg Mason Global European and Asian stock Funds Plc. markets. These sub-funds draw upon the highly regarded investment Batterymarch pioneered the use of quantitative techniques based capabilities of Legg Mason's wholly-owned asset management on the tenets of bottom-up fundamental analysis. As a global subsidiaries, which act as autonomous companies retaining the investment manager, Batterymarch invests in over 50 countries, independence of their individual investment styles and their unique customising their investment process for the specific characteristics cultures. of each market. Batterymarch has been active in managing UK and The Legg Mason asset management subsidiaries managing the European equities for over 25 years - and involved in emerging range of sub-funds within Legg Mason Global Funds Plc follow a market equities since 1989. specific investment process and discipline that only focuses on finding investment opportunities in their core area of expertise. This Brandywine Asset Management Focuses on ‘classic value’ brings unique focus to these sub-funds - which are managed by the investing, which includes the following Legg Mason subsidiaries: Legg Mason Funds management of global fixed Management, Royce & Associates, Western Asset Management, income portfolios. Batterymarch Financial Management and Brandywine Asset Brandywine Asset Management focuses on purchasing 'value' Management. priced securities in fixed income and equity markets. The firm is * As at June 30, 2005 well-established in the fixed income arena and utilises a style that focuses on wealth creation. Brandywine's management style Legg Mason Funds Management Follows a unique investment emphasises the search for fixed income securities with the highest management philosophy and real yields, controlling risk by purchasing undervalued securities and approach to undervalued stocks managing currency to protect and increase returns. Other factors across a number of U.S. equity that are key to the investment process are issue selection, duration strategies. management, country rotation and active currency management. Adhering firmly to a value-driven, research intensive investment process, the firm focuses on assessing intrinsic business value of companies and strives to buy stocks at significant discounts to Legg Mason Funds Management's assessment of their worth. Intrinsic value is assessed by employing a multi-factor, quantitative valuation methodology combined with rigorous business analysis, concentrating on a company's ability to generate excess cash flow, earn high rates of returns on capital and allocate capital efficiently.

Royce & Associates Based in New York, Royce & Associates are a highly regarded investment manager that focuses exclusively on U.S. small and micro-cap company investing. For more than 30 years Royce has utilised a disciplined value approach that strives to compound wealth while reducing risk over the long term. Inherent in this approach is a basic belief that the price one pays for an investment makes a significant difference in the long term returns that an investor receives. Royce takes a contrary view to the emotional process of buying and selling stocks - they attempt to reduce risk at times when others are ignoring it and to pursue risk opportunities at times when others may avoid them, in an attempt to capitalise on valuation discrepancies.

2 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Introduction - (continued)

The range of funds

Fund Asset Class Investment Manager

Fixed Income Funds Western Asset U.S. Money Market Fund Money Market Western Asset Management Western Asset U.S. Core Bond Fund U.S. Fixed Income Western Asset Management Western Asset Euro Core Bond Fund Euro Fixed Income Western Asset Management Western Asset Diversified Strategic Income Bond Fund Global Fixed Income Western Asset Management Western Asset Global Multi Strategy Fund Global, including Emerging Markets Western Asset Management Western Asset U.S. High Yield Bond Fund U.S. High Yield Western Asset Management Western Asset Emerging Markets Bond Fund Emerging Markets Western Asset Management Brandywine Global Opportunities Bond Fund Global Fixed Income Brandywine Asset Management

Equity Funds Legg Mason Growth Fund U.S. Large Cap Legg Mason Funds Management Legg Mason Value Fund U.S. Large Cap Legg Mason Funds Management Royce U.S. Small Cap Equity Fund U.S. Small & Micro Cap Royce & Associates Royce 100 Equity Fund U.S. Small Cap Royce & Associates Batterymarch European Equity Fund Europe, excluding UK Batterymarch Financial Management Batterymarch Pacific Equity Fund Asia Pacific Batterymarch Financial Management

For More Information

For further information on the range of sub-funds within Legg Mason Global Funds Plc, contact:

For professional investors in the UK and Europe For authorised dealers in the Americas

Legg Mason Investments Legg Mason Investments 32 Harbour Exchange Square 255 Alhambra Circle London Suite 810 England Coral Gables E14 9JX Florida 33134, U.S.A.

Tel: + 44 (0) 207 070 7444 Tel: + 305 529 4400

www.leggmason.co.uk www.leggmasoninvestments.com

Go to the relevant website for information on: • Daily prices • Literature, including fact sheets providing the latest information on each sub-fund • More information about Legg Mason’s asset management affiliates managing the sub-funds

3 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Market Commentary & Fund Reviews

Fixed Income Markets behind the oil & gas sector while the healthcare sector, helped by improved earnings, also delivered strong returns. Another Fixed income markets delivered positive returns over the period noteworthy performer was construction & building materials, which driven by investors’ expectations of slower global growth and rallied strongly in the aftermath of Hurricane Katrina as companies moderate inflation. Sector wise, government bond markets in this area are expected to benefit from the associated rebuilding generally outperformed corporate bond and other credit markets effort. Within the Russell 2000 index, utilities and healthcare were although emerging market debt continued to perform well. In local the strongest performing sectors after integrated oil and the other currency terms returns for U.S. Treasuries, UK gilts and European energy sector. Small cap value outperformed small cap growth, and government bonds were 3.5%, 5.9% and 4.9% respectively. For larger small cap companies outperformed the microcap sector the respective corporate markets, the returns were 3.0%, 5.5%, reflecting a preference from investors towards more stable cash and 3.9% while the corresponding high yield returns were 1.8%, flow and dividends. 4.0% and 5.4%. U.S. dollar currency appreciation was a significant The effect of increasing oil prices helped energy and utilities to feature affecting returns for both bonds and equities over the outperform their more growth orientated counterparts in period with the dollar rising by around 6% against sterling, the technology and telecoms, while financials in particular were euro and the yen. This meant that for U.S. currency based investors, adversely affected by higher interest rates. Equity markets showed unhedged returns for most non-U.S. bond markets (with the resilience in the aftermath of Katrina, and the hurricane’s impact on exception of emerging market bonds) were negative over the U.S. GDP growth is expected to be relatively small, with the decline period. in output likely to be offset by spending on reconstruction. Initially, rising inflation and continuously strong data caused the U.S. Federal Reserve to warn of rising price pressures in March, pushing Europe bond yields higher. Moreover credit spreads widened pressured by news of the downgrading of GM and Ford debt to junk status. Continental European equities performed strongly in the period However, as evidence emerged of a moderation in U.S. growth in with the FTSE World Europe ex UK up by 10.6% in euro terms but the late spring, along with tame inflation outside the U.S., bond up just 2.5% in dollar terms. The overall FTSE World Europe index markets began to rally again. was up 2.3% in dollar terms as UK equities lagged their Continental European counterparts modestly. Despite some volatility The measured approach to raising interest rates in the U.S. was early in the period under review, European bourses staged a maintained with four 0.25% moves to 3.5% in the Fed Funds rate significant rally in May and, as the period progressed, the by the end of August, with a further 0.25% move in September. strengthening of the U.S. dollar against the euro lent additional Elsewhere, the global interest rate tightening cycle appeared to support to European equities especially to exporters. have run its course with rates in the UK actually being cut by 0.25% to 4.5% on the back of downward revisions to GDP. Strength was broad based across a variety of sectors, driven by Globally, interest rates have generally peaked earlier and at a lower strong corporate fundamentals and activity. Sectors with double- level than previously expected with the interest rate cycle having digit returns in the period included oil & gas, utilities, tobacco, bypassed some regions entirely, with rates remaining at 2% in automobiles, and diversified industrials. In particular, the autos Europe amidst a fairly weak European growth environment. sector was a key beneficiary of the weaker euro, while energy stocks were helped by high oil prices. Underperforming sectors It was a volatile period for high yield and the corporate sector, with included telecoms and general retailers. markets rocked by the downgrades of GM and Ford to non- investment grade by S&P. However, after the sharp sell off in April The overall strong performance of European equities markets and May, the market rallied with new issue activity in the high yield contrasted with the difficult macroeconomic backdrop across sector picking up in June as issuers rushed to take advantage of Europe with some of the European economies teetering on the lower rates. Overall positive liquidity and earnings measures and brink of recession. While the continued high oil prices seen over the low default rates continued to support valuations in credit markets. past year are a natural hindrance to European growth, a common Given the demand for yield, the lack of supply, and generally problem across much of the region remains consumer spending. improving fundamentals in many emerging market countries, With persistent high rates of unemployment and stagnant growth emerging market bonds should continue to attract investors. Global across much of ‘Euroland’, the European Central Bank (ECB) left growth remains solid but unspectacular with mild inflation risks. interest rates on hold. This is a fairly constructive background for bonds. Despite the relatively gloomy macroeconomic backdrop, European corporates have continued to exhibit strong fundamentals, such as Equity Markets strong free cash flow and dividends. In a similar vein to the UK, robust corporate fundamentals should continue to support buoyant mergers and acquisitions activity. A possible cut in the base rate by U.S. the ECB would provide additional support to European equities markets, with Continental European exporters set to benefit from Global equity markets generally outperformed bond markets in further strengthening of the dollar against the euro. Similarly, the dollar terms during the period with the FTSE World Index ahead Bank Of England has already embarked on an easing of interest 3.4%. U.S. equity markets rebounded strongly from April lows to rate policy with a 0.25% reduction in the base rate in August. All end the period in positive territory but overall delivered relatively these factors support a positive outlook for European equities. modest returns. However, most non-U.S. investors benefited strongly from the appreciation of the dollar against major currencies during the period as the Federal Reserve continued to hike U.S. Asia interest rates. Asian markets recovered strongly as the period progressed, making Small-cap stocks outperformed large-cap with the S&P 500 Index up lost ground following weakness in March and April. For the up by only 2.3% for the period in U.S. dollar terms compared with period under review, the MSCI AC Asia ex Japan index was up 3% 5.7% for the Russell 2000 index. The oil & gas sector led returns for in U.S. dollar terms. Asian equities rallied from mid-April lows, both indices as oil prices rose by around 30% during the period to outperforming the MSCI World index by a wide margin by late July. almost $70 a barrel. Within the S&P 500 Index, biotech aided by a Against the backdrop of stubbornly high oil prices and economic pick up in corporate activity, was the next best performing sector uncertainty in the U.S., Asia ex Japan equities fell back in August to

4 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Market Commentary & Fund Reviews - (continued)

finish the period with returns in line with the MSCI World index. much to concern us on the U.S. economy, outside of the fact that The strongest performers included India, China and Hong Kong, monetary policy continues to have a mild inflationary bias. All while Thailand and the Philippines were areas of weakness. In terms things considered we do not believe this is the time to take outsized of sector returns in the region, high oil prices helped energy stocks risks, nor is it a time to be unduly defensive. We continue to believe continue their strong performance, while the real estate sector has that a neutral to underweight duration stance is appropriate, benefited from a broad strengthening in property markets especially coupled with tactical shifts within this duration range as market in Hong Kong. The Chinese government’s move in July to revalue conditions change. the renminbi by 2% versus the dollar led to immediate upward pressure on most of the region’s currencies. We believe this is only Western Asset Euro Core Bond Fund the beginning, with further upward revaluations likely over the coming years. Inflows into emerging market funds in the region Performance were on the increase in the week following the revaluation. The Western Asset Euro Core Bond Fund returned 4.2% net of fees Strong fund inflows were not just due to the Chinese revaluation, during the period. This compares with the 4.6% return of the Citi but were also reflective of broadly improved sentiment towards the Euro Big benchmark index. The move to an overweight duration region. Given Asia ex Japan’s continued reliance on the U.S. stance for most of the period had a positive impact on returns as consumers as an engine for growth, Asian equities have benefited yields fell. However within the corporate bond allocation, the bias greatly from low U.S. interest rates. However, rising corporate towards financial companies hindered performance. In terms of the earnings are increasingly feeding through to domestic consumption non-euro markets while the UK, Swedish and Polish markets in the region, with the emerging middle class across Asia playing an outperformed core markets, the allocation to the U.S. was negative. increasingly important role in the region’s growth. Overall, global The widening of high-yield spreads caused this sector to growth and outsourcing trends should continue to support Asia ex underperform while emerging markets outperformed as spreads Japan companies, as well as help the region counteract the effect tightened. of high oil and commodity prices. Portfolio Fixed Income Fund Reviews With no change in European short rates on the horizon, we expected further range trading in European bond yields, hence we initially reduced the size of the underweight duration stance before Western Asset U.S. Money Market Fund moving to an overweight duration position. As the period progressed, however, duration was modestly reduced again with an Performance emphasis on intermediate maturities. A non-threatening monetary policy should continue to support spread products, however, in The Western Asset U.S. Money Market Fund rose by 1.0% on a net general we remain cautious on European corporate bonds. While of fees basis during the period, underperforming the 1.4% fundamentals remain positive and spreads have widened, valuations cash/cash equivalent return as represented by the Citi 1 month U.S. still remain expensive. We used periods of spread-widening in the Treasury Bill index. The U.S. yield curve flattened over the period as middle of the reporting period to add to the corporate bond U.S. interest rates were raised four times by a net 1% to 3.5% with exposure and presently run a modest allocation to credit favouring a further 0.25% increase since the close of the reporting period. exposure to euro financials or sterling financial, industrial or ABS Consequently rates rose for T-bills and shorter maturity notes while credits in preference to euro corporates, supranationals and yields of securities 5 years or longer declined. Pfandbriefe. Additionally, modest allocations to higher yielding Portfolio countries with flat yield curves where the market is fully priced for the tightening to come (U.S.), where rate cuts are possible The portfolio was kept extremely liquid consisting of short-term (Australia) or where tightening has already stopped and easing has money market instruments. As anticipated, rising rates have started (Poland, Hungary) are held. High yield spreads still appear to increased the opportunity for diversified investment in select money compensate for default risk given the back-drop of accommodative market securities. monetary policy, and we have therefore maintained a small well- diversified exposure to European high-yield debt with an emphasis Western Asset U.S. Core Bond Fund on the BB sector. While spreads on emerging market debt are still tight, fundamentals are positive in many countries, and Performance consequently a small diversified exposure to emerging market debt The Western Asset U.S. Core Bond Fund increased by 2.0% net of is retained. fees during the period. This compares with the Lehman Brothers Aggregate Bond index which returned 2.9%. Overall, the portfolio’s underweight duration exposure was negative since most yields fell. Western Asset Diversified Strategic Income The modest overweight exposure to lower quality corporate bonds Bond Fund also hindered the return as spreads widened relative to governments. A moderate exposure to intermediate-maturity TIPS Performance detracted from performance as TIPS underperformed Treasury The Western Asset Diversified Strategic Income Bond Fund was bonds. In contrast, underweight exposure to the mortgage-backed ahead 0.3% on a net of fees basis during the period outperforming sector had a modest positive impact on performance as spreads the Citi World Government Bond index return of -2% but lagging widened. the 1.4% cash equivalent return as represented by the Citi 1 month Portfolio U.S. Treasury Bill index. The strong dollar, the volatile high yield market, and low level of duration through our hedging strategies Credit spreads are mildly attractive, leading us to hold a modestly limited total return. overweight exposure to intermediate BBB and high-yield bonds. With mortgage spreads a little more attractive, the Fund’s exposure Portfolio was increased in this area although the overall position remained Key changes in the portfolio over the period involved the reduction underweight. The Fund continues to hold TIPS, primarily as a hedge in cash equivalents and foreign government or mortgage bonds in against higher-than-expected inflation. To date we haven’t found

5 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Market Commentary & Fund Reviews - (continued) favour of U.S. Treasuries and U.S. mortgage-backed bonds and Western Asset U.S. High Yield Bond Fund increased exposure to the high yield sector. The overall investment grade exposure remained broadly unchanged at around 10% Performance although the average credit quality was reduced in favour of BBB and with the mix shifting from European into U.S. corporates. We The Western Asset U.S. High Yield Bond Fund rose by 1% on a net took advantage of the sell-off in the high yield sector in April and of fees basis during the reporting period. This compares with the May to increase the global high yield position by 9% up to 30%. Lehman High Yield Bond index which returned 1.7%.The Fund’s Over the period, foreign currency exposure was increased after the underweight exposure to BB rated issues and overweight to lower dollar strengthened and added to our positions in Australian and grade CCC rated issues hurt relative performance. In terms of New Zealand dollars, Israeli shekel and Mexican peso. With the sectors, the Fund’s underweight to the telecommunications outlook in the Mexican market offering better value than that of hindered performance whilst the overweight to energy helped Hungary, exposure was switched from Hungary into Mexican local relative performance. bonds. Moreover the Polish position was gradually reduced over the Portfolio period given the strong contribution to performance over the past year. Mortgage and TIPs exposure and overall portfolio duration was Overall portfolio duration was broadly unchanged over the period. broadly unchanged. We have a fairly constructive view on bond Key sector changes included a reduction in exposure to telecoms markets given that global growth fundamentals remain reasonably and capital goods in favour of consumer cyclicals and basic industry healthy and U.S. growth is likely to stay in the 3-4% range. names. Although spreads appear tight when viewed in a longer- Although downside risks to growth have increased with higher term context, we believe the low level of defaults combined with energy prices, surging federal revenues suggest the economy is on a high recovery rates justify current valuations. Fundamentals sound footing. We believe the Federal Reserve’s continued continue to improve; coverage ratios and other financial metrics accommodative stance, increases the odds that inflation will exceed continue to expand and are well above historic averages; liquidity the market’s optimistic assumptions, which in turn would mean measures are robust as cash levels have increased. While market higher bond yields in coming years. In the U.S., we prefer the short technicals remain mixed, there was evidence of increasing to medium term securities, which should do well if the Federal institutional allocations to high yield towards the latter part of the Reserve pauses in its path of gradual interest rate tightening. reporting period. Unlike past years where ‘theme bets’ have dictated relative performance, it is our view that individual credit Western Asset Global Multi Strategy Fund selection will be critical to performance in 2005.

Performance Western Asset Emerging Markets Bond Fund

The Western Asset Global Multi Strategy Fund rose 0.6% on a net Performance of fees basis for the period under review. In contrast, the composite index (50% Lehman Global Aggregate index, 25% Lehman High The Western Asset Emerging Markets Bond Fund rose by 5.2% on Yield index, 25% JP Morgan Emerging Markets Bond index Plus) a net of fees basis in the period. This compares with the JP Morgan returned 1.45%. Within the Fund’s U.S. high yield allocation, the Emerging Market Bond index Plus return of 5.9%. Following the bias towards lower grade high yielding bonds impacted initial widening of spreads across most credit markets on flight to performance. The Fund did benefit from an overweight allocation quality in the wake of the debt downgrading of General Motors to emerging markets and underweight euro exposure given the and Ford, emerging market bond spreads began to tighten. strong rise in the U.S. dollar. Portfolio flows into the asset class continued to be strong and supply is very manageable since most borrowers have completed Portfolio their necessary financing for this year.

Overall, portfolio duration was slightly reduced as we sold long Portfolio dated European government bonds and increased the exposure to intermediate U.S. Treasuries. The foreign government and As spread levels became more attractive, portfolio duration was agency/mortgage bonds exposure was halved to 11% mainly in extended predominantly through a decrease in the cash weighting, favour of U.S. bonds. We also reduced our exposure to Polish and moving funds into Russia, Mexico, Brazil and Turkey. We South African bonds and sold Hungarian bonds as we felt that increasingly view certain local markets such as Mexico, Brazil and valuations were less compelling versus Latin American markets Turkey as alternative opportunities, given falling inflation and high (Mexico and Brazil). Emerging market exposure at around 22% was interest rates. We continue to be positive on emerging market debt, maintained with a further 10% exposure in local markets. During as we expect the global environment for bonds to remain the period we increased our foreign currency exposure and added constructive. Inflation should remain low and growth is expected to to our positions in Mexican Peso, Brazilian Real, Turkish Lira and be moderate while liquidity is expected to remain strong with South African Rand and reduced exposure to the Hungarian Forint emerging market commodity exporters helped by strong demand. and Polish Zloty. We also took advantage of the sell off in the high Country fundamentals are expected to remain positive as yield sector in April/May to increase the global high yield position international reserves are higher with current account and budget modestly to 27%. We marginally reduced the exposure to balances stronger, debt levels lower and banking systems more mortgages and TIPS over the period. Lower breakeven spreads on robust. Most countries are prudently managing their fiscal and TIPS imply the market is confident that U.S. inflation will remain monetary policies with many having adopted floating exchange subdued while tight mortgage spreads indicate that bond markets rates that better enable them to make adjustments in periods of are likely to remain stable. We favour high yield and emerging stress. In addition, local markets are becoming more developed as markets as fundamentals remain supportive. In the U.S., we prefer pension fund assets continue to grow. This has resulted in a the short to medium term securities, which should do well if the stronger asset class with a higher credit quality, justifying the Fed pauses in its rate tightening cycle. historically high spread levels currently found in the market.

6 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Market Commentary & Fund Reviews - (continued)

Brandywine Global Opportunities Bond Fund the index) detracted from performance. However, the Fund’s absence from materials, the worst performing sector in the index, Performance was positive for performance. The Brandywine Global Opportunities Bond Fund declined by -1.5% The Fund’s individual holdings also added to performance during during the period, outperforming the Citi World Government Bond the period, with strength concentrated in the industrials and Index, which fell by 2%. Judicious currency management and consumer discretionary sectors. Google and Amazon.com were top country allocations outweighed the shortfall caused by the short contributors, benefiting from strong quarterly reports, while duration position. Currency allocation contributed positively to the Electronic Arts and Citigroup, which declined after posting Fund’s performance largely due to the underweight position in the disappointing quarterly results, and American International Group, euro and Canadian dollar. The Fund also benefited from its which was hurt by regulatory concerns, detracted from overweight position in the United States, which is based on superior performance. growth and interest rate differentials there. Additionally, the strong Portfolio rally in Polish bonds delivered further incremental value. In contrast, duration and selection choices detracted from relative performance During the six-month period, we initiated positions in Aetna, due to a rally in longer dated U.S., European, and Japanese bonds Caterpillar, Cisco Systems, Dell, FedEx, and Harley-Davidson, while (large components of the benchmark) while we held short duration exiting from McKesson, Merrill Lynch, Microsoft, Morgan Stanley, securities in these countries as a defensive move. Vodafone, and WellPoint. We believe that our new holdings possess better economics and growth potential than the companies we Portfolio divested, and give us greater opportunities to achieve excess risk- While increases in global producer prices and headline inflation, adjusted returns. mainly as the result of higher energy costs, have not yet been passed through to core inflation, a cautious view on fixed income Legg Mason Value Fund markets is retained as inflation is likely to creep up, causing a potential sell-off in the bond market. This has led to a defensive Performance stance in the U.S. while holding longer duration bonds in countries The Legg Mason Value Fund rose by 2.1% in the period, slightly that are further along in their business cycles, and which are ready behind the 2.3% return of the S&P 500 index. A factor that to begin or have begun to ease monetary policy (e.g. Australia, contributed to the Fund’s underperformance was the Fund’s New Zealand, and the UK). Additionally, U.S. bonds are at the absence of energy stocks, which was boosted by high oil prices, expensive end of their two-year trading range and do not appear to and was the second best performing sector in the index. Positive for offer much value at a yield of around 4%. We continue to favour performance was an absence from materials, which was the worst U.S. bonds with short duration while extending duration selectively performing sector in the index. Overweight positions in in markets that offer greater value. This stance will be maintained telecommunications and health care were also positive, where our until we are convinced that growth is slowing significantly and that holdings significantly outperformed their sector benchmarks. the risk of inflation has tilted to the downside. Individual holdings came under some pressure during the period, The dollar’s recent decline can be viewed as a correction within the with weakness concentrated in the industrials and consumer staples rally from the beginning of the year, and it should help to reduce sectors. Tyco International and Eastman Kodak were the largest the overbought condition witnessed at the end of July. The dollar is detractors, as investors were disappointed by the companies’ expected to resume its rally soon as interest rate and growth quarterly reports. Their poor performances were partially offset by differentials continue to provide support. Additionally the lacklustre strong returns from Google and Sprint Nextel, which continued to economic backdrop in Europe should put further pressure on the post financial results ahead of investor expectations. euro. Canada has a growing current account surplus, a budget surplus, and a wealth of commodities that are needed by the rest of Portfolio the world. It is for these reasons that we are structurally bullish on During the six-month period, the Fund acquired positions in Cisco the Canadian dollar on an intermediate to long-term basis. Near- Systems and Symantec, while exiting from Comcast, Fannie Mae, term it may be overbought and due for a correction, however, we and Kroger. We believe that our new holdings possess better expect to continue holding an overweight position in this currency economics and growth potential than the companies we sold, and for the foreseeable future. Based on our expectations that the U.S. give us greater opportunities to achieve excess risk-adjusted returns. dollar will resume its rally into the end of the year, we continue to Although Hurricane Katrina will undoubtedly have serious economic hold an overweight position in the U.S. dollar and an underweight consequences, we continue to maintain a bullish stance on U.S. position in the euro. The Fund is benchmark neutral with respect to equities. Given earnings projections, large cap companies appear the yen since the revaluation of the Chinese renminbi should lead undervalued on a relative and absolute basis. to yen strength in the near future. Royce U.S. Small Cap Equity Fund Equity Fund Reviews Performance Legg Mason Growth Fund The Royce U.S. Small Cap Fund rose by 3.7%, underperforming the benchmark Russell 2000 index return of 5.8% for the period under review. With relatively few positions in the natural resources sector, Performance the Fund’s performance suffered from the effect of rising oil prices The Legg Mason Growth Fund increased by 2.9% during the as integrated oil was the strongest performing small-cap sector period, outperforming the S&P 500 index, which returned 2.3%. during the period. Additionally, the Fund’s substantial positions in Sector allocation decisions added to portfolio performance with the technology, which was one of the weakest performing sectors in Fund helped by overweight positions in the consumer discretionary the period, was a drag on performance. In terms of individual sector - where the Fund’s holdings easily outperformed their sector holdings, one of the best performers was Titanium Metals, a benchmark - as well as the Fund’s position in information manufacturer of titanium products for the aerospace market, which technology, one of the better performing sectors in the index. The was up by approximately 65% for the period. Among the losers Fund’s absence from energy (the second best performing sector in was Magnetek, a manufacturer of digital power products, which

7 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Market Commentary & Fund Reviews - (continued)

was down by approximately 40%. Portfolio

Portfolio Over the period under review, the Fund reduced holdings in the bank and telecoms sectors, although it continues to maintain an In line with the manager’s contrarian investment approach, overweight position across both areas because of attractive numerous opportunities were taken to buy both in anticipation and fundamentals. Another theme for the Fund following improved in response to poor earnings, finding what was perceived to be valuations was additions to growth areas such as information solid value in various industries throughout the market. The Fund’s technology and pharmaceuticals. While Continental European exposure to technology was increased further, as were positions in equities have performed well versus other mature markets so far in industrial services, and consumer products. The manager reduced 2005, we continue to see relative value. Increased mergers & positions in health, consumer services, and industrial services. acquisitions activity, especially from private equity funds, would Overall the Fund’s largest positions remained technology, followed seem to back up this view. Interest rates within the euro-zone are by industrial products and industrial services. Among the companies expected to remain at low levels, which is supportive for equities, as where the Fund increased its position in the period were multi- is the weaker euro, which is likely to benefit the export orientated service wide area network provider Network Equipment European economies. Technologies, e-business software company Borland Software, and computer specialist Cray. Batterymarch Pacific Equity Fund

Royce 100 Equity Fund Performance

Performance The Batterymarch Pacific Equity Fund increased by 3.6% during the period, outperforming the MSCI Asia ex Japan index, which The Royce 100 Equity Fund rose by 6.8%, outperforming the returned 3.0%. Stock selection was strongly positive in the period, Russell 2000 index return of 5.8%. Performing well for the Fund led by South Korea, Taiwan, and Singapore, although selection was were holdings in oil & gas and energy related stocks, as well as weak in India, Indonesia and Hong Kong. Country allocation individual holdings in financial services. Technology was a principal detracted from performance, particularly through the overweight in area of weakness for the period, continuing a trend that began in Indonesia – one of the worst performing markets – and the 2004. Among the positive contributors to the Fund’s performance underweight in India – the best performing market. Several stocks were financial services companies, Morningstar and NASDAQ Stock contributed significantly to the Fund’s performance over the six Market, energy service company Holly Corporation, clothing retailer months. Domestic names in Korea, such as Samsung Engineering The Buckle, and software provider ManTech International. A and Dongbu Insurance, were important sources of returns for the negative for performance in the period was eFunds Corporation, Fund, as a rotation away from exporters gained steam and fiscal the provider of multiple financial services. stimulus plans lifted the construction stocks. Technology stocks in Portfolio Taiwan, namely High Tech Computer and Pheonix Precision, were also significant contributors, particularly during NASDAQ’s spring Market weakness in April was used to lower weights in natural and summer rally. The principal detractors from performance were resources, consumer products and service sectors in favour of spread throughout the region and included Entergisul, a Korean technology and industrial services. A position in Holly Corporation consumer electronics player which posted disappointing results; was reinitiated in April due to strong dividend growth and its status China Int’l Marine Container on the correction in cyclical China as a smaller regional oil refiner and transporter, after contributing plays; and Bank Rakyat in Indonesia, which dropped significantly on strongly to the Fund’s performance since its inclusion in the the fuel subsidy scare in August. portfolio last spring. The position in ManTech International, a provider of software and other security-orientated products, was Portfolio reduced. Due to our high regard for their management and The Fund remains overweight in the emerging market countries in fundamentals, lower prices in three companies were used to the region relative to the more developed markets of Hong Kong, increase positions: eFunds Corporation, retailer Pier 1 Imports and Singapore, and Taiwan. The Fund’s largest market overweight motorsports collectibles business Action Performance Companies. position is South Korea, the same as at the beginning of the period. We believe that, for the market as a whole, the next five years are The Fund is attractively valued relative to both its benchmark and likely to be better than the previous five and, when a positive the developed markets. High growth with much lower risk than in catalyst materialises, both the large and small-cap markets should the past suggests that the discount applied to Asia since the late be in a position to respond in kind. 1990’s crisis should gradually be removed and that investors in the region should expect long-term outperformance. Batterymarch European Equity Fund

Performance The Batterymarch European Equity Fund increased by 7.3% in the period, underperforming the FTSE World Europe ex UK index, which returned 10.6% in euro terms. Despite positive stock selection, performance suffered as a result of the Fund’s significant overweight position in the bank and telecoms sectors which performed poorly over the period under review. However, we continue to believe that these sectors offer strong investment opportunities. Another factor that contributed to underperformance was an underweight position in automobiles and retail - as a result, the Fund did not participate fully in the strong returns enjoyed by both these sectors.

8 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Western Asset U.S. Money Market Fund

Portfolio of Investments as at August 31, 2005 (Unaudited)

Face Coupon Value % of Face Coupon Value % of Value (000’s) Rate Maturity (000’s) Asset Value (000’s) Rate Maturity (000’s) Asset $%Date $ Value $%Date $ Value

U.S. Dollar-Denominated Debt Obligations — 0.17% (Cost $152) U.S. Government Agency Obligations — 2.90% Canada — 0.17% Federal Home Loan Bank (FHLB) — 0.72% 150 Ontario, Province of, Bonds 6.000 02/21/2006 152 0.17 250 FHLB, Bonds 2.500 03/13/2006 248 0.28 Annualized 150 FHLB, Bonds** 3.590 08/02/2006 150 0.16 Yield 250 FHLB, Bonds** 3.645 05/10/2006 250 0.28 At Date Of Purchase 648 0.72 (Unaudited) Federal Home Loan Mortgage Corporation (FHLMC) — 0.56%

U.S. Government Agency Discount Notes — 21.23% 250 FHLMC, MTN 2.300 09/26/2005 250 0.28 Federal Home Loan Bank (FHLB) — 7.35% 250 FHLMC, Notes 5.250 01/15/2006 252 0.28 500 FHLB, Discount Notes 3.417 09/23/2005 499 0.56 502 0.56 723 FHLB, Discount Notes 3.427 09/21/2005 722 0.81 Federal National Mortgage Association (FNMA) — 1.62% 846 FHLB, Discount Notes 3.430 09/30/2005 844 0.94 250 FNMA, Notes** 3.250 12/09/2005 250 0.28 137 FHLB, Discount Notes 3.482 10/05/2005 137 0.15 250 FNMA, Notes 3.250 03/17/2006 249 0.28 300 FHLB, Discount Notes 3.510 09/28/2005 299 0.33 250 FNMA, Notes** 3.386 10/03/2005 250 0.28 375 FHLB, Discount Notes 3.514 10/12/2005 373 0.42 700 FNMA, Series 1, Notes 4.000 08/18/2006 699 0.78 438 FHLB, Discount Notes 3.522 10/03/2005 437 0.49 1,448 1.62 175 FHLB, Discount Notes 3.528 10/04/2005 174 0.19 Total U.S. Government Agency Obligations (Cost $2,598) 2,598 2.90 400 FHLB, Discount Notes 3.590 10/19/2005 398 0.44 Corporate Bonds — 4.01% 200 FHLB, Discount Notes 3.598 11/28/2005 198 0.22 125 American Express Centurion Corp., 500 FHLB, Discount Notes 3.602 10/26/2005 497 0.56 Notes** 3.510 09/01/2005 125 0.14 900 FHLB, Discount Notes 3.666 11/08/2005 894 1.00 100 American Honda Finance Corp., 500 FHLB, Discount Notes 3.674 11/02/2005 497 0.56 MTN, 144A** 3.710 11/09/2005 100 0.11 614 FHLB, Discount Notes 7.706 10/29/2005 606 0.68 245 American Honda Finance, MTN, 144A** 3.799 10/03/2005 245 0.27 6,575 7.35 250 Bank One Corp., Notes 6.500 02/01/2006 253 0.28 Federal Home Loan Mortgage Corporation (FHLMC) — 7.73% 125 Colgate-Palmolive Co., Series D, 500 FHLMC, Discount Notes 3.412 09/07/2005 500 0.56 MTN 5.340 03/27/2006 126 0.14 125 FHLMC, Discount Notes 3.483 10/19/2005 124 0.14 200 Countrywide Financial Corp., 1,000 FHLMC, Discount Notes 3.494 09/27/2005 998 1.12 Company Guaranteed, Series A, 773 FHLMC, Discount Notes 3.579 10/18/2005 769 0.86 MTN** 3.509 03/21/2006 200 0.22 449 FHLMC, Discount Notes 3.773 12/16/2005 444 0.50 140 FleetBoston Financial Corp., Notes 7.250 09/15/2005 140 0.16 900 FHLMC, Discount Notes 3.844 12/13/2005 890 1.00 316 General Electric Capital Corp., Series A, MTN 5.350 03/30/2006 319 0.36 850 FHLMC, Discount Notes 3.853 02/28/2006 834 0.93 690 National Rural Utilities, Collateral 600 FHLMC, Discount Notes 3.998 04/13/2006 585 0.65 Trust 6.000 05/15/2006 700 0.78 450 FHLMC, Series RB, Discount Notes 3.277 09/13/2005 450 0.50 260 Pfizer, Inc., Notes, 144A** 3.534 10/07/2009 260 0.29 380 FHLMC, Series RB, Discount Notes 3.298 09/06/2005 380 0.42 320 SBC Communications Inc., 159 FHLMC, Series RB, Discount Notes 3.944 06/27/2006 154 0.17 Notes, 144A 4.389 06/05/2006 320 0.36 800 FLHMC, Discount Notes 3.792 01/10/2006 789 0.88 150 SLM Corp., Series A, MTN** 3.590 09/15/2005 150 0.17 6,917 7.73 150 SLM Corp., Series A, MTN** 3.850 01/13/2006 150 0.17 Federal National Mortgage Association (FNMA) — 6.15% 100 Svenska Handelsbanken NY, 425 FNMA, Discount Notes 3.410 09/16/2005 424 0.47 Deposit Notes, Series YCD** 3.400 09/26/2005 100 0.11 763 FNMA, Discount Notes 3.425 09/21/2005 762 0.85 100 Textron Financial Corp., Series E, MTN 2.750 06/01/2006 99 0.11 250 FNMA, Discount Notes 3.428 09/26/2005 250 0.28 200 Verizon Global Funding Corp., 325 FNMA, Discount Notes 3.470 10/03/2005 324 0.36 Notes 6.750 12/01/2005 202 0.23 300 FNMA, Discount Notes 3.510 09/28/2005 299 0.34 100 Wal-Mart Stores, Inc., Notes** 3.274 03/16/2006 100 0.11 600 FNMA, Discount Notes 3.532 10/05/2005 598 0.67 Total Corporate Bonds (Cost $3,589) 3,589 4.01 400 FNMA, Discount Notes 3.550 10/12/2005 398 0.45 Annualized 775 FNMA, Discount Notes 3.577 10/24/2005 771 0.86 Yield 485 FNMA, Discount Notes 3.579 10/19/2005 483 0.54 At Date Of 900 FNMA, Discount Notes 3.592 10/14/2005 896 1.00 Purchase (Unaudited) 300 FNMA, Discount Notes 3.648 12/05/2005 297 0.33 5,502 6.15 Commercial Paper — 7.89% Total U.S. Government Agency Discount Notes (Cost $18,994) 18,994 21.23 900 Bank of America Corp. 3.693 10/31/2005 894 1.00

The accompanying notes are an integral part of the Financial Statements 9 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Western Asset U.S. Money Market Fund

Portfolio of Investments as at August 31, 2005 (Unaudited) - (continued)

Annualized Yield Face At Date of Value % of Face Value % of Value (000’s) Purchase Maturity (000’s) Asset Value (000’s) (000’s) Asset $ (Unaudited) Date $ Value $$Value

Commercial Paper — (continued) Total Repurchase Agreements (Cost $58,700) 58,700 65.60 300 Barclays Bank Plc 3.481 09/06/2005 300 0.33 Total Investments (Cost $92,690) 92,690 103.58 104 Barclays Bank Plc 3.773 11/28/2005 103 0.12 Other Liabilities In Excess of Assets (3,206) (3.58) 500 Caterpillar Inc. 3.510 09/20/2005 499 0.56 Total Net Assets $ 89,484 100.00 500 Caterpillar Inc. 3.673 10/24/2005 497 0.56 144A Securities exempt from registration under Rule 144A of the Securities Act of 1933, 525 Danske Corp. 3.530 09/06/2005 525 0.59 as amended. These securities may only be resold, in transactions exempt from 650 Dexia Delaware LLC 3.570 10/05/2005 648 0.72 registration, to qualified institutional buyers. At August 31, 2005, these securities amounted to $925,000 or 1.03% of net assets. 500 Dupont EI De Nemours Co. 3.517 09/27/2005 499 0.56 ** Variable rate security. The interest rate shown reflects the rate in effect at August 200 General Electric Capital Corp. 3.515 09/22/2005 200 0.22 31, 2005. 100 General Electric Co. 3.471 09/09/2005 100 0.11 ABBREVIATION: 100 HBOS Treasury Services 3.558 09/01/2005 100 0.11 MTN Medium Term Note 400 HBOS Treasury Services 3.631 10/06/2005 399 0.45 600 Nestle Holdings UK Plc 3.501 09/16/2005 599 0.67 800 Sherwin-Williams Co. 3.522 09/06/2005 800 0.89 500 Toyota Motor Credit Corp. 3.724 11/14/2005 496 0.55 400 Wal-Mart Stores, Inc. 3.462 09/13/2005 399 0.45 Total Commercial Paper (Cost $7,058) 7,058 7.89 Coupon Rate %

Certificates Of Deposit — 1.28% 1,000 Credit Suisse First Boston New York 3.725 10/31/2005 1,000 1.11 150 Washington Mutual Bank 3.250 09/26/2005 150 0.17 Total Certificates Of Deposit (Cost $1,150) 1,150 1.28

Bankers Acceptance — 0.50% (Cost $449) 450 JPMorgan Chase Bank 3.528 09/29/2005 449 0.50

Repurchase Agreements — 65.60% 17,279 Countrywide Capital Markets Repurchase Agreement dated 08/31/2005 at 3.56% to be repurchased at $17,280,709 on 09/01/2005, collateralized by $16,710,000 FHLB 5.75%, due 10/15/2007 3.560 09/01/2005 17,279 19.31 7,199 Lehman Brothers Repurchase Agreement dated 08/31/2005 at 3.54% to be repurchased at $7,199,708 on 09/01/2005, collateralized by $31,930,000 FHLB 0.00%, due 09/08/2028 3.540 09/01/2005 7,199 8.05 16,943 Merrill Lynch Repurchase Agreement dated 08/31/2005 at 3.57% to be repurchased at $16,944,680 on 09/01/2005, cllateralized by $17,370,000 FNMA 6.02%, due 08/08/2025 3.570 09/01/2005 16,943 18.93 17,279 Nomura Securities Repurchase Agreement dated 08/31/2005 at 3.57% to be repurchased at $17,280,714 on 09/01/2005, collateralized by $7,910,000 FNMA 5.15%, due 03/08/2012 & $8,285,000 FHLMC 7.00%, due 03/15/2010 3.570 09/01/2005 17,279 19.31

The accompanying notes are an integral part of the Financial Statements

10 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Western Asset U.S. Core Bond Fund

Portfolio of Investments as at August 31, 2005 (Unaudited)

Face Coupon Value % of Face Coupon Value % of Value (000’s) Rate Maturity (000’s) Asset Value (000’s) Rate Maturity (000’s) Asset $%Date $ Value $%Date $ Value

Asset-Backed Securities — 9.25% 575 Countrywide Alternative Loan Trust, 40 Bayview Financial Acquisition Trust, Series 2005-17, Class 1A1** 3.901 07/25/2035 574 1.10 Series 2003-BA, Class A1, 144A** 4.121 04/25/2033 40 0.08 533 Countrywide Home Loans, 389 Bayview Financial Acqusition Trust, Series 2004-25 Class 2A1** 3.981 02/25/2035 533 1.02 Series 2005-B, Class 2A-1** 3.621 04/28/2039 389 0.74 510 Countrywide Home Loans, 401 Carrington Mortgage Loan Trust, Series 2004-25, Class 1A1** 3.971 02/25/2035 510 0.97 Series 2005-OPT2, Class A1A** 3.731 05/25/2035 401 0.77 509 Countrywide Home Loans, 5 CDC Mortgage Capital Trust, Series 2005-11, Class 6A1** 3.941 03/25/2035 509 0.97 Series 2003-HE1, Class A1** 3.971 07/25/2033 5 0.01 538 Countrywide Home Loans, 215 Conseco Finance Securitizations Series 2005-3, Class 1A2 3.931 04/25/2035 537 1.02 Corp., Series 2000-6, Class A4** 6.770 09/01/2032 217 0.41 559 Countrywide Home Loans, 79 Conseco Finance Securitizations Series 2005-9, Class 1A1** 3.941 05/25/2035 559 1.07 Corp., Series 2000-C, Class B2** 5.621 07/15/2029 79 0.15 450 Criimi Mae Commercial 396 Countrywide Alternative Loan Trust, Mortgage Trust, Series 1998-C1, Series 2005-38, Class A3** 3.991 09/25/2035 396 0.76 Class A2, 144A 7.000 06/02/2033 464 0.89 21 Countrywide Asset-Backed 120 CS First Boston Mortgage Securities Certificates, Series 2003-SD1, Corp., Series 2005-C2, Class A4** 4.832 04/15/2037 122 0.23 Class A1, 144A** 4.331 12/25/2032 21 0.04 21 FFCA Secured Lending Corp., 439 Countrywide Asset-Backed Series 1997-1, Class IO, 144A** 0.370 07/18/2015 — 0.00 Certificates, Series 2005-BC2, 700 GMAC Commercial Mortgage Class 2A1** 3.731 05/25/2035 439 0.84 Securities Inc., Series 1999-C2, 236 Countrywide Home Equity Loan Class A2 6.945 09/15/2033 755 1.44 Trust, Series 2002-F, Class A** 3.921 11/15/2028 237 0.45 508 Greenpoint Mortgage Funding 210 FannieMae Grantor Trust, Series Trust, Series 2005-AR1, Class A2** 3.861 06/25/2045 507 0.97 2002-T15, Class A1** 3.841 11/25/2032 210 0.40 395 GSMPS Mortgage Loan Trust, 144 FannieMae Grantor Trust, Series 2005-RP2, Class 1AF, 144A** 3.991 03/25/2035 395 0.75 Series 2005-T2, Class 1A1** 3.817 11/28/2035 144 0.27 575 Harborview Mortgage Loan Trust, 287 Financial Asset Securities Corp., Series 2005-2, Class 2A1A** 3.810 05/19/2035 573 1.09 Series 2005-2, Class A1, 144A** 3.741 11/26/2035 286 0.55 1,912 LB-UBS Commercial Mortgage 499 First Franklin Mortgage Loan Trust, Series 2001-C3, Asset-Backed Certificates, Class X, 144A** 1.204 07/15/2011 84 0.16 Series 2005-FF5, Class A2A** 3.721 03/25/2034 499 0.95 272 Master Reperforming Loan Trust, 195 Household Home Equity Loan Trust, Series 2005-1, Class 1A1, 144A** 6.000 08/25/2034 279 0.53 Series 2002-2, Class A** 3.909 04/20/2032 195 0.37 124 Morgan Stanley Capital I, 121 Household Home Equity Loan Trust, Series 1997-C1, Class A1C 7.630 02/15/2020 125 0.24 Series 2002-3, Class A** 4.059 07/20/2032 121 0.23 400 Morgan Stanley Capital I, 200 Household Home Equity Loan Trust, Series 2005-HQ6, Class A4A 4.989 08/13/2042 411 0.78 Series 2002-4, Class A** 4.159 10/20/2032 201 0.38 130 Wachovia Bank Commercial 9Irwin Home Equity Loan Trust, Mortgage Trust, Series 2005-C18, Series 2003-1, Class 2A1** 4.141 02/25/2028 9 0.02 Class A4 4.935 04/15/2042 133 0.25 112 Residential Asset Mortgage 971 Washington Mutual, Products, Inc., Series 2003-RS2, Series 2004-AR13, Class A1A** 3.860 11/25/2034 972 1.85 Class AII** 3.981 03/25/2033 112 0.21 481 Washington Mutual, 266 Residential Asset Securities Corp., Series 2005-AR6, Class 2A1A** 3.871 04/25/2045 480 0.92 Series 1999-KS1, Class AII** 3.916 03/25/2029 267 0.51 849 Washington Mutual, 66 Residential Asset Securities Corp., Series 2005-AR8, Class 1A1A** 3.911 07/25/2045 849 1.62 Series 2001-KS2, Class AII** 3.871 06/25/2031 66 0.13 830 Wells Fargo Mortgage 514 Structured Asset Investment Loan Backed Securities Trust, Trust, Series 2005-3, Class A9** 3.771 04/25/2035 514 0.98 Series 2004-S, Class A7 3.540 09/25/2034 808 1.54 Total Asset-Backed Securities (Cost $4,849) 4,848 9.25 Total Collateralised Mortgage-Backed Obligations (Cost $12,190) 11,487 21.91 Collateralised Mortgage-Backed Obligations — 21.91% Corporate Bonds and Notes — 20.31% 364 American Home Mortgage Investment Trust, Series 2004-1, Aerospace / Defense — 0.99% Class 1A** 3.991 04/25/2044 364 0.70 468 BAE Systems 2001 Asset Trust, 452 Asset Securitization Corp., Pass-through Certificates, 144A 6.664 09/15/2013 510 0.97 Series 1996-D2, Class A1** 6.920 02/14/2029 456 0.87 9 Raytheon Co., Notes 6.750 08/15/2007 9 0.02 500 Bear Stearns Adjustable Rate 519 0.99 Mortgage Trust, Series 2004-4, Class A6** 3.515 06/25/2034 488 0.93

The accompanying notes are an integral part of the Financial Statements

11 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Western Asset U.S. Core Bond Fund

Portfolio of Investments as at August 31, 2005 (Unaudited) - (continued)

Face Coupon Value % of Face Coupon Value % of Value (000’s) Rate Maturity (000’s) Asset Value (000’s) Rate Maturity (000’s) Asset $%Date $ Value $%Date $ Value

Corporate Bonds and Notes — (continued) 330 Ford Motor Credit Co., Notes 7.375 10/28/2009 329 0.63 Basic Materials — 0.13% 300 Ford Motor Credit Co., Notes 7.875 06/15/2010 302 0.58 60 Weyerhauser Co., Notes 6.750 03/15/2012 66 0.13 330 General Electric Capital Corp., Series A, MTN** 3.670 09/15/2014 332 0.63 Communications — 0.40% 80 General Electric Capital Corp., 125 Clear Channel Communications, Series A, MTN 5.450 01/15/2013 84 0.16 Inc., Notes 5.500 09/15/2014 123 0.23 70 General Motors Acceptance Corp., 85 Deutsche Telekom International MTN** 4.677 05/18/2006 70 0.13 Finance BV, Company Guaranteed 5.250 07/22/2013 88 0.17 40 General Motors Acceptance Corp., 211 0.40 Bonds 6.150 04/05/2007 40 0.08 Consumer Cyclicals — 0.95% 70 General Motors Acceptance Corp., 110 DaimlerChrysler NA, Company Bonds 8.000 11/01/2031 65 0.12 Guaranteed 4.050 06/04/2008 108 0.21 40 General Motors Acceptance Corp., 60 DaimlerChrysler NA, Company MTN 4.375 12/10/2007 38 0.07 Guaranteed 7.200 09/01/2009 65 0.12 90 General Motors Acceptance Corp., 30 Eastman Kodak Co., Notes 5.625 05/15/2009 86 0.16 Senior Notes 7.250 11/15/2013 31 0.06 10 General Motors Acceptance Corp., 90 Eastman Kodak Co., Notes 6.125 02/01/2007 10 0.02 Series A, MTN 3.625 05/15/2008 86 0.17 170 General Motors Acceptance Corp., 120 Ford Motor Co., Notes 6.125 08/28/2007 169 0.32 Notes 7.450 07/16/2031 96 0.18 40 General Motors Acceptance Corp., 130 General Motors Corp., Notes 7.250 03/02/2011 39 0.07 Debentures 8.375 07/15/2033 109 0.21 120 General Motors Acceptance Corp., 495 0.95 Notes 7.750 01/19/2010 120 0.23 Consumer Staples — 0.96% 75 Household Finance Corp., Notes 6.500 11/15/2008 80 0.15 110 Altria Group Inc., Debentures 7.750 01/15/2027 132 0.25 80 Household Finance Corp., 55 Altria Group Inc., Notes 7.000 11/04/2013 62 0.12 Notes 8.000 07/15/2010 91 0.17 50 Kraft Foods, Inc., Notes 5.625 11/01/2011 53 0.10 40 Household Finance Corp., Senior 210 R.J. Reynolds Tobacco Holdings, Unsubordinated Notes 6.400 06/17/2008 42 0.08 Series B, Company Guaranteed 7.750 05/15/2006 214 0.41 130 Lehman Brothers Holdings, Inc., 40 R.J. Reynolds Tobacco Holdings, Notes 6.625 01/18/2012 144 0.27 Series B, Company Guaranteed 7.875 05/15/2009 42 0.08 60 Merrill Lynch & Co., Series B, MTN 3.375 09/14/2007 59 0.11 503 0.96 110 Morgan Stanley, Notes 3.625 04/01/2008 108 0.21 Energy — 0.97% 40 Morgan Stanley, Notes 5.300 03/01/2013 41 0.08 30 Apache Corp., Notes 6.250 04/15/2012 33 0.06 85 Resona Preferred Global Securities, 90 Devon Energy Corp., Debentures 7.950 04/15/2032 120 0.23 Bonds, 144A 7.191 07/30/2015 90 0.17 300 Sonat, Inc., Notes 7.625 07/15/2011 305 0.58 400 SLM Corp., Series CPI, Notes** 3.930 04/01/2009 395 0.75 20 XTO Energy, Inc., Senior Notes 6.250 04/15/2013 22 0.04 120 The Goldman Sachs Group Inc., Notes 4.750 07/15/2013 119 0.23 25 XTO Energy, Inc., Senior Notes 7.500 04/15/2012 29 0.06 3,608 6.88 509 0.97 Financials - Banks — 2.43% Financial — 6.88% 170 Bank of America Corp., 30 Asif Global Financng Xix, Subordinated Notes 7.400 01/15/2011 193 0.37 Bonds, 144A 4.900 01/17/2013 30 0.06 40 Bank One Corp., Senior Notes 4.125 09/01/2007 40 0.08 100 Bear Stearns Co., Inc., Series B, MTN** 3.680 06/19/2006 100 0.19 120 Bank One Corp., Subordinated Notes 5.900 11/15/2011 128 0.24 100 BP Capital Markets Plc, Company Guaranteed 2.750 12/29/2006 98 0.19 40 HSBC Capital Funding LP, Bank Guaranteed, 144A** 4.610 12/29/2049 39 0.07 30 ChevronTexaco Capital Co., Company Guaranteed 3.500 09/17/2007 30 0.06 70 J.P. Morgan & Co., Notes 4.500 11/15/2010 71 0.13 95 Citigroup, Inc., 120 J.P. Morgan & Co., Series A, MTN, Subordinated Notes 5.000 09/15/2014 97 0.19 Senior Subordinated Notes** 8.019 02/15/2012 132 0.25 150 Countrywide Home Loans, Inc., 20 J.P. Morgan & Co., Subordinated Series L, MTN** 3.947 02/17/2006 150 0.29 Notes 5.750 01/02/2013 21 0.04 80 Ford Motor Credit Co., 20 J.P. Morgan & Co., Subordinated Bonds 7.375 02/01/2011 79 0.15 Notes 6.000 02/15/2009 21 0.04 170 Ford Motor Credit Co., 490 Wells Fargo & Co., Notes** 3.450 03/03/2006 491 0.94 Notes 6.875 02/01/2006 171 0.33

The accompanying notes are an integral part of the Financial Statements

12 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Western Asset U.S. Core Bond Fund

Portfolio of Investments as at August 31, 2005 (Unaudited) - (continued)

Face Coupon Value % of Face Coupon Value % of Value (000’s) Rate Maturity (000’s) Asset Value (000’s) Rate Maturity (000’s) Asset $%Date $ Value $%Date $ Value

Corporate Bonds and Notes — (continued) 52 Norfolk Southern Corp., Notes 5.257 09/17/2014 54 0.10 Financials - Banks — (continued) 14 Norfolk Southern Corp., Notes 7.350 05/15/2007 15 0.03 55 Wells Fargo & Co., Subordinated 120 Seariver Maritime Inc., Notes 5.000 11/15/2014 56 0.11 Company Guaranteed zero coupon 09/01/2012 88 0.17 80 Wells Fargo & Co., Subordinated 100 Union Pacific Corp., Notes 6.700 12/01/2006 102 0.20 Notes 5.125 09/01/2012 83 0.16 606 1.16 1,275 2.43 Utilities — 2.65% Health Care — 0.04% 205 Conoco Inc., Senior Notes 6.950 04/15/2029 259 0.49 21 Tenet Healthcare Corp., Notes 7.375 02/01/2013 20 0.04 40 Detroit Edison Co., Senior Notes 5.200 10/15/2012 41 0.08 Industrials — 1.11% 20 Dominion Resources, Inc., Notes 4.125 02/15/2008 20 0.04 210 General Electric Co., Notes 5.000 02/01/2013 216 0.41 10 Dominion Resources, Inc., Notes 4.750 12/15/2010 10 0.02 65 Northrop Grumman Corp., Notes 4.079 11/16/2006 65 0.13 30 Dominion Resources, Inc., Senior 80 Tyco International Group SA, Notes 5.125 12/15/2009 31 0.06 Company Guaranteed, 40 Dominion Resources, Inc., Senior Yankee Dollar 6.875 01/15/2029 95 0.18 Notes 5.700 09/17/2012 42 0.08 100 Waste Management Inc., 120 Duke Energy Corp., First Mortgage 3.750 03/05/2008 119 0.23 Company Guaranteed 6.375 11/15/2012 109 0.21 10 El Paso Corp., Debentures zero coupon 02/28/2021 5 0.01 50 Waste Management Inc., Company Guaranteed 7.750 05/15/2032 64 0.12 300 El Paso Corp., MTN, Senior Notes 7.750 01/15/2032 303 0.58 30 Waste Management, Inc., 190 El Paso Corp., MTN, Senior Notes 7.800 08/01/2031 191 0.36 Senior Notes 6.500 11/15/2008 32 0.06 20 FirstEnergy Corp., Series B, Notes 6.450 11/15/2011 22 0.04 581 1.11 140 FirstEnergy Corp., Series C, Notes 7.375 11/15/2031 171 0.33 Paper & Related Products — 0.05% 20 Oncor Electric Delivery Co., Secured Notes 6.375 01/15/2015 22 0.04 25 International Paper Co., Notes 5.500 01/15/2014 26 0.05 60 Pacific Gas and Electric Co., Technology — 0.12% First Mortgage 6.050 03/01/2034 66 0.13 60 Electronic Data Systems Corp., 65 TXU Energy Co., LLC, Notes, Notes 7.125 10/15/2009 65 0.12 144A** 4.360 01/17/2006 65 0.12 Telecommunications — 1.47% 20 TXU Energy Co., LLC, Senior Notes 7.000 03/15/2013 22 0.04 20 AT&T Wireless Services, Inc., 1,389 2.65 Notes 8.125 05/01/2012 24 0.04 Corporate Bonds and Notes (Cost $10,282) 10,643 20.31 10 Comcast Corp., Company Guaranteed 6.500 01/15/2015 11 0.02 U.S. Denominated Debt Obligations — 3.77% 20 Liberty Media Corp., Debentures 3.750 02/15/2030 12 0.02 Italy — 0.46% 108 Liberty Media Corp., Senior 240 Republic of Italy, Notes 4.375 10/25/2006 241 0.46 Notes** 4.910 09/17/2006 109 0.21 Luxembourg — 0.14% 10 SBC Communications, Notes 5.100 09/15/2014 10 0.02 35 Telecom Italia Capital, Company 20 Sprint Capital Corp., Company Guaranteed 5.250 11/15/2013 35 0.07 Guaranteed 6.000 01/15/2007 20 0.04 40 Telecom Italia Capital, Company 130 Sprint Capital Corp., Notes 4.780 08/17/2006 131 0.25 Guaranteed, 144A 4.950 09/30/2014 40 0.07 60 Sprint Capital Corp., Notes 8.375 03/15/2012 72 0.14 75 0.14 40 Time Warner Entertainment Co., LP, Senior Notes 8.375 07/15/2033 52 0.10 Mexico — 2.03% 40 Time Warner, Inc., Company 160 United Mexican States, Guaranteed 6.875 05/01/2012 44 0.08 MTN, Bonds 8.300 08/15/2031 204 0.39 20 Time Warner, Inc., Company 732 United Mexican States, Series A, Guaranteed 7.625 04/15/2031 24 0.05 MTN, Notes 7.500 04/08/2033 861 1.64 160 Time Warner, Inc., Company 1,065 2.03 Guaranteed 7.700 05/01/2032 197 0.38 Russia — 1.07% 30 Verizon Global Funding 490 Russian Federation, Corp., Notes 4.375 06/01/2013 29 0.05 Unsubordinated Bonds 5.000 03/31/2030 560 1.07 30 Verizon Global Funding South Korea — 0.07% Corp., Notes 7.375 09/01/2012 35 0.07 35 Export-Import Bank of Korea, 770 1.47 Notes, 144A 5.250 02/10/2014 36 0.07 Transportation — 1.16% Total U.S. Denominated Debt Obligations (Cost $1,808) 1,977 3.77 332 Delta Air Lines, Inc., Pass-through Certificates, Series 02-1 6.718 01/02/2023 347 0.66

The accompanying notes are an integral part of the Financial Statements

13 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Western Asset U.S. Core Bond Fund

Portfolio of Investments as at August 31, 2005 (Unaudited) - (continued)

Face Coupon Value % of Face Coupon Value % of Value (000’s) Rate Maturity (000’s) Asset Value (000’s) Rate Maturity (000’s) Asset $%Date $ Value $%Date $ Value

U.S. Government Agency Mortgage-Backed Securities — 39.95% 142 U.S. Treasury Inflationary Index Federal Home Loan Mortgage Corporation (FHLMC) — 4.76% Bonds*** 3.875 04/15/2029 197 0.38 2,450 FHLMC Gold, 15 Year 4,477 8.54 September TBA† 5.000 09/01/2020 2,467 4.71 U.S. Treasury Notes — 19.06% 9 FHLMC, Pool #180858 8.000 12/01/2008 9 0.02 204 U.S. Treasury Inflationary Index 1 FHLMC, Pool #257494 8.750 11/01/2008 1 0.00 Notes*** 1.625 01/15/2015 203 0.39 15 FHLMC, Pool #302128 9.250 09/01/2009 16 0.03 2,764 U.S. Treasury Inflationary Index Notes*** 1.875 07/15/2013 2,825 5.39 2,493 4.76 225 U.S. Treasury Inflationary Index Federal National Mortgage Association (FNMA) — 20.56% Notes*** 3.875 01/15/2009 245 0.47 900 FNMA, 15 Year September TBA† 4.000 09/01/2020 877 1.67 844 U.S. Treasury Inflationary Index 200 FNMA, 15 Year September TBA† 5.000 09/01/2018 201 0.39 Notes*** 4.250 01/15/2010 947 1.81 3,200 FNMA, 30 Year September TBA† 5.000 09/01/2035 3,178 6.06 140 U.S. Treasury Notes 1.500 03/31/2006 138 0.26 5,200 FNMA, 30 Year September TBA† 5.500 09/01/2035 5,252 10.02 570 U.S. Treasury Notes 3.750 05/15/2008 569 1.08 1,000 FNMA, 30 Year September TBA† 6.500 09/01/2035 1,033 1.97 150 U.S. Treasury Notes 3.875 07/31/2007 150 0.29 165 FNMA, Pool #735416 6.500 12/01/2034 170 0.33 1,000 U.S. Treasury Notes 3.875 05/15/2010 1,000 1.91 60 FNMA, Pool #824200 9.500 12/01/2009 64 0.12 3,800 U.S. Treasury Notes 3.875 07/15/2010 3,800 7.25 10,775 20.56 70 U.S. Treasury Notes 4.125 08/15/2010 71 0.13 Government National Mortgage Association (GNMA) — 14.63% 40 U.S. Treasury Notes 4.250 08/15/2015 41 0.08 4,300 GNMA, 30 Year September TBA† 5.000 09/01/2033 4,313 8.23 9,989 19.06 1,800 GNMA, 30 Year September TBA† 7.000 09/01/2033 1,893 3.61 U.S. Treasury Strips — 0.57% 400 GNMA, 30 Year September TBA† 5.500 09/01/2034 408 0.78 590 U.S. Treasury Strips, Principal Only zero coupon 11/15/2026 234 0.45 7 GNMA, Pool #464051 7.000 07/15/2028 7 0.01 110 U.S. Treasury Strips, 351 GNMA, Pool #557522 7.000 07/15/2031 369 0.70 Principal Only zero coupon 08/15/2027 42 0.08 225 GNMA, Pool #565347 7.000 08/15/2031 237 0.45 60 U.S. Treasury Strips, 242 GNMA, Pool #584344 7.000 04/15/2032 255 0.49 Principal Only zero coupon 05/15/2030 21 0.04 178 GNMA, Pool #633717 7.000 09/15/2034 188 0.36 297 0.57 7,670 14.63 Total U.S. Treasury Obligations (Cost $14,226) 14,763 28.17 Total U.S. Government Agency Mortgage-Backed Securities (Cost $20,784) 20,938 39.95 Shares (000’s) U.S. Government Agency Obligations — 3.10% Federal Farm Credit Bank — 0.13% Preferred Stocks — 1.01% 70 Federal Farm Credit Bank, Bonds 4.125 07/17/2009 70 0.13 60 Rabobank Capital Funding Trust III, 5.254%, 144A** 61 0.12 Federal Home Loan Mortgage Corporation (FHLMC) — 0.12% 10 Rabobank Capital Funding Trust II, 5.260%, 144A** 10 0.02 50 FHLMC, Bonds 6.750 09/15/2029 65 0.12 — Home Ownership Funding II, 13.338%, 144A** 102 0.19 Federal National Mortgage Association (FNMA) — 1.89% — Home Ownership Funding Corp., 13.331%, 144A** 34 0.06 87 FNMA, Discount Notes zero coupon 12/05/2005 86 0.16 7 General Motors Corp., Series B, Convertible Senior Unsecured Debentures 138 0.26 210 FNMA, Notes 2.800 03/01/2019 209 0.40 3 Fannie Mae, 7.0%** 187 0.36 580 FNMA, Notes 3.000 04/26/2019 575 1.10 Total Preferred Stocks (Cost $650) 532 1.01 120 FNMA, Notes 3.875 07/15/2008 119 0.23 989 1.89 Face Tennessee Valley Authority — 0.96% Value (000’s) 430 Tennessee Valley Authority, $ Series E, Bonds 6.250 12/15/2017 502 0.96 Repurchase Agreement — 7.63% (Cost $4,000) Total U.S. Government Agency Obligations (Cost $1,606) 1,626 3.10 4,000 Deutsche Bank Repurchase U.S. Treasury Obligations — 28.17% Agreement dated 08/31/2005 at 3.54% to be repurchased at U.S. Treasury Bonds — 8.54% $4,000,393 on 09/01/2005, 2,260 U.S. Treasury Bonds 5.250 11/15/2028 2,568 4.90 collateralized by $4,111,000 FNMA 3.75%, due 07/25/2008 3.540 09/01/2005 4,000 7.63 595 U.S. Treasury Bonds 5.375 02/15/2031 698 1.33 290 U.S. Treasury Bonds 6.250 05/15/2030 376 0.72 Total Investments excluding Options (Cost $70,395) 70,814 135.11 588 U.S. Treasury Inflationary Index Bonds*** 2.375 01/15/2025 638 1.21

The accompanying notes are an integral part of the Financial Statements

14 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Western Asset U.S. Core Bond Fund

Portfolio of Investments as at August 31, 2005 (Unaudited) - (continued)

Value % of (000’s) Asset Contracts $ Value

Options — 0.26% 144A Securities exempt from registration under Rule 144A of the Securities Act of 1933, Call Options — 0.14% as amended. These securities may only be resold, in transactions exempt from registration, to qualified institutional buyers. At August 31, 2005, these securities 1 BellSouth Corp., July 2006, Call 97.72 27 0.05 amounted to $2,586,000 or 4.93% of net assets. — Euro Dollar 90 Day March 2006 Call 51 0.10 † Security purchased on a when-issued basis (Note 1). ** Variable rate security. The interest rate shown reflects the rate in effect at August — Euro Dollar 90 Day March 2006 Call 95.5 3 0.01 31, 2005. — Euro Dollar 90 Day September 2005 Call 95.75 4 0.01 *** The rate of interest on this type of security is tied to the Consumer Price Index — Euro Dollar 90 Day September 2005 Call 96.25 — 0.00 (CPI). the coupon rate is the rate as of August 31, 2005. — Amounts designated as “—” are either $0, less than $1,000 or less than 1,000 — Euro Dollar 90 Day September 2005, Call 95.50 7 0.01 shares. — Euro Dollar 90 Day September 2005, Call 96.00 10 0.02 ABBREVIATIONS: — Euro Dollar 90 Day September 2005, Call 96.25 — 0.00 MTN Medium Term Note — Euro Dollar 90 Day September 2005, Call 96.50 — 0.00 TBA To Be Announced 1 IBM Corp., July 2006, Call 99.90 48 0.09 Yankee Dollar-denominated bonds issued in the U.S. by foreign banks or corporations. — U.S. 10 Year T-Note December 2005, Call 111.00 (15) (0.03) — U.S. 10 Year T-Note December 2005, Call 112.00 (12) (0.02) — U.S. 10 Year T-Note December 2005, Call 113.00 (10) (0.02) — U.S. 5 Year T-Note December 2005, Call 106.50 10 0.02 — U.S. 5 Year T-Note December 2005, Call 108.00 (4) (0.01) — U.S. Long T-Bond December 2005, Call 116.00 (15) (0.03) — U.S. Long T-Bond December 2005, Call 117.00 (14) (0.03) — U.S. Long T-Bond December 2005, Call 118.00 (11) (0.02) — U.S. Long T-Bond December 2005, Call 119.00 (4) (0.01) — U.S. Long T-Bond December 2005, Call 122.00 (1) 0.00 74 0.14 Put Options — 0.12% — Euro Dollar 90 Day September 2005, Put 96.50 62 0.12 Total Options (Cost $131) 136 0.27 Total Investments (Cost $70,526) 70,950 135.37 Other Liabilities In Excess of Assets (18,536) (35.37) Total Net Assets $ 52,414 100.00

Net Amount Amount Nominal Notional Notional Unrealised Unrealised Unrealised % of Net Purchased Sold Value Cost USD Value USD Gains Losses Gain/(Loss) Asset Value Futures Contracts (0.39%) US 5YR Note Fut CBT September 2005 141 (93) 48 5,193 5,210 17 US 5YR Note Fut CBT December 2005 3 (9) (6) (650) (650) US 10 Year T-Notes September 2005 115 (158) (43) (4,780) (4,856) (76) US 10 Year T-Notes December 2005 8 (37) (29) (3,226) (3,250) (24) US T- Bond September 2005 22 (35) (13) (1,490) (1,539) (49) US T- Bond December 2005 2 2 236 236 90 DAY EURO$ FUT MAR 2006 14 (2) 12 2,867 2,877 10 90-DAY EURO $ FUT JUN 2006 52 (3) 49 11,715 11,743 28 90 Day Euro September 2005 170 (72) 98 23,649 23,538 (111) Total Market Value of Futures Contracts 118 33,514 33,309 55 (260) (205) (0.39)

The accompanying notes are an integral part of the Financial Statements

15 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Western Asset Euro Core Bond Fund

Portfolio of Investments as at August 31, 2005 (Unaudited)

Coupon Value % of Coupon Value % of Face Rate Maturity (000’s) Asset Face Rate Maturity (000’s) Asset Value (000’s) % Date Value Value (000’s) % Date Value

Corporate Bonds and Notes — 15.87% EUR 150 Munich Re Finance B.V., Company Guaranteed** 6.750 06/21/2023 179 0.50 Eurozone — 15.84% 199 RBS Capital Trust A, Bank EUR 76 ABN Amro Bank NV, EMTN, Guaranteed** 6.467 12/29/2049 236 0.66 Notes** 2.366 06/08/2015 76 0.21 200 Romulus Finance SRL, Series A1, 21 Ahold Finance USA, Inc., EMTN, Company Guaranteed 4.940 02/20/2013 217 0.61 Company Guaranteed 5.875 03/14/2012 23 0.06 87 Sampo Oyj, Subordinated 154 AIG SunAmerica Institutional Bonds** 4.625 04/21/2014 92 0.26 Fund III, EMTN 5.500 03/07/2011 173 0.48 18 Samsonite Corp., Senior 150 Aviva Plc, Subordinated Notes** 5.700 09/29/2049 171 0.48 Notes** 6.499 06/01/2010 19 0.05 100 Bank of Ireland, EMTN, 80 Santander Central Hispano Issue, Subordinated Notes** 2.404 07/03/2017 100 0.28 EMTN, Bank Guaranteed** 2.754 03/28/2011 82 0.23 152 BES Finance Ltd., EMTN, Bank 100 Santander Perpetual S.A., Senior Guaranteed 6.625 03/01/2010 175 0.49 Subordinated Notes** 4.375 12/29/2049 105 0.29 218 BNP Paribas Capital Trust VI, 50 Tele Columbus AG & Co., Senior Bonds** 5.868 01/29/2049 252 0.70 Notes** 5.869 04/15/2010 51 0.14 95 CAM International, EMTN, 50 Telenet Communication NV, Subordinated Notes** 5.750 04/03/2012 99 0.28 Senior Notes 9.000 12/15/2013 56 0.16 50 Central European Distribution 50 TRW Automotive, Inc., Corp., Company Guaranteed 8.000 07/25/2012 53 0.15 Senior Notes 10.125 02/15/2013 58 0.16 50 Corus Group Plc, 209 UBS Preferred Funding Ltd., Bank Senior Notes 7.500 10/01/2011 52 0.15 Guaranteed, Notes** 4.280 04/29/2049 219 0.61 19 ECO-BAT Finance Plc, Company 100 UniCredito Italiano SpA, EMTN, Guaranteed 10.125 01/31/2013 22 0.06 Notes** 2.232 04/05/2011 100 0.28 150 France Telecom SA, EMTN, Senior 85 UniCredito Italiano SpA, EMTN, Unsubordinated Note 7.250 01/28/2013 188 0.52 Subordinated Notes** 2.374 07/23/2014 85 0.24 16 Fresenius Medical Capital Trust V, 200 UniCredito Italiano SpA, Company Guaranteed 7.375 06/15/2011 18 0.05 Subordinated Notes** 2.361 06/15/2015 200 0.56 354 General Motors Acceptance 40 Valentia Telecommunication Ltd., Corp., EMTN, Notes 4.750 09/14/2009 331 0.92 Company Guaranteed 7.250 08/15/2013 44 0.12 96 GlaxoSmithKline Capital Plc, EMTN, 7Valentia Telecommunication Ltd., Company Guaranteed 4.000 06/16/2025 96 0.27 Company Guaranteed 7.250 08/15/2013 8 0.02 202 HBOS Plc, Series EMTN, 87 Zagrebacka Bank, Bonds 4.250 07/13/2009 91 0.25 Subordinated Notes** 4.875 03/29/2049 219 0.61 Total Eurozone (Cost 5,526) 5,684 15.84 130 HBOS Plc, Series EMTN, Subordinated Notes** 5.125 10/29/2049 144 0.40 United States — 0.03% (Cost 9) 150 HSBC Capital Funding L.P., USD 10 Morgan Stanley (Gazprom), Notes 9.625 03/01/2013 10 0.03 Company Guaranteed** 5.369 12/24/2049 168 0.47 Total Corporate Bonds and Notes (Cost 5,535) 5,694 15.87 80 HSBC Capital Funding L.P., Subordinated Notes** 5.130 12/29/2049 89 0.25 Foreign Bonds and Notes — 4.79% 200 ING Verzekeringen NV, British Pound Sterling Bonds — 3.00% Subordinated Notes** 6.375 05/07/2027 245 0.68 GBP 60 Annington Finance No. 4, Series C1, 50 Irish Nationwide Buildings, EMTN, Notes 8.070 01/10/2023 114 0.32 Senior Unsubordinated Notes 5.875 12/15/2008 76 0.21 35 Bupa Finance Plc, Company 33 ISS Global A/S, EMTN, Guaranteed** 6.125 09/29/2049 53 0.15 Unsubordinated Notes 4.750 09/18/2010 30 0.08 49 Corporacion Andina de Fomento, 50 Kaupthing Bank HF, EMTN, Senior Senior Unsubordinated Notes 7.625 12/06/2010 80 0.22 Unsecured Notes** 2.335 08/17/2012 50 0.14 100 Deutsche Telekom International 36 Kaupthing Bank HF, Subordinated Finance BV, EMTN, Company Debentures** 5.901 06/29/2049 41 0.11 Guaranteed 7.125 09/26/2012 166 0.46 154 Legal & General Group Plc, EMTN, 15 Dignity Finance Plc, Series B, Subordinated Notes** 4.000 06/08/2025 157 0.44 Secured Notes 8.151 12/31/2031 29 0.08 100 Lehman Brothers Holdings Inc., 50 Enterprise Inns Plc, EMTN, Senior Unsubordinated Secured Bonds 6.500 12/06/2018 81 0.22 Notes** 2.373 07/20/2012 100 0.28 50 Focus DIY Finance Plc, EMTN, 262 Lloyds TSB Bank Plc, Subordinated Notes 9.375 03/03/2015 64 0.18 Notes** 4.385 05/29/2049 273 0.76 22 Imperial Tobacco Finance Plc, 250 Morgan Stanley, EMTN, Notes** 2.423 07/20/2012 249 0.69 EMTN, Company Guaranteed 6.250 12/04/2018 35 0.10 163 Morgan Stanley, Senior Notes 4.375 03/01/2010 172 0.48 40 Investec Finance Plc, Bank Guaranteed** 7.750 03/01/2016 63 0.18

The accompanying notes are an integral part of the Financial Statements

16 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Western Asset Euro Core Bond Fund

Portfolio of Investments as at August 31, 2005 (Unaudited) - (continued)

Coupon Value % of Coupon Value % of Face Rate Maturity (000’s) Asset Face Rate Maturity (000’s) Asset Value (000’s) % Date Value Value (000’s) % Date Value

Foreign Bonds and Notes — (continued) EUR 938 Bundesobligation, Series 143, British Pound Sterling Bonds — (continued) Bonds 3.500 10/10/2008 971 2.71 GBP 43 Royal & Sun Alliance Insurance 43 Bundesobligation, Series 144, Group Plc, Company Guaranteed** 8.500 07/29/2049 74 0.21 Bonds 3.250 04/17/2009 44 0.12 26 SL Finance Plc, Company 2,353 Bundesobligation, Series 145, Guaranteed** 6.750 07/12/2049 43 0.12 Bonds 3.500 10/09/2009 2,446 6.82 47 Societe Generale, EMTN, 1,510 Bundesobligation, Series 146, Subordinated Notes 5.400 01/30/2018 73 0.20 Bonds 3.250 04/09/2010 1,555 4.33 18 TCNZ Finance Ltd., Company 480 Bundesrepublic Deutschland, Guaranteed 5.625 05/14/2018 28 0.08 Bonds 3.750 01/04/2009 501 1.40 33 TCNZ Finance Ltd., EMTN, Company 1,490 Bundesrepublic Deutschland, Guaranteed 6.125 12/12/2008 50 0.14 Bonds 4.500 07/04/2009 1,600 4.46 30 WRG Acquisitions Plc, Bonds** 8.361 12/15/2011 45 0.12 272 Bundesrepublic Deutschland, Bonds 4.750 07/04/2034 328 0.91 50 Yell Finance BV, Company Guaranteed 10.750 08/01/2011 80 0.22 1,367 Bundesrepublic Deutschland, Series 00, Bonds 5.250 01/04/2011 1,543 4.30 1,078 3.00 1,290 Bundesrepublic Deutschland, Danish Krone Bonds — 1.79% Series 02, Bonds 5.000 01/04/2012 1,456 4.06 DKK 4,857 Realkredit Danmark A/S, 1,191 Bundesrepublic Deutschland, Series 23D, Mortgage Bonds 4.000 10/01/2035 643 1.79 Series 03, Bonds 4.250 01/04/2014 1,302 3.63 Total Foreign Bonds and Notes (Cost 1,653) 1,721 4.79 2,235 Bundesrepublic Deutschland, Series 04, Bonds 3.750 01/04/2015 2,357 6.57 Government Securities — 71.07% 719 Bundesrepublic Deutschland, Australian Government Issues — 1.14% Series 94, Bonds 6.250 01/04/2024 988 2.75 AUD 310 Australian Government, 85 Bundesrepublic Deutschland, Series 513, Bonds 6.500 05/15/2013 207 0.57 Series 98, Bonds 4.125 07/04/2008 89 0.25 320 Queensland Treasury, Series 11G, 16,065 44.78 Local Government Guaranteed 6.000 06/14/2011 203 0.57 Hungarian Forint Bond — 0.44% 410 1.14 HUF 35,080 Hungarian Government, Series 09/D, Austria Government Issues — 2.76% Bonds 8.250 10/12/2009 157 0.44 EUR 961 Republic of Austria, Bonds 3.500 07/15/2015 990 2.76 Italy Government Issues — 1.12% Belgium Government Issue — 2.83% EUR 375 Buoni Poliennali del Tesoro, EUR 821 Kingdom of Belgium, Series 44, Bonds 5.000 05/01/2008 401 1.12 Notes 5.000 03/28/2035 1,015 2.83 Mexico Government Issues — 1.86% Brazil Government Issues — 0.66% USD 120 United Mexican States, MTN, USD 33 Federal Republic of Brazil, Bonds** 4.313 04/15/2012 26 0.07 Bonds 8.300 08/15/2031 124 0.34 20 Federal Republic of Brazil, Bonds 10.125 05/15/2027 19 0.05 570 United Mexican States, Series A, MTN, Notes 7.500 04/08/2033 545 1.52 20 Federal Republic of Brazil, Bonds 12.250 03/06/2030 22 0.06 669 1.86 80 Federal Republic of Brazil, Unsubordinated Notes 11.000 08/17/2040 77 0.22 Norway Government Issues — 0.73% 90 Federal Republic of Brazil, NOK 1,700 Norwegian Government, Bonds 6.500 05/15/2013 262 0.73 Unsubordinated Notes 14.500 10/15/2009 94 0.26

238 0.66 Panama Government Issues — 0.15% Bulgaria Government Issues — 0.20% USD 20 Republic of Panama, Bonds 9.625 02/08/2011 19 0.06 USD 70 Republic of Bulgaria, 30 Republic of Panama, Bonds 10.750 05/15/2020 34 0.09 Bonds, 144A 8.250 01/15/2015 71 0.20 53 0.15 Columbia Government Issues — 0.17% Peru Government Issues — 0.19% USD 30 Republic of Colombia, Bonds 11.750 02/25/2020 33 0.09 USD 37 Republic of Peru, Bonds** 5.000 03/07/2017 29 0.08 30 Republic of Colombia, Notes 10.500 07/09/2010 29 0.08 40 Republic of Peru, Bonds 8.750 11/21/2033 39 0.11 62 0.17 68 0.19 French Government Issues — 10.25% Poland Government Issues — 2.54% EUR 2,810 Government of France, Bonds 5.000 10/25/2011 3,171 8.84 PLZ 1,655 Poland Government, Series 0509, 370 Government of France, Bonds 5.750 10/25/2032 507 1.41 Bonds 6.000 05/24/2009 430 1.20 3,678 10.25 420 Poland Government, Series 0509, Germany Government Issues — 44.78% Bonds 6.000 05/24/2009 109 0.30 EUR 845 Bundesobligation, Series 141, 580 Poland Government, Series 1013, Bonds 4.250 02/15/2008 885 2.47 Bonds 5.000 10/24/2013 147 0.41 The accompanying notes are an integral part of the Financial Statements

17 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Western Asset Euro Core Bond Fund

Portfolio of Investments as at August 31, 2005 (Unaudited) - (continued)

Coupon Value % of Face Rate Maturity (000’s) Asset Value (000’s) % Date Value

Government Securities — (continued) 144A Securities exempt from registration under Rule 144A of the Securities of 1933, as Poland Government Issues — (continued) amended. These securities may only be resold, in transactions exempt from registration, to qualified institutional buyers. At August 31, 2005, these securities PLZ 810 Poland Government, amounted to $115,000.00 or 0.32% of net assets. Series 1015, Bonds 6.250 10/24/2015 225 0.63 ** Variable rate security. The interest rate shown reflects the rate in effect at August 911 2.54 31, 2005. — Amounts designated as “—” are either $0, less than $1,000 or less than 1,000 Russia Government Issues — 0.78% shares. USD 300 Russian Federation, Unsubordinated Bonds** 5.000 03/31/2030 279 0.78 ABBREVIATIONS: AUD Australian Dollar Slovenia Government Issues — 0.32% DKK Danish Krone EUR 100 Republic of Slovenia, EMTN Euro Medium Term Note Unsubordinated Notes 6.000 03/24/2010 114 0.32 EUR European Monetary Unit GBP British Pound Sterling United Kingdom Government Issues — 0.15% HUF Hungarian Forint GBP 10 United Kingdom Treasury, Bonds 5.000 09/07/2014 16 0.05 MTN Medium Term Note 20 United Kingdom Treasury, Bonds 6.000 12/07/2028 37 0.10 NOK Norwegian Krone PLZ Polish Zloty 53 0.15 USD United States Dollar Total Government Securities (Cost 24,456) 25,496 71.07

Asset-Backed Security — 0.26% (Cost 94) EUR 94 Second Italian Auto Transaction SpA, Series 2, Class A, Bond** 2.374 07/01/2010 94 0.26

Collateralized Mortgage Obligations — 0.28% (Cost 100) 100 RMAC, Series 2005-NS1X, Class A2C, Bond** 2.243 06/12/2037 100 0.28 Total Investments excluding Options (Cost 31,838) 33,105 92.27

Contracts

Options — 0.17% (Cost 38) Call Options — 0.17% — LIBOR 3 Month GBP September 2005, Call 93.25 60 0.17 Total Investments (Cost 31,876) 33,165 92.44 Other Assets In Excess Of Liabitities 2,712 7.56 Total Net Assets 35,877 100.00

Net Amount Amount Nominal Notional Notional Unrealised Unrealised Unrealised % of Net Purchased Sold Value Cost EUR Value EUR Gains Losses Gain/(Loss) Asset Value Futures Contracts (0.04%) 90 Days STG Life September 2005 (15) (15) (2,083) (2,093) (10) Eurobund Future September 2005 (4) (4) (492) (496) (4) Total Market Value of Futures Contracts (19) (2,575) (2,589) (14) (14) (0.04)

The accompanying notes are an integral part of the Financial Statements

18 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Western Asset Diversified Strategic Income Bond Fund

Portfolio of Investments as at August 31, 2005 (Unaudited)

Coupon Value % of Coupon Value % of Face Rate Maturity (000’s) Asset Face Rate Maturity (000’s) Asset Value (000’s) % Date $ Value Value (000’s) % Date $ Value

Asset-Backed Securities — 2.16% USD 341 Heritage Trust, Series MBS, USD 12 Ameriquest Mortgage Class 1** 2.331 12/15/2033 420 0.22 Securities, Inc., 394 Hipocat, Series HIPO-5, Series 2003-AR3, Class A2** 4.011 10/25/2033 12 0.01 Class A** 2.369 11/30/2033 487 0.25 35 Amortizing Residential Collateral 882 Hoteloc Plc, Series 1X, Class A** 5.024 05/10/2007 1,587 0.83 Trust, Series 2002-BC1M, Class A** 3.921 04/25/2032 35 0.02 570 Impac CMB Trust, Series 2003-10, 105 Bayview Financial Acquisition Trust, Class 1A1** 3.991 10/25/2033 570 0.30 Series 1998-A, Class A, 144A** 3.991 02/25/2038 105 0.06 346 Preferred Residential Securities Plc, 152 Bayview Financial Acquisition Trust, Series 6, Class A1** 5.381 09/15/2035 624 0.33 Series 1998-B, Class A, 144A** 4.591 06/25/2036 152 0.08 665 RMAC, Series 2003-NS1X, 486 Bayview Financial Acquisition Trust, Class A2B** 2.563 06/12/2035 818 0.43 Series 2003-D , Class A** 4.119 08/28/2034 487 0.26 420 RMAC, Series 2004-NSP4, 106 Bear Stearns Asset Backed Class A1** 4.959 03/12/2018 755 0.40 Securities, Inc., Series 2001-3, Total Collateralised Class A1** 4.091 10/27/2032 107 0.06 Mortgage-Backed Obligations (Cost $9,815) 9,512 4.99 15 CDC Mortgage Capital Trust, Series 2003-HE1, Class A1** 3.971 08/25/2033 15 0.01 U.S. Corporate Bonds and Notes — 11.66% 616 Chesapeake Funding LLC, 44 AES Corp., Senior Notes 9.500 06/01/2009 49 0.02 Series 2003-1, Class A1** 3.939 08/07/2008 616 0.32 380 AIG SunAmerica Global 190 Citibank Credit Card Issuance Trust, Financing VI, Secured Senior Series 2002-C1, Class C1** 4.737 02/09/2009 192 0.10 Notes, 144A 6.300 05/10/2011 414 0.22 42 Countrywide Asset Backed 190 Amerada Hess Corp., Notes 6.650 08/15/2011 209 0.11 Certificates, Series 2003-1, 90 Amerada Hess Corp., Notes 7.300 08/15/2031 109 0.06 Class 3A** 3.981 06/25/2033 42 0.02 140 Anadarko Finance Co., Series B, 83 Countrywide Home Equity Loan Company Guaranteed 6.750 05/01/2011 154 0.08 Trust, Series 2001-A, Class A** 3.811 04/15/2027 83 0.04 210 Bank of America Corp., 193 Countrywide Home Equity Loan Subordinated Notes 7.400 01/15/2011 239 0.12 Trust, Series 2002-F, Class A** 3.921 11/15/2028 194 0.10 400 Capital One Trust, Series 4-30, 41 EQCC Trust, Series 2002-1, Bonds** 6.625 06/17/2014 794 0.42 Class 2A** 3.941 11/25/2031 41 0.02 240 CIT Group, Inc., Senior Notes 6.500 02/07/2006 242 0.13 34 Fleet Home Equity Loan Trust, Series 2003-1, Class A** 3.859 01/20/2033 34 0.02 420 Citigroup Global Markets Holding Inc., MTN** 3.610 12/13/2005 420 0.22 260 Household Home Equity Loan Trust, Series 2002-4, Class A** 4.159 10/20/2032 261 0.14 110 Cleveland Electric Illuminating Co., Senior Notes 5.650 12/15/2013 115 0.06 747 MPS Asset Securitisation SPA, Series 1, Class A2** 2.531 11/05/2033 923 0.48 340 Comcast Cable Communications, Inc., Senior Notes 6.750 01/30/2011 372 0.19 85 Residential Asset Mortgage Products, Inc., Series 2003-RS2, 220 Comcast Corp., Company Class AII** 3.981 03/25/2033 85 0.04 Guaranteed 6.500 01/15/2015 243 0.13 481 RFSC, Series 2003-RP2, Class A1** 3.125 07/25/2041 481 0.25 90 ConocoPhillips, Company Guaranteed 4.750 10/15/2012 92 0.05 250 Wachovia Asset Securitization, Inc., Series 2002-HE2, Class A** 4.071 12/25/2032 252 0.13 150 Credit Suisse First Boston USA, Inc., Notes 4.625 01/15/2008 151 0.08 Total Asset-Backed Securities (Cost $4,131) 4,117 2.16 180 Devon Energy Corp., Debentures 7.950 04/15/2032 239 0.13 Collateralised Mortgage-Backed Obligations — 4.99% 740 Devon Energy Corp., ULC, 189 Drexel Burnham Lambert CMO Company Guaranteed 6.875 09/30/2011 828 0.43 Trust, Series X, Class 3 zero coupon 12/01/2018 188 0.10 5,940 Dow Jones CDX HY, Series 4-T1, 432 European Loan Conduit, Series 20, Pass-through Certificates, 144A 8.250 06/29/2010 6,033 3.17 Class A** 2.353 07/21/2013 531 0.28 500 Duke Energy Corp., First Mortgage 3.750 03/05/2008 494 0.26 707 European Loan Conduit, Series 6X, 140 Dynegy Holdings, Inc., Senior Notes 8.750 02/15/2012 154 0.08 Class A1** 5.029 10/27/2010 1,275 0.67 260 El Paso Corp., MTN, Senior Notes 7.750 01/15/2032 263 0.14 163 FHLMC Strip, Series 140, 230 FirstEnergy Corp., Series C, Notes 7.375 11/15/2031 282 0.15 Class B 9.500 09/01/2021 34 0.02 500 FleetBoston Financial Corp., Notes 7.250 09/15/2005 500 0.26 404 Granite Mortgages Plc, Series 2003-2, Class 1A2** 3.780 07/20/2020 404 0.21 2,550 Ford Motor Credit Co., Notes 7.375 10/28/2009 2,539 1.33 482 Haus Ltd., Series 2000-IX, 280 General Motors Acceptance Corp., Class A2** 2.414 12/10/2037 592 0.31 EMTN, Notes 4.750 09/14/2009 322 0.17 1,100 Heller Financial Commercial 300 General Motors Nova Scotia Mortgage Asset Corp., Financial Co., Company Guaranteed, Series 2000-PH1, Class A2 7.750 11/15/2009 1,227 0.64 Yankee Dollar 6.850 10/15/2008 290 0.15 600 Honeywell International Inc., Notes 6.875 10/03/2005 601 0.32 The accompanying notes are an integral part of the Financial Statements

19 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Western Asset Diversified Strategic Income Bond Fund

Portfolio of Investments as at August 31, 2005 (Unaudited) - (continued)

Coupon Value % of Coupon Value % of Face Rate Maturity (000’s) Asset Face Rate Maturity (000’s) Asset Value (000’s) % Date $ Value Value (000’s) % Date $ Value

U.S. Corporate Bonds and Notes — (continued) GBP 207 Focus DIY Finance Plc, EMTN, Notes 9.375 03/03/2015 325 0.17 USD 120 Household Finance Corp., Notes 7.000 05/15/2012 136 0.07 387 Friends Provident Plc, Company 210 Household Finance Corp., Senior Guaranteed 6.875 11/21/2049 779 0.41 Unsubordinated Notes 6.400 06/17/2008 221 0.12 257 Heating Finance Plc, Notes 7.875 03/31/2014 437 0.23 200 J.P. Morgan & Co., Subordinated 244 Investec Finance Plc, Bank Notes 5.750 01/02/2013 213 0.11 Guaranteed** 7.750 03/01/2016 475 0.25 300 JPMorgan Chase & Co., Senior 420 Royal & Sun Alliance Insurance Notes 3.625 05/01/2008 295 0.15 Group Plc, Company Guaranteed** 8.500 07/29/2049 885 0.46 520 Kraft Foods Inc, Notes 4.125 11/12/2009 513 0.27 46 United Kingdom Treasury, Bonds 5.000 09/07/2014 88 0.05 150 Levi Strauss & Co., Senior 291 WRG Acquisitions Plc, Bonds** 8.361 12/15/2011 535 0.28 Unsubordinated Notes 8.625 04/01/2013 189 0.10 266 WRG Finance Plc, Senior Notes 9.000 12/15/2014 500 0.26 50 Lyondell Chemical Co., Series A, 152 Yell Finance BV, Company Company Guaranteed 9.625 05/01/2007 53 0.03 Guaranteed 10.750 08/01/2011 300 0.16 320 Morgan Stanley, Notes 3.625 04/01/2008 315 0.16 6,915 3.63 390 News America, Inc., Senior Notes 6.625 01/09/2008 409 0.21 Canadian Dollar Bonds — 0.45% 180 R.J. Reynolds Tobacco Holdings Inc., CAD 696 Canada, Government of, Bonds 4.000 12/01/2031 863 0.45 Company Guaranteed 7.250 06/01/2012 185 0.10 180 Sonat, Inc., Notes 7.625 07/15/2011 183 0.10 Euro Bonds — 6.79% 295 Sprint Capital Corp., Notes 8.375 03/15/2012 352 0.18 EUR 215 Agco Corp., Senior Subordinated Notes 6.875 04/15/2014 278 0.15 210 The Goldman Sachs Group, Inc., Notes 6.650 05/15/2009 226 0.12 467 Ahold Finance USA, Inc., EMTN, Company Guaranteed 5.875 03/14/2012 619 0.32 660 Time Warner, Inc., Company Guaranteed 6.150 05/01/2007 679 0.36 180 American Standard, Inc., Company Guaranteed 7.125 06/01/2006 228 0.12 80 Time Warner, Inc., Company Guaranteed 6.875 05/01/2012 89 0.05 400 Banco Bradesco SA, EMTN, Subordinated Notes 8.000 04/15/2014 561 0.29 110 TXU Corp., Series J, Senior Notes 6.375 06/15/2006 111 0.06 300 Cablecom Luxembourg SCA, 165 Verizon Global Funding Corp., Company Guaranteed 9.375 04/15/2014 411 0.22 Notes 7.250 12/01/2010 186 0.10 400 Carmeuse Lime BV, Bonds** 6.119 07/15/2007 499 0.26 170 Verizon Global Funding Corp., Senior Notes 6.875 06/15/2012 192 0.10 466 Central European Distribution Corp., Company Guaranteed 8.000 07/25/2012 612 0.32 280 Waste Management, Inc., Senior Notes 7.375 08/01/2010 313 0.16 250 Central European Media Enterprises Ltd., Senior Notes** 7.647 05/15/2012 318 0.17 374 WDAC Subsidiary Corp., Senior Notes 8.500 12/01/2014 455 0.24 250 Central European Media Enterprises Ltd., Senior Notes 8.250 05/15/2012 334 0.18 90 Wells Fargo Bank NA, Subordinated Notes 6.450 02/01/2011 99 0.05 474 Corus Group Plc, Senior Notes 7.500 10/01/2011 609 0.32 150 Weyerhauser Co., Notes 6.750 03/15/2012 165 0.09 350 Croatian Bank of Reconstruction & 300 Williams Cos., Inc., Notes 8.750 03/15/2032 365 0.19 Development, EMTN, Government 95 XTO Energy, Inc., Senior Notes 7.500 04/15/2012 109 0.06 Guaranteed 4.875 02/11/2011 465 0.24 280 Culligan Finance Corp. BV, Total U.S. Corporate Bonds and Notes (Cost $21,816) 22,201 11.66 Senior Notes 8.000 10/01/2014 373 0.20 265 ECO-BAT Finance Plc, Company Foreign Bonds and Notes — 20.76% Guaranteed 10.125 01/31/2013 372 0.20 British Pound Sterling Bonds — 3.63% 332 Fresenius Medical Capital Trust V, Company Guaranteed 7.375 06/15/2011 461 0.24 GBP 188 Anglo Irish Asset Finance Plc, Bank Guaranteed** 7.625 07/23/2027 429 0.22 139 Heckler & Koch GmbH, Senior Notes 9.250 07/15/2011 193 0.10 263 Brake Bros Finance Plc, Senior Notes 12.000 12/15/2011 522 0.27 608 ISS Global A/S, EMTN, Unsubordinated Notes 4.750 09/18/2010 684 0.36 110 British Telecom Plc, Senior Notes 7.500 12/07/2016 240 0.13 420 JSG Funding Plc, Senior Subordinated Notes 7.750 04/01/2015 473 0.25 169 Bupa Finance Plc, Company Guaranteed 6.125 12/16/2049 316 0.17 250 Kabel Deutschland GmbH, Company Guaranteed 10.750 07/01/2014 354 0.19 382 Cattles Plc, EMTN, Notes 6.875 01/17/2014 743 0.39 179 Kaupthing Bank HF, Subordinated 75 Constellation Brands, Inc., Debentures** 5.901 06/30/2049 250 0.13 Series C, Senior Notes 8.500 11/15/2009 147 0.08 600 Kloeckner Investment S.C.A., 95 Deutsche Telekom International Senior Notes 10.500 05/15/2015 801 0.42 Finance BV, EMTN, Company Guaranteed 7.125 09/26/2012 194 0.10 The accompanying notes are an integral part of the Financial Statements

20 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Western Asset Diversified Strategic Income Bond Fund

Portfolio of Investments as at August 31, 2005 (Unaudited) - (continued)

Coupon Value % of Coupon Value % of Face Rate Maturity (000’s) Asset Face Rate Maturity (000’s) Asset Value (000’s) % Date $ Value Value (000’s) % Date $ Value

Foreign Bonds and Notes — (continued) USD12,900 FNMA, 30 Year September TBA† 5.000 09/01/2035 12,811 6.72 Euro Bonds — (continued) 500 FNMA, 30 Year September TBA† 6.500 09/01/2035 517 0.27 EUR 330 LBC Luxembourg Holdings SA, 800 FNMA, Notes 2.250 12/30/2005 796 0.42 Company Guaranteed 11.000 05/15/2014 459 0.24 15,290 8.03 303 Lighthouse International Co. SA, Government National Mortgage Association (GNMA) — 3.11% Senior Notes 8.000 04/30/2014 389 0.20 2,300 GNMA, 30 Year September TBA† 5.000 09/01/2035 2,307 1.21 559 Nell AF S.A.R.L., Senior Notes 8.375 08/15/2015 709 0.37 2,700 GNMA, 30 Year September TBA† 6.000 09/01/2035 2,783 1.46 250 Nyco Holdings 2 Aps, Senior Notes 11.500 03/31/2013 359 0.19 800 GNMA, 30 Year September TBA† 6.500 09/01/2035 834 0.44 95 Rhodia SA, Senior Notes 8.000 06/01/2010 117 0.06 433 Sampo Oyj, Subordinated 5,924 3.11 Bonds** 4.625 04/21/2014 562 0.30 Total U.S. Government Agency Obligations (Cost $21,000) 21,214 11.14 213 Samsonite Corp., Senior U.S. Government Agency Mortgage-Backed Securities — 0.54% Notes** 6.499 06/01/2010 273 0.14 Federal Home Loan Mortgage Corporation (FHLMC) — 0.00% 250 Tele Columbus AG & Co., Senior Notes** 5.869 04/15/2010 311 0.16 7 FHLMC Gold, Pool #B30564 8.750 06/01/2008 7 0.00 250 Telenet Communication NV, Federal National Mortgage Association (FNMA) — 0.50% Senior Notes 9.000 12/15/2013 344 0.18 16 FNMA, Pool #355640 8.500 02/01/2008 16 0.01 380 Valentia Telecommunication Ltd., 821 FNMA, Pool #366094 6.000 09/01/2025 841 0.44 Company Guaranteed 7.250 08/15/2013 515 0.27 82 FNMA, Pool #735416 6.500 12/01/2034 85 0.05 12,933 6.79 942 0.50 Mexican Government Bonds (Bondes) — 5.64% Government National Mortgage Association (GNMA) — 0.04% MXN27,000 Mexican Bonos, Series M7, Bonds 8.000 12/24/2008 2,442 1.28 22 GNMA, Pool #486470 6.500 08/15/2028 23 0.01 95,200 Mexican Bonos, Series MI10, 26 GNMA, Pool #486516 6.500 09/15/2028 27 0.01 Bonds 8.000 12/19/2013 8,303 4.36 32 GNMA, Pool #781001 7.500 03/15/2029 35 0.02 10,745 5.64 85 0.04 New Zealand Dollar Bonds — 2.05% Total U.S. Government Agency NZD 5,500 New Zealand Government, Mortgage-Backed Securities (Cost $1,051) 1,034 0.54 Series 1106, Bonds 8.000 11/15/2006 3,900 2.05 U.S. Treasury Obligations — 32.58% Polish Zloty Bonds — 1.09% U.S. Treasury Bonds — 0.87% PLZ 6,500 Poland Government, Series 0310, Bonds 5.750 03/24/2010 2,068 1.09 1,405 U.S. Treasury Bonds 5.375 02/15/2031 1,647 0.87 South African Rand Bond — 1.11% U.S. Treasury Notes — 31.71% ZAR 13,050 Republic of South Africa, 1,561 U.S. Treasury Inflationary Index Series R201, Bonds 8.750 12/21/2014 2,116 1.11 Notes*** zero coupon 01/15/2010 1,751 0.92 19,712 U.S. Treasury Inflationary Index Total Foreign Bonds and Notes (Cost $38,460) 39,540 20.76 Notes*** zero coupon 04/15/2010 19,249 10.11 U.S. Denominated Bonds and Notes — 0.85% 18,100 U.S. Treasury Notes 3.000 11/15/2007 17,786 9.34 USD 312 BAE Systems 2001 Asset Trust, 16,300 U.S. Treasury Notes 3.125 01/31/2007 16,144 8.47 Pass-through Certificates, 144A 6.664 09/15/2013 340 0.18 5,360 U.S. Treasury Notes 3.625 06/15/2010 5,302 2.78 390 Conoco Funding Co., Company 80 U.S. Treasury Notes 3.875 02/15/2013 80 0.04 Guaranteed 6.350 10/15/2011 431 0.23 100 U.S. Treasury Notes 4.000 11/15/2012 101 0.05 23 Tyco International Group SA, Company Guaranteed 7.000 06/15/2028 28 0.01 60,413 31.71 390 Tyco International Group SA, Total U.S. Treasury Obligations (Cost $62,115) 62,060 32.58 Company Guaranteed, Yankee Dollar 6.375 10/15/2011 425 0.22 Shares (000’s) 52 Tyco International Group SA, Company Guaranteed, Warrant — 0.00% (Cost $0) Yankee Dollar 6.875 01/15/2029 62 0.03 1 Ono Finance Plc, Expires 05/31/2009 — 0.00 320 United Utilities Plc, Notes, Yankee Dollar 6.450 04/01/2008 335 0.18 Total U.S. Denominated Bonds and Notes (Cost $1,622) 1,621 0.85

U.S. Government Agency Obligations — 11.14% Federal National Mortgage Association (FNMA) — 8.03% 500 FNMA, 15 Year September TBA† 4.000 09/01/2020 487 0.26 700 FNMA, 30 Year September TBA† 4.500 09/01/2035 679 0.36

The accompanying notes are an integral part of the Financial Statements

21 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Western Asset Diversified Strategic Income Bond Fund

Portfolio of Investments as at August 31, 2005 (Unaudited) - (continued)

Coupon Value % of Face Rate Maturity (000’s) Asset Value (000’s) % Date $ Value

Short Term Obligations — 4.15% (Cost $7,900) 144A Securities exempt from registration under Rule 144A of the Securities Act of 1933, 7,900 Merrill Lynch Repurchase as amended. These securities may only be resold, in transactions exempt from Agreement dated 08/31/2005 registration, to qualified institutional buyers. At August 31, 2005, these securities at 3.57% to be repurchased at amounted to $7,044,000 or 3.70% of net assets. $7,900,783 on 09/01/2005, ** Variable rate security. The interest rate shown reflects the rate in effect at August collateralized by $8,050,000 31, 2005. FFCB 4.20%, due *** The rate of interest on this type of security is tied to the Consumer Price Index 08/28/2007 3.570 09/01/2005 7,900 4.15 (CPI). The coupon rate is the rate as of August 31, 2005. † Security purchased on a when-issued basis. — Amounts designated as “—” are either $0, less than $1,000 or less than 1,000 Shares (000’s) shares.

Collective Investment Schemes — 18.51% (Cost $35,186) ABBREVIATIONS: 34 Western Asset Global High Yield Bond Fund 35,266 18.51 CAD Canadian Dollar Total Investments excluding Options (Cost $203,096) 204,465 107.34 EMTN Euro Medium Term Note EUR European Monetary Unit GBP British Pound Sterling Contracts MTN Medium Term Note MXN Mexican Peso Options — 0.00% (Cost $127) NZD New Zealand Dollar Call Options — 0.00% PLZ Polish Zloty TBA To Be Announced — Euro Dollar 3 Month September 2005, USD United States Dollar Call 96.50 1 0.00 Yankee Dollar-denominated bonds issued in the U.S. by foreign banks or corporations. Total Investments (Cost $203,223) 204,466 107.34 ZAR South African Rand Other Liabilities In Excess Of Assets (13,975) (7.34) Total Net Assets $190,491 100.00

Net Amount Amount Nominal Notional Notional Unrealised Unrealised Unrealised % of Net Purchased Sold Value Cost USD Value USD Gains Losses Gain/(Loss) Asset Value Futures Contracts (0.76%) US 5YR Note Fut CBT September 2005 100 (66) 34 3,680 3,690 10 US 5YR Note Fut CBT December 2005 4 4 430 434 4 US 10 Year T-Notes September 2005 636 (667) (31) (3,415) (3,501) (86) US 10 Year T-Notes December 2005 (588) (588) (64,541) (65,902) (1,361) US T- Bond September 2005 3 3 355 355 90 DAY EURO$ FUT MARCH 2006 148 148 35,384 35,477 93 Euro-Bobl September 2005 (67) (67) (9,475) (9,515) (40) Eurobund September 2005 (34) (34) (5,119) (5,183) (64) Total Market Value of Futures Contracts (531) (42,701) (44,145) 43 (1,487) (1,444) (0.76)

The accompanying notes are an integral part of the Financial Statements

22 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Western Asset Global Multi Strategy Fund

Portfolio of Investments as at August 31, 2005 (Unaudited)

Coupon Value % of Coupon Value % of Face Rate Maturity (000’s) Asset Face Rate Maturity (000’s) Asset Value (000’s) % Date $ Value Value (000’s) % Date $ Value

Asset-Backed Security — 0.19% (Cost $540) GBP 183 Focus DIY Finance Plc, EMTN, USD 438 MPS Asset Securitisation SPA, Notes 9.375 03/03/2015 287 0.10 Series 1, Class A2** 2.531 11/05/2033 541 0.19 352 Heating Finance Plc, Notes 7.875 03/31/2014 598 0.21 218 Investec Finance Plc, Bank Collateralised Mortgage-Backed Obligations — 4.54% Guaranteed** 7.750 03/01/2016 425 0.15 130 Blackrock Capital Finance LP, 50 Irish Nationwide Buildings, EMTN, Series 1996-R1, Class B3** 9.505 09/25/2026 83 0.03 Senior Unsubordinated Notes 5.875 12/15/2008 93 0.03 2,576 Countrywide Alternative Loan 294 Royal & Sun Alliance Insurance Trust, Series 2005-38, Class A3** 3.991 09/25/2035 2,576 0.89 Group Plc, Company Guaranteed** 8.500 07/29/2049 619 0.21 2,700 Countrywide Alternative Loan 26 United Kingdom Treasury, Bonds 5.000 09/07/2014 50 0.02 Trust, Series 2005-44, Class 1A1** 3.999 10/25/2035 2,700 0.93 337 WRG Acquisitions Plc, Bonds** 8.361 12/15/2011 620 0.21 500 Harborview Mortgage Loan Trust, Series 2005-9, Class 2A1A** 3.981 06/20/2035 500 0.17 187 WRG Finance Plc, Senior Notes 9.000 12/15/2014 352 0.12 490 Hoteloc Plc, Series 1X, 4,736 1.63 Class A** 5.024 05/10/2007 882 0.30 Canadian Dollar Bonds — 0.26% 46 OCWEN Residential MBS CAD 608 Canada, Government of, Bonds 4.000 12/01/2031 755 0.26 Corporation, Series 1998-R1, Class B4** 7.000 10/25/2040 7 0.00 Euro Bonds — 4.62% 2,800 Opteum Mortgage Acceptance EUR 235 Agco Corp., Senior Subordinated Corp., Series 2005-4, Class 1A1A** 3.810 11/25/2035 2,800 0.96 Notes 6.875 04/15/2014 304 0.11 200 Preferred Residential Securities Plc, 398 Ahold Finance USA, Inc., EMTN, Series 6, Class A1** 5.381 09/15/2035 360 0.13 Company Guaranteed 5.875 03/14/2012 527 0.18 399 RMAC, Series 2003-NS1X, 20 American Standard, Inc., Company Class A2B** 2.563 06/12/2035 491 0.17 Guaranteed 7.125 06/01/2006 25 0.01 336 RMAC, Series 2004-NSP4, 250 Banco Bradesco SA, EMTN, Class A1** 4.959 03/12/2018 604 0.21 Subordinated Notes 8.000 04/15/2014 351 0.12 892 Structured Asset Mortgage 94 Bundesobligation, Series 144, Investments, Inc., Series 2005-AR4, Bonds 3.250 04/17/2009 119 0.04 Class A1** 3.951 12/25/2035 893 0.31 480 Bundesrepublic Deutschland, 1,286 Washington Mutual, Bonds 5.000 07/04/2012 669 0.23 Series 2005-AR9, Class A1A** 3.961 07/25/2045 1,285 0.44 40 Bundesrepublic Deutschland, Total Collateralised Bonds 5.375 01/04/2010 55 0.02 Mortgage-Backed Obligations (Cost $13,168) 13,181 4.54 340 Bundesrepublic Deutschland, Series 00, Bonds 5.250 01/04/2011 472 0.16 Foreign Bonds and Notes — 21.73% 121 Bundesrepublic Deutschland, Brazil Government Issues — 3.84% Series 00, Bonds 5.500 01/04/2031 196 0.07 BRL 5,200 Otc Brazil Lkd Bltn zero coupon 02/01/2007 1,721 0.59 7 Bundesrepublic Deutschland, 7,000 Otc Brazil Lnk Jpm zero coupon 01/03/2007 2,170 0.75 Series 02, Bonds 5.000 01/04/2012 10 0.00 5,550 Otc Brazil Ltn zero coupon 02/01/2006 2,168 0.75 141 Bundesrepublic Deutschland, 6,400 Otc Brazil Ltn zero coupon 01/03/2007 2,162 0.74 Series 03, Bonds 4.250 01/04/2014 190 0.07 5,300 Otc Brazil Ltn zero coupon 01/03/2007 1,790 0.62 111 Bundesrepublic Deutschland, Series 03, Bonds 4.500 01/04/2013 151 0.05 3,400 Otc Brazil Ltn zero coupon 04/02/2007 1,142 0.39 70 Bundesrepublic Deutschland, 11,153 3.84 Series 98, Bonds 4.125 07/04/2008 90 0.03 British Pound Sterling Bonds — 1.63% 250 Cablecom Luxembourg SCA, GBP 50 Anglo Irish Asset Finance Plc, Company Guaranteed 9.375 04/15/2014 343 0.12 Bank Guaranteed** 7.625 07/29/2049 114 0.04 650 Carmeuse Lime BV, Bonds** 6.119 07/15/2007 811 0.28 240 Annington Finance No. 4, Series C1, 234 Central European Media Notes 8.070 01/10/2023 560 0.19 Enterprises Ltd., Senior Notes** 7.647 05/15/2012 298 0.10 92 Brake Bros Finance Plc, Senior 280 Central European Media Notes 12.000 12/15/2011 183 0.06 Enterprises Ltd., Senior Notes 8.250 05/15/2012 374 0.13 98 Bupa Finance Plc, Company 670 Corus Group Plc, Senior Notes 7.500 10/01/2011 861 0.30 Guaranteed** 6.125 09/29/2049 183 0.06 200 Croatian Bank of Reconstruction & 173 Corporacion Andina de Fomento, Development, EMTN, Government Senior Unsubordinated Notes 7.625 12/06/2010 348 0.12 Guaranteed 4.875 02/11/2011 266 0.09 20 Dignity Finance Plc, Series B, 270 Culligan Finance Corp. BV, Secured Notes 8.151 12/31/2030 48 0.02 Senior Notes 8.000 10/01/2014 359 0.12 129 Enterprise Inns Plc, 152 ECO-BAT Finance Plc, Company Secured Bonds 6.500 12/06/2018 256 0.09 Guaranteed 10.125 01/31/2013 214 0.07

The accompanying notes are an integral part of the Financial Statements

23 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Western Asset Global Multi Strategy Fund

Portfolio of Investments as at August 31, 2005 (Unaudited) - (continued)

Coupon Value % of Coupon Value % of Face Rate Maturity (000’s) Asset Face Rate Maturity (000’s) Asset Value (000’s) % Date $ Value Value (000’s) % Date $ Value

Foreign Bonds and Notes — (continued) South African Rand Bond — 1.22% Euro Bonds — (continued) ZAR 21,920 Republic of South Africa, EUR 109 Heckler & Koch GmbH, Series R201, Bonds 8.750 12/21/2014 3,554 1.22 Senior Notes 9.250 07/15/2011 152 0.05 Turkish Lira Bonds — 4.67% 556 ISS Global A/S, EMTN, TRY 7,350 Turkish Government, Bonds zero coupon 08/09/2006 4,748 1.63 Unsubordinated Notes 4.750 09/18/2010 626 0.22 5,187 Turkish Government, Bonds zero coupon 01/24/2007 3,124 1.08 435 JSG Funding Plc, Senior 7,180 Turkish Government, Bonds 20.000 10/17/2007 5,687 1.96 Subordinated Notes 7.750 04/01/2015 490 0.17 13,559 4.67 249 Kabel Deutschland GmbH, Company Guaranteed 10.750 07/01/2014 352 0.12 Total Foreign Bonds and Notes (Cost $62,164) 63,141 21.73 103 Kaupthing Bank HF, Subordinated U.S. Corporate Bonds and Notes — 23.91% Debentures** 5.901 06/29/2049 144 0.05 USD 660 AAC Group Holding Corp., Senior 670 Kloeckner Investment S.C.A., Discount Notes, 144A** 0.000 10/01/2012 488 0.17 Senior Notes 10.500 05/15/2015 894 0.31 260 ACCO Brands Corp., Senior 360 LBC Luxembourg Holdings SA, Subordinated Notes, 144A 7.625 08/15/2015 261 0.09 Company Guaranteed 11.000 05/15/2014 500 0.17 260 Activant Solutions, Inc., Senior 300 Lighthouse International Co. SA, otes, 144A** 9.504 04/01/2010 266 0.09 Senior Notes 8.000 04/30/2014 386 0.13 210 AES Corp., Senior Notes 7.750 03/01/2014 228 0.08 590 Nell AF S.A.R.L., Senior Notes 8.375 08/15/2015 748 0.26 206 AES Corp., Senior Notes, 144A 9.000 05/15/2015 228 0.08 150 Nyco Holdings 2 Aps, Senior Notes 11.500 03/31/2013 215 0.07 90 AES Corp., Senior Notes, 144A 8.750 05/15/2013 99 0.03 105 Rhodia SA, Senior Notes 8.000 06/01/2010 129 0.04 430 AIG SunAmerica Global Financing 251 Sampo Oyj, Subordinated Bonds** 4.625 04/21/2014 326 0.11 VI, Secured Senior Notes, 144A 6.300 05/10/2011 469 0.16 185 Tele Columbus AG & Co., 71 Alamosa Delaware, Inc., Senior Notes** 5.869 04/15/2010 230 0.08 Company Guaranteed 11.000 07/31/2010 80 0.03 295 Telenet Communication NV, 150 Alamosa Delaware, Inc., Senior Notes 9.000 12/15/2013 406 0.14 Senior Notes 8.500 01/31/2012 163 0.06 167 TVN Finance Corp., Plc, Company 330 Allegheny Technologies Inc., Notes 8.375 12/15/2011 352 0.12 Guaranteed 9.500 12/15/2013 240 0.08 157 Allied Waste North America Inc., 400 Valentia Telecommunication Ltd., Series B, Company Guaranteed 8.875 04/01/2008 166 0.06 Company Guaranteed 7.250 08/15/2013 542 0.19 109 Allied Waste North America Inc., 306 WDAC Subsidiary Corp., Series B, Senior Notes 8.500 12/01/2008 115 0.04 Senior Notes 8.500 12/01/2014 373 0.13 440 Alpha Natural Resources, 13,438 4.62 Company Guaranteed 10.000 06/01/2012 493 0.17 Indonesian Government Issues — 1.64% 120 Altria Group Inc., Notes 7.000 11/04/2013 134 0.05 IDR 170 AMC Entertainment, Inc. 8.000 03/01/2014 157 0.05 50,000,000 Indonesia Recapital Bond, Series FR02, Bonds 14.000 06/15/2009 4,767 1.64 310 Amerada Hess Corp., Notes 6.650 08/15/2011 341 0.12 Japan Yen Bonds — 1.16% 320 American Airlines, Inc., JPY Series 01-2, Pass-through Certificates 7.800 10/01/2006 309 0.11 220,000 Development Bank of Japan, Government Guaranteed 2.875 12/20/2006 2,051 0.71 220 American Commercial Lines LLC, Company Guaranteed 9.500 02/15/2015 236 0.08 140,000 European Investment Bank, Notes, EMTN 2.125 09/20/2007 1,311 0.45 95 American Standard Inc., Company Guaranteed 8.250 06/01/2009 106 0.04 3,362 1.16 240 AmeriGas Partners, L.P., Senior New Zealand Dollar Bonds — 1.05% Unsecured, 144A 7.250 05/20/2015 254 0.09 NZD 3,250 New Zealand Government, 250 Ames True Temper, Inc., Company Series 206, Bonds 6.500 02/15/2006 2,250 0.77 Guaranteed** 7.599 01/15/2012 244 0.08 1,100 New Zealand Government, 30 Anheuser-Busch Cos., Inc., Series 413, Bonds 6.500 04/15/2013 803 0.28 Debentures 6.500 05/01/2042 36 0.01 3,053 1.05 57 ANR Pipeline Co., Debentures 9.625 11/01/2021 74 0.03 Peru Government Issues — 0.69% 353 Asbury Automotive Group, Inc., Company Guaranteed 9.000 06/15/2012 368 0.13 PEN 6,500 Peru Bono Soberano, Series 7, Bonds 8.600 08/12/2017 1,997 0.69 635 Associated Materials Inc., Senior Discount Notes zero coupon 03/01/2014 371 0.13 Polish Zloty Bonds — 0.95% 85 AT&T Corp., Senior Notes 7.300 11/15/2011 98 0.03 PLZ 8,700 Poland Government, Series 0310, Bonds 5.750 03/24/2010 2,767 0.95 930 Belden & Blake, Senior Notes 8.750 07/15/2012 986 0.34 15 Boeing Capital Corp., Senior Notes 7.375 09/27/2010 17 0.01

The accompanying notes are an integral part of the Financial Statements

24 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Western Asset Global Multi Strategy Fund

Portfolio of Investments as at August 31, 2005 (Unaudited) - (continued)

Coupon Value % of Coupon Value % of Face Rate Maturity (000’s) Asset Face Rate Maturity (000’s) Asset Value (000’s) % Date $ Value Value (000’s) % Date $ Value

U.S. Corporate Bonds and Notes — (continued) USD 180 CSC Holdings, Inc., Series B, USD 360 Boeing Capital Corp., Senior Notes 5.750 02/15/2007 368 0.13 Senior Notes 7.625 04/01/2011 180 0.06 341 Case New Holland, Inc., Company 380 DaVita, Inc., Senior Subordinated Guaranteed 9.250 08/01/2011 363 0.12 Notes, 144A 7.250 03/15/2015 386 0.13 632 Central European Distribution Corp., 250 Delphi Corp., Notes 6.500 08/15/2013 191 0.07 Company Guaranteed 8.000 07/25/2012 830 0.29 160 Denny’s Corp., Company 280 Chaparral Steel Co., Senior Guaranteed 10.000 10/01/2012 168 0.06 Unsecured Notes, 144A 10.000 07/15/2013 294 0.10 10 Devon Energy Corp., Debentures 7.950 04/15/2032 13 0.00 850 Charter Communications 380 Devon Energy Corp., ULC, Holdings II, Senior Notes 10.250 09/15/2010 878 0.30 Company Guaranteed 6.875 09/30/2011 425 0.15 170 Charter Communications 225 Dominos, Inc., Senior Subordinated Holdings LLC, Senior Discount Notes 8.250 07/01/2011 241 0.08 Notes** zero coupon 05/15/2011 115 0.04 9,801 Dow Jones CDX HY, Series 4-T1, 120 Chesapeake Energy Corp., Pass-through Certificates, 144A 8.250 06/29/2010 9,954 3.43 Senior Notes 6.375 06/15/2015 122 0.04 270 Duke Energy Corp., First Mortgage 3.750 03/05/2008 267 0.09 50 Chesapeake Energy Corp., 560 DynCorp International LLC, Senior Senior Notes 7.500 09/15/2013 54 0.02 Subordinated Notes, 144A 9.500 02/15/2013 553 0.19 150 Chesapeake Energy Corp., 200 Dynegy Holdings, Inc., Secured Senior Unsecured Notes, 144A 6.500 08/15/2017 153 0.05 Notes, 144A 9.875 07/15/2010 218 0.07 410 Cincinnati Bell, Inc., Company 290 Dynegy Holdings, Inc., Senior Guaranteed Notes 7.000 02/15/2015 402 0.14 Notes 8.750 02/15/2012 318 0.11 170 Cinemark USA, Inc., Senior 290 Dynegy Holdings, Inc., Senior Subordinated Notes 9.000 02/01/2013 180 0.06 Notes, 144A 10.125 07/15/2013 324 0.11 210 Cinemark, Inc., Senior Discount 350 Echostar DBS Corp., Company Notes** zero coupon 03/15/2014 150 0.05 Guaranteed 6.625 10/01/2014 347 0.12 430 CitiSteel USA, Inc., Notes, 144A** 11.553 09/01/2010 427 0.15 10 Echostar DBS Corp., Senior Notes 5.750 10/01/2008 10 0.00 110 Citizens Communications Co., 47 Echostar DBS Corp., Senior Notes** 6.754 10/01/2008 48 0.02 Notes 9.250 11/15/2011 122 0.04 340 El Paso Corp., MTN, Senior Notes 7.800 08/01/2031 342 0.12 250 Clear Channel Communications, Inc., Senior Notes 4.625 01/15/2008 249 0.09 790 El Paso Corp., MTN, Senior Notes 7.750 01/15/2032 798 0.27 76 Coastal Corp., Notes 7.750 06/15/2010 78 0.03 180 El Paso Corp., Senior Unsecured Notes, 144A 7.625 08/16/2007 184 0.06 30 Columbia/HCA Healthcare Corp., MTN 9.000 12/15/2014 36 0.01 210 El Paso Production Holding Co., Senior Notes 7.750 06/01/2013 222 0.08 10 Columbia/HCA Healthcare Corp., Notes 7.250 05/20/2008 10 0.00 442 Elwood Energy LLC, Secured Notes 8.159 07/05/2026 493 0.17 220 Columbia/HCA, Notes 7.690 06/15/2025 233 0.08 170 Emmis Operating Co., Senior Subordinated Notes 6.875 05/15/2012 170 0.06 530 Comcast Cable Communications, Inc., Senior Notes 6.750 01/30/2011 580 0.20 30 Encore Acquisition Co., Senior Subordinated Notes 6.250 04/15/2014 30 0.01 95 Comcast Corp., Company Guaranteed 6.500 01/15/2015 105 0.04 150 Encore Acquisition Co., Senior Subordinated Notes, 144A 6.000 07/15/2015 146 0.05 260 Commerical Vehicle Group, Inc., Senior Notes, 144A 8.000 07/01/2013 270 0.09 40 Extendicare Health Services, Inc., Company Guaranteed 9.500 07/01/2010 43 0.01 110 Community Health Systems, Inc., Senior Subordinated Notes 6.500 12/15/2012 111 0.04 2,210 Ford Motor Credit Co., Notes 7.375 10/28/2009 2,201 0.76 140 ConocoPhillips, Company 20 Forest City Enterprises, Inc., Senior Guaranteed 4.750 10/15/2012 143 0.05 Notes 7.625 06/01/2015 21 0.01 568 Continental Airlines, Inc., 200 Forest City Enterprises, Inc., Senior Series 01-1, Pass-through Notes 6.500 02/01/2017 201 0.07 Certificates 7.033 06/15/2011 505 0.17 139 Fresenius Medical Capital Trust II, 15 Continental Airlines, Inc., Company Guaranteed 7.875 02/01/2008 144 0.05 Series 981B, Pass-through 50 Fresenius Medical Capital Trust IV, Certificates 6.748 03/15/2017 13 0.00 Company Guaranteed 7.875 06/15/2011 53 0.02 350 Continental Airlines, Inc., 210 Fresenius Medical Capital Trust V, Series D, Pass-through Certificates 7.568 12/01/2006 329 0.11 Company Guaranteed 7.375 06/15/2011 292 0.10 30 CSC Holdings, Inc., Debentures 7.875 02/15/2018 30 0.01 40 General Electric Capital Corp., MTN 6.750 03/15/2032 49 0.02 124 CSC Holdings, Inc., Senior 530 General Motors Acceptance Corp., Notes, 144A** 7.000 04/15/2012 119 0.04 Bonds 8.000 11/01/2031 490 0.17 190 CSC Holdings, Inc., Series B, 260 General Motors Acceptance Corp., Debentures 8.125 08/15/2009 195 0.07 EMTN, Notes 4.750 09/14/2009 299 0.10

The accompanying notes are an integral part of the Financial Statements

25 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Western Asset Global Multi Strategy Fund

Portfolio of Investments as at August 31, 2005 (Unaudited) - (continued)

Coupon Value % of Coupon Value % of Face Rate Maturity (000’s) Asset Face Rate Maturity (000’s) Asset Value (000’s) % Date $ Value Value (000’s) % Date $ Value

U.S. Corporate Bonds and Notes — (continued) USD 40 Kellogg Co., Series B, Debentures 7.450 04/01/2031 53 0.02 USD 480 General Motors Acceptance Corp., 250 Kerr-McGee Corp., Secured Notes 7.875 09/15/2031 302 0.10 Notes 6.875 08/28/2012 451 0.15 460 Keystone Automotive Operations, 9 General Motors Corp., Series B, Inc., Senior Subordinated Notes 9.750 11/01/2013 467 0.16 Convertible Senior Unsecured 510 KI Holdings Inc., Senior Discount Debentures 5.250 03/06/2032 173 0.06 Notes** zero coupon 11/15/2014 319 0.11 8 Georgia Gulf Corp., Notes 7.625 11/15/2005 8 0.00 237 Koppers, Inc., Company G 134 Georgia-Pacific Corp., Debentures 9.500 12/01/2011 159 0.05 uaranteed 9.875 10/15/2013 263 0.09 60 Goodman Global Holding Co., Inc., 200 Kraft Foods Inc, Notes 4.125 11/12/2009 197 0.07 Senior Notes, 144A** 6.410 06/15/2012 60 0.02 80 Kraft Foods Inc., Notes 5.250 06/01/2007 81 0.03 310 Graham Packaging Co. Inc., 115 Kraft Foods, Inc., Notes 5.625 11/01/2011 122 0.04 Subordinated Notes 9.875 10/15/2014 321 0.11 630 L-3 Communications Corp., Senior 280 Graphic Packaging International, Inc., Subordinated Notes, 144A 6.375 10/15/2015 639 0.22 Senior Subordinated Notes 9.500 08/15/2013 287 0.10 20 LA Quinta Corp., Senior Notes 7.400 09/15/2005 20 0.01 230 Gulfmark Offshore, Inc., Company Guaranteed 7.750 07/15/2014 246 0.08 195 Lamar Media Corp., Company Guaranteed 7.250 01/01/2013 205 0.07 458 H&E Equipment Finance LLC, Company Guaranteed 11.125 06/15/2012 512 0.18 80 Lamar Media Corp., Senior Subordinated Notes, 144A 6.625 08/15/2015 82 0.03 310 H-Lines Finance Holding, Senior Discount Notes, 144A** zero coupon 04/01/2013 253 0.09 280 Leiner Health Products LLC, Senior Subordinated Notes 11.000 06/01/2012 246 0.08 440 Hawaiian Telcom Communications, Inc., Senior Subordinated Notes, 240 Levi Strauss & Co., Senior Notes 9.750 01/15/2015 253 0.09 144A 12.500 05/01/2015 464 0.16 200 Levi Strauss & Co., Senior 50 HCA, Inc., Notes 7.500 11/06/2033 53 0.02 Unsubordinated Notes 8.625 04/01/2013 252 0.09 310 HEALTHSOUTH Corp., Senior 269 Lodgenet Entertainment, Inc., Subordinated Notes 10.750 10/01/2008 321 0.11 Senior Subordinated Notes 9.500 06/15/2013 295 0.10 440 Horizon Lines, LLC, Company 50 Lyondell Chemical Co., Company Guaranteed 9.000 11/01/2012 477 0.16 Guaranteed 10.500 06/01/2013 58 0.02 5 Host Marriott LP, Series G, 41 Lyondell Chemical Co., Series A, Company Guaranteed 9.250 10/01/2007 5 0.00 Company Guaranteed 9.625 05/01/2007 43 0.01 20 Household Finance Corp., Notes 6.500 11/15/2008 21 0.01 197 MacDermid, Inc., Company Guaranteed 9.125 07/15/2011 212 0.07 86 Huntsman ICI Chemicals, LLC, Company Guaranteed 10.125 07/01/2009 89 0.03 1 MCI, Inc., Senior Notes 8.735 05/01/2014 1 0.00 540 Inn of The Mountain Gods, 92 MGM Mirage, Inc., Company Senior Notes 12.000 11/15/2010 620 0.21 Guaranteed 8.500 09/15/2010 101 0.03 11 Interface, Inc., Company 180 Midwest Generation LLC, Secured Guaranteed 7.300 04/01/2008 11 0.00 Notes 8.750 05/01/2034 202 0.07 444 Interface, Inc., Senior Notes 10.375 02/01/2010 492 0.17 161 Midwest Generation LLC, Series B, Pass-through Certificates 8.560 01/02/2016 177 0.06 100 International Paper Co., Notes 5.500 01/15/2014 103 0.04 512 Milacron Escrow Corp., Secured 10 ITT Corp., Company Guaranteed 6.750 11/15/2005 10 0.00 Notes 11.500 05/15/2011 512 0.18 340 J. C. Penney Co., Inc., Debentures 7.400 04/01/2037 378 0.13 40 Millennium America, Inc., Company 220 J. C. Penney Co., Inc., Series A, Guaranteed 9.250 06/15/2008 43 0.01 MTN 6.875 10/15/2015 242 0.08 160 MMI Products, Inc., Series B, Senior 20 J.P. Morgan & Co., Subordinated Subordinated Notes 11.250 04/15/2007 158 0.05 Notes 5.750 01/02/2013 21 0.01 114 Mobile Mini, Inc., Senior Notes 9.500 07/01/2013 127 0.04 662 Jacuzzi Brands, Inc., Company 350 Morgan Stanley, Notes 3.625 04/01/2008 344 0.12 Guaranteed 9.625 07/01/2010 717 0.25 250 Morgan Stanley, Subordinated 560 JPMorgan Chase & Co., Senior Notes 4.750 04/01/2014 247 0.08 Notes 3.625 05/01/2008 551 0.19 350 NationsRent, Inc., Company 104 K & F Acquisition, Inc., Company Guaranteed 9.500 05/01/2015 364 0.12 Guaranteed 7.750 11/15/2014 106 0.04 230 NationsRent, Inc., Secured Notes 9.500 10/15/2010 252 0.09 90 K & F Parent Inc., Senior Notes, 144A 11.500 02/01/2015 95 0.03 700 NewPage Corp., Senior Subordinated Notes, 144A 12.000 05/01/2013 665 0.23 96 Kansas City Southern Railway Co., Company Guaranteed 9.500 10/01/2008 104 0.04 440 News America, Inc., Senior Notes 6.625 01/09/2008 461 0.16 120 KCS Energy, Inc., Company 100 Nextel Communications, Inc., Guaranteed, 144A 7.125 04/01/2012 123 0.04 Series D, Senior Notes 7.375 08/01/2015 108 0.04 310 KCS Energy, Inc., Senior Notes 7.125 04/01/2012 318 0.11 150 Nextel Communications, Inc., Series F, Senior Notes 5.950 03/15/2014 156 0.05

The accompanying notes are an integral part of the Financial Statements

26 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Western Asset Global Multi Strategy Fund

Portfolio of Investments as at August 31, 2005 (Unaudited) - (continued)

Coupon Value % of Coupon Value % of Face Rate Maturity (000’s) Asset Face Rate Maturity (000’s) Asset Value (000’s) % Date $ Value Value (000’s) % Date $ Value

U.S. Corporate Bonds and Notes — (continued) USD 160 RJ Reynolds Tobacco Holdings, Inc., USD 320 Norcraft Cos. LP, Senior Subodinated Notes, 144A 6.500 07/15/2010 160 0.05 Notes 9.000 11/01/2011 336 0.12 170 Rogers Wireless, Inc., Senior Notes 9.625 05/01/2011 198 0.07 110 Norcraft Holdings, Senior Discount 127 Russell Corp., Company Guaranteed 9.250 05/01/2010 134 0.05 Notes** zero coupon 09/01/2012 78 0.03 100 Samsonite Corp., Senior 220 Nortek Inc., Senior Subordinated Subordinated Notes 8.875 06/01/2011 107 0.04 Notes 8.500 09/01/2014 214 0.07 200 Select Medical Corp., Company 370 NTK Holdings, Inc., Senior Discount Guaranteed Notes 7.625 02/01/2015 194 0.07 Notes, 144A** zero coupon 03/01/2014 213 0.07 170 SESI, L.L.C., Company 261 Omi Corp., Senior Notes 7.625 12/01/2013 268 0.09 Guaranteed 8.875 05/15/2011 180 0.06 220 Owens-Brockway Glass Container 320 Sierra Pacific Resources, Senior Inc., Senior Notes 8.750 11/15/2012 240 0.08 Notes, 144A 6.750 08/15/2017 322 0.11 140 Oxford Industries, Inc., Senior Notes 8.875 06/01/2011 150 0.05 75 Sinclair Broadcast Group Inc., 50 Pacific Energy Partners LP, Senior Company Guaranteed 8.750 12/15/2011 79 0.03 Notes 7.125 06/15/2014 52 0.02 260 Sinclair Broadcast Group, Inc., 120 Pantry, Inc., Senior Subordinated Company Guaranteed 8.000 03/15/2012 268 0.09 Notes 7.750 02/15/2014 123 0.04 120 Sithe Independence Funding Corp., 320 Parker Drilling Co., Senior Notes 9.625 10/01/2013 364 0.12 Series A, Notes 9.000 12/30/2013 133 0.05 11 Parker Drilling Co., Series B, 260 Solo Cup Co., Senior Subordinated Company Guaranteed 10.125 11/15/2009 12 0.00 Notes 8.500 02/15/2014 253 0.09 184 Paxson Communications Corp., 77 Southern Natural Gas Co., Senior Company Guaranteed 10.750 07/15/2008 183 0.06 Notes 8.875 03/15/2010 84 0.03 10 Paxson Communications Corp., 150 Spectrum Brands, Inc., Company Company Guaranteed** zero coupon 01/15/2009 10 0.00 Guaranteed Notes 7.375 02/01/2015 144 0.05 100 Plains Exploration & Production Co., 190 Spectrum Brands, Inc., Senior Senior Notes 7.125 06/15/2014 106 0.04 Subordinated Notes 8.500 10/01/2013 196 0.07 150 PQ Corp., Company Guaranteed, 10 Sprint Capital Corp., Company 144A 7.500 02/15/2013 151 0.05 Guaranteed 7.625 01/30/2011 11 0.00 648 Premier Entertainment Biloxi Finance, 70 Sprint Capital Corp., Notes 8.375 03/15/2012 84 0.03 First Mortgage 10.750 02/01/2012 551 0.19 140 Stater Brothers Holdings Inc., 210 Pride International, Inc., Senior Senior Notes** 6.910 06/15/2010 141 0.05 Notes 7.375 07/15/2014 228 0.08 20 Station Casinos, Inc., Senior 130 Primedia Inc., Company Subordinated Notes 6.875 03/01/2016 21 0.01 Guaranteed 8.875 05/15/2011 136 0.05 350 Suburban Propane Partners LP, 180 Primedia Inc., Senior Notes** 9.165 05/15/2010 191 0.07 Senior Notes 6.875 12/15/2013 339 0.12 210 Progress Rail Services Corp., 740 Sungard Data Systems Inc., Senior Senior Notes, 144A 7.750 04/01/2012 213 0.07 Subordinated Notes, 144A 10.250 08/15/2015 773 0.27 260 Qwest Communications 80 Telcordia Technologies Inc., Senior International, Inc., Company Subordinated Notes, 144A 10.000 03/15/2013 76 0.03 Guaranteed 7.250 02/15/2011 253 0.09 690 Tenet Healthcare Corp., Senior 144 Qwest Communications Notes 9.875 07/01/2014 735 0.25 International, Inc., Senior Notes, 280 Tenet Healthcare Corp., Senior 144A 7.500 02/15/2014 138 0.05 Notes, 144A 9.250 02/01/2015 288 0.10 240 Qwest Corp., Senior Notes 7.875 09/01/2011 250 0.09 260 Terex Corp., Company Guaranteed 7.375 01/15/2014 270 0.09 130 Qwest Corp., Senior Notes, 144A** 6.671 06/15/2013 136 0.05 133 Texas Genco LLC, 736 Qwest Services Corp., Senior Notes, 144A 6.875 12/15/2014 138 0.05 Secured Notes 13.500 12/15/2010 848 0.29 20 The Goldman Sachs Group, Inc., 90 Rainbow National Services LLC, Bonds 6.875 01/15/2011 22 0.01 Senior Notes, 144A 8.750 09/01/2012 98 0.03 90 The Goldman Sachs Group, Inc., 150 Rainbow National Services LLC, Notes 6.650 05/15/2009 97 0.03 Senior Subordinated Debentures, 120 Time Warner, Inc., Company 144A 10.375 09/01/2014 171 0.06 Guaranteed 6.875 05/01/2012 133 0.05 120 Reader’s Digest Association, Inc., 270 Time Warner, Inc., Company Senior Notes 6.500 03/01/2011 123 0.04 Guaranteed 6.150 05/01/2007 278 0.10 440 Refco Finance Holdings, Company 560 Toys ‘R’ Us, Inc., Notes 7.375 10/15/2018 452 0.16 Guaranteed 9.000 08/01/2012 480 0.16 270 Toys ‘R’ Us, Inc., Senior Notes 7.875 04/15/2013 242 0.08 550 Reliant Energy, Inc., Secured Notes 6.750 12/15/2014 542 0.19 60 TXU Corp., Series J, Senior Notes 6.375 06/15/2006 61 0.02 350 River Rock Entertainment Authority, 100 UbiquiTel Operating Co., Senior Notes 9.750 11/01/2011 384 0.13 Senior Notes 9.875 03/01/2011 111 0.04 The accompanying notes are an integral part of the Financial Statements

27 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Western Asset Global Multi Strategy Fund

Portfolio of Investments as at August 31, 2005 (Unaudited) - (continued)

Coupon Value % of Coupon Value % of Face Rate Maturity (000’s) Asset Face Rate Maturity (000’s) Asset Value (000’s) % Date $ Value Value (000’s) % Date $ Value

U.S. Corporate Bonds and Notes — (continued) USD 390 Conoco Funding Co., Company USD 390 UCAR Finance, Inc., Company Guaranteed 6.350 10/15/2011 431 0.15 Guaranteed 10.250 02/15/2012 417 0.14 400 Controladora Comercial Mexicana 180 UGS Corp., Company Guaranteed 10.000 06/01/2012 202 0.07 S.A. de C.V., Senior Notes, 144A 6.625 06/01/2015 410 0.14 100 US Unwired, Inc., Series B, Secured 130 Domtar Inc., Notes, Yankee Dollar 7.875 10/15/2011 137 0.05 Notes 10.000 06/15/2012 116 0.04 100 Empresa Nacional de Electricidad 220 Valor Telecom Enterprise, Senior SA, Unsubordinated Notes 8.350 08/01/2013 117 0.04 Notes, 144A 7.750 02/15/2015 216 0.07 200 Flextronics International Ltd., Senior 170 Vanguard Health Holding Co. II, LLC, Subordinated Notes 6.500 05/15/2013 203 0.07 Senior Subordinated Notes 9.000 10/01/2014 185 0.06 1,050 Gazstream S.A., Notes, 144A 5.625 07/22/2013 1,050 0.36 60 Ventas Realty LP, Company 40 General Motors Nova Scotia Guaranteed 8.750 05/01/2009 65 0.02 Financial Co., Company 30 Ventas Realty LP, Company Guaranteed, Yankee Dollar 6.850 10/15/2008 39 0.01 Guaranteed 9.000 05/01/2012 35 0.01 280 Innova S. de R.L., Notes 9.375 09/19/2013 318 0.11 140 Ventas Realty LP, Senior Notes 6.625 10/15/2014 142 0.05 120 Intelsat Bermuda Ltd., Senior 40 Verizon Global Funding Corp., Notes, 144A 8.625 01/15/2015 124 0.04 Senior Notes 6.875 06/15/2012 45 0.02 600 Intelsat Ltd., Notes 7.625 04/15/2012 519 0.18 5Verizon Global Funding Corp., 230 Ispat Inland ULC, Secured Notes 9.750 04/01/2014 269 0.09 Senior Unsecured Notes 7.750 12/01/2030 6 0.00 110 Kabel Deutschland GmbH, 15 Verizon New York, Inc., Series B, Company Guaranteed, 144A 10.625 07/01/2014 123 0.04 Debentures 7.375 04/01/2032 18 0.01 240 Morgan Stanley (Gazprom), Notes 9.625 03/01/2013 296 0.10 100 Vintage Petroleum, Senior 510 Morgan Stanley (Gazprom), Subordinated Notes 7.875 05/15/2011 105 0.04 Notes, 144A 9.625 03/01/2013 628 0.22 840 Visteon Corp., Senior Notes 8.250 08/01/2010 815 0.28 410 Ocean Rig Norway AS, Senior 130 Warner Music Group, Senior Notes, 144A 8.375 07/01/2013 441 0.15 Subordinated Notes 7.375 04/15/2014 133 0.05 10 Petronas Capital Ltd., Company 270 Waste Management, Inc., Guaranteed, 144A 7.000 05/22/2012 11 0.00 Company Guaranteed 7.375 05/15/2029 326 0.11 160 Petronas, Bonds, 144A 7.750 08/15/2015 196 0.07 290 Waste Management, Inc., Senior 65 Petronas, Notes 7.750 08/15/2015 79 0.03 Notes 7.375 08/01/2010 324 0.11 460 Petronas, Unsubordinated Notes, 280 Waste Services Inc., Senior 144A 7.625 10/15/2026 581 0.20 Subordinated Notes, 144A 9.500 04/15/2014 279 0.10 860 Petrozuata Finance, Inc., Company 230 WDAC Subsidiary Corp., Senior Guaranteed, 144A 8.220 04/01/2017 806 0.28 Notes, 144A 8.375 12/01/2014 226 0.08 490 Rhodia SA, Senior Notes 10.250 06/01/2010 530 0.18 315 Western Oil Sands, Inc., Senior Notes 8.375 05/01/2012 363 0.12 210 Rogers Cable Inc., Secured Notes 5.500 03/15/2014 197 0.07 227 Westlake Chemical Corp., Company 110 Rogers Wireless Inc., Senior Guaranteed 8.750 07/15/2011 246 0.08 Subordinated Notes 8.000 12/15/2012 118 0.04 545 Williams Cos., Inc., Notes 8.750 03/15/2032 662 0.23 181 Teekay Shipping Corp., Senior Notes 8.875 07/15/2011 207 0.07 220 Williams Cos., Inc., Notes, 144A 6.750 04/15/2009 226 0.08 470 Telefonica De Argentina, Notes 9.125 11/07/2010 515 0.18 60 Williams Cos., Inc., Series A, 310 Tembec Industries, Inc., Company Debentures 7.500 01/15/2031 65 0.02 Guaranteed 7.750 03/15/2012 229 0.08 40 XTO Energy, Inc., Senior Notes 7.500 04/15/2012 46 0.02 522 Tyco International Group SA, Company Guaranteed, Yankee Total U.S. Corporate Bonds and Notes (Cost $68,699) 69,471 23.91 Dollar 6.375 10/15/2011 569 0.20 U.S. Denominated Bonds and Notes — 3.66% 180 United Utilities Plc, Notes, Yankee Dollar 6.450 04/01/2008 188 0.06 103 Abitibi-Consolidated Inc., Notes 6.910 06/15/2011 103 0.04 120 UtiliCorp Canada Financial Corp., 50 Abitibi-Consolidated Inc., Notes 7.750 06/15/2011 50 0.02 Company Guaranteed, 200 Abitibi-Consolidated Inc., Senior Yankee Dollar 7.750 06/15/2011 125 0.04 Notes 8.375 04/01/2015 201 0.07 Total U.S. Denominated Bonds and Notes (Cost $10,382) 10,642 3.66 90 Ainsworth Lumber 7.250 10/01/2012 84 0.03 140 Axtel SA, Company Guaranteed 11.000 12/15/2013 155 0.05 U.S. Denominated Debt Obligations — 24.30% 84 BAE Systems 2001 Asset Trust, Brazil — 6.21% Pass-through Certificates, 144A 6.664 09/15/2013 92 0.03 49 Federal Republic of Brazil, Bonds** 4.313 04/15/2012 48 0.02 240 Basell Finance Co., BV, Company 844 Federal Republic of Brazil, Bonds** 4.313 04/15/2012 814 0.28 Guaranteed Notes, 144A 8.100 03/15/2027 237 0.08 865 Federal Republic of Brazil, Bonds 10.125 05/15/2027 1,005 0.35 250 Compagnie Generale de 580 Federal Republic of Brazil, Bonds 12.000 04/15/2010 700 0.24 Geophysique SA, Company Guaranteed, 144A 7.500 05/15/2015 264 0.09 900 Federal Republic of Brazil, Bonds 12.250 03/06/2030 1,192 0.41 The accompanying notes are an integral part of the Financial Statements

28 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Western Asset Global Multi Strategy Fund

Portfolio of Investments as at August 31, 2005 (Unaudited) - (continued)

Coupon Value % of Coupon Value % of Face Rate Maturity (000’s) Asset Face Rate Maturity (000’s) Asset Value (000’s) % Date $ Value Value (000’s) % Date $ Value

U.S. Denominated Debt Obligations — (continued) USD 51 Republic of Peru, Bonds, 144A** 5.000 03/07/2017 50 0.02 Brazil — (continued) 1,661 0.57 USD 224 Federal Republic of Brazil, Notes 8.000 01/15/2018 232 0.08 Philippines — 0.28% 345 Federal Republic of Brazil, Series 30 720 Republic of Philippines, Unsecured Year, Collaterized Brady Bonds** 6.000 04/15/2024 332 0.11 Bonds 10.625 03/16/2025 817 0.28 3,720 Federal Republic of Brazil, Series B, Russia — 5.64% Unsubordinated Bonds 8.875 04/15/2024 3,859 1.33 1,060 Ministry of Finance Russia, Series 290 Federal Republic of Brazil, VI, Debentures 3.000 05/14/2006 1,051 0.36 Unsubordinated Notes 8.875 04/15/2024 301 0.10 11,965 Russian Federation, 1,275 Federal Republic of Brazil, Unsubordinated Bonds** 5.000 03/31/2030 13,677 4.71 Unsubordinated Notes 11.000 08/17/2040 1,520 0.52 880 Russian Federation, 6,260 Federal Republic of Brazil, Unsubordinated Bonds 12.750 06/24/2028 1,646 0.57 Unsubordinated Notes 14.500 10/15/2009 8,053 2.77 16,374 5.64 18,056 6.21 Turkey — 0.57% Bulgaria — 0.18% 1,160 Republic of Turkey, Notes 7.000 06/05/2020 1,121 0.38 90 Republic of Bulgaria, Bonds 8.250 01/15/2015 112 0.04 380 Republic of Turkey, Senior 339 Republic of Bulgaria, Bonds, 144A 8.250 01/15/2015 423 0.14 Unsubordinated Bonds 11.875 01/15/2030 542 0.19 535 0.18 1,663 0.57 Canada — 0.00% Ukraine — 0.17% 10 Quebec Province, Series NN, 482 Ukraine Government, Senior Notes 11.000 03/15/2007 505 0.17 Debentures, Yankee 7.125 02/09/2024 13 0.00 Venezuela — 0.39% Colombia — 0.78% 340 Republic of Venezuela, Bonds 7.000 12/01/2018 312 0.11 645 Republic of Colombia, Bonds 11.750 02/25/2020 862 0.30 385 Republic of Venezuela, Bonds 9.250 09/15/2027 419 0.14 1,175 Republic of Colombia, Notes 10.500 07/09/2010 1,399 0.48 370 Republic of Venezuela, Notes 8.500 10/08/2014 392 0.14 2,261 0.78 1,123 0.39 Ecuador — 0.34% Total U.S. Denominated Debt Obligations (Cost $66,144) 70,621 24.30 260 Republic of Ecuador, Bonds** 9.000 08/15/2030 231 0.08 110 Republic of Ecuador, Bonds 12.000 11/15/2012 110 0.04 U.S. Treasury Obligations — 15.39% 635 Republic of Ecuador, Bonds, 144A**9.000 08/15/2030 559 0.19 U.S. Treasury Bonds — 0.17% 95 Republic of Ecuador, Bonds, 144A 12.000 11/15/2012 95 0.03 30 U.S. Treasury Bonds 4.250 08/15/2014 31 0.01 995 0.34 390 U.S. Treasury Bonds 5.375 02/15/2031 457 0.16 Malaysia — 0.02% 488 0.17 50 Malaysia, Bonds 7.500 07/15/2011 58 0.02 U.S. Treasury Notes — 15.22% Mexico — 8.69% 28,593 U.S. Treasury Inflationary Index Notes zero coupon 04/15/2010 27,921 9.61 152,900 Mexican Bonos, Series MI10, Bonds 8.000 12/19/2013 13,336 4.59 3,000 U.S. Treasury Notes 3.125 01/31/2007 2,971 1.02 40 United Mexican States, Bonds 11.500 05/15/2026 65 0.02 13,470 U.S. Treasury Notes 3.625 06/15/2010 13,325 4.59 710 United Mexican States, MTN, Bonds 8.300 08/15/2031 902 0.31 44,217 15.22 5,310 United Mexican States, Notes 8.375 01/14/2011 6,206 2.14 Total U.S. Treasury Obligations (Cost $44,499) 44,705 15.39 4,020 United Mexican States, Series A, MTN, Notes 7.500 04/08/2033 4,729 1.63 U.S. Government Agency Mortgage-Backed Securities — 8.24% 25,238 8.69 Federal National Mortgage Association (FNMA) — 6.10% Morocco — 0.05% 400 FNMA, 15 Year September TBA† 4.000 09/15/2020 390 0.13 140 Kingdom of Morocco, Series A, 1,000 FNMA, 30 Year September TBA† 4.500 09/15/2035 970 0.33 Government Guaranteed** 4.813 01/02/2009 139 0.05 16,100 FNMA, 30 Year September TBA† 5.000 09/15/2035 15,989 5.50 Panama — 0.41% 300 FNMA, 30 Year September TBA† 6.500 09/15/2035 310 0.11 275 Republic of Panama, Bonds 9.375 01/16/2023 344 0.12 82 FNMA, Pool #735416 6.500 12/01/2034 85 0.03 45 Republic of Panama, Bonds 9.625 02/08/2011 54 0.02 17,744 6.10 570 Republic of Panama, Bonds 10.750 05/15/2020 785 0.27 Government National Mortgage Association (GNMA) — 2.14% 1,183 0.41 3,100 GNMA, 30 Year September TBA† 5.000 09/15/2035 3,110 1.07 Peru — 0.57% 2,300 GNMA, 30 Year September TBA† 6.000 09/15/2035 2,370 0.82 883 Republic of Peru, Bonds** 5.000 03/07/2017 864 0.30 700 GNMA, 30 Year September TBA† 6.500 09/15/2035 730 0.25 630 Republic of Peru, Bonds 8.750 11/21/2033 747 0.25 6,210 2.14

The accompanying notes are an integral part of the Financial Statements

29 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Western Asset Global Multi Strategy Fund

Portfolio of Investments as at August 31, 2005 (Unaudited) - (continued)

Value % of Face (000’s) Asset Value (000’s) $ Value

U.S. Government Agency Mortgage-Backed Securities — (continued) 144A Securities exempt from registration under Rule 144A of the Securities Act of 1933, Total U.S. Government Agency as amended. These securities may only be resold, in transactions exempt from Mortgage-Backed Securities (Cost $23,666) 23,954 8.24 registration, to qualified institutional buyers. At August 31, 2005, these securities amounted to $27,507,000. or 9.47% of net assets. ** Variable rate security. The interest rate shown reflects the rate in effect at August Shares (000’s) 31, 2005. † Security purchased on a when-issued basis. Warrants — 0.00% — Amounts designated as “—” are either $0, less than $1,000 or less than 1,000 — American Tower Corp., Expires 08/01/2008 12 0.00 shares. — Ono Finance Plc, Expires 05/31/2009 — 0.00 ABBREVIATIONS: Total Warrants (Cost $0) 12 0.00 BRL Brazilian Real CAD Canadian Dollar Common Stock — 0.00% (Cost $0) EMTN Euro Medium Term Note EUR European Monetary Unit Telecommunications — 0.00% GBP British Pound Sterling 1 IMPSAT Fiber Networks, Inc. 6 0.00 IDR Indonesian Rupiah Total Investments excluding Options (Cost $289,263) 296,274 101.96 JPY Japanese Yen MTN Medium Term Note NZD New Zealand Dollar Contracts PEN Peruvian New Sol PLZ Polish Zloty Options — 0.00% (Cost $230) TBA To Be Announced Call Options — 0.00% TRY Turkish Lira USD United States Dollar — Euro Dollar 3 Month September 2005, Call 96.50 1 0.00 Yankee Dollar-denominated bonds issued in the U.S. by foreign banks or corporations. Total Investments (Cost $289,492) 296,275 101.96 ZAR South African Rand Other Liabilities In Excess Of Assets (5,708) (1.96) Total Net Assets $290,567 100.00

Net Amount Amount Nominal Notional Notional Unrealised Unrealised Unrealised % of Net Purchased Sold Value Cost USD Value USD Gains Losses Gain/(Loss) Asset Value Futures Contracts Futures Contracts 0.03% US 5YR Note Fut CBT September 2005 261 (93) 168 18,069 18,233 164 US 5YR Note Fut CBT December 2005 22 22 2,364 2,384 20 US 10 Year T-Notes September 2005 150 (256) (106) (11,787) (11,970) (183) US 10 Year T-Notes December 2005 (95) (95) (10,572) (10,647) (75) US T- Bond September 2005 16 (17) (1) (116) (118) (2) US T- Bond December 2005 (16) (16) (1,865) (1,888) (23) 90 DAY EURO$ FUT MARCH 2006 294 294 70,291 70,475 184 Total Market Value of Futures Contracts 266 66,384 66,469 368 (283) 85 0.03

The accompanying notes are an integral part of the Financial Statements

30 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Western Asset U.S. High Yield Bond Fund

Portfolio of Investments as at August 31, 2005 (Unaudited)

Face Coupon Value % of Face Coupon Value % of Value (000’s) Rate Maturity (000’s) Asset Value (000’s) Rate Maturity (000’s) Asset $%Date $ Value $%Date $ Value

Collateralized Mortgage Obligations — 0.14% (Cost $80) 140 Domtar Inc., Notes, Yankee Dollar 7.875 10/15/2011 147 0.26 179 Blackrock Capital Finance LP, Series 610 NewPage Corp., Senior 1997-R1, Class B3, 144A 7.750 03/25/2037 81 0.14 Subordinated Notes, 144A 12.000 05/01/2013 580 1.04 100 Nortek Inc., Senior Subordinated Foreign Corporate Bonds And Notes — 7.45% Notes 8.500 09/01/2014 97 0.17 Bermuda — 0.95% 910 NTK Holdings, Inc., Senior Discount 620 Intelsat Ltd., Notes 7.625 04/15/2012 537 0.95 Notes, 144A 10.750 03/01/2014 523 0.93 Canada — 3.02% 2,317 4.13 8 Abitibi-Consolidated Inc., Notes** 6.910 06/15/2011 8 0.01 Cable and Media — 5.92% 50 Abitibi-Consolidated Inc., Notes 7.750 06/15/2011 50 0.09 280 Activant Solutions, Inc., 240 Abitibi-Consolidated Inc., Senior Senior Notes, 144A** 9.504 04/01/2010 286 0.51 Notes 8.375 04/01/2015 241 0.43 517 Charter Communications Holdings II, 250 Ispat Inland ULC, Secured Notes 9.750 04/01/2014 292 0.52 Senior Notes 10.250 09/15/2010 534 0.95 120 Rogers Wireless Inc., Senior 720 Charter Communications Holdings Subordinated Notes 8.000 12/15/2012 128 0.23 LLC, Senior Discount Notes zero coupon 05/15/2011 488 0.87 214 Rogers Wireless, Inc., Senior Notes 9.625 05/01/2011 250 0.45 216 CSC Holdings, Inc., Debentures 7.625 07/15/2018 210 0.38 270 Tembec Industries, Inc., Company 140 CSC Holdings, Inc., Senior Notes, Guaranteed 7.750 03/15/2012 200 0.36 144A 7.000 04/15/2012 134 0.24 120 UtiliCorp Canada Financial Corp., 90 CSC Holdings, Inc., Series B, Senior Company Guaranteed, Notes 7.625 04/01/2011 90 0.16 Yankee Dollar 7.750 06/15/2011 125 0.22 430 Echostar DBS Corp., Company 345 Western Oil Sands, Inc., Senior Guaranteed 6.625 10/01/2014 426 0.76 Notes 8.375 05/01/2012 398 0.71 269 Lodgenet Entertainment, Inc., 1,692 3.02 Senior Subordinated Notes 9.500 06/15/2013 295 0.53 France — 1.00% 175 Paxson Communications Corp., Company Guaranteed zero coupon 01/15/2009 170 0.30 520 Rhodia SA, Senior Notes 10.250 06/01/2010 563 1.00 250 Rogers Cable Inc., Secured Notes 5.500 03/15/2014 235 0.42 Germany — 0.82% 426 Sinclair Broadcast Group Inc., 410 Kabel Deutschland GmbH, Company Company Guaranteed 8.750 12/15/2011 450 0.80 Guaranteed, 144A 10.625 07/01/2014 458 0.82 3,318 5.92 Luxembourg — 0.11% Chemicals — 1.08% 55 Tyco International Group SA, Company Guaranteed, 15 Georgia Gulf Corp., Notes 7.625 11/15/2005 15 0.03 Yankee Dollar 6.375 10/15/2011 60 0.11 42 MacDermid, Inc., Company Marshall Islands — 0.78% Guaranteed 9.125 07/15/2011 45 0.08 315 Omi Corp., Senior Notes 7.625 12/01/2013 324 0.58 240 PQ Corp., Company Guaranteed, 144A 7.500 02/15/2013 241 0.43 100 Teekay Shipping Corp., Senior Notes 8.875 07/15/2011 114 0.20 281 Westlake Chemical Corp., Company Guaranteed 8.750 07/15/2011 305 0.54 438 0.78 606 1.08 Norway — 0.77% Consumer Cyclicals — 16.65% 400 Ocean Rig Norway AS, Senior Notes, 144A 8.375 07/01/2013 430 0.77 230 ACCO Brands Corp., Senior Subordinated Notes, 144A 7.625 08/15/2015 231 0.41 Total Foreign Corporate Bonds And Notes (Cost $4,129) 4,178 7.45 140 AMC Entertainment, Inc. 8.000 03/01/2014 130 0.23 U.S. Corporate Bonds and Notes — 87.86% 350 American Airlines, Inc., Series 01-2, Advertising — 1.17% Pass-through Certificates 7.800 10/01/2006 338 0.60 250 Lamar Media Corp., Senior 300 Ames True Temper, Inc., Company Subordinated Notes, 144A 6.625 08/15/2015 255 0.45 Guaranteed** 7.599 01/15/2012 293 0.52 410 WDAC Subsidiary Corp., Senior 439 Asbury Automotive Group, Inc., Notes, 144A 8.375 12/01/2014 402 0.72 Company Guaranteed 9.000 06/15/2012 457 0.82 140 Cinemark USA, Inc., Senior 657 1.17 Subordinated Notes 9.000 02/01/2013 148 0.26 Basic Materials — 4.13% 250 Cinemark, Inc., Senior Discount 390 Alpha Natural Resources, Notes zero coupon 03/15/2014 178 0.32 Company Guaranteed 10.000 06/01/2012 437 0.78 130 Commerical Vehicle Group, Inc., 220 Basell Finance Co., BV, Company Senior Notes, 144A 8.000 07/01/2013 135 0.24 Guaranteed Notes, 144A 8.100 03/15/2027 218 0.39 568 Continental Airlines, Inc., 300 Chaparral Steel Co., Senior Series 01-1, Pass-through Unsecured Notes, 144A 10.000 07/15/2013 315 0.56 Certificates 7.033 06/15/2011 505 0.90 The accompanying notes are an integral part of the Financial Statements

31 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Western Asset U.S. High Yield Bond Fund

Portfolio of Investments as at August 31, 2005 (Unaudited) - (continued)

Face Coupon Value % of Face Coupon Value % of Value (000’s) Rate Maturity (000’s) Asset Value (000’s) Rate Maturity (000’s) Asset $%Date $ Value $%Date $ Value

U.S. Corporate Bonds and Notes — (continued) 810 Belden & Blake, Senior Notes 8.750 07/15/2012 859 1.53 Consumer Cyclicals — (continued) 270 Chesapeake Energy Corp., Senior — Continental Airlines, Inc., Series 01-1, Unsecured Notes, 144A 6.500 08/15/2017 275 0.49 Pass-through Certificates 7.373 12/15/2015 — 0.00 391 Coastal Corp., Notes 7.750 06/15/2010 401 0.72 8 Continental Airlines, Inc., Series 981B, 220 Compagnie Generale de Pass-through Certificates 6.748 03/15/2017 7 0.01 Geophysique SA, Company 240 Continental Airlines, Inc., Series D, Guaranteed, 144A 7.500 05/15/2015 232 0.41 Pass-through Certificates 7.568 12/01/2006 225 0.40 415 El Paso Corp., MTN, Senior Notes 7.750 01/15/2032 419 0.75 230 Delphi Corp., Notes 6.500 08/15/2013 175 0.31 280 El Paso Corp., MTN, Senior Notes 7.800 08/01/2031 281 0.50 320 Denny’s Corp., Company 350 El Paso Production Holding Co., Guaranteed 10.000 10/01/2012 335 0.60 Senior Notes 7.750 06/01/2013 370 0.66 329 Dominos, Inc., Senior Subordinated 468 Elwood Energy LLC, Secured Notes 8.159 07/05/2026 522 0.93 Notes 8.250 07/01/2011 352 0.63 50 Encore Acquisition Co., Senior 465 Interface, Inc., Senior Notes 10.375 02/01/2010 515 0.92 Subordinated Notes 6.250 04/15/2014 50 0.09 300 J. C. Penney Co., Inc., Debentures 7.400 04/01/2037 333 0.60 260 Gulfmark Offshore, Inc., Company 270 J. C. Penney Co., Inc., Series A, Guaranteed 7.750 07/15/2014 278 0.50 MTN 6.875 10/15/2015 297 0.53 10 KCS Energy, Inc., Company 431 Keystone Automotive Operations, Guaranteed, 144A 7.125 04/01/2012 10 0.02 Inc., Senior Subordinated Notes 9.750 11/01/2013 438 0.78 310 KCS Energy, Inc., Senior Notes 7.125 04/01/2012 318 0.57 180 Levi Strauss & Co., Senior Notes 9.750 01/15/2015 190 0.34 300 Kerr-McGee Corp., Secured Notes 7.875 09/15/2031 362 0.65 210 Levi Strauss & Co., Senior Notes, 490 Parker Drilling Co., Senior Notes 9.625 10/01/2013 557 0.99 144A 9.750 01/15/2015 222 0.40 250 Plains Exploration & Production Co., 162 Mobile Mini, Inc., Senior Notes 9.500 07/01/2013 180 0.32 Senior Notes 7.125 06/15/2014 266 0.47 290 Norcraft Cos. LP, Senior 320 Pride International, Inc., Senior Subodinated Notes 9.000 11/01/2011 305 0.54 Notes 7.375 07/15/2014 347 0.62 230 Norcraft Holdings, Senior Discount 180 Southern Natural Gas Co., Senior Notes zero coupon 09/01/2012 163 0.29 Notes 8.875 03/15/2010 196 0.35 308 Oxford Industries, Inc., Senior Notes 8.875 06/01/2011 330 0.59 8Vintage Petroleum, Senior 100 Pantry, Inc., Senior Subordinated Subordinated Notes 7.875 05/15/2011 8 0.01 Notes 7.750 02/15/2014 103 0.18 565 Williams Cos., Inc., Notes 8.750 03/15/2032 687 1.23 358 River Rock Entertainment Authority, 385 Williams Cos., Inc., Notes, 144A 6.750 04/15/2009 395 0.70 Senior Notes 9.750 11/01/2011 393 0.70 7,383 13.17 277 Russell Corp., Company Financial - Diversified — 12.78% Guaranteed 9.250 05/01/2010 292 0.52 600 AAC Group Holding Corp., Senior 120 Spectrum Brands, Inc., Company Discount Notes, 144A zero coupon 10/01/2012 444 0.79 Guaranteed Notes 7.375 02/01/2015 116 0.21 154 Alamosa Delaware, Inc., Company 426 Suburban Propane Partners LP, Guaranteed 11.000 07/31/2010 175 0.31 Senior Notes 6.875 12/15/2013 413 0.74 70 Alamosa Delaware, Inc., Senior 430 Toys ‘R’ Us, Inc., Notes 7.375 10/15/2018 347 0.62 Notes 8.500 01/31/2012 76 0.14 390 Toys ‘R’ Us, Inc., Senior Notes 7.875 04/15/2013 349 0.62 370 CitiSteel USA, Inc., Notes, 144A 11.553 09/01/2010 367 0.65 740 Visteon Corp., Senior Notes 8.250 08/01/2010 718 1.28 500 DynCorp International LLC, Senior 120 Warner Music Group, Senior Subordinated Notes, 144A 9.500 02/15/2013 494 0.88 Subordinated Notes 7.375 04/15/2014 122 0.22 180 Ford Motor Credit Co., Bonds 7.375 02/01/2011 178 0.32 9,335 16.65 310 Forest City Enterprises, Inc., Senior Consumer Staples — 1.59% Notes 6.500 02/01/2017 312 0.56 140 Leiner Health Products LLC, Senior 560 General Motors Acceptance Corp., Subordinated Notes 11.000 06/01/2012 123 0.22 Bonds 8.000 11/01/2031 518 0.92 80 NationsRent, Inc., Company 870 General Motors Acceptance Corp., Guaranteed 9.500 05/01/2015 83 0.15 Notes 6.875 08/28/2012 818 1.46 461 NationsRent, Inc., Secured Notes 9.500 10/15/2010 505 0.90 420 H&E Equipment Finance LLC, 180 RJ Reynolds Tobacco Holdings, Inc., Company Guaranteed 11.125 06/15/2012 469 0.84 Notes, 144A 6.500 07/15/2010 180 0.32 260 JSG Funding PLC, Senior Notes 9.625 10/01/2012 266 0.47 891 1.59 779 Milacron Escrow Corp., Secured Notes 11.500 05/15/2011 779 1.39 Energy — 13.17% 160 Rainbow National Services LLC, 330 AmeriGas Partners, L.P., Senior Senior Notes, 144A 8.750 09/01/2012 174 0.31 Unsecured, 144A 7.250 05/20/2015 350 0.62 155 ANR Pipeline Co., Debentures 9.625 11/01/2021 200 0.36 The accompanying notes are an integral part of the Financial Statements

32 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Western Asset U.S. High Yield Bond Fund

Portfolio of Investments as at August 31, 2005 (Unaudited) - (continued)

Face Coupon Value % of Face Coupon Value % of Value (000’s) Rate Maturity (000’s) Asset Value (000’s) Rate Maturity (000’s) Asset $%Date $ Value $%Date $ Value

U.S. Corporate Bonds and Notes — (continued) 329 Spectrum Brands, Inc., Senior Financials-Diversified — (continued) Subordinated Notes 8.500 10/01/2013 339 0.61 180 Rainbow National Services LLC, 270 Terex Corp., Company Guaranteed 7.375 01/15/2014 281 0.50 Senior Subordinated Debentures, 310 Waste Services Inc., Senior 144A 10.375 09/01/2014 205 0.37 Subordinated Notes, 144A 9.500 04/15/2014 308 0.55 360 Refco Finance Holdings, Company 4,789 8.54 Guaranteed 9.000 08/01/2012 392 0.70 Leisure and Lodging — 1.22% 670 Sungard Data Systems Inc., Senior 467 Inn of The Mountain Gods, Subordinated Notes, 144A 10.250 08/15/2015 700 1.25 Senior Notes 12.000 11/15/2010 536 0.96 434 UCAR Finance, Inc., Company 140 Premier Entertainment Biloxi Guaranteed 10.250 02/15/2012 464 0.83 Finance, First Mortgage 10.750 02/01/2012 119 0.21 212 Ventas Realty LP, Company 27 Station Casinos, Inc., Senior Guaranteed 8.750 05/01/2009 231 0.41 Subordinated Notes 6.875 03/01/2016 28 0.05 88 Ventas Realty LP, Company Guaranteed 9.000 05/01/2012 101 0.18 683 1.22 7,163 12.78 Multi Media — 1.58% 350 Emmis Operating Co., Senior Health Care — 5.01% Subordinated Notes 6.875 05/15/2012 350 0.62 320 Columbia/HCA, Notes 7.690 06/15/2025 340 0.61 10 Primedia Inc., Company Guaranteed 8.875 05/15/2011 10 0.02 200 Community Health Systems, Inc., 390 Primedia Inc., Senior Notes** 9.165 05/15/2010 414 0.74 Senior Subordinated Notes 6.500 12/15/2012 202 0.36 110 Reader’s Digest Association, Inc., 390 DaVita, Inc., Senior Subordinated Senior Notes 6.500 03/01/2011 113 0.20 Notes, 144A 7.250 03/15/2015 396 0.71 165 Fresenius Medical Capital Trust II, 887 1.58 Company Guaranteed 7.875 02/01/2008 170 0.30 Special Purpose Entity — 2.00% 50 Fresenius Medical Capital Trust IV, 150 American Commercial Lines LLC, Company Guaranteed 7.875 06/15/2011 54 0.10 Company Guaranteed 9.500 02/15/2015 161 0.29 320 Select Medical Corp., Company 110 K & F Parent Inc., Senior Notes, Guaranteed Notes 7.625 02/01/2015 311 0.55 144A 11.500 02/01/2015 117 0.21 845 Tenet Healthcare Corp., 160 Nell AF SARL, Senior Notes, 144A 8.375 08/15/2015 162 0.29 Senior Notes 9.875 07/01/2014 900 1.61 310 UGS Corp., Company Guaranteed 10.000 06/01/2012 347 0.62 230 Tenet Healthcare Corp., Senior 340 Valor Telecom Enterprise, Senior Notes, 144A 9.250 02/01/2015 237 0.42 Notes, 144A 7.750 02/15/2015 334 0.59 180 Vanguard Health Holding Co. II, LLC, 1,121 2.00 Senior Subordinated Notes 9.000 10/01/2014 196 0.35 Telecommunications — 6.54% 2,806 5.01 550 Cincinnati Bell, Inc., Company Industrials — 8.54% Guaranteed Notes 7.000 02/15/2015 539 0.96 80 Ainsworth Lumber, 144A 7.250 10/01/2012 75 0.13 100 Citizens Communications Co., 275 Allegheny Technologies Inc., Notes 8.375 12/15/2011 293 0.52 Notes 9.250 05/15/2011 111 0.20 760 Associated Materials Inc., Senior 390 Hawaiian Telcom Communications, Discount Notes zero coupon 03/01/2014 445 0.79 Inc., Senior Subordinated Notes, 297 Case New Holland, Inc., Company 144A 12.500 05/01/2015 411 0.73 Guaranteed 9.250 08/01/2011 316 0.56 570 L-3 Communications Corp., Senior 280 Graham Packaging Co. Inc., Subordinated Notes, 144A 6.375 10/15/2015 578 1.03 Subordinated Notes 9.875 10/15/2014 290 0.52 128 Qwest Capital Funding, Company 257 Graphic Packaging International, Inc., Guaranteed 7.900 08/15/2010 128 0.23 Senior Subordinated Notes 9.500 08/15/2013 263 0.47 160 Qwest Communications 530 H-Lines Finance Holding, Senior International, Inc., Senior Notes, 1 Discount Notes, 144A** zero coupon 04/01/2013 433 0.77 44A 7.500 02/15/2014 154 0.27 577 Jacuzzi Brands, Inc., Company 530 Qwest Corp., Senior Notes 7.875 09/01/2011 551 0.98 Guaranteed 9.625 07/01/2010 625 1.11 120 Qwest Corp., Senior Notes, 144A** 6.671 06/15/2013 126 0.23 390 KI Holdings Inc., Senior Discount 483 Qwest Services Corp., Secured Notes zero coupon 11/15/2014 244 0.44 Notes 13.500 12/15/2010 557 0.99 237 Koppers, Inc., Company 200 UbiquiTel Operating Co., Senior Guaranteed 9.875 10/15/2013 263 0.47 Notes 9.875 03/01/2011 223 0.40 320 Samsonite Corp., Senior 250 US Unwired, Inc., Series B, Secured Subordinated Notes 8.875 06/01/2011 342 0.61 Notes 10.000 06/15/2012 290 0.52 280 Solo Cup Co., Senior 3,668 6.54 Subordinated Notes 8.500 02/15/2014 272 0.49

The accompanying notes are an integral part of the Financial Statements

33 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Western Asset U.S. High Yield Bond Fund

Portfolio of Investments as at August 31, 2005 (Unaudited) - (continued)

Face Coupon Value % of Value (000’s) Rate Maturity (000’s) Asset $%Date $ Value

U.S. Corporate Bonds and Notes — (continued) Transportation — 1.09% 280 Horizon Lines, LLC, Company Guaranteed 9.000 11/01/2012 303 0.54 300 Progress Rail Services Corp., Senior Notes, 144A 7.750 04/01/2012 305 0.55 608 1.09 Utilities — 5.39% 310 AES Corp., Senior Notes 7.750 03/01/2014 337 0.60 176 AES Corp., Senior Notes, 144A 9.000 05/15/2015 194 0.35 20 Chesapeake Energy Corp., Senior Notes 6.375 06/15/2015 20 0.04 200 Dynegy Holdings, Inc., Secured Notes, 144A 9.875 07/15/2010 218 0.39 410 Dynegy Holdings, Inc., Senior Notes 8.750 02/15/2012 450 0.80 233 Dynegy Holdings, Inc., Senior Notes, 144A 10.125 07/15/2013 260 0.47 30 El Paso Corp., Senior Unsecured Notes, 144A 7.625 08/16/2007 31 0.06 100 Encore Acquisition Co., Senior Subordinated Notes, 144A 6.000 07/15/2015 98 0.17 312 Midwest Generation LLC, Series B, Pass-through Certificates 8.560 01/02/2016 343 0.61 480 Reliant Energy, Inc., Secured Notes 6.750 12/15/2014 473 0.84 280 Sierra Pacific Resources, Senior Notes, 144A 6.750 08/15/2017 282 0.50 140 Sithe Independence Funding Corp., Series A, Notes 9.000 12/30/2013 155 0.28 153 Texas Genco LLC, Senior Notes, 144A 6.875 12/15/2014 159 0.28 3,020 5.39 Total U.S. Corporate Bonds and Notes (Cost $48,578) 49,252 87.86

Shares (000’s)

Preferred Stocks — 0.96% 5 Paxson Communications Corp., PIK, 14.25% 371 0.66 9 General Motors Corp., Series B, Convertible Senior Unsecured Debentures 167 0.30 Total Preferred Stocks (Cost $639) 538 0.96 Total Investments (Cost $53,426) 54,049 96.41 Other Assets In Excess of Liabilities 2,010 3.59 Total Net Assets $ 56,059 100.00 144A Securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may only be resold, in transactions exempt from registration, to qualified institutional buyers. At August 31, 2005, these securities amounted to $13,215,000 or 23.57% of net assets. ** Variable rate security. The interest rate shown reflects the rate in effect at August 31, 2005. — Amounts designated as “—” are either $0, less than $1,000 or less than 1,000 shares.

ABBREVIATIONS: MTN Medium Term Note Yankee Dollar-denominated bonds issued issued in the U.S. by foreign banks or corporations

The accompanying notes are an integral part of the Financial Statements

34 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Western Asset Emerging Markets Bond Fund

Portfolio of Investments as at August 31, 2005 (Unaudited)

Face Coupon Value % of Face Coupon Value % of Value (000’s) Rate Maturity (000’s) Asset Value (000’s) Rate Maturity (000’s) Asset $%Date $ Value $%Date $ Value

Foreign Bonds and Notes — 0.68% (Cost $341) Malaysia — 1.28% Peru Government Issues — 0.68% 100 Petronas, Bonds, 144A 7.750 08/15/2015 124 0.25 1,100 Peru Bono Soberano, Series 7, 425 Petronas, Notes 7.750 08/15/2015 516 1.03 Bonds 8.600 08/12/2017 338 0.68 640 1.28 Foreign Corporate Bonds And Notes — 0.76% (Cost $390) Mexico — 19.23% Russia — 0.76% 70 Axtel SA, Company Guaranteed 11.000 12/15/2013 77 0.15 10,620 Gazprom OAO, Series A3, Bonds 8.110 01/18/2007 381 0.76 210 Grupo Iusacell SA de C.V., Senior Notes++ 14.250 12/01/2006 83 0.17 U.S. Denominated Debt Obligations — 88.62% 130 Innova S. de R.L., Notes 9.375 09/19/2013 148 0.29 Brazil — 26.32% 110 TFM SA de CV, Senior Notes 12.500 06/15/2012 127 0.25 410 Cosan SA Industria E Com, Senior Notes, 144A 9.000 11/01/2009 427 0.86 530 United Mexican States, MTN, Bonds 8.300 08/15/2031 673 1.35 366 Federal Republic of Brazil, Bonds** 4.313 04/15/2012 353 0.71 4,095 United Mexican States, Notes 8.375 01/14/2011 4,786 9.58 399 Federal Republic of Brazil, Bonds** 4.313 04/15/2012 386 0.77 3,160 United Mexican States, Series A, MTN, Notes 7.500 04/08/2033 3,718 7.44 555 Federal Republic of Brazil, Bonds 10.125 05/15/2027 645 1.29 9,612 19.23 415 Federal Republic of Brazil, Bonds 12.000 04/15/2010 501 1.00 Morocco — 0.22% 880 Federal Republic of Brazil, Bonds 12.250 03/06/2030 1,166 2.33 113 Morocco Tranche A Loan** 4.813 01/02/2009 112 0.22 148 Federal Republic of Brazil, Notes 8.000 01/15/2018 153 0.31 Panama — 1.54% 75 Federal Republic of Brazil, Series 30 Year, Collaterized 245 Republic of Panama, Bonds 9.375 01/16/2023 306 0.61 Brady Bonds** 6.000 04/15/2024 72 0.14 30 Republic of Panama, Bonds 9.625 02/08/2011 36 0.07 2,630 Federal Republic of Brazil, Series B, 310 Republic of Panama, Bonds 10.750 05/15/2020 427 0.86 Unsubordinated Bonds 8.875 04/15/2024 2,729 5.46 769 1.54 190 Federal Republic of Brazil, Unsubordinated Notes 8.875 04/15/2024 197 0.39 Peru — 2.46% 1,256 Federal Republic of Brazil, 591 Republic of Peru, Bonds** 5.000 03/07/2017 578 1.16 Unsubordinated Notes 11.000 08/17/2040 1,497 3.00 550 Republic of Peru, Bonds 8.750 11/21/2033 652 1.30 3,910 Federal Republic of Brazil, 1,230 2.46 Unsubordinated Notes 14.500 10/15/2009 5,030 10.06 Philippines — 1.00% 13,156 26.32 440 Republic of Philippines, Unsecured Bulgaria — 0.54% Bonds 10.625 03/16/2025 499 1.00 218 Republic of Bulgaria, Bonds, 144A 8.250 01/15/2015 272 0.54 Russia — 23.90% Cayman Islands — 0.91% 770 Ministry of Finance Russia, 425 CSN Islands IX Corp., Company Series VI, Debentures 3.000 05/14/2006 763 1.53 Guaranteed Senior Notes, 144A 10.000 01/15/2015 453 0.91 8,635 Russian Federation, Unsubordinated Chile — 0.18% Bonds** 5.000 03/31/2030 9,871 19.75 640 Russian Federation, Unsubordinated 75 Empresa Nacional de Electricidad SA, Bonds 12.750 06/24/2028 1,197 2.39 Unsubordinated Notes 8.350 08/01/2013 88 0.18 100 Russian Federation, Unsubordinated Colombia — 2.69% Bonds, 144A** 5.000 03/31/2030 114 0.23 430 Republic of Colombia, Bonds 11.750 02/25/2020 575 1.15 11,945 23.90 645 Republic of Colombia, Notes 10.500 07/09/2010 768 1.54 Turkey — 2.35% 1,343 2.69 845 Republic of Turkey, Notes 7.000 06/05/2020 816 1.63 Ecuador — 1.44% 250 Republic of Turkey, Senior 170 Republic of Ecuador, Bonds** 9.000 08/15/2030 151 0.30 Unsubordinated Bonds 11.875 01/15/2030 357 0.72 490 Republic of Ecuador, Bonds, 144A**9.000 08/15/2030 431 0.86 1,173 2.35 140 Republic of Ecuador, Bonds, 144A 12.000 11/15/2012 140 0.28 Ukraine — 0.63% 722 1.44 299 Ukraine Government, Senior Notes 11.000 03/15/2007 313 0.63 Germany — 1.40% Venezuela — 2.53% 80 Morgan Stanley (Gazprom), Notes 9.625 03/01/2013 99 0.20 890 Petrozuata Finance, Inc., Company 490 Morgan Stanley (Gazprom), Guaranteed, 144A 8.220 04/01/2017 835 1.67 Notes, 144A 9.625 03/01/2013 603 1.20 180 Republic of Venezuela, Bonds 7.000 12/01/2018 165 0.33 702 1.40 250 Republic of Venezuela, Notes 8.500 10/08/2014 265 0.53 1,265 2.53 Total U.S. Denominated Debt Obligations (Cost $41,993) 44,294 88.62

The accompanying notes are an integral part of the Financial Statements

35 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Western Asset Emerging Markets Bond Fund

Portfolio of Investments as at August 31, 2005 (Unaudited) - (continued)

Face Coupon Value % of Face Coupon Value % of Value (000’s) Rate Maturity (000’s) Asset Value (000’s) Rate Maturity (000’s) Asset $%Date $ Value $%Date $ Value

U.S. Treasury Obligations — 2.01% Short Term Obligations — 3.20% (Cost $1,600) U.S. Treasury Notes — 2.01% 1,600 Lehman Brothers Repurchase 300 U.S. Treasury Notes 3.875 05/15/2010 300 0.60 Agreement dated 08/31/2005 at 3.54% to be repurchased at 700 U.S. Treasury Notes 4.000 04/15/2010 704 1.41 $1,600,157 on 09/01/2005, Total U.S. Treasury Obligations (Cost $1,001) 1,004 2.01 collateralized by $7,100,000 FHLB zero coupon, due U.S. Denominated Bonds and Notes — 1.95% 09/08/2028 3.540 09/01/2005 1,600 3.20 200 Controladora Comercial Mexicana Total Investments (Cost $46,325) 48,624 97.28 S.A. de C.V., Senior Notes, 144A 6.625 06/01/2015 205 0.41 Other Assets In Excess of Liabilities 1,358 2.72 770 Gazstream S.A., Notes, 144A 5.625 07/22/2013 770 1.54 Total Net Assets $ 49,982 100.00 Total U.S. Denominated Bonds and Notes (Cost $969) 975 1.95 144A Securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may only be resold, in transactions exempt from Shares (000’s) registration, to qualified institutional buyers. At August 31, 2005, these securities amounted to $3,947,000 or 7.90% of net assets. Common Stock — 0.06% (Cost $31) ** Variable rate security. The interest rate shown reflects the rate in effect at August Telecommunications — 0.06% 31, 2005. ++ As at August 31, 2005, security in default 4 IMPSAT Fiber Networks, Inc. 32 0.06 ABBREVIATION: MTN Medium Term Note

Schedule of Credit Default Swaps: Unrealized Buy/Sell Pay/Receive Expiration Notional Appreciation/ Counterparty Reference Entity Protection Fixed Rate Date Amount (Deppreciation) J.P. Morgan Federal Republic of Brazil Buy 3.84% 05/20/2010 350,000 7,032.00 12.25% due 03/06/2030 J.P. Morgan Federal Republic of Brazil Sell 0.00% 05/20/2010 (350,000) — 12.25% due 03/06/2030 Morgan Stanley Federal Republic of Brazil Buy 3.47% 05/20/2010 350,000 5,795.07 12.25% due 03/06/2030 Morgan Stanley Federal Republic of Brazil Sell 0.00% 05/20/2010 (350,000) — 12.25% due 03/06/2030 Morgan Stanley Republic of Colombia Buy 3.47% 06/20/2010 330,000 16,437.00 10.375% due 01/28/2033 Morgan Stanley Republic of Colombia Sell 0.00% 06/20/2010 (330,000) — 10.375% due 01/28/2033 29,264.07 Schedule of Interest rate Swaps: Unrealized Pay/Receive Fixed Expiration Notional Appreciation/ Counterparty Floating Rate Index Fixed Rate Rate Date Amount (Deppreciation) Deutsche Bank 3-Month USD-LIBOR Receive 9.84% 07/01/2015 2,500,000 633.18 Deutsche Bank 3-Month USD-LIBOR Pay 9.99% 07/01/2015 2,500,000 2,713.56 3,346.74

The accompanying notes are an integral part of the Financial Statements

36 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Brandywine Global Opportunities Bond Fund

Portfolio of Investments as at August 31, 2005 (Unaudited)

Coupon Maturity Value % of Coupon Maturity Value % of Face Rate Date (000’s) Asset Face Rate Date (000’s) Asset Value (000’s) % $ Value Value (000’s) % $ Value

Foreign Bonds and Notes — 58.23% U.S. Treasury Obligations — 20.03% Australia Government Issues — 11.38% U.S. Treasury Bills — 20.03% AUD14,445 New South Wales Treasury CRP, USD20,230 U.S. Treasury Bills zero coupon 11/17/2005 20,085 7.28 Local Government Guaranteed 6.000 05/01/2012 11,263 4.08 35,530 U.S. Treasury Bills zero coupon 12/08/2005 35,202 12.75 11,060 New South Wales Treasury CRP, Total U.S. Treasury Obligations (Cost $55,325) 55,287 20.03 Series 10RG, Local Government Guaranteed 7.000 12/01/2010 8,964 3.25 Total Investments (Cost $261,182) 263,396 95.44 14,110 Queensland Treasury, Series 07G, Other Assets In Excess Of Liabitities 12,571 4.56 Local Government Guaranteed 8.000 09/14/2007 11,174 4.05 Total Net Assets $275,967 100.00 31,401 11.38 ABBREVIATIONS: Canada Government Issues — 16.43% AUD Austrailian Dollar CAD14,750 Canada, Government of, Bonds 6.000 06/01/2011 14,037 5.09 CAD Canadian Dollar EUR European Monetary Unit 31,370 Canadian Treasury Bills zero coupon 01/26/2006 26,107 9.46 GBP British Pound Sterling 7,500 Province of Ontario, Series G, MTN, MTN Medium Term Note Unsubordinated Bonds 6.250 06/16/2015 5,189 1.88 NZD New Zealand Dollar PLZ Polish Zloty 45,333 16.43 SGD Singapore Dollar Germany Government Issues — 11.56% USD United States Dollar EUR 6,690 Bundesrepublic Deutschland, Bonds 4.000 07/04/2009 8,692 3.15 9,420 Bundesrepublic Deutschland, Bonds 4.500 07/04/2009 12,440 4.51 7,805 Bundesrepublic Deutschland, Bonds 5.250 07/04/2010 10,753 3.90 31,885 11.56 New Zealand Government Issues — 1.84% NZD 7,150 New Zealand Government, Series 415, Bonds 6.000 04/15/2015 5,078 1.84 Poland Government Issue — 7.42% PLZ 65,025 Poland Government, Series 0608, Bonds 5.750 06/24/2008 20,483 7.42 Singapore Government Issue — 5.70% SGD 4,600 Singapore Government, Bonds 4.000 03/01/2007 2,811 1.02 21,710 Singapore Government, Bonds 4.375 10/15/2005 12,925 4.68 15,736 5.70 United Kingdom Government Issues — 3.90% GBP 5,715 United Kingdom Government, Bonds 4.750 09/07/2015 10,771 3.90 Total Foreign Bonds and Notes (Cost $158,307) 160,687 58.23

U.S. Government Agency Obligations — 17.18% Federal Home Loan Bank (FHLB) — 8.07% USD22,325 FHLB, Bonds 4.000 04/25/2007 22,277 8.07 Federal National Mortgage Association (FNMA) — 9.11% 25,225 FNMA, Notes 4.000 05/23/2007 25,145 9.11 Total U.S. Government Agency Obligations (Cost $47,550) 47,422 17.18

The accompanying notes are an integral part of the Financial Statements

37 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Legg Mason Growth Fund

Portfolio of Investments as at August 31, 2005 (Unaudited)

Value % of Value % of (000’s) Asset (000’s) Asset Shares (000’s) $ Value Shares (000’s) $ Value

Common Stocks — 97.31% Transportation — 1.85% Casino / Gambling — 3.27% 11 FedEx Corp. 912 1.85 58 International Game Technology 1,608 3.27 Total Common Stocks (Cost $45,539) 47,893 97.31 Computers & Peripherals — 1.74% Total Investments (Cost $45,539) 47,893 97.31 24 Dell Inc. 858 1.74 Other Assets In Excess Of Liablilities 1,323 2.69 Consulting Services — 2.01% Total Net Assets $ 49,216 100.00 41 Accenture Ltd. 991 2.01 ABBREVIATION: Financial — 9.59% ADR American Depository Receipt 49 Citigroup, Inc. 2,132 4.33 45 Countrywide Financial Corp. 1,510 3.07 10 The Goldman Sachs Group, Inc. 1,079 2.19 4,721 9.59 Healthcare Equipment & Supplies — 3.13% 60 Pfizer, Inc. 1,538 3.13 Healthcare Providers — 6.62% 20 Aetna, Inc. 1,617 3.28 32 UnitedHealth Group, Inc. 1,643 3.34 3,260 6.62 Industrials — 2.07% 18 Caterpillar, Inc. 1,021 2.07 Insurance — 5.08% 42 American International Group, Inc. 2,498 5.08 Internet & Catalog Retail — 24.56% 97 Amazon.Com, Inc. 4,151 8.44 66 eBay, Inc. 2,689 5.46 84 Expedia Inc. 1,861 3.78 7 Google, Inc. 2,116 4.30 52 IAC/InteractiveCorp 1,269 2.58 12,086 24.56 Internet Content — 4.66% 69 Yahoo! Inc. 2,294 4.66 Leisure Equipment & Products — 6.93% 45 Electronic Arts, Inc. 2,583 5.25 23 XM Satellite Radio Holdings, Inc. 825 1.68 3,408 6.93 Motor Vehicles — 3.48% 35 Harley Davidson, Inc. 1,714 3.48 Multi Media — 3.57% 111 DIRECTV Group, Inc. 1,758 3.57 Software and Services — 3.31% 60 Computer Associates International, Inc. 1,628 3.31 Technology — 2.01% 56 Cisco Systems, Inc. 989 2.01 Telecommunications — 5.25% 100 Sprint Corp. 2,583 5.25 Telecommunications-Wireless — 8.18% 140 Nokia Corp., ADR 2,203 4.48 46 QUALCOMM, Inc. 1,823 3.70 4,026 8.18

The accompanying notes are an integral part of the Financial Statements

38 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Legg Mason Value Fund

Portfolio of Investments as at August 31, 2005 (Unaudited)

Value % of Value % of (000’s) Asset (000’s) Asset Shares (000’s) $ Value Shares (000’s) $ Value

Common Stocks — 99.38% Technology — 3.78% Computers & Peripherals — 1.38% 1,426 Cisco Systems, Inc. 25,121 0.90 476 International Business Machines Corp. 38,375 1.38 953 Intuit, Inc. 43,667 1.57 Consumer Finance — 2.13% 1,983 Seagate Technology, Inc. 32,901 1.18 723 Capital One Financial Corp. 59,443 2.13 168 Symantec Corp. 3,521 0.13 Diversified Telecommunications — 2.52% 105,210 3.78 17,964 Qwest Communications International, Inc. 70,060 2.52 Telecommunications — 8.26% Financial — 4.60% 8,866 Sprint Corp. 229,899 8.26 1,429 Citigroup, Inc. 62,530 2.25 Thrifts & Mortgage Finance — 4.00% 1,939 Countrywide Financial Corp. 65,525 2.35 1,049 MGIC Investment Corp. 65,458 2.35 128,055 4.60 1,106 Washington Mutual, Inc. 45,975 1.65 Financials - Diversified — 5.77% 111,433 4.00 3,022 JPMorgan Chase & Co. 102,426 3.68 Utilities — 4.66% 1,352 St. Paul Travelers Cos., Inc. 58,132 2.09 8,247 AES Corp. 129,809 4.66 160,558 5.77 Total Common Stocks (Cost $2,231,158) 2,766,842 99.38 Food & Staples Retailing — 1.51% Total Investments (Cost $2,231,158) 2,766,842 99.38 2,093 Albertson’s, Inc. 42,132 1.51 Other Assets In Excess Of Liablilities 17,155 0.62 Healthcare Equipment & Supplies — 1.38% Total Net Assets $ 2,783,997 100.00 1,512 Pfizer, Inc. 38,511 1.38 Healthcare Providers — 15.54% 1,111 Aetna, Inc. 88,545 3.18 1,658 Health Net, Inc. 76,464 2.75 1,803 McKesson Corp. 84,146 3.02 3,564 UnitedHealth Group, Inc. 183,540 6.59 432,695 15.54 Industrials — 7.22% 5,415 Tyco International, Ltd. 150,699 5.41 1,834 Waste Management, Inc. 50,304 1.81 201,003 7.22 Internet & Catalog Retail — 17.37% 3,750 Amazon.Com, Inc. 160,142 5.75 2,462 eBay, Inc. 99,670 3.58 2,730 Expedia Inc. 60,778 2.18 339 Google, Inc. 96,868 3.48 2,691 IAC/InteractiveCorp 66,073 2.38 483,531 17.37 Internet Content — 2.23% 1,864 Yahoo! Inc. 62,131 2.23 Leisure Equipment & Products — 9.35% 3,178 Eastman Kodak Co. 77,458 2.78 1,284 Electronic Arts, Inc. 73,547 2.64 3,200 Time Warner, Inc. 57,344 2.06 5,042 WPP Group Plc 51,963 1.87 260,312 9.35 Multi Media — 2.66% 4,649 DIRECTV Group, Inc. 73,958 2.66 Specialty Retail — 5.02% 1,589 Home Depot, Inc. 64,080 2.30 557 Sears Holdings Corp 75,647 2.72 139,727 5.02

The accompanying notes are an integral part of the Financial Statements

39 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Royce U.S. Small Cap Equity Fund

Portfolio of Investments as at August 31, 2005 (Unaudited)

Value % of Value % of (000’s) Asset (000’s) Asset Shares (000’s) $ Value Shares (000’s) $ Value

Common Stocks — 94.27% 31 Universal Electronics, Inc. 537 0.29 Aerospace / Defense — 2.79% 11,044 5.94 33 BE Aerospace, Inc. 516 0.28 Consumer Services — 5.71% 39 Ducommun, Inc. 813 0.44 84 1-800-Flowers.Com, Inc., Class A 585 0.32 20 Esterline Technologies Corp. 873 0.47 40 Bakers Footwear Group, Inc. 526 0.28 30 HEICO Corp. 722 0.39 27 Casual Male Retail Group, Inc. 193 0.10 40 Herley Industries, Inc. 826 0.44 33 Charlotte Russe Holding Inc. 454 0.24 60 Kaman Corp. 1,439 0.77 40 Dillard’s, Inc. 905 0.49 5,189 2.79 18 Gaiam, Inc. 189 0.10 Basic Materials — 5.96% 33 Gander Mountain Co. 296 0.16 105 Aceto Corp. 768 0.41 103 Harris Interactive, Inc. 433 0.23 44 Aleris International Inc. 1,033 0.55 51 Kforce, Inc. 515 0.28 58 Apogee Enterprises, Inc. 924 0.50 26 Landry’s Restaurants, Inc. 760 0.41 32 Chaparral Steel Co. 712 0.38 37 Linens ‘N Things, Inc. 883 0.48 50 Chemtura Corp. 858 0.46 56 Majesco Entertainment Co. 146 0.08 12 Commercial Metals Co. 359 0.19 15 Orient-Express Hotels, Ltd., Class A 449 0.24 14 Cytec Industries Inc. 685 0.37 49 Party City Corp. 639 0.34 29 Fansteel, Inc. 36 0.02 66 Rent-Way, Inc. 491 0.26 33 Ferro Corp. 621 0.33 53 REX Stores Corp. 817 0.44 10 H.B. Fuller Co. 328 0.18 52 Rubio’s Restaurants, Inc. 493 0.27 26 Haynes International, Inc. 494 0.27 106 Tweeter Home Entertainment Group, Inc. 435 0.23 50 OM Group, Inc. 964 0.52 80 Wild Oats Markets, Inc. 967 0.52 39 Penford Corp. 561 0.30 68 Wilsons, The Leather Experts, Inc. 437 0.24 108 PolyOne Corp. 736 0.40 10,613 5.71 36 Quaker Chemical Corp. 639 0.34 Electrical Equipment — 0.54% 43 Spartech Corp. 831 0.45 35 Benchmark Electronics, Inc. 1,013 0.54 43 Terra Industries, Inc. 316 0.17 Energy — 4.02% 14 The Mosaic Co. 221 0.12 42 Advanced Energy Industries, Inc. 505 0.27 11,086 5.96 5ATP Oil & Gas Corp. 168 0.09 Communications — 1.34% 40 Century Aluminum Co. 968 0.52 63 Cox Radio, Inc. 968 0.52 54 Global Industries, Ltd. 738 0.40 61 Digitas, Inc. 713 0.39 22 Gulfmark Offshore, Inc. 652 0.35 54 General Communication, Inc., Class A 582 0.31 20 Hanover Compressor Co. 304 0.16 40 Regent Communications, Inc. 227 0.12 96 Matrix Service Co. 721 0.39 2,490 1.34 87 Newpark Resources, Inc. 769 0.42 Consumer Products — 5.94% 48 Pioneer Drilling Co. 749 0.40 13 Asbury Automotive Group Inc. 217 0.12 30 Todco, Class A 1,042 0.56 20 Bassett Furniture Industries, Inc. 379 0.21 21 Universal Compression Holdings, Inc. 849 0.46 74 Champion Enterprises, Inc. 989 0.53 7,465 4.02 17 Eddie Bauer Holdings, Inc. 448 0.24 Financial — 3.09% 36 Fleetwood Enterprises Inc. 365 0.20 30 Advanta Corp., Class B 860 0.46 54 Furniture Brands International, Inc. 1,032 0.56 128 Aether Holdings, Inc. 462 0.25 45 Journal Register Co. 844 0.45 31 Bay View Capital Corp. 482 0.26 36 Kellwood Co. 876 0.47 11 Community Capital BancShare, Inc. 130 0.07 68 La-Z-Boy, Inc. 973 0.52 35 FBL Financial Group, Inc. 1,049 0.56 39 NAM TAI Electronics, Inc. 918 0.49 47 Horace Mann Educators Corp. 922 0.50 23 Orange 21, Inc. 143 0.08 95 NetBank, Inc. 823 0.44 106 Revlon, Inc. 375 0.20 13 Pacific Mercantile Bancorp 216 0.12 25 Scholastic Corp. 912 0.49 29 Texas Capital Bancshares, Inc. 636 0.34 29 Steinway Musical Instruments, Inc. 802 0.43 16 The Banc Corp. 171 0.09 40 The Topps Co., Inc. 412 0.22 5,751 3.09 33 The Warnaco Group, Inc. 822 0.44

The accompanying notes are an integral part of the Financial Statements

40 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Royce U.S. Small Cap Equity Fund

Portfolio of Investments as at August 31, 2005 (Unaudited) - (continued)

Value % of Value % of (000’s) Asset (000’s) Asset Shares (000’s) $ Value Shares (000’s) $ Value

Common Stocks — (continued) 46 FEI Co. 957 0.51 Healthcare — 3.34% 105 Flow International Corp. 917 0.49 18 American Physicians Capital, Inc. 800 0.43 36 Flowserve Corp. 1,348 0.73 59 Cambrex Corp. 1,118 0.60 68 Foster (L.B.) Co., Class A 923 0.50 19 Cross Country Healthcare, Inc. 376 0.20 140 Gerber Scientific, Inc. 966 0.52 20 Digirad Corp. 101 0.05 70 Global Power Equipment Group, Inc. 544 0.29 74 Encore Medical Corp. 409 0.22 135 GrafTech International, Ltd. 802 0.43 75 Medical Staffing Network Holdings, Inc. 434 0.23 142 Graphic Packaging Corp. 466 0.25 55 New Brunswick Scientific, Inc. 310 0.17 105 GSI Lumonics, Inc. 1,056 0.57 33 Par Pharmaceutical Cos., Inc. 790 0.43 43 Hawk Corp., Class A 503 0.27 42 Phase Forward, Inc. 326 0.18 88 Hexcel Corp. 1,712 0.92 48 Quinton Cardiology Systems, Inc. 398 0.21 35 Hurco Companies, Inc. 508 0.27 161 Quovadx, Inc. 457 0.25 25 Insteel Industries, Inc. 359 0.19 75 Transgenomic, Inc. 79 0.04 111 Interface, Inc. 1,131 0.61 56 Tripos, Inc. 240 0.13 27 Intevac, Inc. 353 0.19 14 Zoll Medical Corp. 366 0.20 23 JLG Industries, Inc. 754 0.41 6,204 3.34 51 Keithley Instruments, Inc. 737 0.40 Industrial Services — 6.26% 90 KEMET Corp. 731 0.39 47 Albany Molecular Research, Inc. 787 0.42 36 Ladish Co., Inc. 650 0.35 38 Barnes Group, Inc. 1,311 0.71 64 Lamson & Sessions Co. 847 0.46 48 Bowne & Co., Inc. 686 0.37 50 LeCroy Corp. 746 0.40 80 Carreker Corp. 510 0.27 39 Lennox International, Inc. 951 0.51 101 Ciber, Inc. 788 0.42 40 LESCO, Inc. 594 0.32 80 Comfort Systems USA, Inc. 658 0.36 70 Lydall, Inc. 614 0.33 153 Computer Horizons Corp. 562 0.30 32 MacDermid, Inc. 938 0.50 135 Computer Task Group, Inc. 525 0.28 60 Material Sciences Corp. 913 0.49 96 Galaxy Nutritional Foods, Inc. 176 0.10 61 Maxwell Technologies, Inc. 846 0.46 27 Management Network Group, Inc. 61 0.03 87 Merix Corp. 534 0.29 65 McGrath RentCorp 1,602 0.86 48 Modtech Holdings, Inc. 432 0.23 20 Rush Enterprises, Inc. 324 0.17 30 NN, Inc. 368 0.20 53 Sparton Corp. 553 0.30 48 Oregon Steel Mills, Inc. 1,068 0.57 209 Technology Solutions Co. 71 0.04 51 Park Electrochemical Corp. 1,229 0.66 76 TRC Cos., Inc. 1,140 0.61 68 Planar Systems, Inc. 522 0.28 37 Valueclick, Inc. 534 0.29 35 Regal-Beloit Corp. 1,168 0.63 42 Volt Information Sciences, Inc. 963 0.52 50 Robbins & Myers, Inc. 1,096 0.59 160 Xanser Corp. 384 0.21 23 RTI International Metals, Inc. 780 0.42 11,635 6.26 55 Spartan Motors, Inc. 621 0.33 Industrials — 24.94% 25 TB Wood’s Corp. 164 0.09 25 AGCO, Inc. 507 0.27 20 Terex Corp. 976 0.53 50 American Technical Ceramics Corp. 535 0.29 35 Thermadyne Holdings Corp. 488 0.26 39 Baldor Electric Co. 962 0.52 37 Timken Co. 1,081 0.58 90 Baldwin Technology Co. 405 0.22 11 Titanium Metals Corp. 715 0.38 49 Belden Cdt, Inc. 1,053 0.57 55 Tredegar Corp. 686 0.37 76 Calgon Carbon, Corp. 604 0.32 40 Trinity Industries, Inc. 1,497 0.81 18 Cherokee International Corp. 71 0.04 33 Ultra Clean Holdings, Inc. 196 0.11 39 Chesapeake Corp. 760 0.41 37 UNOVA, Inc. 1,062 0.57 49 CIRCOR International, Inc. 1,274 0.69 75 Zygo Corp. 926 0.50 31 Crane Co. 912 0.49 46,365 24.94 56 CTS, Corp. 697 0.37 Software and Services — 1.15% 50 Deswell Industries, Inc. 748 0.40 11 Infospace, Inc. 267 0.14 70 Evans & Sutherland Computer Corp. 362 0.19 79 Keane, Inc. 904 0.49

The accompanying notes are an integral part of the Financial Statements

41 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Royce U.S. Small Cap Equity Fund

Portfolio of Investments as at August 31, 2005 (Unaudited) - (continued)

Value % of Value % of (000’s) Asset (000’s) Asset Shares (000’s) $ Value Shares (000’s) $ Value

Common Stocks — (continued) 55 Interphase Corp. 261 0.14 Software and Services — (continued) 48 Interwoven, Inc. 380 0.20 67 MSC. Software Corp. 933 0.50 158 Iomega Corp. 503 0.27 6Versant Corp. 26 0.02 200 Lantronix, Inc. 266 0.14 2,130 1.15 75 Lionbridge Technologies, Inc. 501 0.27 Technology — 24.27% 217 Manugistics Group, Inc. 411 0.22 45 Actel Corp. 623 0.34 78 Maxtor Corp. 378 0.20 38 ADE Corp. 831 0.45 50 MEMC Electronic Materials, Inc. 838 0.45 81 Aixtron AG,ADR 264 0.14 68 Mentor Graphics Corp. 582 0.31 94 Alliance Semiconductor Corp. 252 0.14 150 MetaSolv, Inc. 450 0.24 102 Alloy, Inc. 518 0.28 27 Nanometrics Inc. 323 0.17 20 American Technology Corp. 129 0.07 66 Netiq Corp. 774 0.42 106 Anadigics, Inc. 276 0.15 130 Network Equipment Technologies, Inc. 647 0.35 24 Analogic Corp. 1,201 0.65 46 OSI Systems, Inc. 760 0.41 73 Arris Group, Inc. 761 0.41 85 Pericom Semiconductor Corp. 749 0.40 103 Aspen Technology, Inc. 516 0.28 78 Phoenix Technologies, Ltd. 580 0.31 57 Ault, Inc. 117 0.06 33 PLATO Learning, Inc. 232 0.13 57 Autobytel Inc. 284 0.15 71 PLX Technology, Inc. 673 0.36 24 Avid Technology, Inc. 913 0.49 90 Powerwave Technologies, Inc. 942 0.51 57 Bell Industries, Inc. 117 0.06 33 Printronix, Inc. 552 0.30 60 Bell Microproducts, Inc. 610 0.33 75 QAD, Inc. 621 0.33 108 Borland Software Corp. 660 0.36 101 QuadraMed Corp. 176 0.09 55 Brooks Automation, Inc. 781 0.42 60 Radyne Comstream, Inc. 647 0.35 100 C-COR, Inc. 750 0.40 60 Sanmina-SCI Corp. 305 0.16 110 California Micro Devices Corp. 791 0.43 50 SBS Technologies, Inc. 483 0.26 23 Cascade Microtech, Inc. 315 0.17 81 SCM Microsystems, Inc. 221 0.12 65 Celestica, Inc. 771 0.41 26 Sigmatron International, Inc. 260 0.14 206 Centillium Communication, Inc. 585 0.31 66 Silcon Storage Technology, Inc. 318 0.17 169 Covad Communications Group, Inc. 204 0.11 65 Spectrum Control, Inc. 461 0.25 142 Cray, Inc. 157 0.08 43 Standard Microsystems Corp. 1,107 0.60 112 Credence Systems Corp. 990 0.53 98 Symmetricom, Inc. 846 0.46 84 Cypress Semiconductor Corp. 1,308 0.70 22 Teradyne, Inc. 368 0.20 39 DEL Global Technologies Corp. 106 0.06 73 Three-Five Systems, Inc. 19 0.01 29 Dot Hill Systems Corp. 171 0.09 95 Triquint Semiconductor, Inc. 367 0.20 114 Electroglas, Inc. 431 0.23 61 TTM Technologies, Inc. 471 0.25 62 EMCORE Corp. 320 0.17 56 Tumbleweed Communications Corp. 184 0.10 68 Epicore Software Corp. 910 0.49 22 Varian Semiconductor Equipment Associates, Inc. 997 0.54 50 Evolving Systems, Inc. 93 0.05 65 Veeco Instruments, Inc. 1,189 0.64 44 Fairchild Semiconductor International, Inc. 733 0.39 42 Vignette Corp. 632 0.34 136 FSI International, Inc. 546 0.29 90 Vishay Intertechnology, Inc. 1,156 0.62 22 GenCorp, Inc. 407 0.22 75 Vitesse Semiconductor, Inc. 164 0.09 109 Glenayre Technologies, Inc. 431 0.23 118 Westell Technologies, Inc. 438 0.24 50 Globecomm Systems, Inc. 319 0.17 74 White Electronic Designs Corp. 387 0.21 39 Harmonic, Inc. 228 0.12 45,126 24.27 76 Hypercom Corp. 484 0.26 Telecommunications — 3.05% 136 Indus International, Inc. 327 0.18 73 Andrew Corp. 842 0.45 130 InFocus Corp. 464 0.25 80 Carrier Access Corp. 478 0.26 74 Innovex, Inc. 332 0.18 39 ClearOne Communications, Inc. 133 0.07 91 Integrated Silicon Solution, Inc. 802 0.43 62 CommScope, Inc. 1,150 0.62 49 Interland, Inc. 125 0.07 58 EMS Techologies, Inc. 947 0.51 72 Interlink Electronics, Inc. 554 0.30 40 Inter-Tel, Inc. 886 0.48

The accompanying notes are an integral part of the Financial Statements

42 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Royce U.S. Small Cap Equity Fund

Portfolio of Investments as at August 31, 2005 (Unaudited) - (continued)

Value % of (000’s) Asset Shares (000’s) $ Value

Common Stocks — (continued) Telecommunications — (continued) 60 Tollgrade Communications, Inc. 660 0.36 74 UTStarcom, Inc. 567 0.30 5,663 3.05 Transportation & Logistics — 1.87% 58 AirTran Holdings, Inc. 599 0.32 43 Atlas Air Worldwide Holdings, Inc. 1,392 0.75 80 Mesa Air Group, Inc. 632 0.34 11 Sea Containers, Ltd. 116 0.06 37 Swift Transportation Co., Inc. 740 0.40 3,479 1.87 Total Common Stocks (Cost $145,263) 175,253 94.27 Total Investments (Cost $145,263) 175,253 94.27 Other Assets In Excess Of Liablilities 10,644 5.73 Total Net Assets $185,897 100.00 ABBREVIATION: ADR American Depository Receipt

The accompanying notes are an integral part of the Financial Statements

43 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Royce 100 Equity Fund

Portfolio of Investments as at August 31, 2005 (Unaudited)

Value % of Value % of (000’s) Asset (000’s) Asset Shares (000’s) $ Value Shares (000’s) $ Value

Common Stocks — 90.82% 2 Dionex Corp. 79 0.64 Aerospace / Defense — 0.67% 6 Gentex Corp. 110 0.89 4 HEICO Corp., Class A 82 0.67 5Tektronix, Inc. 121 0.99 Basic Materials — 0.85% 409 3.33 4 Cabot Microelectronics Corp. 104 0.85 Energy — 8.82% Biotechnology — 1.14% 12 Advanced Energy Industries, Inc. 148 1.20 16 Orchid Cellmark, Inc. 141 1.14 3 American Power Conversion Corp. 90 0.73 Chemicals — 0.65% 4 Cimarex Energy Co. 158 1.29 3 Balchem Corp. 80 0.65 3 Ensign Energy Services, Inc. 104 0.85 Commercial Services — 3.20% 3 Holly Corp. 152 1.24 2 Banta Corp. 78 0.63 16 Input/Output, Inc. 142 1.15 4 ICON Plc 146 1.19 6 Pason Systems, Inc. 140 1.14 1 LECG Corp. 23 0.19 5Trican Well Service Ltd. 150 1.22 5 Morningstar, Inc. 146 1.19 1,084 8.82 393 3.20 Financial — 5.61% Communications — 2.98% 2 AmerUs Group Co. 127 1.04 3 Courier Corp. 99 0.80 5 Federated Investors, Inc. 149 1.21 12 Foundry Networks, Inc. 138 1.12 2 Hilb Rogal & Hobbs Co. 83 0.67 3 Scientific-Atlanta, Inc. 130 1.06 6 Investment Technology Group, Inc. 176 1.43 367 2.98 7 NASDAQ Stock Market, Inc. 155 1.26 Consumer Cyclicals — 11.47% 690 5.61 3 Buckle, Inc. 114 0.93 Financials - Diversified — 4.33% 4 Claire’s Stores, Inc. 89 0.72 5E*Trade Financial Corp. 75 0.61 2 Columbia Sportswear Co. 88 0.72 2 GAMCO Investors, Inc. 94 0.76 5 Copart, Inc. 122 0.99 4 International Securities Exchange, Inc. 87 0.71 5 Digital Theater Systems Inc. 88 0.72 9 MarketAxess Holdings, Inc. 99 0.81 4Dress Barn, Inc. 91 0.74 5 Nuveen Investments, Inc. 177 1.44 3 Ethan Allen Interiors, Inc. 100 0.81 532 4.33 4 Fossil, Inc. 88 0.71 Healthcare — 5.24% 2 HNI Corp. 95 0.77 14 Elan Corp., Plc, ADR 128 1.05 3 K-Swiss, Inc., Class A 83 0.67 4 I-Flow Corp. 63 0.51 5 Nu Skin Enterprises, Inc. 115 0.94 2 Invacare Corp. 73 0.59 7 Pier 1 Imports, Inc. 92 0.75 11 Perrigo Co. 158 1.29 4 Thor Industries, Inc. 133 1.08 11 Possis Medical, Inc. 138 1.12 4Winnebago Industries, Inc. 113 0.92 3Viasys Healthcare, Inc. 84 0.68 1,411 11.47 644 5.24 Consumer Products — 0.90% Industrial Services — 1.28% 5 NAM TAI Electronics, Inc. 111 0.90 14 MPS Group, Inc. 157 1.28 Consumer Services — 6.41% Industrials — 14.29% 7 Adesa, Inc. 162 1.32 3 A.O. Smith Corp. 87 0.71 3 Kelly Services, Inc. 88 0.72 3 Bandag, Inc., Class A 94 0.76 5 MoneyGram International, Inc. 100 0.81 4 Brady Corp. 125 1.02 29 On Assignment, Inc. 202 1.64 3 Briggs & Stratton Corp. 114 0.93 3 Ritchie Brothers Auctioneers, Inc. 126 1.02 3 Cognex Corp. 92 0.75 4Viad Corp. 110 0.90 4Drew Industries, Inc. 157 1.28 788 6.41 3 Franklin Electric Co., Inc. 127 1.03 Educational Services — 0.38% 3 Kaydon Corp. 90 0.73 4 Corinthian Colleges, Inc. 47 0.38 4 Lincoln Electric Holdings, Inc. 147 1.20 Electronic Equipment & Instruments — 3.33% 3 MacDermid, Inc. 98 0.80 3 Benchmark Electronics, Inc. 99 0.81 2 Nordson Corp. 85 0.69 5 Raven Industries, Inc. 117 0.95 The accompanying notes are an integral part of the Financial Statements

44 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Royce 100 Equity Fund

Portfolio of Investments as at August 31, 2005 (Unaudited) - (continued)

Value % of (000’s) Asset Shares (000’s) $ Value

Common Stocks — (continued) Industrials — (continued) 3 Rofin-Sinar Technologies Inc. 116 0.94 7Technitrol, Inc. 109 0.89 1Teleflex, Inc. 89 0.72 1Woodward Governor Co. 110 0.89 1,757 14.29 Medical Equipment & Supplies — 0.85% 4 Endo Pharmaceutical Holdings, Inc. 105 0.85 Retailers — 2.65% 6 Big Lots, Inc. 72 0.59 4 Borders Group, Inc. 84 0.68 2 CBRL Group, Inc. 58 0.47 4 Kenneth Cole Productions, Inc. 112 0.91 326 2.65 Software and Services — 4.24% 8 Ceridian Corp. 162 1.32 8 eResearch Technology, Inc. 129 1.05 5 Keane, Inc. 62 0.50 17 RealNetworks, Inc. 93 0.76 11 Sapient Corp. 75 0.61 521 4.24 Technology — 9.06% 6 ADE Corp. 129 1.05 6 efunds Corp. 119 0.97 3 Fair Isaac Corp. 131 1.07 2 Novatel Wireless, Inc. 23 0.19 14 Pegasystems, Inc. 85 0.69 10 Perot Systems Corp. 150 1.22 4 SEI Investments Co. 148 1.20 7 SPSS Inc. 159 1.29 8 TTM Technologies, Inc. 58 0.47 11 Verity, Inc. 112 0.91 1,114 9.06 Transportation — 2.01% 2 Alexander & Baldwin, Inc. 92 0.75 9 Universal Truckload Services, Inc. 155 1.26 247 2.01 Transportation & Logistics — 0.46% 2 Arkansas Best Corp. 57 0.46 Total Common Stocks (Cost $10,154) 11,167 90.82 Total Investments (Cost $10,154) 11,167 90.82 Other Assets In Excess Of Liablilities 1,130 9.18 Total Net Assets $ 12,297 100.00 ABBREVIATION: ADR American Depository Receipt

The accompanying notes are an integral part of the Financial Statements

45 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Batterymarch European Equity Fund

Portfolio of Investments as at August 31, 2005 (Unaudited)

Value % of Value % of (000’s) Asset (000’s) Asset Shares (000’s) Value Shares (000’s) Value

Common Stocks — 94.86% 31 IFIL - Investments SpA 114 0.89 Belgium — 1.47% 230 Telecom Italia SpA 492 3.81 11 Dexia 190 1.47 1,404 10.88 Czech Republic — 1.79% Netherlands — 15.01% 2 Komercni Banka AS 231 1.79 5 Alberts Industries NV 226 1.75 Finland — 0.87% 12 ASM Lithography Holding NV 160 1.24 9 Nokia Oyj 112 0.87 2 DSM NV 132 1.02 France — 20.54% 12 ING Groep NV 272 2.11 2 Assurances Generales de France 134 1.04 3 Koninklijke BAM Groep NV 161 1.25 6 BNP Paribas SA 344 2.67 3 Koninklijke Boskalis Westminster NV 117 0.91 5 Cap Gemini SA 123 0.95 3 Nutreco Holding NV 101 0.78 2 CNP Assurances 129 1.00 13 Ordina Beheer NV 171 1.32 5 France Telecom SA 110 0.85 8 Royal Dutch Shell Plc 212 1.64 99 Gemplus International SA 205 1.59 4 United Services Group NV 102 0.79 7 Generale de Sante 191 1.48 5 Univar NV 169 1.31 4Groupe Steria SCA 144 1.12 8Wolters Kluwer NV 115 0.89 4 Sanofi-Synthelabo SA 252 1.95 1,938 15.01 71 SCOR 114 0.88 Norway — 1.34% 5 Societe Generale 400 3.10 5 Orkla ASA 173 1.34 5 Thomson 98 0.76 Poland — 2.06% 2Total SA 406 3.15 48 Telekomunikacja Polska SA 266 2.06 2,650 20.54 Portugal — 1.02% Germany — 9.18% 60 Banco Comercial Portugues SA 131 1.02 3 Deutsche Bank AG 194 1.51 Spain — 3.47% 15 Deutsche Telekom AG 229 1.77 13 Banco Santander Central Hispano SA 129 1.00 10 Elmos Semiconductor AG 123 0.95 11 Endesa SA 199 1.54 2Fresenius AG, Preferred Shares 184 1.43 5Grupo Empresarial Ence SA 120 0.93 2 HeidelbergCement AG 138 1.07 448 3.47 3RWE AG 185 1.43 Sweden — 2.07% 7 TUI AG 131 1.02 13 Eniro AB 114 0.88 1,184 9.18 4 Lindex AB 153 1.19 Greece — 3.63% 267 2.07 38 Intracom SA 211 1.63 Switzerland — 11.56% 8 Intralot SA 106 0.82 2 Charles Voegele Holding AG 138 1.07 6OPAP SA 152 1.18 14 Credit Suisse Group 490 3.80 469 3.63 2 Holcim Ltd. - Registered Shares 110 0.85 Hungary — 2.91% 8 Novartis AG - Registered Shares 312 2.42 12 OTP Bank Rt. 376 2.91 3 Roche Holding AG 315 2.44 Ireland — 7.06% 2 UBS AG - Registered Shares 127 0.98 9 Allied Irish Banks Plc 156 1.21 1,492 11.56 15 Anglo Irish Bank Corp., Plc 167 1.30 Total Common Stocks (Cost 10,665) 12,242 94.86 13 Bank of Ireland 165 1.28 Coupon 43 Fyffes Plc 110 0.85 Face Rate 42 Greencore Group Plc 149 1.15 Value (000’s) %

11 Irish Life & Permanent Plc 164 1.27 Rights — 0.00% (Cost 0) 911 7.06 17 Royal Dutch Shell - Rights 0.000 — 0.00 Italy — 10.88% Total Investments (Cost 10,665) 12,242 94.86 10 Banche Popolari Unite SCRL 162 1.26 Other Assets In Excess Of Liabilities 662 5.14 43 Compagnia Assicuratrice Unipol SpA 133 1.03 Total Net Assets 12,904 100.00 15 Eni SpA 363 2.81 — Amounts designated as “—” are either $0 or less than $1,000. 6 Fondiaria - Sai SpA 140 1.08 The accompanying notes are an integral part of the Financial Statements

46 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Batterymarch Pacific Equity Fund

Portfolio of Investments as at August 31, 2005 (Unaudited)

Value % of Value % of (000’s) Asset (000’s) Asset Shares (000’s) $ Value Shares (000’s) $ Value

Common Stocks — 95.00% Malaysia — 3.31% China — 7.68% 33 Genting Berhad 167 0.35 627 Beauty China Holdings, Ltd. 286 0.59 58 Maxis Communications Berhad 145 0.30 920 China Life Insurance Co., Ltd. 713 1.48 194 O.Y.L. Industries Berhad 162 0.34 288 China Mobile Hong Kong, Ltd. 1,252 2.60 402 Plus Expressways Berhad 341 0.71 2,200 Far East Pharmaceutical Technology Co., Ltd. — 0.00 93 Resorts World Berhad 253 0.52 3 Netease.com, Inc., ADR 240 0.50 181 Tenaga Nasional Berhad 528 1.09 1,402 Petrochina Co., Ltd. 1,082 2.25 1,596 3.31 116 Sinopec Zhenhai Refining & Chemical Co. 126 0.26 Philippines — 0.43% 3,699 7.68 7 Philippine Long Distance Telephone Co. 209 0.43 Hong Kong — 18.56% Singapore — 5.24% 182 China Resources Enterprises Ltd. 291 0.60 250 Biosensors International Group Ltd. 165 0.34 214 China Shenuha Energy Co., Ltd. 239 0.50 281 Capitaland Ltd. 488 1.01 660 CNOOC Ltd. 475 0.99 52 DBS Group Holdings, Ltd. 483 1.00 404 Dongfang Electrical Machinery Co., Ltd. 497 1.03 142 Keppel Corp., Ltd. 981 2.04 44 Esprit Holdings, Ltd. 325 0.67 689 Mapletree Logistics Trust 407 0.85 1,112 First Pacific Co. 380 0.79 2,524 5.24 296 Hang Lung Group, Ltd. 556 1.15 South Korea — 28.51% 612 Hengan International Group Co., Ltd. 504 1.05 4 CJ Home Shopping 326 0.68 104 Hutchison Whampoa, Ltd. 1,029 2.14 41 Dacom Corp. 489 1.01 33 Jardine Strategic Holdings, Ltd. 356 0.74 32 Daewoo Shipbuilding & Marine Engineering Co., Ltd. 622 1.29 243 Kerry Properties, Ltd. 660 1.37 44 Dongbu Insurance Co., Ltd. 536 1.11 316 Li & Fung, Ltd. 643 1.33 14 Doosan Corp. 239 0.50 254 Lifestyle International Holdings, Ltd. 412 0.85 7 Hyundai Department Store Co., Ltd. 468 0.97 1,040 Midland Realty (Holdings), Ltd. 606 1.26 6 Hyundai Engineering & Construction Co., Ltd. 191 0.40 1,441 Prime Sucess International Group Ltd. 532 1.10 8 Hyundai Mipo Dockyard Co., Ltd. 584 1.21 486 Sino Land Co. 544 1.13 5 Hyundai Mobis 344 0.71 94 Swire Pacific, Ltd. 897 1.86 13 Hyundai Motor Co. 881 1.83 8,946 18.56 30 Kia Motors Corp. 447 0.93 India — 7.00% 16 Kookmin Bank, ADR 826 1.71 10 Bajaj Auto Ltd. 307 0.64 6 Korea Electric Power Corp. 176 0.37 145 Bank of India 391 0.81 6 Kyeryong Construction Industrial Co., Ltd. 141 0.29 9 Bharat Electronics Ltd. 148 0.31 10 LG Engineering & Construction Corp. 356 0.74 17 ICICI Bank Ltd., ADR 393 0.81 25 LG International Corp. 307 0.64 7 Infosys Technologies Ltd. 372 0.77 71 LG Telecom Ltd. 385 0.80 108 Infrastructure Dev Finance Co., Ltd. 163 0.34 2 POSCO 383 0.79 24 Mahindra & Mahindra Ltd. 396 0.82 7 Samsung Electronics Co., Ltd. 3,522 7.31 129 National Thermal Power Corp. Ltd. 299 0.62 32 Samsung Engineering Co., Ltd. 606 1.26 19 Satyam Computer Services Ltd. 227 0.47 26 Samsung Heavy Industries Co., Ltd. 330 0.68 9Tata Consultancy Services Ltd. 298 0.62 3 Samsung SDI, Co., Ltd. 245 0.51 48 Union Bank of India Ltd. 147 0.31 13 Samsung Securities Co., Ltd. 397 0.82 161 Vijaya Bank Ltd. 233 0.48 32 Shinhan Financial Group Ltd. 939 1.95 3,374 7.00 13,740 28.51 Indonesia — 4.37% Taiwan — 16.83% 1,075 PT Bank Central Asia Tbk 358 0.74 89 AU Optronics Corp. 133 0.28 787 PT Bank Danamon Indonesia Tbk 344 0.71 16 AU Optronics Corp., ADR 237 0.49 1,671 PT Bank Rakyat Indonesia Tbk 420 0.87 212 China Steel Corp. 184 0.38 1,229 PT Telekomunikasi Indonesia Tbk 605 1.26 100 Delta Electronics Inc. 163 0.34 1,008 PT United Tractors Tbk 381 0.79 279 Eva Airways Corp. 113 0.23 2,108 4.37 168 Formosa Chemicals & Fibre Co. 261 0.54 127 Formosa Plastics Corp. 189 0.39

The accompanying notes are an integral part of the Financial Statements

47 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Batterymarch Pacific Equity Fund

Portfolio of Investments as at August 31, 2005 (Unaudited) - (continued)

Value % of (000’s) Asset Shares (000’s) $ Value

Common Stocks — (continued) Taiwan — (continued) 71 High Tech Computer Corp. 782 1.62 90 Hon Hai Precision Industry Co., Ltd. 466 0.97 313 Hung Poo Real Estate Development Corp. 204 0.42 475 King Yuan Electronics Co., Ltd. 333 0.69 91 Lite-On Technology Corp. 94 0.20 213 Mega Financial Holding Co., Ltd. 141 0.29 540 Nanya Technology Corp. 335 0.70 104 Novatek Microelectronics Corp., Ltd. 441 0.92 283 Phoenix Precision Technology Corp. 272 0.56 624 Powerchip Semiconductor Corp. 384 0.80 53 Powertech Technology Inc. 139 0.29 148 Radiant Opto-Electronics Corp. 373 0.77 224 Siliconware Precision Industries Co. 202 0.42 69 Siliconware Precision Industries Co., ADR 320 0.66 1Taishin Financial Holdings Co., Ltd. — 0.00 618 Taiwan Cement Corp. 383 0.80 564 Taiwan Semiconductor Manufacturing Co., Ltd. 933 1.94 403 Unimicron Technology Corp. 259 0.54 218 United Microelectronics Corp. 132 0.27 96 United Microelectronics Corp., ADR 327 0.68 313 Vanguard International Semiconductor Corp. 227 0.47 41 Zyxel Communications Corp. 81 0.17 8,108 16.83 Thailand — 3.07% 97 Advanced Info Service PCL 238 0.49 1,669 Krung Thai Bank PCL 390 0.81 98 PTT PCL 586 1.22 272 Regional Container Line PCL 235 0.49 33 Thoresen Thai Agencies PCL 28 0.06 1,477 3.07 Total Common Stocks (Cost $41,473) 45,781 95.00 Coupon Face Rate Value (000’s) %

Rights — 0.00% (Cost $0) 13 Radiant Opto-Electronics Corp. Rights 0.000 — 0.00 Total Investments (Cost $41,473) 45,781 95.00 Other Assets In Excess Of Liabilities 2,408 5.00 Total Net Assets $ 48,189 100.00 — Amounts designated as “—” are either $0 or less than $1,000.

ABBREVIATION: ADR American Depository Receipt

The accompanying notes are an integral part of the Financial Statements

48 This Page Intentionally Left Blank Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Statement of Assets and Liabilities (Unaudited)

Western Asset Western Asset Western Asset Western Asset Western Asset Western Asset Diversified Global Multi Western Asset Emerging U.S. Money U.S. Core Euro Core Strategic Income Strategy Fund U.S. High Yield Markets Market Fund as at Bond Fund as at Bond Fund as at Bond Fund as at as at Bond Fund as at Bond Fund as at August 31, 2005 August 31, 2005 August 31, 2005 August 31, 2005 August 31, 2005 August 31, 2005 August 31, 2005 (in 000's) (in 000's) (in 000's) (in 000's) (in 000's) (in 000's) (in 000's)

ASSETS: Investments, at cost $ 92,690 $ 70,526 _ 31,876 $ 203,223 $ 289,492 $ 53,426 $ 46,325

Investments, at fair value $ 92,690 $ 70,814 _ 33,105 $ 204,465 $ 296,274 $ 54,049 $ 48,624 Purchased Options, at fair value — 136 60 1 1 — — Cash — 420 1,856 6,965 10,626 883 277 Receivable for investments sold — 405 160 — 717 454 — Receivable for Redeemable Participating Shares sold — 10 2 360 3,513 114 164 Interest receivable 69 325 789 1,753 4,604 997 1,041 Dividend receivable — 12 — — 4 4 — Unrealized appreciation on forward foreign currency contracts — — 38 — 219 — — Variation Margin receivable on futures contracts — — — — 80 — — Receivable from investment manager — — — — — — — Unrealized appreciation on swap contracts — — — — — — 33 Other assets — — — — 5 — 158 Total Assets 92,759 72,122 36,010 213,544 316,043 56,501 50,297

EQUITY: Subscriber Share Capital — — — — — — —

LIABILITIES: Payable for investments purchased 2,229 19,536 — 20,200 24,193 147 — Cash Overdraft 503 — — — — — — Written Options, at fair value — — — — — — — Unrealized depreciation on forward foreign currency contracts — — — 664 — — — Variation Margin payable on futures contracts — 3 15 1,445 — — — Income Distribution payable 73 54 47 334 626 181 115 Investment Management fees payable 15 20 15 97 144 31 41 Administrator and Custodian fees payable 5 5 3 18 26 5 5 Payable for Redeemable Participating Shares sold 405 19 — 76 164 7 7 Interest on swap contracts — — — — — — 1 Accrued expenses and other liabilities 45 71 53 219 323 71 146 Liabilities (excluding net assets attributable to holders of Redeemable Participating Shares) 3,275 19,708 133 23,053 25,476 442 315 Total Net Assets Attributable to Holders of Redeemable Participating Shares $ 89,484 $ 52,414 _ 35,877 $ 190,491 $ 290,567 $ 56,059 $ 49,982

NET ASSETS ATTRIBUTABLE TO HOLDERS OF PARTICIPATING SHARES: Participating Share Capital $ 89,485 $ 48,613 _ 34,777 $ 195,802 $ 277,744 $ 57,545 $ 48,335 Accumulated Reserves (1) 3,801 1,100 (5,311) 12,823 (1,486) 1,647 Total Net Asset Value $ 89,484 $ 52,414 _ 35,877 $ 190,491 $ 290,567 $ 56,059 $ 49,982

Amounts designated as “—” are either $0 or less than $1,000.

The Euro figures for the Western Asset Euro Core Bond Fund & Batterymarch European Equity Fund have been converted into U.S. Dollars in the total figure for the Legg Mason Global Funds plc as at August 31, 2005, using the USD/EUR FX rate as at August 31, 2005 of 1.2299.

50 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005

Brandywine Global Legg Mason Royce U.S. Small Batterymarch Batterymarch Legg Mason Legg Mason Opportunities Growth Fund Legg Mason Cap Equity Fund Royce 100 European Pacific Global Funds Plc Global Funds Plc Bond Fund as at as at Value Fund as at as at Equity Fund as at Equity Fund as at Equity Fund as at Total as at Total as at August 31, 2005 August 31, 2005 August 31, 2005 August 31, 2005 August 31, 2005 August 31, 2005 August 31, 2005 August 31, 2005 August 31, 2004 (in 000's) (in 000's) (in 000's) (in 000's) (in 000's) (in 000's) (in 000's) (in 000's) (in 000's)

$ 261,182 $ 45,539 $ 2,231,158 $145,263 $ 10,154 _ 10,665 $ 41,473 $ 3,542,772 $3,046,063

$ 263,396 $ 47,893 $ 2,766,842 $175,253 $ 11,167 _ 12,242 $ 45,781 $ 4,133,020 $ 3,283,288 —— —— —— — 212 1,121 10,878 1,590 30,409 10,329 996 607 2,551 78,953 12,708 ——1,534 844 207 209 111 4,726 14,362

642 11 6,837 385 — 243 223 12,560 10,570 2,644 5 114 21 3 — 5 12,551 9,712 — 15 933 45 5 6 99 1,124 1,798

—— ————38 304 510

—— ———— — 80 — —— ——31 — — 31 9

—— ———— — 33 — 32 — 4 1 — 2 — 203 — 277,592 49,514 2,806,673 186,878 12,409 13,309 48,808 4,243,797 3,334,078

—— ———— — ——

——2,612 396 81 380 428 70,289 33,728 —— —— —— —503 10,193 —— ———— ——204

529 — — — — — 1 1,194 39

—— —— —— —1,466 3,038 ——————1,441 1,040 141 30 2,050 157 10 9 39 2,805 2,155

26 5 265 17 1 1 4 387 648

722 199 15,301 214 — — 41 17,155 31,117 —— ———— — 1 — 207 64 2,448 197 20 15 106 4,001 3,507

1,625 298 22,676 981 112 405 619 99,242 85,669

$ 275,967 $ 49,216 $ 2,783,997 $185,897 $ 12,297 _ 12,904 $ 48,189 $ 4,144,555 $3,248,409

$ 268,931 $ 47,497 $ 2,318,885 $116,953 $ 11,036 _ 10,492 $ 44,958 $ 3,581,460 $3,089,163 7,036 1,719 465,112 68,944 1,261 2,412 3,231 563,095 159,246 $ 275,967 $ 49,216 $ 2,783,997 $185,897 $ 12,297 _ 12,904 $ 48,189 $ 4,144,555 $3,248,409

51 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Statement of Assets and Liabilities (Unaudited) - continued

Western Asset Western Asset Western Asset Western Asset Western Asset Western Asset Western Asset U.S. Money U.S. Core Euro Core Diversified Global Multi U.S. High Yield Emerging Market Fund Bond Fund Bond Fund Strategic Income Strategy Fund Bond Fund Markets as at as at as at Bond Fund as at as at as at Bond Fund as at August 31, 2005 August 31, 2005 August 31, 2005 August 31, 2005 August 31, 2005 August 31, 2005 August 31, 2005 (in 000's) (in 000's) (in 000's) (in 000's) (in 000's) (in 000's) (in 000's) COMPARATIVE FIGURES AS AT AUGUST 31, 2005 Total Net Asset Value: Class A $ 79,929 $ 14,730 _ 11,734 $ 31,262 $ 42,936 $ 15,041 $ 11,105 Class A EUR — — 334 — — — — Class B 5,799 22,886 10,173 92,787 40,737 28,905 16,545 Class C 3,756 14,798 13,636 66,442 206,894 12,113 22,332 Galleon Class — — — — — — — Number of shares in Issue: Class A 79,929 142 113 321 351 153 106 Class A EUR — — 3 — — — — Class B 5,799 221 98 954 333 295 158 Class C 3,756 143 132 683 1,691 123 213 Galleon Class — — — — — — — Net Asset Value Per Share: Class A $ 1.00 $ 103.67 _ 104.48 $ 97.27 $ 122.34 $ 98.13 $ 104.73 Class A EUR — — 104.31 — — — — Class B 1.00 103.67 103.66 97.27 122.34 98.13 104.73 Class C 1.00 103.67 103.35 97.27 122.34 98.13 104.73 Galleon Class — — — — — — — COMPARATIVE FIGURES AS AT AUGUST 31, 2004 Total Net Asset Value: Class A $ 6,194 $ 52,824 _ 12,823 $ 23,529 $ 11,645 $ 16,380 $ 9,703 Class A EUR — — 1 — — — — Class B 8,643 30,273 7,755 90,664 33,098 35,479 15,140 Class C 12,057 30,939 9,211 65,197 81,825 17,952 8,547 Galleon Class — — — — — — — Number of shares in Issue: Class A 6,194 509 128 242 99 166 97 Class A EUR — — — — — — — Class B 8,643 292 77 943 281 360 152 Class C 12,057 298 92 671 695 182 86 Galleon Class — — — — — — — Net Asset Value Per Share: Class A $ 1.00 $ 103.83 _ 100.53 $ 97.12 $ 117.77 $ 98.61 $ 99.63 Class A EUR — — 100.75 — — — — Class B 1.00 103.83 100.49 97.12 117.77 98.61 99.63 Class C 1.00 103.83 100.47 97.12 117.77 98.61 99.63 Galleon Class — — — — — — — COMPARATIVE FIGURES AS AT AUGUST 31, 2003 Total Net Asset Value: Class A — $ 119,114 — $ 70,015 — — Galleon Class — — — — — — — Number of shares in Issue: Class A — 1,187 — 624 — — Galleon Class — — — — — — — Net Asset Value Per Share: Class A — $ 100.35 — $ 112.20 — — Galleon Class — — — — — — —

Amounts designated as “—” are either $0 or less than $1,000.

NAV per share information represents Redeemable Participating Shares.

The Euro figures for the Western Asset Euro Core Bond Fund & Batterymarch European Equity Fund have been converted into U.S. Dollars in the total figure for the Legg Mason Global Funds plc as at August 31, 2005, using the USD/EUR FX rate as at August 31, 2005 of 1.2299.

The accompanying notes are an integral part of the Financial Statements

52 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005

Brandywine Batterymarch Batterymarch Global Legg Mason Legg Mason Royce U.S. Small Royce 100 European Pacific Opportunities Growth Fund Value Fund Cap Equity Fund Equity Fund Equity Fund Equity Fund Bond Fund as at as at as at as at as at as at as at August 31, 2005 August 31, 2005 August 31, 2005 August 31, 2005 August 31, 2005 August 31, 2005 August 31, 2005 (in 000's) (in 000's) (in 000's) (in 000's) (in 000's) (in 000's) (in 000's)

$ 235,571 $ 34,035 $ 2,664,073 $177,159 $ 9,959 _ 2,551 $ 19,469 —— ———30 — 12,291 8,422 35,536 2,152 599 5,656 11,819 28,105 6,759 54,811 6,586 1,739 4,667 16,901 ——29,577 — — — —

2,138 327 16,029 759 79 19 173 —— ————— 112 81 215 9 5 42 106 256 66 335 29 14 35 152 —— 250————

$ 110.19 $ 104.09 $ 166.21 $233.44 $ 126.81 _ 133.92 $ 112.29 —— —— —134.57 — 110.01 103.36 118.52 231.81 125.92 133.15 111.57 109.97 102.62 165.00 230.03 125.22 132.19 110.86 ——163.77 — — — —

$ 109,221 $ 6,229 $ 2,062,091 $281,669 $ 2,188 _ 1,848 $ 6,771 —— ———57 — 5,063 10,298 33,940 1,865 49 3,512 8,795 11,736 2,779 55,244 8,469 853 1,218 11,694 ——35,099 — — — —

1,040 69 14,221 1,480 22 18 79 —— ———1 — 48 114 235 10 1 34 103 112 31 383 45 9 12 137 —— 341 ————

$ 105.02 $ 90.33 $ 145.01 $190.30 $ 100.05 _ 104.45 $ 85.82 —— —— —104.45 — 104.85 90.11 144.68 189.86 99.82 104.20 85.61 104.79 89.86 144.32 189.13 99.60 103.82 85.40 ——102.84 — — — —

——$1,112,938 $ 64,790 — — — ——57,341 — — — —

——8,186 393 — — — —— 600 ————

——$135.96 $ 164.86 — — — ——95.57 — — — —

The accompanying notes are an integral part of the Financial Statements

53 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Statement of Operations (Unaudited)

Western Asset Western Asset Western Asset Western Asset Western Asset Western Asset Western Asset U.S. Money U.S. Core Euro Core Diversified Global Multi U.S. High Yield Emerging Market Fund Bond Fund Bond Fund Strategic Income Strategy Fund Bond Fund Markets for the six for the six for the six Bond Fund for the for the six for the six Bond Fund for the months ended months ended months ended six months ended months ended months ended six months ended August 31, 2005 August 31, 2005 August 31, 2005 August 31, 2005 August 31, 2005 August 31, 2005 August 31, 2005 (in 000's) (in 000's) (in 000's) (in 000's) (in 000's) (in 000's) (in 000's) INVESTMENT INCOME: Gross Dividend Income and Bond Interest $ 398 $ 1,334 _ 639 $ 4,072 $ 8,500 $ 2,480 $ 1,304 Less Withholding Taxes — — (7) (77) (52) — — Interest — 33 — 25 104 71 23 Total Investment Income 398 1,367 632 4,020 8,552 2,551 1,327

EXPENSES: Investment Management fees 38 132 86 612 700 199 203 Distribution fees 74 247 146 909 1,246 249 183 Administrator fees 12 33 19 113 130 34 23 Shareholder Service fees — 44 26 153 175 46 31 Other expenses 27 44 19 36 17 29 19 Legal fees 1 2 — 1 2 — — Audit fees 6 9 2 10 7 10 10 Printing fees 1 3 1 5 1 2 5 Directors fees and expenses — 1 — 2 2 1 — Total Expenses 159 515 299 1,841 2,280 570 474 Expense waivers and reimbursements (14) — — — — — — Total Net Expenses 145 515 299 1,841 2,280 570 474 Net Investment Income/(Loss) 253 852 333 2,179 6,272 1,981 853

NET REALISED AND UNREALISED GAIN/(LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS Net Realised (Loss)/Gain From: Investments and Foreign Currencies (1) (290) 296 2,685 (1,480) 81 564 Net Realised Gain/(Loss) (1) (290) 296 2,685 (1,480) 81 564 Change in Unrealised Appreciation/ (Depreciation) of Investments and Foreign Currencies Beginning of Period — (177) 757 4,056 8,990 2,555 1,614 End of Period — 219 1,318 (849) 7,093 622 2,331 Net Increase/(Decrease) in Net Unrealised Appreciation/ (Depreciation) — 396 561 (4,905) (1,897) (1,933) 717 Net Gain/(Loss) on Investments and Foreign Currencies (1) 106 857 (2,220) (3,377) (1,852) 1,281 Increase/(Decrease) in Net Assets from Operations 252 958 1,190 (41) 2,895 129 2,134 Distributions to holders of Redeemable Participating Shares (252) (850) (671) (4,951) (7,198) (2,576) (1,516) Net Increase/(Decrease) in Net Assets from Operations & Distributions $ — $ 108 _ 519 $ (4,992) $ (4,303) $ (2,447) $ 618

Amounts designated as “—” are either $0 or less than $1,000.

Gains and losses are solely from continuing operations.

The Euro figures for the Western Asset Euro Core Bond Fund & Batterymarch European Equity Fund have been converted into U.S. Dollars in the total figure for the Legg Mason Global Funds Plc as at August 31, 2005, using the USD/EUR FX rate as at August 31, 2005 of 1.2299.

The accompanying notes are an integral part of the Financial Statements

54 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005

Brandywine Global Legg Mason Royce U.S. Small Batterymarch Batterymarch Legg Mason Legg Mason Opportunities Growth Fund Legg Mason Cap Equity Fund Royce 100 Equity European Equity Pacific Equity Global Funds Plc Global Funds Plc Bond Fund for the for the six Value Fund for the for the Fund for the Fund for the Fund for the Total for the Total for the six months ended months ended six months ended six months ended six months ended six months ended six months ended six months ended six months ended August 31, 2005 August 31, 2005 August 31, 2005 August 31, 2005 August 31, 2005 August 31, 2005 August 31, 2005 August 31, 2005 August 31, 2004 (in 000's) (in 000's) (in 000's) (in 000's) (in 000's) (in 000's) (in 000's) (in 000's) (in 000's)

$ 4,714 $ 209 $ 12,654 $ 732 $ 48 _ 303 $ 632 $ 38,236 $ 13,972 (26) (54) (3,689) (177) (13) (59) (69) (4,238) (135) —3 —4 —5 —269 14,381 4,688 158 8,965 559 35 249 563 34,267 28,218

776 155 11,682 1,108 49 50 178 15,999 13,017 757 163 7,190 598 33 62 190 12,095 9,591 144 25 1,528 123 6 7 20 2,223 2,118 194 78 4,756 388 17 21 62 6,002 4,857 41 21 392 70 9 14 15 762 434 4 1 61 7 — — — 79 144 7 7 11 6 7 3 7 103 112 2 — 31 3 2 1 1 58 161 2 — 22 2 — — — 32 10 1,927 450 25,673 2,305 123 158 473 37,353 30,444 —— ——(5) — — (19) (47) 1,927 450 25,673 2,305 118 158 473 37,334 30,397 2,761 (292) (16,708) (1,746) (83) 91 90 (3,067) (2,179)

3,893 626 41,333 20,247 242 727 1,635 70,793 2,900 3,893 626 41,333 20,247 242 727 1,635 70,793 2,900

11,575 833 503,655 43,766 370 1,606 5,355 585,498 387,106 1,671 2,354 535,684 29,990 1,014 1,576 4,302 587,990 236,528

(9,904) 1,521 32,029 (13,776) 644 (30) (1,053) 2,492 (150,578)

(6,011) 2,147 73,362 6,471 886 697 582 73,285 (147,678)

(3,250) 1,855 56,654 4,725 803 788 672 70,218 (149,857)

(2,881) — — — — — — (21,049) —

$ (6,131) $ 1,855 $ 56,654 $ 4,725 $ 803 _ 788 $ 672 $ 49,169 $ (149,857)

The accompanying notes are an integral part of the Financial Statements

55 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005

Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating Shares (Unaudited)

Western Asset Western Asset Western Asset Western Asset Western Asset Western Asset U.S. Money U.S. Core Euro Core Diversified Global Multi Western Asset Emerging Markets Market Fund Bond Fund Bond Fund Strategic Income Strategy Fund U.S. High Yield Bond Fund for the six for the six for the six Bond Fund for the for the six Bond Fund for the for the six months ended months ended months ended six months ended months ended six months ended months ended August 31, 2005 August 31, 2005 August 31, 2005 August 31, 2005 August 31, 2005 August 31, 2005 August 31, 2005 (in 000's) (in 000's) (in 000's) (in 000's) (in 000's) (in 000's) (in 000's)

INCREASE/(DECREASE) IN NET ASSETS FROM OPERATIONS & DISTRIBUTIONS: Net investment Income/(Loss) $ 253 $ 852 _ 333 $ 2,179 $ 6,272 $ 1,981 $ 853 Net realised gain/(loss) (1) (290) 296 2,685 (1,480) 81 564 Increase in net unrealised appreciation/ (depreciation) — 396 561 (4,905) (1,897) (1,933) 717 Distributions to holders of Redeemable Participating Shares (252) (850) (671) (4,951) (7,198) (2,576) (1,516) Increase/(Decrease) in Net Assets From Operations & Distributions — 108 519 (4,992) (4,303) (2,447) 618

REDEEMABLE PARTICIPATING SHARES TRANSACTIONS: Net proceeds from sales of shares 91,895 6,602 11,675 21,256 115,895 5,570 18,636 Net proceeds from reinvested distributions 148 462 458 1,982 2,038 1,011 582 Cost of shares reacquired (20,181) (21,933) (6,027) (37,066) (10,774) (19,074) (5,492) Increase/(Decrease) in Net Assets From Redeemable Participating Shares Transactions 71,862 (14,869) 6,106 (13,828) 107,159 (12,493) 13,726

Increase/(Decrease) in Net Assets attributable to holders of Redeemable Participating Shares 71,862 (14,761) 6,625 (18,820) 102,856 (14,940) 14,344

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE PARTICIPATING SHARES Beginning of Period $ 17,622 $ 67,175 _ 29,252 $ 209,311 $ 187,711 $ 70,999 $ 35,638 End of Period $ 89,484 $ 52,414 _ 35,877 $ 190,491 $ 290,567 $ 56,059 $ 49,982

Amounts designated as “—” are either $0 or less than $1,000.

The accompanying notes are an integral part of the Financial Statements

56 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005

Brandywine Global Legg Mason Royce U.S. Small Batterymarch Batterymarch Legg Mason Legg Mason Opportunities Growth Fund Legg Mason Cap Equity Fund Royce 100 Equity European Equity Pacific Equity Global Funds Plc Global Funds Plc Bond Fund for the for the six Value Fund for the for the six Fund for the Fund for the Fund for the for the six for the six six months ended months ended six months ended months ended six months ended six months ended six months ended months ended months ended August 31, 2005 August 31, 2005 August 31, 2005 August 31, 2005 August 31, 2005 August 31, 2005 August 31, 2005 August 31, 2005 August 31, 2004 (in 000's) (in 000's) (in 000's) (in 000's) (in 000's) (in 000's) (in 000's) (in 000's) (in 000's)

$ 2,761 $ (292) $ (16,708) $ (1,746) $ (83) _ 91 $ 90 $ (3,067) $ (2,179) 3,893 626 41,333 20,247 242 727 1,635 70,793 2,900

(9,904) 1,521 32,029 (13,776) 644 (30) (1,053) 2,492 (150,578)

(2,881) — — — — — — (21,049) (15,122)

(6,131) 1,855 56,654 4,725 803 788 672 49,169 (164,979)

64,977 27,927 634,731 28,855 4,585 3,530 20,052 1,059,682 1,119,556 2,139 — — — — — — 8,925 5,652 (14,550) (12,552) (599,222) (122,115) (1,041) (2,390) (6,845) (881,197) (752,314)

52,566 15,375 35,509 (93,260) 3,544 1,140 13,207 187,410 372,894

46,435 17,230 92,163 (88,535) 4,347 1,928 13,879 236,579 207,915

$ 229,532 $ 31,986 $ 2,691,834 $274,432 $ 7,950 _ 10,976 $ 34,310 $ 3,907,976 $3,040,494 $ 275,967 $ 49,216 $ 2,783,997 $185,897 $ 12,297 _ 12,904 $ 48,189 $ 4,144,555 $ 3,248,409

The accompanying notes are an integral part of the Financial Statements

57 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005

Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating Shares (Unaudited) – continued

Western Asset U.S. Western Asset U.S. Western Asset Euro Money Market Fund Core Bond Fund Core Bond Fund for the six months ended for the six months ended for the six months ended August 31, 2005 August 31, 2005 August 31, 2005 (in 000’s) (in 000’s) (in 000’s) Shares Amount Shares Amount Shares Amount

Class A shares Sold 83,770 $ 83,770 30 $ 3,048 28 _ 2,919 Reinvestment of distributions 101 101 1 148 2 157 Redeemed (8,999) (8,999) (36) (3,683) (9) (975) Net Increase/(Decrease) 74,872 $ 74,872 (5) $ (487) 21 _ 2,101

Class A EUR shares Sold — — — — 2 _ 206 Reinvestment of distributions — — — — — 2 Redeemed — — (1) (60) Net Increase — — — — 1 _ 148

Class B shares Sold 4,806 $ 4,806 13 $ 1,322 16 _ 1,632 Reinvestment of distributions 23 23 2 189 1 126 Redeemed (7,393) (7,393) (68) (7,016) (14) (1,409) Net Increase/(Decrease) (2,564) $ (2,564) (53) $ (5,505) 3 _ 349

Class C shares Sold 3,319 $ 3,319 22 $ 2,232 67 _ 6,918 Reinvestment of distributions 24 24 1 125 2 173 Redeemed (3,789) (3,789) (109) (11,234) (35) (3,583) Net Increase/(Decrease) (446) $ (446) (86) $ (8,877) 34 _ 3,508

Galleon Class shares Sold — — — — — — Reinvestment of distributions — — — — — — Redeemed — — — — — — Net (Decrease) — — — — — —

Amounts designated as “—” are either $0 or less than $1,000.

The accompanying notes are an integral part of the Financial Statements

58 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005

Western Asset Diversified Western Asset Global Western Asset U.S. Western Asset Emerging Strategic Income Bond Fund Multi Strategy Fund High Yield Bond Fund Markets Bond Fund for the six months ended for the six months ended for the six months ended for the six months ended August 31, 2005 August 31, 2005 August 31, 2005 August 31, 2005 (in 000’s) (in 000’s) (in 000’s) (in 000’s) Shares Amount Shares Amount Shares Amount Shares Amount

56 $ 5,460 159 $ 19,363 27 $ 2,630 58 $ 5,973 5 454 6 680 4 394 2 202 (87) (8,391) (15) (1,832) (35) (3,413) (24) (2,510) (26) $ (2,477) 150 $ 18,211 (4) $ (389) 36 $ 3,665

—— —— — — — — —— —— — — — — —— —— — — — — —— —— — — — —

30 $ 2,900 60 $ 7,302 26 $ 2,557 30 $ 2,985 11 1,103 4 480 4 405 1 129 (83) (8,119) (14) (1,667) (83) (8,088) (17) (1,716) (42) $ (4,116) 50 $ 6,115 (53) $ (5,126) 14 $ 1,398

132 $ 12,896 735 $ 89,230 4 $ 383 94 $ 9,678 4 425 7 878 2 212 2 251 (212) (20,556) (60) (7,275) (78) (7,573) (12) (1,266) (76) $ (7,235) 682 $ 82,833 (72) $ (6,978) 84 $ 8,663

—— —— — — — — —— —— — — — — —— —— — — — — —— —— — — — —

The accompanying notes are an integral part of the Financial Statements

59 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005

Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating Shares (Unaudited) – continued

Brandywine Global Opportunities Bond Fund Legg Mason Growth Fund Legg Mason Value Fund for the six months ended for the six months ended for the six months ended August 31, 2005 August 31, 2005 August 31, 2005 (in 000’s) (in 000’s) (in 000’s) Shares Amount Shares Amount Shares Amount

Class A shares Sold 470 $ 52,038 254 $ 25,307 3,791 $ 617,525 Reinvestment of distributions 17 1,925 — — — — Redeemed (106) (11,715) (94) (9,634) (3,443) (560,984) Net Increase/(Decrease) 381 $ 42,248 160 $ 15,673 348 $ 56,541

Class A EUR shares Sold — — — — — — Reinvestment of distributions — — — — — — Redeemed — — — — — — Net Increase — — — — — —

Class B shares Sold 34 $ 3,819 4 $ 440 29 $ 4,680 Reinvestment of distributions 1 62 — — — — Redeemed (6) (642) (28) (2,818) (53) (8,662) Net Increase/(Decrease) 29 $ 3,239 (24) $ (2,378) (24) $ (3,982)

Class C shares Sold 83 $ 9,120 22 $ 2,180 75 $ 12,026 Reinvestment of distributions 1 152 — — — — Redeemed (20) (2,193) (1) (100) (153) (24,246) Net Increase/(Decrease) 64 $ 7,079 21 $ 2,080 (78) $ (12,220)

Galleon Class shares Sold — — — — 5 500 Reinvestment of distributions — — — — — — Redeemed — — — — (46) (5,330) Net (Decrease) — — — — (41) (4,830)

Amounts designated as “—” are either $0 or less than $1,000.

The accompanying notes are an integral part of the Financial Statements

60 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005

Royce U.S. Small Batterymarch Batterymarch Cap Equity Fund Royce 100 Equity Fund European Equity Fund Pacific Equity Fund for the six months ended for the six months ended for the six months ended for the six months ended August 31, 2005 August 31, 2005 August 31, 2005 August 31, 2005 (in 000’s) (in 000’s) (in 000’s) (in 000’s) Shares Amount Shares Amount Shares Amount Shares Amount

119 $ 26,477 35 $ 4,113 4 _ 518 120 $ 13,633 —— — —— —— — (528) (116,669) (6) (714) (3) (439) (18) (1,871) (409) $ (90,192) 29 $ 3,399 1 _ 79 102 $ 11,762

—— — ——_ —— — —— — —— —— — —— — —— (1) — — —— — ——_ (1) — —

3 $ 698 1 $ 74 12 _ 1,528 18 $ 1,928 —— — —— —— — (4) (835) (2) (185) (13) (1,610) (22) (2,420) (1) $ (137) (1) $ (111) (1) _ (82) (4) $ (492)

8 $ 1,680 3 $ 398 12 _ 1,484 40 $ 4,491 —— — —— —— — (21) (4,611) (1) (142) (3) (340) (24) (2,554) (13) $ (2,931) 2 $ 256 9 _ 1,144 16 $ 1,937

—— — —— —— — —— — —— —— — —— — —— —— — —— — —— —— —

The accompanying notes are an integral part of the Financial Statements

61 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Notes to Financial Statements (Unaudited) 1. Significant Accounting Policies The significant accounting policies and estimation techniques adopted by Legg Mason Global Funds Plc, (“the Company”) are as follows: Basis of preparation The financial statements have been prepared in accordance with accounting standards generally accepted in Ireland and Irish statute comprising the Companies Acts, 1963 to 2005 and the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 2003 (as amended). Accounting standards generally accepted in Ireland in preparing financial statements giving a true and fair view are those published by the Institute of Chartered Accountants in Ireland and issued by the Accounting Standards Board. The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all reporting periods presented, unless otherwise stated in the following text, as a result of any changes to applicable Financial Reporting Standards. The comparative figures for 2004 have not been adjusted to conform to these changes as permitted by the transition provisions in the respective standards. As at March 1, 2005, the Company adopted all new and revised applicable Financial Reporting Standards. The following accounting standards have been applied to the current period reporting results: FRS 21: Events after the balance sheet date FRS 23: The Effects of Changes in Foreign Exchange Rates FRS 25: Financial Instruments: Disclosure and Recognition FRS 26: Financial Instruments: Recognition and Measurement The adoption of the above standards resulted in some changes to the Company’s accounting policies. In summary: FRS 21: had no material effect on the Company’s accounting policies; FRS 23: had no material effect on the Company’s accounting policies. The functional currency of the Company has been re-evaluated based on the guidance in the standard and is still considered appropriate; FRS 25: has affected the presentation of redeemable participating shares, now classified as a financial liability. FRS 26: requires classification of all financial assets and financial liabilities for recognition and measurement purposes. The Company designated all its financial assets and financial liabilities as held for trading or designated as held for trading and all are accounted for at fair value through the Statement of Operations. The new standard also requires securities to be valued using bid prices for long positions and offer prices for short positions and interest income to be calculated on an effective yield basis. All changes in the accounting policies have been made in accordance with the transition provisions in the respective standards. There was no impact on opening net assets as at February 28, 2005, from the adoption of any of the above mentioned standards. All references to net assets throughout the financial statements refer to net assets attributable to holders of redeemable shares unless otherwise stated. Basis of presentation The format and certain wording of the financial statements has been adapted from those contained in the Companies (Amendment) Act 1986 and FRS 3 “Reporting Financial Performance” so that, in the opinion of the Directors, they more appropriately reflect the nature of the Company’s business as an investment fund. The Profit and Loss account is referred to as the Statement of Operations and the Balance Sheet is referred to as the Statement of Assets and Liabilities. Total Recognised Gains and Losses are reported in both the Statements of Operations and Statement of Changes in Net Assets attributable to holders of Redeemable Participating Shares. The Company has availed of the exemption available to open-ended investment funds under FRS1 not to prepare a cashflow statement. Historical cost convention The financial statements have been prepared under the historical costs convention, as modified by the revaluation of financial assets and financial liabilities held at fair value through the Statement of Operations. Valuation of investments Marketable investment securities held as current assets are stated at market value and profits and losses arising from this valuation are taken to the profit and loss account. This is a departure from the provisions of the Companies (Amendment) Act, 1986, which require that such assets be stated at the lower of cost and net realisable value and that only profits realised at the balance sheet date be included in the profit and loss account. The directors consider that these requirements would fail to give a true and fair view of the Company’s profit for the period, as it would not include a proper measure of the Company’s performance in the period by reference to the market value of securities for which there is a liquid and active market. While the effect of this departure can be quantified, it is the view of the directors that this disclosure would be of no value to the readers of the financial statements, taking account of the prevalence of mark-to-market accounting in the investment funds industry. The policy set out in the offering document provides for securities to be valued as follows: (a) Securities traded on national securities markets are valued at the 9.00 p.m. (Greenwich Mean Time) by reference to the latest available traded prices on the relevant market. (b) Securities listed or traded on certain foreign exchanges or other markets whose operations are similar to the U.S. over-the-counter market (including securities listed on exchanges where the primary market is believed to be over-the-counter) and listed securities for which no sale was reported on that date are valued at the mean between the bid and ask prices. (c) Securities that are listed or traded on more than one exchange or market, or are primarily traded on non-U.S. exchanges are generally valued at the preceding closing values of the securities on the exchange that is the primary trading market, except that when an occurrence subsequent to the time a value was so established is likely to have changed such value, the fair market value of those securities will be determined by consideration of other factors by or under the supervision of the Board of Directors. (d) Securities which are not publicly traded are carried at an estimate of fair valuation, based on procedures approved by the Directors, except where a change in the company’s situation clearly indicates revaluation. (e) Securities maturing within 60 days are valued at cost plus accreted discount, or minus amortised premium, which approximates fair value. (f) The Western Asset U.S. Money Market Fund’s investments are valued at amortized cost. Amortized cost valuation involves valuing an instrument at its cost initially and, thereafter, assuming a constant accretion/amortization to maturity of any discount or premium, regardless of the effect of fluctuating interest rates on the market value of the instrument.

62 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Notes to Financial Statements (Unaudited) - (continued)

FRS 26 provides for securities to be valued using bid prices for long positions and offer prices for short positions. As at August 31, 2005, there was no material difference between the reported Net Asset Value of the Company and the valuation required by FRS 26. Forward Contracts A forward foreign currency exchange contract (forward contract) is a commitment to purchase or sell a foreign currency at a future date, at a negotiated rate. Forward contracts are used to seek to manage foreign currency risks and to tactically shift portfolio currency risk. Forward contracts are generally entered into as a hedge upon the purchase or sale of a security denominated in a foreign currency. The Fund will realize a gain or loss upon the closing or settlement of the forward transaction. Unrealised appreciation or depreciation on forward contracts is reported in the Statement of Assets and Liabilities. Realised gains and losses are reported with all other foreign currency gains and losses in the Statement of Operations. Risks relating to forward contracts include the potential inability of the counter-party to meet the terms of the contract and unanticipated movements in the value of a foreign currency relative to the base currency of the fund. As at August 31, 2005, forward currency contracts held are disclosed in Note 12 to financial statements. Futures Contracts Initial margin deposits are made upon entering into futures contracts and are generally made in cash. Futures contracts are valued based upon their quoted daily settlement prices. Changes in the value of open futures contracts are recognised as unrealised gains or losses on futures contracts until the contracts are terminated, at which time realised gains and losses are recognised. Unrealised gains or losses on futures contracts are shown on the Portfolio of Investments. The variation margin receivable/payable at the reporting date is reported as an asset or liability, as applicable, in the Statement of Assets and Liabilities. As at August 31, 2005, the futures contracts held are disclosed in the Portfolio of Investments on pages 15, 18, 22, and 30. Option Contracts The premium on purchased put options exercised is subtracted from the proceeds of the sale of the underlying security or foreign currency in determining the realised gain or loss. The premium on purchased call options exercised is added to the cost of the securities or foreign currency purchased. Premiums paid from the purchase of options, which expire unexercised, are treated as realised losses. The unrealised gain or loss on open option positions is calculated and recorded as the market value of the option less the premium paid on that option. Unrealised gains or losses on open option positions are reflected as assets or liabilities in the Statement of Assets and Liabilities. The premium on written call options exercised is added to the proceeds from the sale of the underlying security or foreign currency in determining the realised gain or loss. The premium on written put options exercised is subtracted from the cost of the securities or foreign currencies purchased. Premiums received from written options, which expire unexercised, are treated as realised gains. As at August 31, 2005, the option contracts held are disclosed in the Portfolio of Investments on pages 15, 18, 22, and 30. Derivative financial instruments Derivative financial instruments, including credit default and interest rate swaps, are recognised at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at their fair value. Fair values are obtained from quoted market prices in active markets, including recent market transactions, and valuation techniques, including discounted cash flow models and options pricing models, as appropriate. All derivatives are carried as assets when fair value is positive and as liabilities when fair value is negative. Securities Traded on a “To-Be-Announced” Basis The Funds may trade securities on a “to-be-announced” (“TBA”) basis. In a TBA transaction, a Fund commits to purchasing or selling securities for which specific information is not yet known at the time of the trade. Securities purchased on a TBA basis are not settled until they are delivered to the Portfolios, normally 15 to 45 days later. These transactions are subject to market fluctuations and their current value is determined in the same manner as for other securities. Credit Default Swap Contracts The Western Asset Emerging Markets Bond Fund (“the Fund”) has entered into credit default swap contracts with the Fund being the “buyer” and the counter-party the “seller” in these transactions. As a buyer of the credit default swap contracts, the Fund is obligated to pay the counter-party a periodic stream of payments over the term of the contract provided that no event of default (e.g., grace period extension, obligation acceleration, repudiation/moratorium or restructuring) relating to the security occurs or until the termination of the swap contract, whichever is first. If no event of default occurs, the Fund will have made a series of periodic payments and recover nothing of monetary value. If in an event of default occurs, the counter-party must pay the Fund the full notional value, or “par value” of the specified security. The amount of the cash payment from the counter-party to the Fund is based on the difference of the par value of the specified security that may have, through default, lost some, most or all of its value. Credit default swap transactions are entered into for hedging or investment purposes. The Fund purchases credit default swap contracts in order to hedge against the risk of a fall in the capital price, or default, of debt securities it holds. This involves the risk that the swap may expire worthless and the credit risk that the seller may fail to satisfy its payment obligations to the Fund in the event of a default. The Fund may only enter into such transactions with counter-parties rated A- or higher. Accounting for investments Security transactions are accounted for on trade date. Gains or losses on the sale of securities are calculated by using the First-In-First-Out basis. Income from investments Interest income, adjusted for amortisation of premium and accretion of discount, is recorded on the accruals basis. Premium and discounts are amortised to the Statement of Operations assuming a constant amortisation to maturity (“straight-line basis”) which is in accordance with the Company’s prospectus and Memorandum and Articles of Association. FRS 26, as noted above, requires interest income to be calculated on an effective yield basis. However the difference between straight-line basis and effective yield basis has no impact on the Net Asset Value of the Company. Dividend income (if applicable) is recorded on the ex-dividend date, foreign dividend income (if applicable) is recorded on the ex-dividend date or as soon as practical after exercising reasonable due diligence. Expenses Direct expenses are charged to each class of units; management fees and general fund expenses are allocated on the basis of relative net asset value. Foreign exchange translation (a) Functional and presentation currency: Items included in the Company’s financial statements are measured using the currency of the primary economic environment in which it operates (the ‘functional currency’). This is the US Dollar for all funds except, Western Asset Euro Core Bond Fund and Batterymarch European Equity Fund, which is Euro. The Company has adopted the functional currency of each Fund as the presentation currency for these financial statements. (b) Purchases and sales of securities, and income and expenses are translated at the rate of exchange quoted on the respective date that such transactions are recorded. Assets and Liabilities are translated at the foreign exchange rate at the end of the period. Differences between income and expense amounts recorded and collected or paid are adjusted when reported by the custodian bank.

63 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Notes to Financial Statements (Unaudited) - (continued) Short-term investments Certificates of deposit, time deposits and other short-term investments maintained with financial institutions are valued at their fair value with interest accrued, if any, which equates to their market value. Repurchase agreements Securities purchased under agreements to resell are valued at cost and adjusted for any movements in foreign exchange rates. Interest rates vary for each repurchase agreement and are set at the initiation of the agreement. It is the Company’s policy to take custody of securities purchased under repurchase agreements and to value the securities on a daily basis to protect the Company in the event the securities are not repurchased by the counter-party. The Company will generally obtain additional collateral if the market value of the underlying securities is less than the face value of the repurchase agreement plus any accrued interest. In the event of default on the obligation to repurchase, the Company has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. In the event of default or bankruptcy by the counter-party to the agreement, realisation and/or retention of the collateral or proceeds may be subject to legal proceedings. Equalisation An equalisation accounting may be maintained so that the amount distributed is the same for all shares of the same type notwithstanding different dates of issue. A sum equal to that part of the issued price of a share which reflects income (if any) accrued but undistributed up to the date of issue will be deemed to be an equalisation payment and treated as repaid to shareholders with the first dividend or accumulation to which the shareholder was entitled in the same accounting period as that in which the shares are issued. Offsetting financial instruments Financial assets and liabilities are offset and the net amount reported in the statement of assets and liabilites when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or realise the asset and settle the liability simultaneously. 2. Management Agreements and Transactions with Related Parties Pursuant to separate Investment Management Agreements between the Company and Legg Mason Funds Management, Inc. and Legg Mason Fund Adviser, Inc., each Investment Manager shall be entitled to receive an investment management fee out of the assets of the relevant Fund for its services as the Investment Manager, which shall accrue on each Dealing Day and be payable monthly in arrears. The investment management fee for each Class (expressed as a percentage of the relevant Fund’s Net Asset Value attributable to such Class) is as follows: Class A Shares Class B Shares Class C Shares Fund Name Up to Up to Up to Western Asset U.S. Money Market Fund 0.80 per cent. 1.05 per cent. 1.55 per cent. Western Asset U.S. Core Bond Fund 0.95 per cent. 1.20 per cent. 1.70 per cent. Western Asset Euro Core Bond Fund 1.00 per cent. 1.25 per cent. 1.75 per cent. Western Asset Diversified Strategic Income Bond Fund 1.10 per cent. 1.35 per cent. 1.85 per cent. Western Asset Global Multi Strategy Fund 1.10 per cent. 1.35 per cent. 1.85 per cent. Western Asset U.S. High Yield Bond Fund 1.15 per cent. 1.40 per cent. 1.90 per cent. Western Asset Emerging Markets Bond Fund 1.50 per cent. 1.75 per cent. 2.25 per cent. Brandywine Global Opportunities Bond Fund 1.10 per cent. 1.35 per cent. 1.85 per cent. Legg Mason Growth Fund 1.20 per cent. 1.70 per cent. 2.20 per cent. Legg Mason Value Fund 1.35 per cent. 1.85 per cent. 2.35 per cent. Royce U.S. Small Cap Equity Fund 1.50 per cent. 2.00 per cent. 2.50 per cent. Royce 100 Equity Fund 1.50 per cent. 2.00 per cent. 2.50 per cent. Batterymarch European Equity Fund 1.35 per cent. 1.85 per cent. 2.35 per cent. Batterymarch Pacific Equity Fund 1.50 per cent. 2.00 per cent. 2.50 per cent.

The Investment Managers of the Western Asset U.S. Money Market Fund and the Royce 100 Equity Fund have voluntarily agreed to waive a portion of their fees and/or reimburse the respective Fund for certain expenses so that the total expenses would not exceed certain voluntary expense limitations established for each respective Fund. The respective parties, at their discretion, may revise or discontinue the voluntary waivers and/or expense reimbursements at any time. For the six month period ended August 31, 2005, the Investment Managers of the Western Asset U.S. Money Market Fund and the Royce 100 Equity Fund have voluntarily waived $10,970 and $5,460, respectively, of their investment management fees. Each Investment Manager shall be responsible for paying the fees and out-of-pocket expenses of the Sub-Investment Managers out of its own investment management fee. Legg Mason Funds Management, Inc. has entered into separate Distribution Agreements with Legg Mason Wood Walker, Inc. and Legg Mason Investments (Europe) Limited under which Legg Mason Funds Management, Inc. has delegated certain responsibilities associated with marketing and distributing the Legg Mason Value Fund to the Distributors. Additionally, Legg Mason Fund Adviser, Inc. has entered into separate Distribution Agreements with each of the Funds’ Distributors under which Legg Mason Fund Adviser, Inc. has delegated certain responsibilities associated with marketing and distributing each of the Funds it serves as investment manager to the Distributors. These delegated functions do not include the Investment Managers’ provision of investment management services to the Funds, but are limited to marketing and distribution services provided to the Funds and the Company. Under the Distribution Agreements, each Investment Manager shall pay to each Distributor a portion of its investment management fee as set out in such Distribution Agreements. The Company shall also be responsible for the prompt payment or reimbursement to the Investment Manager of any commissions, transfer fees, registration fees, taxes and similar liabilities, costs and out-of-pocket expenses properly payable or incurred by the Investment Manager. The Investment Manager shall also be entitled to an annual incentive fee (“Incentive Fee”) with regard to the Batterymarch Pacific Equity Fund calculated by multiplying the Fund’s average Net Asset Value per Class B Shares for a twelve month period ending March 31 of each year (the “Incentive Period”) by twenty percent (20%) of “Excess Performance.” Excess Performance is defined as any Percentage Increase in the Net Asset Value per Class B Share in excess of a 12% increase in such Net Asset Value. “Percentage Increase” shall mean the amount by which the Net Asset Value per Class B Share at the end of the Incentive Period exceeds the greater of (1) the Fund’s Net Asset Value per Class B Share at the beginning of such Incentive Period (or, in the case of the first Incentive Period, the initial offer price per Class B Share) or (2) the Fund’s highest Net Asset Value per Class B Share on which an Incentive Fee was previously paid, which excess shall be expressed as a percentage of the greater of (1) or (2). In no event will an Incentive Fee exceed 4% of the Fund’s average Net Asset Value per Class B Shares for an Incentive Period. The calculation of an Incentive Fee shall be verified by the Custodian. Payment of an Incentive Fee will be made promptly after the end of the applicable Incentive Period. The calculation of an Incentive Fee is based on net realised and unrealised gains and losses as at the end of an Incentive Period. As a result, an Incentive Fee may be paid on unrealised gains which may never subsequently be realised. For the six month period ended August 31, 2005, no incentive fees were accrued or paid.

64 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Notes to Financial Statements (Unaudited) - (continued) Shareholder Services Fee Under the Shareholder Servicing Agreements with the Company, each Shareholder Servicing Agent shall be entitled to receive a shareholder services fee for their services as shareholder servicing agent. The aggregate amount of shareholder servicing fees paid by the Company shall be equal to the following: (i) 0.15 per cent, per annum of the Net Asset Value of the Western Asset U.S. Core Bond Fund, the Western Asset Euro Core Bond Fund, the Western Asset Diversified Strategic Income Bond Fund, the Western Asset Global Multi Strategy Fund, the Western Asset U.S. High Yield Bond Fund, the Western Asset Emerging Markets Bond Fund and the Brandywine Global Opportunities Bond Fund and (ii) 0.35 per cent, per annum of the Net Asset Value of the Legg Mason Growth Fund, the Legg Mason Value Fund, the Royce U.S. Small Cap Equity Fund, the Royce 100 Equity Fund, the Batterymarch European Equity Fund, and the Batterymarch Pacific Equity Fund. The shareholder services fees shall be payable monthly in arrears and shall accrue on each Dealing Day.

3. Administrator & Custodian PFPC Trustee & Custodial Services Limited acts as Custodian and PFPC International Limited (“PFPC”) acts as Administrator to all sub-Funds in the Company and Legg Mason Select Funds Plc. For administration, accounting, shareholder, trustee and custodial services, they collectively receive from the sub-Funds a monthly unitary fee of up to an annual rate of 0.15% of the aggregate average daily net assets of the Company and Legg Mason Select Funds Plc. Effective June 8, 2005, PFPC has voluntarily agreed to waive 0.06% of its monthly unitary fee for the Western Asset U.S. Money Market Fund. For the six month period ended August 31, 2005, PFPC has voluntarily waived $2,968 of its unitary fee for the Western Asset U.S. Money Market Fund.

4. Distributions to holders of Redeemable Participating Shares The Company distributes the net investment income, if any, of the Legg Mason Value Fund, the Royce U.S. Small Cap Equity Fund, the Royce 100 Equity Fund, the Batterymarch Pacific Equity Fund, the Legg Mason Growth Fund, the Batterymarch European Equity Fund, the Batterymarch U.S. Large Cap Equity Fund and the Brandywine Global Equity Fund to the Funds’ Shareholders annually in March. The Company distributes the net investment income, if any, of the Western Asset U.S. Money Market Fund, Western Asset U.S. Core Bond Fund, the Western Asset Euro Core Bond Fund, the Western Asset Emerging Markets Bond Fund, the Western Asset U.S. High Yield Bond Fund, the Western Asset Diversified Strategic Income Bond Fund and the Western Asset Global Multi Strategy Fund on a monthly basis. The Company distributes the net investment income, if any, of the Brandywine Global Opportunities Bond Fund on a semi-annual basis. The Western Asset U.S. Money Market Fund, Western Asset U.S. Core Bond Fund, Western Asset Euro Core Bond Fund, Western Asset Diversified Strategic Income Bond Fund, Western Asset Global Multi Strategy Fund, Western Asset U.S. High Yield Bond Fund, Western Asset Emerging Markets Bond Fund or Brandywine Global Opportunities Bond Fund may also distribute net realised or unrealised capital gains. Distributions will be made in the respective base currency of the relevant Class of each Fund, and, in the case of a Shareholder that has subscribed for Shares in a currency other than the base currency of a Fund, in such other currency. Payments will be made by wire transfer to a Shareholder’s account. Investors will be assumed to have elected to invest such distributions in additional shares of the Funds unless a Shareholder designates otherwise on the application form. 5. Share Capital and Redeemable Participating Shares

Share Capital The Company was incorporated with an initial share capital of Euro 39,000 represented by 39,000 Subscriber Shares of no par value. All but seven of the Subscriber Shares have been repurchased by the Company. Shareholders of these seven Subscriber Shares are entitled to attend and vote at all of the meetings of the Company, but are not entitled to participate in the dividends or net assets of any fund of the Company. Redeemable Participating Shares The share capital of the Company shall at all times equal the Net Asset Value. For the period of five years from the date of incorporation, the Directors are empowered to issue up to five hundred billion Shares of no par value in the Company at the Net Asset Value per Share on such terms as they may see fit. On the expiry of five years the Directors’ authority to issue Shares may be renewed by the Shareholders in general meeting successively for further periods not exceeding five years. There are no rights of pre-emption upon the issue of Shares in the Company. Each of the Shares entitles the Shareholder to participate equally on a pro rata basis in the dividends and net assets of the fund in respect of which they are issued, save in the case of dividends declared prior to becoming a Shareholder. The proceeds from the issue of Shares shall be applied in the books of the Company to the relevant fund and shall be used in the acquisition on behalf of the relevant fund of assets in which the fund may invest. The records and accounts of each fund shall be maintained separately. Effective February 20, 2004, the shares were divided into three share classes, Class A shares may be charged an initial fee of up to 5%, a Contingent Deferred Sales Charge may be imposed on redemption proceeds paid to a Shareholder that redeems Class B shares within the first five years after the Shareholder’s purchase of such Class B shares, a Contingent Deferred Sales Charge may be imposed on redemption proceeds paid to a Shareholder that redeems Class C shares within the first year after the Shareholder’s purchase of such Class C shares. Legg Mason Value Fund also issues Galleon class shares on which no Contingent Deferred Sales Charge is imposed. Each of the Shares entitles the holder to attend and vote at meetings of the Company and of the Fund represented by those Shares.

6. Taxation The Company qualifies as an investment undertaking as defined in Section 739B of the Taxes Consolidation Act, 1997, as amended. It is not liable to Irish tax on its income or on realised and unrealised capital gains. However, Irish tax may arise on the happening of a “chargeable event”. A chargeable event includes any distribution payments to shareholders or any encashment, redemption or transfer of shares. No Irish tax will arise on the Company in respect of chargeable events in respect of: (a) a shareholder who is neither Irish resident or ordinarily resident in Ireland for tax purposes, at the time of the chargeable event, provided appropriate valid declarations in accordance with the provisions of the Taxes Consolidation Act, 1997, as amended are held by the Company; and (b) certain exempted Irish tax resident shareholders who have provided the Company with the necessary signed statutory declarations. Capital gains, dividends and interest (if any) received on investments made by the Company may be subject to withholding taxes imposed by the country of origin and such taxes may not be recoverable by the Company or its shareholders.

65 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Notes to Financial Statements (Unaudited) - (continued)

7. Cash Note The cash balances are held with PFPC Trust Company. Included in the cash balances are amounts held as collateral for the following funds:

Fund Western Asset Euro Core Bond Fund 117,549.29 EUR Western Asset Diversified Strategic Income Bond Fund 2,831,292.52 USD Western Asset Global Multi Strategy Fund 1,012,842.85 USD 8. Commitments and Contingent Liabilities There were no significant commitments or contingent liabilities at the Statement of Assets and Liabilities date.

9. Soft Commission Arrangements During the six-month period ended August 31, 2005, Legg Mason Funds Management, Inc. (“LMFM”, the Investment Manager for the Legg Mason Value Fund and the Sub- Investment Manager for the Legg Mason Growth Fund), and Royce & Associates, LLC (“Royce”, the Sub-Investment Manager for the Royce U.S. Small Cap Equity Fund and the Royce 100 Equity Fund) entered into soft commission arrangements affecting certain Funds and details of those arrangements are set forth in the table below. The annual report for the Company dated February 28, 2005 and the semi-annual report for the Company dated August 31, 2004 stated that there were no soft commission arrangements that affected the Funds during the relevant reporting periods. In fact, soft commission arrangements affecting certain Funds were received by LMFM and Royce, details of which are set forth in the table below. Six months ended Twelve months ended Six months ended Fund August 31, 2005 February 28, 2005 August 31, 2004 Royce U.S. Small Cap Equity Fund $13,697 $42,254 $33,400 Royce 100 Equity Fund $2,430 $6,010 $4,985 Legg Mason Value Fund $101,755 $171,074 $143,449 Legg Mason Growth Fund $235 $1,692 $1,692

10. Exchange Rates The following exchange rates as at August 31, 2005 were used in these financial statements to obtain the equivalent USD and Euro amounts for the respective Funds with USD and Euro based currencies respectively:

USD based Funds Country Exchange rate Australia 0.751151 Canada 1.1881 Denmark 6.0643 Euro 0.81311 Hong Kong 7.77215 Hungary 198.67875 Indonesia 10,300.00 Israel 4.53475 Japan 111.135 Malaysia 3.772 New Zealand 0.6924010 Norway 6.38875 Poland 3.2754 Singapore 1.68495 South Korea 1,040.50 Sweden 7.59395 Taiwan 32.75 Thailand 41.305 Turkey 1.3425 United Kingdom 1.798561

Euro based Funds Country Exchange rate Australia 1.63725 Czech Republic 29.46 Denmark 7.4582 Hong Kong 9.5586 Hungary 244.345 Norway 7.85715 Poland 4.02825 Sweden 9.3394 Switzerland 1.464342 United Kingdom 0.6838 United States 0.971997 11. Efficient Portfolio Management The Investment Manager may employ investment techniques and instruments, such as trading in futures and options and other derivative instruments for efficient portfolio management, subject to the conditions and within the limits from time to time laid down by the IFSRA (the “Financial Regulator”). Furthermore, new techniques and instruments may be developed which may be suitable for use by a fund in the future and a fund may employ such techniques and instruments subject to the prior approval, and any restrictions imposed by, the Financial Regulator.

12. Derivatives And Other Financial Instruments

(a) Market Price Risk The Investments of a Fund are subject to normal market fluctuations and the risks inherent in investment in international securities markets and there can be no assurances that appreciation will occur. Stock markets can be volatile and stock prices can change substantially. Debt securities are interest rate sensitive and may be subject to price volatility due to various factors including, but not limited to, changes in interest rates, market perception of the creditworthiness of the issuer and general market liquidity.

66 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Notes to Financial Statements (Unaudited) - (continued)

(b) Interest Rate Risk The value of investments in fixed interest rate bearing securities may be subject to price volatility due to changes in interest rates. An increase in interest rates will generally reduce the value of debt securities that are issued and outstanding, while a decline in interest rates will generally increase the value of debt securities that are issued and outstanding. The magnitude of these price fluctuations will be greater when the maturity of the outstanding securities is longer. Changes in the value of securities held by a fund when interest rates change mean that a Fund’s Net Asset Value per Share can go up or down because of the effect on the value of the Fund’s portfolio of debt securities. The interest rate and maturity profile of the fixed interest bearing investments of the relevant sub-funds as of August 31, 2005 are as follows:

Western Asset U.S. Money Market Fund Fixed Rate Financial Assets Fixed Rate Financial Assets Weighted Average Weighted Average Country Interest Rate Period (years)

United States 3.64% 0.04

Floating Rate Fixed Rate No Interest Country Total Financial Assets Financial Assets Financial Assets

USD (000's) USD (000's) USD (000's) USD (000's)

United States 92,690 2,330 64,356 26,004 92,690 2,330 64,356 26,004

Western Asset U.S. Money Market Fund (as of August 31, 2004) Fixed Rate Financial Assets Fixed Rate Financial Assets Weighted Average Weighted Average Country Interest Rate Period (years)

United States 2.54% 0.37

Floating Rate Fixed Rate No Interest Country Total Financial Assets Financial Assets Financial Assets

USD (000's) USD (000's) USD (000's) USD (000's)

United States 27,552 2,275 12,795 12,482 27,552 2,275 12,795 12,482

Western Asset U.S. Core Bond Fund Fixed Rate Financial Assets Fixed Rate Financial Assets Weighted Average Weighted Average Country Interest Rate Period (years)

United States 5.39% 18.22

Floating Rate Fixed Rate No Interest Country Total Financial Assets Financial Assets Financial Assets

USD (000's) USD (000's) USD (000's) USD (000's)

United States 70,814 16,056 48,852 5,906 70,814 16,056 48,852 5,906

Western Asset U.S. Core Bond Fund (as of August 31, 2004) Fixed Rate Financial Assets Fixed Rate Financial Assets Weighted Average Weighted Average Country Interest Rate Period (years)

United States 4.34% 11.49

Floating Rate Fixed Rate No Interest Country Total Financial Assets Financial Assets Financial Assets

USD (000's) USD (000's) USD (000's) USD (000's)

United States 135,789 12,616 120,637 2,536 135,789 12,616 120,637 2,536

67 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Notes to Financial Statements (Unaudited) - (continued)

12. Derivatives And Other Financial Instruments (continued)

Western Asset Euro Core Bond Fund Fixed Rate Financial Assets Fixed Rate Financial Assets Weighted Average Weighted Average Country Interest Rate Period (years)

Australia 6.25% 6.76 Denmark 4.00% 30.10 Eurozone 4.50% 8.10 Hungary 8.25% 4.12 Norway 6.50% 7.71 Poland 5.90% 6.03 United Kingdom 7.28% 10.38 United States 8.21% 23.11

Floating Rate Fixed Rate No Interest Country Total Financial Assets Financial Assets Financial Assets

EUR (000's) EUR (000's) EUR (000's) EUR (000's)

Australia 410 — 410 — Denmark 643 — 643 — Eurozone 28,067 3,993 24,074 — Hungary 157 — 157 — Norway 262 — 262 — Poland 911 — 911 — United Kingdom 1,206 278 928 — United States 1,449 55 1,394 — 33,105 4,326 28,779 —

Western Asset Euro Core Bond Fund (as of August 31, 2004) Fixed Rate Financial Assets Fixed Rate Financial Assets Weighted Average Weighted Average Country Interest Rate Period (years)

Denmark 5.00% 31.10 Eurozone 4.25% 8.91 Norway 6.50% 8.71 Poland 6.00% 4.73 Sweden 5.20% 10.51 United Kingdom 6.28% 11.10 United States 6.54% 20.81

Floating Rate Fixed Rate No Interest Country Total Financial Assets Financial Assets Financial Assets

EUR (000's) EUR (000's) EUR (000's) EUR (000's)

Denmark 1,156 — 1,156 — Eurozone 23,314 1,250 22,064 — Norway 342 — 342 — Poland 183 — 183 — Sweden 1,003 — 1,003 — United Kingdom 1,067 40 965 62 United States 1,780 64 1,716 — 28,845 1,354 27,429 62

Western Asset Diversified Strategic Income Bond Fund Fixed Rate Financial Assets Fixed Rate Financial Assets Weighted Average Weighted Average Country Interest Rate Period (years)

Canada 4.00% 26.27 Eurozone 8.05% 7.55 Mexico 10.17% 9.12 New Zealand 8.00% 1.21

68 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Notes to Financial Statements (Unaudited) - (continued)

12. Derivatives And Other Financial Instruments (continued)

Western Asset Diversified Strategic Income Bond Fund (continued) Fixed Rate Financial Assets Fixed Rate Financial Assets Weighted Average Weighted Average Country Interest Rate Period (years)

Poland 5.75% 4.56 South Africa 8.75% 9.31 United Kingdom 8.73% 8.09 United States 7.84% 8.95

Floating Rate Fixed Rate No Interest Country Total Financial Assets Financial Assets Financial Assets

USD (000's) USD (000's) USD (000's) USD (000's)

Canada 863 — 863 — Eurozone 17,671 5,984 11,687 — Mexico 10,745 — 10,745 — New Zealand 3,900 — 3,900 — Poland 2,068 — 2,068 — South Africa 2,116 — 2,116 — United Kingdom 11,949 8,453 3,496 — United States 155,153 4,108 115,779 35,266 204,465 18,545 150,654 35,266

Western Asset Diversified Strategic Income Bond Fund (as of August 31, 2004) Fixed Rate Financial Assets Fixed Rate Financial Assets Weighted Average Weighted Average Country Interest Rate Period (years)

Australia 8.64% 1.24 Canada 5.23% 7.56 Denmark 5.00% 31.10 Eurozone 7.81% 7.51 Hungary 6.38% 5.28 Israel 7.00% 6.66 Japan 2.88% 0.91 New Zealand 6.50% 0.46 Poland 6.00% 6.24 South Africa 6.25% 8.59 United Kingdom 7.03% 8.28 United States 4.08% 6.20

Floating Rate Fixed Rate No Interest Country Total Financial Assets Financial Assets Financial Assets

USD (000's) USD (000's) USD (000's) USD (000's)

Australia 7,363 — 7,363 — Canada 8,030 — 8,030 — Denmark 11,857 — 11,857 — Eurozone 17,295 8,118 9,177 — Hungary 7,762 — 7,762 — Israel 1,771 — 1,771 — Japan 1,494 — 1,494 — New Zealand 5,090 — 5,090 — Poland 7,035 — 4,350 2,685 South Africa 2,288 — 2,288 — United Kingdom 15,593 4,747 10,846 — United States 86,642 11,646 42,992 32,004 172,220 24,511 113,020 34,689

69 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Notes to Financial Statements (Unaudited) - (continued)

12. Derivatives And Other Financial Instruments (continued)

Western Asset Global Multi Strategy Fund Fixed Rate Financial Assets Fixed Rate Financial Assets Weighted Average Weighted Average Country Interest Rate Period (years)

Canada 4.00% 26.27 Eurozone 7.66% 7.78 Indonesia 14.00% 3.79 Japan 2.58% 1.60 Mexico 8.00% 8.31 New Zealand 6.50% 2.34 Peru 8.60% 11.96 Poland 5.75% 4.56 South Africa 8.75% 9.31 Turkey 20.00% 2.13 United Kingdom 8.21% 10.53 United States 6.38% 13.30

Floating Rate Fixed Rate No Interest Country Total Financial Assets Financial Assets Financial Assets

USD (000's) USD (000's) USD (000's) USD (000's)

Brazil 11,153 — — 11,153 Canada 755 — 755 — Eurozone 16,142 2,840 13,302 — Indonesia 4,767 — 4,767 — Japan 3,362 — 3,362 — Mexico 13,336 — 13,336 — New Zealand 3,053 — 3,053 — Peru 1,997 — 1,997 — Poland 2,767 — 2,767 — South Africa 3,554 — 3,554 — Turkey 13,559 — 5,687 7,872 United Kingdom 6,582 3,807 2,775 — United States 215,247 3,722 209,336 2,189 296,274 10,369 264,691 21,214

Western Asset Global Multi Strategy Fund (as of August 31, 2004) Fixed Rate Financial Assets Fixed Rate Financial Assets Weighted Average Weighted Average Country Interest Rate Period (years) Australia 8.49% 1.57 Canada 4.00% 27.27 Denmark 5.00% 31.10 Eurozone 8.07% 8.09 Hungary 6.33% 6.11 Israel 7.00% 6.66 Japan 2.88% 0.91 New Zealand 6.50% 4.25 Poland 6.00% 6.24 South Africa 6.25% 8.59 United Kingdom 8.29% 10.76 United States 8.63% 11.59

Floating Rate Fixed Rate No Interest Country Total Financial Assets Financial Assets Financial Assets

USD (000's) USD (000's) USD (000's) USD (000's)

Australia 4,044 — 4,044 — Canada 428 — 428 — Denmark 4,858 — 4,858 — Eurozone 10,168 3,049 5,194 1,925 Hungary 4,075 — 4,075 —

70 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Notes to Financial Statements (Unaudited) - (continued)

12. Derivatives And Other Financial Instruments (continued) Western Asset Global Multi Strategy Fund (as of August 31, 2004) (continued) Floating Rate Fixed Rate No Interest Country Total Financial Assets Financial Assets Financial Assets

USD (000's) USD (000's) USD (000's) USD (000's)

Israel 1,217 — 1,217 — Japan 1,774 — 1,774 — New Zealand 1,888 — 1,888 — Poland 5,533 — 4,299 1,234 South Africa 3,432 3,432 Turkey 4,935 — — 4,935 United Kingdom 4,886 1,844 3,042 — United States 76,584 2,256 70,097 4,231 123,822 7,149 104,348 12,325

Western Asset U.S. High Yield Bond Fund Fixed Rate Financial Assets Fixed Rate Financial Assets Weighted Average Weighted Average Country Interest Rate Period (years)

United States 9.80% 8.78

Floating Rate Fixed Rate No Interest Country Total Financial Assets Financial Assets Financial Assets

USD (000's) USD (000's) USD (000's) USD (000's)

United States 54,049 1,494 48,930 3,625 54,049 1,494 48,930 3,625

Western Asset U.S. High Yield Bond Fund (as of August 31, 2004) Fixed Rate Financial Assets Fixed Rate Financial Assets Weighted Average Weighted Average Country Interest Rate Period (years)

United States 9.01% 7.59

Floating Rate Fixed Rate No Interest Country Total Financial Assets Financial Assets Financial Assets

USD (000's) USD (000's) USD (000's) USD (000's)

United States 69,119 1,426 65,944 1,749 69,119 1,426 65,944 1,749

Western Asset Emerging Markets Bond Fund Fixed Rate Financial Assets Fixed Rate Financial Assets Weighted Average Weighted Average Country Interest Rate Period (years)

Peru 8.60% 11.96 Russia 8.11% 1.38 United States 8.34% 15.59

Floating Rate Fixed Rate No Interest Country Total Financial Assets Financial Assets Financial Assets

USD (000's) USD (000's) USD (000's) USD (000's)

Mexico 3 — 3 — Peru 339 — 339 — Russia 381 — 381 — United States 47,934 1,501 47,348 (915) 48,657 1,501 48,071 (915)

71 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Notes to Financial Statements (Unaudited) - (continued)

12. Derivatives And Other Financial Instruments (continued)

Western Asset Emerging Markets Bond Fund (as of August 31, 2004) Fixed Rate Financial Assets Fixed Rate Financial Assets Weighted Average Weighted Average Country Interest Rate Period (years)

United States 9.31% 14.54

Floating Rate Fixed Rate No Interest Country Total Financial Assets Financial Assets Financial Assets

USD (000's) USD (000's) USD (000's) USD (000's)

United States 32,826 1,614 28,430 2,782 32,826 1,614 28,430 2,782

Brandywine Global Opportunities Bond Fund Fixed Rate Financial Assets Fixed Rate Financial Assets Weighted Average Weighted Average Country Interest Rate Period (years)

Australia 7.00% 4.62 Canada 6.00% 5.75 Eurozone 4.62% 4.18 New Zealand 6.13% 9.71 Poland 5.75% 2.82 Singapore 4.31% 0.37 United Kingdom 4.75% 10.02 United States 4.00% 1.69

Floating Rate Fixed Rate No Interest Country Total Financial Assets Financial Assets Financial Assets

USD (000's) USD (000's) USD (000's) USD (000's)

Australia 31,401 31,401 — — Canada 40,145 14,038 26,107 — Eurozone 31,885 31,885 — — New Zealand 10,266 10,266 — — Poland 20,483 20,483 — — Singapore 15,736 15,736 — — United Kingdom 10,771 10,771 — — United States 102,709 47,422 55,287 — 263,396 182,002 81,394 —

Brandywine Global Opportunities Bond Fund (as of August 31, 2004) Fixed Rate Financial Assets Fixed Rate Financial Assets Weighted Average Weighted Average Country Interest Rate Period (years)

Australia 7.11% 4.28 Canada 6.00% 6.75 Eurozone 4.87% 4.90 New Zealand 6.20% 4.94 Norway 5.75% 0.25 Poland 5.42% 6.17 Sweden 4.51% 3.51 United Kingdom 8.50% 1.27

72 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Notes to Financial Statements (Unaudited) - (continued)

12. Derivatives And Other Financial Instruments (continued)

Brandywine Global Opportunities Bond Fund (as of August 31, 2004)

Floating Rate Fixed Rate No Interest Country Total Financial Assets Financial Assets Financial Assets

USD (000's) USD (000's) USD (000's) USD (000's)

Australia 14,294 — 14,294 — Canada 11,845 — 5,336 6,509 Eurozone 25,208 — 25,208 — New Zealand 9,597 — 9,597 — Poland 7,306 — 7,306 — Norway 7,835 — 7,835 — Sweden 14,457 — 14,457 — United Kingdom 5,780 — 5,780 — United States 25,974 — — 25,974 122,296 — 89,813 32,483

(c) Foreign Currency Risk The Net Asset Value per Share of the sub-funds are computed in their base currencies of U.S. Dollars and of Euros, whereas the investments held for the account of either fund may be acquired, valued and disposed of in other currencies. The value of the investments of a Fund designated in another currency may rise and fall due to exchange rate fluctuations in respect of the relevant currencies. The following table sets out the sub-funds’ total exposure to foreign currency with the value to be received under foreign currency contracts and the resulting net unhedged amounts invested in assets in foreign currencies.

Western Asset Euro Core Bond Fund Other Assets/ Net Currency Investments (Liabilities) Net Total Hedging Exposure EUR (000's) EUR (000's) EUR (000's) EUR (000's) EUR (000's)

Australia Dollar 410 7 417 (390) 27 British Pound Sterling 1,206 26 1,232 (1,243) (11) Danish Krone 643 16 659 (638) 21 Euro (base) 28,067 921 28,988 — 28,988 Hungarian Forint 157 156 313 (272) 41 Norwegian Krone 262 18 280 (225) 55 Polish Zloty 911 24 935 (879) 56 Swiss Franc — — — 604 604 United States Dollar 1,449 1,506 2,955 (2,873) 82

Total 33,105 2,674 35,779 (5,916) 29,863

Western Asset Euro Core Bond Fund (as of August 31, 2004) Other Assets/ Net Currency Investments (Liabilities) Net Total Hedging Exposure EUR (000's) EUR (000's) EUR (000's) EUR (000's) EUR (000's)

British Pound Sterling 1,067 (3) 1,064 (963) 101 Danish Krone 1,156 39 1,195 (724) 471 Euro (base) 23,314 236 23,550 — 23,550 Norwegian Krone 342 6 348 (330) 18 Polish Zloty 183 3 186 — 186 Sweden Krona 1,003 264 1,267 (151) 1,116 United States Dollar 1,780 384 2,164 (1,826) 338

Total 28,845 929 29,774 (3,994) 25,780

Western Asset Diversified Strategic Income Bond Fund Other Assets/ Net Currency Investments (Liabilities) Net Total Hedging Exposure USD (000's) USD (000's) USD (000's) USD (000's) USD (000's)

Australian Dollar — 130 130 2,542 2,672 British Pound Sterling 11,949 445 12,394 (11,144) 1,250 Canadian Dollar 863 101 964 (298) 666 Danish Krone — 12 12 625 637

73 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Notes to Financial Statements (Unaudited) - (continued)

12. Derivatives And Other Financial Instruments (continued)

Western Asset Diversified Strategic Income Bond Fund (continued) Other Assets/ Net Currency Investments (Liabilities) Net Total Hedging Exposure USD (000's) USD (000's) USD (000's) USD (000's) USD (000's)

Euro 17,671 1,906 19,577 (19,503) 74 Hungarian Forint — 3 3 123 126 Israeli Shekel — 156 156 — 156 Japanese Yen — 115 115 — 115 Mexican Peso 10,745 624 11,369 (8,065) 3,304 New Zealand Dollar 3,900 248 4,148 (2,098) 2,050 Norwegian Krone — — — (15) (15) Polish Zloty 2,068 74 2,142 2,247 4,389 South African Rand 2,116 124 2,240 — 2,240 United States Dollar (base) 155,153 (17,250) 137,903 — 137,903

Total 204,465 (13,312) 191,153 (35,586) 155,567

Western Asset Diversified Strategic Income Bond Fund (as of August 31, 2004) Other Assets/ Net Currency Investments (Liabilities) Net Total Hedging Exposure USD (000's) USD (000's) USD (000's) USD (000's) USD (000's)

Australian Dollar 7,363 292 7,655 (2,336) 5,319 British Pound Sterling 15,593 1,542 17,135 (15,684) 1,451 Canadian Dollar 8,030 279 8,309 (8,089) 220 Danish Krone 11,857 1,640 13,497 (13,169) 328 Euro 17,295 549 17,844 (17,135) 709 Hungarian Forint 7,762 665 8,427 — 8,427 Israeli Shekel 1,771 42 1,813 — 1,813 Japanese Yen 1,494 136 1,630 — 1,630 New Zealand Dollar 5,090 181 5,271 (1) 5,270 Norwegian Krone — — — (15) (15) Polish Zloty 7,035 2,229 9,264 (3,829) 5,435 South African Rand 2,288 — 2,288 1 2,289 United States Dollar (base) 86,642 (551) 86,091 — 86,091

Total 172,220 7,004 179,224 (60,257) 118,967

Western Asset Global Multi Strategy Fund Other Assets/ Net Currency Investments (Liabilities) Net Total Hedging Exposure USD (000's) USD (000's) USD (000's) USD (000's) USD (000's)

Australian Dollar — — — 3,479 3,479 British Pound Sterling 6,582 346 6,928 (1,369) 5,559 Brazil Real 11,153 — 11,153 (10,589) 564 Canadian Dollar 755 83 838 2,402 3,240 Danish Krone — 4 4 — 4 Euro 16,142 1,432 17,574 (16,536) 1,038 Hungarian Forint — 11 11 — 11 Indonesia Rupiah 4,767 151 4,918 (5,221) (303) Israeli Shekel — 71 71 — 71 Japanese Yen 3,362 66 3,428 21,953 25,381 Mexican Peso 13,336 203 13,539 (6,741) 6,798 New Zealand Dollar 3,053 143 3,196 — 3,196 Peru New Sol 1,997 26 2,023 — 2,023 Polish Zloty 2,767 87 2,854 — 2,854 South African Rand 3,554 207 3,761 — 3,761 South Korean Won — — — 1,511 1,511 Turkish Lira 13,559 568 14,127 — 14,127 United States Dollar (base) 215,247 (9,325) 205,922 — 205,922

Total 296,274 (5,927) 290,347 (11,111) 279,236

74 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Notes to Financial Statements (Unaudited) - (continued)

12. Derivatives And Other Financial Instruments (continued)

Western Asset Global Multi Strategy Fund (as of August 31, 2004) Other Assets/ Net Currency Investments (Liabilities) Net Total Hedging Exposure USD (000's) USD (000's) USD (000's) USD (000's) USD (000's)

Australian Dollar 4,044 155 4,196 (237) 3,959 British Pound Sterling 4,886 106 4,992 (1,940) 3,052 Canadian Dollar 428 6 434 588 1,022 Danish Krone 4,858 62 4,920 (4,275) 645 Euro 10,168 458 10,626 (6,129) 4,497 Hungarian Forint 4,075 92 4,167 222 4,389 Israeli Shekel 1,217 29 1,246 — 1,246 Japanese Yen 1,774 88 1,862 9,323 11,185 New Zealand Dollar 1,888 59 1,862 — 1,947 Polish Zloty 5,533 230 5,763 (2,650) 3,113 South African Rand 3,432 — 3,432 (920) 2,512 South Korean Won — — — 614 614 Turkish Lira 4,935 — 4,935 — 4,935 United States Dollar (base) 76,584 1,503 78,087 — 78,087

Total 123,822 2,785 126,607 (5,404) 121,203

Western Asset Emerging Markets Bond Fund Other Assets/ Net Currency Investments (Liabilities) Net Total Hedging Exposure USD (000's) USD (000's) USD (000's) USD (000's) USD (000's)

Mexican Peso 3 — 3 — 3 Peruvian Inti 339 4 343 — 343 Russian Rouble 381 2 383 — 383 United States Dollar (base) 47,934 1,319 49,253 — 49,253

Total 48,657 1,325 49,982 — 49,982

Brandywine Global Opportunities Bond Fund Other Assets/ Net Currency Investments (Liabilities) Net Total Hedging Exposure USD (000's) USD (000's) USD (000's) USD (000's) USD (000's)

Australian Dollar 31,401 772 32,173 (30,789) 1,384 British Pound Sterling 10,771 241 11,012 — 11,012 Canadian Dollar 40,145 182 40,327 — 40,327 Euro 31,885 216 32,101 (29,893)2,208 Japanese Yen — — — 79,634 79,634 New Zealand Dollar 10,266 183 10,449 (9,165) 1,284 Polish Zloty 20,483 199 20,682 — 20,682 Singapore Dollar 15,736 272 16,008 — 16,008 United States Dollar (base) 102,709 11,034 113,743 — 113,743

Total 263,396 13,099 276,495 9,787 286,282

Brandywine Global Opportunities Bond Fund (as of August 31, 2004) Other Assets/ Net Currency Investments (Liabilities) Net Total Hedging Exposure USD (000's) USD (000's) USD (000's) USD (000's) USD (000's)

Australian Dollar 14,294 253 14,547 — 14,547 British Pound Sterling 5,780 110 5,890 — 5,890 Canadian Dollar 11,845 73 11,918 — 11,918 Euro 25,208 21825,426 (24,034) 1,392 New Zealand Dollar 9,597 116 9,713 — 9,713 Norwegian Krone 7,835 337 8,172 — 8,172 Polish Zloty 7,306 88 7,394 — 7,394 Swedish Krona 14,457 335 14,792 — 14,792 United States Dollar (base) 25,974 1,871 27,845 — 27,845

Total 122,296 3,401 125,697 (24,034) 101,663

75 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Notes to Financial Statements (Unaudited) - (continued)

12. Derivatives And Other Financial Instruments (continued)

Legg Mason Value Fund Other Assets/ Net Currency Investments (Liabilities) Net Total Hedging Exposure USD (000's) USD (000's) USD (000's) USD (000's) USD (000's)

British Pound Sterling 51,963 — 51,963 — 51,963 United States Dollar (base) 2,714,879 17,155 2,732,034 — 2,732,034

Total 2,766,842 17,155 2,783,997 — 2,783,997

Legg Mason Value Fund (as of August 31, 2004) Other Assets/ Net Currency Investments (Liabilities) Net Total Hedging Exposure USD (000's) USD (000's) USD (000's) USD (000's) USD (000's)

British Pound Sterling 64,972 5,563 70,535 — 70,535 United States Dollar (base) 2,144,489 (28,650) 2,115,839 — 2,115,839

Total 2,209,461 (23,087) 2,186,374 — 2,186,374

Batterymarch European Equity Fund Other Assets/ Net Currency Investments (Liabilities) Net Total Hedging Exposure EUR (000's) EUR (000's) EUR (000's) EUR (000's) EUR (000's)

Czechoslovakian Koruna 231 — 231 — 231 Euro (base) 9,436 406 9,842 — 9,842 Hungarian Forint 376 — 376 — 376 Norwegian Krone 174 — 174 — 174 Polish Zolty 266 — 266 — 266 Swedish Krona 267 — 267 — 267 Swiss Franc 1,492 — 1,492 — 1,492 United States Dollars — 256 256 — 256

Total 12,242 662 12,904 — 12,904

Batterymarch European Equity Fund (as of August 31, 2004) Other Assets/ Net Currency Investments (Liabilities) Net Total Hedging Exposure EUR (000's) EUR (000's) EUR (000's) EUR (000's) EUR (000's)

Czechoslovakian Koruna 153 — 153 — 153 Euro (base) 4,507 175 4,682 — 4,682 Hungarian Forint 311 — 311 — 311 Norwegian Krone 249 — 249 — 249 Polish Zolty 108 — 108 — 108 Swedish Krona 450 20 470 — 470 Swiss Franc 748 (11) 737 — 737 United States Dollar 42 (117) (75) — (75)

Total 6,568 67 6,635 — 6,635

Batterymarch Pacific Equity Fund Other Assets/ Net Currency Investments (Liabilities) Net Total Hedging Exposure USD (000's) USD (000's) USD (000's) USD (000's) USD (000's)

Hong Kong Dollar 11,763 (281) 11,482 — 11,482 Indonesian Rupiah 2,108 5 2,113 — 2,113 Indian Rupee 2,981 3 2,984 — 2,984 Malaysian Ringgit 1,596 111 1,707 — 1,707 Philippines Peso 209 — 209 — 209 Singapore Dollar 2,810 3 2,813 — 2,813 South Korean Won 12,914 2 12,916 — 12,916 Taiwan Dollar 7,224 635 7,859 — 7,859 Thailand Baht 1,477 8 1,485 — 1,485 United States Dollar (base) 2,669 1,922 4,621 — 4,621

Total 45,781 2,408 48,189 — 48,189

76 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Notes to Financial Statements (Unaudited) - (continued)

12. Derivatives And Other Financial Instruments (continued)

Batterymarch Pacific Equity Fund (as of August 31, 2004) Other Assets/ Net Currency Investments (Liabilities) Net Total Hedging Exposure USD (000's) USD (000's) USD (000's) USD (000's) USD (000's)

China Renminbi — 6 6 — 6 Hong Kong Dollar 7,558 380 7,938 — 7,938 Indonesian Rupiah 1,216 5 1,221 — 1,221 Malaysian Ringgit 1,129 7 1,136 — 1,136 Philippines Peso 167 — 167 — 167 Singapore Dollar 2,123 6 2,129 — 2,129 South Korean Won 7,519 (46) 7,473 — 7,473 Taiwan Dollar 2,397 850 3,247 — 3,247 Thailand Baht 851 10 861 — 861 United States Dollar (base) 3,023 59 3,082 — 3,082

Total 25,983 1,277 27,260 — 27,260

(d) Fair Value of financial assets and financial liabilities Some Funds entered into derivative products during the year. Derivatives are contracts whose value depend upon, or are derived from, the value of an underlying asset, reference or rate index, and may relate to stocks, bonds, interest rates, commodities and related indexes. Refer to respective Funds’ portfolio of investments for open future positions as at August 31, 2005. (e) Forward Foreign Currency Contracts (in 000’s)

Western Asset Euro Core Bond Fund Contracts to Receive Unrealised In Appreciation/ Expiration Value Exchange (Depreciation) Date Local Currency in EUR for EUR of Contracts

11/8/05 AUD 748 _ 454 _ 466 _ (12) 11/8/05 CHF 932 604 600 4 11/8/05 GBP 71 103 102 1 11/8/05 HUF 22,876 93 92 1 11/8/05 USD 281 228 230 (2) 11/8/05 USD 96 78 78 - 11/8/05 USD 675 548 559 (11) 11/8/05 USD 786 638 650 (12) 11/8/05 USD 164 132 135 (3) 11/8/05 USD 307 249 254 (5) _ (39)

Contracts to Deliver Unrealised In Appreciation/ Expiration Value Exchange (Depreciation) Date Local Currency in EUR for EUR of Contracts

11/8/05 AUD 1,390 _ 844 _ 869 _ 25 11/8/05 DKK 4,760 638 638 - 11/8/05 GBP 45 66 65 (1) 11/8/05 GBP 59 85 84 (1) 11/8/05 GBP 117 171 169 (2) 11/8/05 GBP 35 51 50 (1) 11/8/05 GBP 312 454 449 (5) 11/8/05 GBP 356 519 512 (7) 11/8/05 HUF 89,899 365 362 (3) 11/8/05 NOK 1,768 225 224 (1) 11/8/05 PLZ 3,556 879 856 (23) 11/8/05 USD 3,089 2,505 2,555 50 11/8/05 USD 550 446 456 10 11/8/05 USD 2,214 1,795 1,831 36 77 Net Unrealized Depreciation of Forward Foreign Currency Contracts _ 38

Abbreviations: AUD Australian Dollar

77 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Notes to Financial Statements (Unaudited) - (continued)

(e) Forward Foreign Currency Contracts (in 000’s) (continued) Western Asset Euro Core Bond Fund (continued) CHF Swiss Franc DKK Danish Krone EUR European Monetary Unit GBP British Pound Sterling HUF Hungarian Forint NOK Norwegian Krone PLZ Polish Zloty USD United States Dollar Western Asset Diversified Strategic Income Bond Fund

Contracts to Receive Unrealised In Appreciation/ Expiration Value Exchange (Depreciation) Date Local Currency in USD for USD of Contracts

11/8/05 AUD $ 3,292 $2,464 $2,482 $ (18) 11/8/05 AUD 7,000 5,240 5,291 (51) 11/8/05 CAD 1,633 1,377 1,343 34 11/8/05 CAD 8,000 6,747 6,579 168 11/8/05 DKK 45,449 7,519 7,353 166 11/8/05 EUR 398 491 481 10 11/8/05 EUR 1,403 1,731 1,700 31 11/8/05 EUR 2,746 3,388 3,311 77 11/8/05 EUR 3,320 4,096 4,017 79 11/8/05 EUR 896 1,105 1,082 23 11/8/05 EUR 1,357 1,675 1,640 35 11/8/05 EUR 1,556 1,920 1,880 40 11/8/05 GBP 1,276 2,291 2,217 74 11/8/05 HUF 361,059 1,810 1,754 56 11/8/05 NOK 13,200 2,073 2,017 56 11/8/05 NOK 12,122 1,903 1,852 51 11/8/05 NOK 2,810 441 429 12 11/8/05 PLZ 21,873 6,671 6,390 281 $ 1,124

Contracts to Deliver Unrealised In Appreciation/ Expiration Value Exchange (Depreciation) Date Local Currency in USD for USD of Contracts

11/8/05 AUD 6,895 $ 5,162 $ 5,199 $ 37 11/8/05 CAD 6,537 5,512 5,371 (141) 11/8/05 CAD 3,450 2,910 2,840 (70) 11/8/05 DKK 19,999 3,309 3,231 (78) 11/8/05 DKK 6,685 1,106 1,082 (24) 11/8/05 DKK 10,220 1,691 1,659 (32) 11/8/05 DKK 4,765 788 771 (17) 11/8/05 EUR 200 247 248 1 11/8/05 EUR 10,749 13,262 12,996 (266) 11/8/05 EUR 788 972 953 (19) 11/8/05 EUR 1,378 1,700 1,668 (32) 11/8/05 EUR 7,942 9,799 9,616 (183) 11/8/05 EUR 1,386 1,710 1,700 (10) 11/8/05 EUR 1,535 1,894 1,852 (42) 11/8/05 EUR 1,834 2,263 2,217 (46) 11/8/05 EUR 1,671 2,062 2,017 (45) 11/8/05 GBP 251 451 436 (15) 11/8/05 GBP 1,082 1,943 1,880 (63) 11/8/05 GBP 1,539 2,764 2,667 (97) 11/8/05 GBP 804 1,444 1,396 (48) 11/8/05 GBP 1,519 2,729 2,637 (92) 11/8/05 GBP 163 293 283 (10) 11/8/05 GBP 959 1,723 1,665 (58) 11/8/05 GBP 1,163 2,088 2,014 (74) 11/8/05 HUF 336,510 1,687 1,640 (47) 11/8/05 MXN 20,595 1,883 1,900 17

78 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Notes to Financial Statements (Unaudited) - (continued)

(e) Forward Foreign Currency Contracts (in 000’s) (continued) Western Asset Diversified Strategic Income Bond Fund

Contracts to Deliver Unrealised In Appreciation/ Expiration Value Exchange (Depreciation) Date Local Currency in USD for USD of Contracts

11/8/05 MXN 67,595 6,182 6,199 $ 17 11/8/05 NOK 28,227 4,432 4,313 (119) 11/8/05 NZD 3,049 2,098 2,065 (33) 11/8/05 PLZ 4,923 1,501 1,438 (63) 11/8/05 PLZ 9,585 2,923 2,787 (136) (1,788) Net Unrealized Appreciation of Forward Foreign Currency Contracts $ (664)

Abbreviations: AUD Australian Dollar CAD Canadian Dollar DKK Danish Krone EUR European Monetary Unit GBP British Pound Sterling HUF Hungarian Forint MXN Mexican Peso NOK Norwegian Krone NZD New Zealand Dollar PLZ Polish Zloty USD United States Dollar

Western Asset Global Multi Strategy Fund

Contracts to Receive Unrealised In Appreciation/ Expiration Value Exchange (Depreciation) Date Local Currency in USD for USD of Contracts

11/8/05 AUD 648 $ 485 $ 489 $ (4) 11/8/05 AUD 4,000 2,994 3,023 (29) 11/8/05 BRL 6,653 2,736 2,700 36 11/8/05 CAD 1,653 1,394 1,370 24 11/8/05 CAD 3,702 3,122 3,042 80 11/8/05 CAD 800 674 658 16 11/8/05 EUR 14,919 18,407 17,996 411 11/8/05 EUR 1,530 1,888 1,852 36 11/8/05 GBP 1,225 2,201 2,130 71 11/8/05 GBP 1,211 2,174 2,104 70 11/8/05 GBP 323 579 561 18 11/8/05 GBP 506 910 880 30 11/8/05 GBP 253 455 439 16 11/8/05 JPY 320,887 2,908 2,888 20 11/8/05 JPY 877,745 7,955 7,907 48 11/8/05 JPY 351,697 3,188 3,178 10 11/8/05 JPY 183,116 1,660 1,655 5 11/8/05 JPY 688,733 6,242 6,199 43 11/8/05 KRW 1,570,450 1,511 1,548 (37) $ 864

Contracts to Deliver Unrealised In Appreciation/ Expiration Value Exchange (Depreciation) Date Local Currency in USD for USD of Contracts

11/8/05 BRL 32,400 $13,325 $13,500 $ 175 11/8/05 CAD 1,314 1,108 1,081 (27) 11/8/05 CAD 1,992 1,680 1,640 (40) 11/8/05 EUR 4,899 6,044 5,924 (120) 11/8/05 EUR 1,420 1,752 1,718 (34) 11/8/05 EUR 12,822 15,819 15,501 (318) 11/8/05 EUR 2,162 2,667 2,614 (53) 11/8/05 EUR 3,721 4,590 4,504 (86)

79 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Notes to Financial Statements (Unaudited) - (continued)

(e) Forward Foreign Currency Contracts (in 000’s) (continued) Western Asset Global Multi Strategy Fund (continued)

Contracts to Deliver Unrealised In Appreciation/ Expiration Value Exchange (Depreciation) Date Local Currency in USD for USD of Contracts

11/8/05 EUR 1,761 2,172 2,130 $ (42) 11/8/05 EUR 1,741 2,148 2,103 (45) 11/8/05 EUR 729 899 880 (19) 11/8/05 EUR 600 740 745 5 11/8/05 GBP 878 1,576 1,524 (52) 11/8/05 GBP 1,300 2,335 2,256 (79) 11/8/05 GBP 417 749 724 (25) 11/8/05 GBP 1,226 2,202 2,128 (74) 11/8/05 GBP 460 826 797 (29) 11/8/05 IDR 55,069,680 5,221 5,380 159 11/8/05 MXN 73,709 6,741 6,800 59 (645) Net Unrealized Appreciation of Forward Foreign Currency Contracts $ 219

Abbreviations: AUD Australian Dollar BRL Brazilian Real CAD Canadian Dollar EUR European Monetary Unit GBP British Pound Sterling IDR Indonesian Rupiah JPY Japanese Yen KRW South Korean Won MXN Mexican Peso USD United States Dollar

Brandywine Global Opportunities Bond Fund Contracts to Receive Unrealised In Appreciation/ Expiration Value Exchange (Depreciation) Date Local Currency in USD for USD of Contracts

9/15/05 JPY $2,507,404 $22,597 $23,588 $ (991) 9/15/05 JPY 188,161 1,696 1,800 (104) 9/15/05 JPY 4,377,868 39,453 39,892 (439) 9/15/05 JPY 178,904 1,612 1,600 12 9/16/05 JPY 1,311,229 11,818 12,112 (294) 9/16/05 JPY 272,785 2,458 2,473 (15) $ (1,831)

Contracts to Deliver Unrealised In Appreciation/ Expiration Value Exchange (Depreciation) Date Local Currency in USD for USD of Contracts

9/29/05 AUD 38,985 $29,237 $30,097 $ 860 9/29/05 AUD 2,070 1,552 1,566 14 9/16/05 EUR 9,469 11,653 12,111 458 9/16/05 EUR 2,060 2,535 2,473 (62) 9/23/05 EUR 4,985 6,138 6,029 (109) 9/29/05 EUR 7,769 9,567 9,450 (117) 9/29/05 NZD 13,272 9,165 9,423 258 1,302 Net Unrealized Depreciation of Forward Foreign Currency Contracts $ (529)

Abbreviations: AUD Australian Dollar EUR European Monetary Unit JPY Japanese Yen NZD New Zealand Dollar

80 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Notes to Financial Statements (Unaudited) - (continued)

13. Cross Liability The Company is an umbrella fund and where the assets of a fund are insufficient to meet the liabilities of that fund, any liabilities which remain undischarged will attach to the Company as a whole and be allocated amongst the other funds.

14. Directors Renumeration Directors’ fees accrued over the period ending August 31, 2005 were U.S. $32,100.

15. Amendments to Prospectus During the six month period ended August 31, 2005 the Financial Regulator approved the issue of a revised Prospectus on June 22, 2005 and August 12, 2005 for the Company. The material amendments to the Prospectus are summarised below: Prospectus issued on June 22, 2005 • Brandywine Global Equity Fund, a separate sub-fund, was approved by the Financial Regulator but as at August 31, 2005 the Fund had not commenced to trade. •Premier share class has been launched, but as at August 31, 2005 no Premier share class shares have been issued by any of the sub-funds within the Company. • The Distribution policy of the Company was amended (to the current distribution policy as described in note 4) to permit the distribution of net realised or unrealised capital gains. Prospectus issued on August 12, 2005 • No material amendments

81 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Financial Information For the Six Month Period Ended August 31, 2005 Ratio of Operating Expenses to average daily net assets Western Asset U.S. Money Market Fund Class A 0.97% Class B 1.47% Class C 1.46% Western Asset U.S. Core Bond Fund Class A 1.41% Class B 1.66% Class C 2.16% Western Asset Euro Core Bond Fund Class A EUR 1.48% Class A 1.48% Class B 1.73% Class C 2.23% Western Asset Diversified Strategic Income Bond Fund Class A 1.43% Class B 1.68% Class C 2.18% Western Asset Global Multi Strategy Fund Class A 1.43% Class B 1.68% Class C 2.18% Western Asset U.S. High Yield Bond Fund Class A 1.55% Class B 1.80% Class C 2.30% Western Asset Emerging Markets Bond Fund Class A 1.99% Class B 2.24% Class C 2.74% Brandywine Global Opportunities Bond Fund Class A 1.41% Class B 1.66% Class C 2.16% Legg Mason Growth Fund Class A 1.79% Class B 2.29% Class C 2.79% Legg Mason Value Fund Class A 1.84% Galleon 1.00% Class B 2.34% Class C 2.84% Royce U.S. Small Cap Equity Fund Class A 2.05% Class B 2.55% Class C 3.05% Royce 100 Equity Fund Class A 2.25% Class B 2.75% Class C 3.25% Batterymarch European Equity Fund Class A EUR 2.28% Class A 2.28% Class B 2.78% Class C 3.28% Batterymarch Pacific Equity Fund Class A 2.15% Class B 2.65% Class C 3.15%

82 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Statement of Major Portfolio Changes (Unaudited) For the six months ended August 31, 2005

In accordance with the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2003 (as amended), a statement of largest changes in the composition of the Portfolio of Investments during the reporting period is provided to ensure that shareholders can identify changes in the investments held by each sub-fund. These are defined as the aggregate purchases and sales of an investment (including maturities but excluding repurchase agreements, overnight discount notes and time deposits, which are employed chiefly as a means of seeking to ensure efficient portfolio management) exceeding 1.00% of the total value of purchases and sales for the period. At a minimum the largest 20 purchases and sales are listed. If a Fund entered into less than twenty purchases or sales during the reporting period, then all transactions are presented.

Western Asset U.S. Money Market Fund

MAJOR PURCHASES SHARES MAJOR SALES SHARES (in 000’s) (in 000’s) FHLB, 0.000% due 11/08/05 900 CIT Group, Inc., 2.980% due 11/04/05 200 Freddie Mac, 0.000% due 12/13/05 900 CIT Group, Inc., 7.250% due 08/15/05 200 Freddie Mac, 0.000% due 02/28/06 850 FHLDN, 0.000% due 05/09/05 200 Freddie Mac, 0.000% due 01/10/06 800 Toyota Motor Credit Corp., 2.800% due 01/18/06 100 FNMA, 0.000% due 10/24/05 775 Nissan Auto Receivables Owner Trust, 1.930% due 09/15/05 4 FNMA, 0.000% due 09/21/05 763 National Rural Utilities, 6.000% due 05/15/06 690 FNMA, 0.000% due 05/18/05 701 FNMA, 4.000% due 08/18/06 700 FHLB, 0.000% 12/29/05 614 FNMA, 0.000% due 08/17/05 590 FMCDN, 0.000% due 04/13/06 600 FNMDN, 0.000% due 05/11/05 548 FHLB, 0.000% due 09/30/05 530 Freddie Mac, 0.000% 09/07/05 500 FHLB, 0.000% 09/23/05 500 FHLB, 3.170% due 10/26/05 500 FHLB, 0.000% due 11/02/05 500 FHLB, 0.000% due 08/11/05 483 Fannie Discount Note, 0.000% due 08/24/05 464 FNMA, 0.000% due 07/25/05 450 FHLMC, 0.000% due 08/23/05 450 FHLMC, 0.000% due 09/13/05 450 Freddie Mac, 0.000% due 12/16/05 449 Freddie Mac, 0.000% due 08/09/05 390 FHLMC, 0.000% due 09/06/05 380 FHLDN, 0.000% due 04/21/05 368 FHLB, 0.000% due 04/20/05 350 FNMA, 0.000% due 10/03/05 325

83 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Statement of Major Portfolio Changes (Unaudited) - (continued) For the six months ended August 31, 2005

Western Asset U.S. Core Bond Fund

MAJOR PURCHASES SHARES MAJOR SALES SHARES (in 000’s) (in 000’s) U.S. Treasury Notes, 4.000% due 04/15/10 13,140 U.S. Treasury Notes, 4.000% due 04/15/10 12,140 GNMA, 30 Year August TBA, 6.000% due 08/01/33 11,000 U.S. Treasury Notes, 4.000% due 04/15/10 12,140 FNMA, 30 Year April TBA, 5.500% due 04/01/35 7,300 GNMA, 30 Year August TBA, 6.000% due 08/01/33 11,000 U.S. Treasury Bonds, 5.375% due 02/15/31 5,915 FNMA, 30 Year April TBA, 5.500% due 04/01/35 7,300 FNMA, 30 Year April TBA, 6.500% due 4/01/33 5,900 FNMA, 30 Year April TBA, 6.500% due 04/01/33 5,900 FNMA, 30 Year May TBA, 6.500% due 05/01/35 5,700 U.S. Treasury Bonds, 5.375% due 02/15/31 5,360 GNMA, 30 Year April TBA, 6.000% due 04/23/33 5,600 FNMA, 30 Year May TBA, 6.500% due 05/01/35 5,700 GNMA, 30 Year May TBA, 6.000% due 05/01/33 5,600 GNMA, 30 Year March TBA, 6.000% due 03/01/33 5,600 GNMA, 30 Year June TBA, 6.000% due 06/01/33 5,600 GNMA, 30 Year April TBA, 6.000% due 04/23/33 5,600 GNMA, 30 Year July TBA, 6.000% due 07/01/33 5,600 GNMA, 30 Year May TBA, 6.000% due 05/01/33 5,600 FNMA, 30 Year September TBA, 5.500% due 09/01/35 5,200 GNMA, 30 Year June TBA, 6.000% due 06/01/33 5,600 FNMA, 30 Year June TBA, 6.500% due 06/01/35 4,500 GNMA, 30 Year July TBA, 6.000% due 07/01/33 5,600 FNMA, 30 Year July TBA, 6.500% due 07/01/35 4,500 FNMA, 30 Year March TBA, 6.500% due 03/01/33 5,500 U.S. Treasury Notes, 3.875% due 07/15/10 4,480 FNMA, 30 Year March TBA, 5.500% due 03/01/35 5,600 GNMA, 30 Year September TBA, 5.000% due 09/01/33 4,300 FNMA, 30 Year June TBA, 6.500% due 06/01/35 4,500 FNCL, 5.500% due 05/01/35 4,200 FNMA, 30 Year July TBA, 6.500% due 07/01/35 4,500 GNMA, 30 Year August TBA, 5.000% due 08/01/33 4,200 FNCL, 5.500% due 05/01/35 4,200 FNMA, 30 Year July TBA, 5.500% due 07/01/35 4,000 GNMA, 30 Year August TBA, 5.000% due 08/01/33 4,200 FNMA, 30 Year August TBA, 5.500% due 08/01/35 4,000 FNMA, 30 Year July TBA, 5.500% due 07/01/35 4,000 FNMA, 30 Year July TBA, 5.500% due 07/01/33 3,300 FNMA, 30 Year August TBA, 5.500% due 08/01/35 4,000 FNMA, 30 Year September TBA, 5.500% due 09/01/35 3,200 GNMA, 30 Year February TBA, 7.000% due 02/01/33 3,300 FNMA, 30 Year June TBA, 5.500% due 06/01/35 3,100 FNMA, 30 Year July TBA, 6.000% due 07/01/33 3,300 U.S. Treasury Bonds, 5.250% due 11/15/28 2,660 FNMA, 30 Year June TBA, 5.500% due 06/01/35 3,100 U.S. Treasury Bonds, 3.500% due 02/15/10 2,800 FNMA, 30 Year June TBA, 6.000% due 06/01/33 2,650 FNMA, 30 Year June TBA, 6.000% due 06/01/33 2,650 U.S. Treasury Bonds, 3.500% due 02/15/10 2,800 U.S. Treasury Notes, 4.000% due 03/15/20 2,665 U.S. Treasury Notes, 4.000% due 03/15/20 2,665 FHLMC Gold, 15 Year June TBA, 5.000% due 06/01/20 2,450 FHLMC Gold, 15 Year June TBA, 5.000% due 06/01/20 2,450 FHLMC Gold, 15 Year July TBA, 5.000% due 07/01/20 2,450 FHLMC Gold, 15 Year July TBA, 5.000% due 07/01/20 2,450 FHLMC Gold, 15 Year August TBA, 5.000% due 08/01/20 2,450 FHLMC Gold, 15 Year August TBA, 5.000% due 08/01/20 2,450 FHLMC Gold, 15 Year September TBA, 5.000% due 09/01/20 2,450 FNMA, 15 Year March TBA, 5.000% due 03/01/18 2,350 FNMA, 15 Year March TBA, 5.000% due 03/01/18 2,350 FNMA, 30 Year March, 7.000% due 03/01/34 2,245 FNMA, 30 Year March, 7.000% due 03/01/34 2,245 FHLMC Gold, 15 Year May TBA, 5.000% due 05/01/20 2,350 FHLMC Gold, 15 Year April TBA, 5.000% due 04/01/20 2,350 FHLMC Gold, 15 Year March TBA, 5.000% due 03/01/20 2,350 FHLMC Gold, 15 Year May TBA, 5.000% due 05/01/20 2,350 U.S. Treasury Bonds, 4.000% due 02/15/15 2,445 FHLMC Gold, 15 Year April TBA, 5.000% due 04/01/20 2,350

84 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Statement of Major Portfolio Changes (Unaudited) - (continued) For the six months ended August 31, 2005

Western Asset Euro Core Bond Fund

MAJOR PURCHASES SHARES MAJOR SALES SHARES (in 000’s) (in 000’s) Realkredit Danmark A/S, 4.000% due 10/01/35 4,890 Hungarian Government, 8.000% due 02/12/15 73,690 Bundesrepublic Deutschland, 3.750% due 01/04/15 3,340 U.S. Treasury Note, 3.500% due 02/15/10 2,080 Government of France, 5.000% due 10/25/11 2,810 U.S. Treasury Note, 3.625% due 06/15/10 2,040 Bundesobligation, 3.250% due 04/09/10 2,710 Bundesrepublic Deutschland, 3.750% due 07/04/13 1,842 Bonos y Obligaciones del Estado, 4.250% due 10/31/07 1,270 Republic of Austria, 5.000% due 07/15/15 2,191 Bundesrepublic Deutschland, 4.750% due 07/04/34 1,260 U.S. Treasury Note, 3.625% due 06/15/10 2,040 Bundesrepublic Deutschland, 4.250% due 07/04/14 1,250 Bundesobligation, 3.500% due 10/09/09 1,500 Republic of Austria, 5.000% due 07/15/15 1,230 Bundesrepublic Deutschland, 5.250% due 01/04/11 1,367 Bundesobligation, 4.250% due 02/15/08 1,205 Bundesrepublic Deutschland, 5.000% due 01/04/12 1,290 Bundesobligation, 3.250% due 04/09/10 1,200 Bundesrepublic Deutschland, 4.750% due 07/04/34 740 Government of France, 4.750% due 10/25/12 1,164 Government of France, 4.750% due 10/25/12 714 Bundesrepublic Deutschland, 3.750% due 01/04/15 1,105 Bundesrepublic Deutschland, 3.750% due 07/04/13 460 Kingdom of Belgium, 6.250% due 03/28/07 1,070 U.S. Treasury Note, 3.500% due 02/15/10 420 Buoni Poliennali del Tesoro, 5.000% due 05/01/08 825 Netherlands Government, 4.000% due 01/15/37 380 Australian Government, 5.250% due 08/15/10 730 Government of France, 5.750% due 10/25/32 370 Australian Government, 5.750% due 06/15/11 640 General Motors Acceptance Corp., 4.750% due 09/14/09 354 Bundesrepublic Deutschland, 4.250% due 01/04/14 462 Residential Mortgage Securities, 2.324% due 02/11/38 300 Bundesobligation, 5.000% due 02/17/06 410 Fiat 2 A, 2.374% due 07/01/10 297 Buoni Poliennali del Tesoro, 6.000% due 05/01/31 390 Bundesrepublic Deutschland, 6.250% due 01/04/24 284 Netherlands Government, 4.000% due 01/15/37 380 Lloyds TSB Bank Plc, 4.385% due 05/29/49 262 Residential Mortgage Securities, 2.324% due 02/11/38 300 Societa Carto Credit, 2.236% due 07/31/06 270 Granite Mortgages Plc, 2.245% due 09/20/28 270 Kingdom of Belgium, 5.000% due 03/28/35 240

Western Asset Diversified Strategic Income Bond Fund

MAJOR PURCHASES SHARES MAJOR SALES SHARES (in 000’s) (in 000’s) FNMA, 30 Year September TBA, 5.000% due 09/01/35 13,400 Poland Government, 6.250% due 10/24/15 29,170 Dow Jones CDX HY, 8.250% due 06/29/10 11,940 FNMA 30 Year August TBA, 5.000% due 08/01/35 7,500 Mexican Bonos, 8.000% due 12/19/13 113,200 Hungarian Government, 8.2500% due 10/12/09 1,239,000 FNMA 30 Year August TBA, 5.000% due 08/01/35 7,500 Dow Jones CDX HY, 8.250% due 06/29/10 6,000 U.S. Treasury Notes, 3.625% due 06/15/10 5,360 U.S. Treasury Notes, 3.125% due 01/31/07 5,700 New Zealand Government, 8.000% due 11/15/06 5,500 Mexican Bonos, 8.000% due 12/19/13 67,000 Rabobank Fixed Deposit, 3.450% due 08/17/05 4,100 Australian Government, 5.250% due 08/15/10 7,000 Republic of South Africa, 8.750% due 12/21/14 24,500 Republic of South Africa, 6.250% due 03/31/13 21,557 U.S. Treasury Inflationary Index Notes, 0.000% due 04/15/10 4,002 Israel Government Galil, 4.000% due 07/31/24 17,100 Hungarian Government, 8.250% due 10/12/09 535,000 Hungarian Government, 8.500% due 10/12/05 605,000 GNMA, 30 Year April TBA, 6.000% due 04/01/34 2,700 Hungarian Government, 7.500% due 11/12/20 525,000 GNMA, 30 Year May TBA, 6.000% due 05/01/34 2,700 GNMA, 30 Year March TBA, 6.000% due 03/01/34 2,700 GNMA, 30 Year June TBA, 6.000% due 06/01/35 2,700 GNMA, 30 Year April TBA, 6.000% due 04/01/34 2,700 GNMA, 30 Year July TBA, 6.000% due 07/01/35 2,700 GNMA, 30 Year May TBA, 6.000% due 05/01/34 2,700 GNMA, 30 Year August TBA, 6.000% due 08/01/35 2,700 GNMA, 30 Year June TBA, 6.000% due 06/01/35 2,700 GNMA, 30 Year September TBA, 6.000% due 09/01/35 2,700 GNMA, 30 Year July TBA, 6.000% due 07/01/35 2,700 FNMA , 30 Year April TBA, 6.500% due 04/01/33 2,500 GNMA, 30 Year August TBA, 6.000% due 08/01/35 2,700 FNMA , 30 Year May TBA, 6.500% due 05/01/33 2,500 Queensland Treasury, 6.500% due 06/14/05 3,325 FNMA , 30 Year June TBA, 6.500% due 06/01/33 2,500 FNMA 30 Year March TBA, 6.500% due 03/01/35 2,500 FNMA , 30 Year July TBA, 6.500% due 07/01/35 2,500 FNMA , 30 Year May TBA, 6.500% due 05/01/33 2,500 Mexican Bonos, 8.000% due 12/24/08 27,000 FNMA , 30 Year June TBA, 6.500% due 06/01/33 2,500 GNMA, 30 Year September TBA, 5.000% due 09/01/35 2,300 FNMA , 30 Year April TBA, 6.500% due 04/01/33 2,500 Poland Government, 8.000% due 03/24/10 6,500 GNMA, 30 Year July TBA, 6.000% due 07/01/35 2,500 Ford Motor Credit Co., 7.375% due 10/28/09 1,820 Republic of South Africa, 8.750% due 12/21/14 11,450 Japan Bank for International Cooperation, 2.875% due 07/28/05 160,000

85 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Statement of Major Portfolio Changes (Unaudited) - (continued) For the six months ended August 31, 2005

Western Asset Global Multi Strategy Fund

MAJOR PURCHASES SHARES MAJOR SALES SHARES (in 000’s) (in 000’s) U.S. Treasury Notes, 3.625% due 06/15/10 25,620 U.S. Treasury Notes, 3.625% due 06/15/10 12,150 Dow Jones CDX HY, 8.2500% due 06/29/10 19,632 Poland Government, 6.250% due 10/24/15 30,170 FNMA, 30 Year September TBA, 5.000% due 09/15/35 16,100 Dow Jones CDX HY, 8.2500% due 06/29/10 9,831 US Treasury Inflationary Index Notes, 0.875% due 04/15/10 14,302 FNMA, 30 Year August TBA, 5.000% due 08/11/35 8,700 Mexican Bonos, 8.000%, due 12/19/13 163,900 Hungarian Government, 8.250% due 10/12/09 1,577,000 FNMA, 30 Year August TBA, 5.000% due 08/11/35 8,700 Federal Republic of Brazil, 10.125% due 05/15/27 4,140 Republic of South Africa, 8.750% due 12/21/14 39,720 Israel Government Galil, 4.000% due 07/31/24 20,100 Indonesia Recapital Bond, 14.000% due 06/15/09 50,000,000 Mexican Bonos, 8.000%, due 12/19/13 55,000 Russian Federation, 5.000% due 03/31/30 4,650 Republic of South Africa, 6.250% due 03/31/13 19,597 Federal Republic of Brazil, 8.875% due 04/15/24 3,720 Australian Government, 5.250% due 08/15/10 4,720 Otc Brazil Ltn, 0.000% due 01/03/07 11,700 Indonesia Government, 9.500% due 06/15/15 33,234,000 Hungarian Government, 8.250% due 10/12/09 634,000 Republic of South Africa, 8.750% due 12/21/14 17,800 GNMA. 30 Year September TBA, 5.000% due 09/15/35 3,100 France O.A.T. Principal, 0.000% due 04/25/29 5,250 Turkish Government, 0.000% due 01/24/07 5,187 GNMA I TBA May, 6.000% due 05/21/33 2,300 Republic of Turkey, 7.000% due 06/05/20 3,060 GNMA I TBA Mar, 6.000% due 03/01/35 2,300 Federal Republic of Brazil, 14.500% due 10/15/09 2,220 GNMA I TBA April, 6.000% due 04/01/35 2,300 Opteum Mortgage Acceptance Corp., 3.810% due 08/25/35 2,800 GNMA I TBA July, 6.000% due 06/01/35 2,300 Countrywide Alternative Loan Trust, 3.999% due 10/25/35 2,700 GNMA I TBA July, 6.000% due 07/21/35 2,300 Poland Government, 5.750% due 03/24/10 8,700 GNMA I TBA Aug, 6.000% due 08/01/35 2,300 Countrywide Alternative Loan Trust, 3.991% due 09/25/35 2,600 Republic of South Africa, 10.000% due 02/28/08 13,000 Letra Tesouro Nacional, 0.000% due 01/01/07 6,400 FNMA 30 Year March TBA, 6.500% due 03/01/35 2,000 FNMA 30 Year April TBA, 6.500% due 04/01/35 2,000 FNMA 30 Year May TBA, 6.500% due 05/01/35 2,000 FNMA 30 Year June TBA, 6.500% due 06/01/35 2,000 FNMA 30 Year July TBA, 6.500% due 07/01/35 2,000 Federal Republic of Brazil, 8.000% due 04/15/14 1,838 Republic of Turkey, 7.000% due 06/05/20 1,900 Japan Bank for International Cooperation, 2.875% due 07/28/05 190,000 ßHungarian Government, 8.250% due 11/12/20 317,000

86 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Statement of Major Portfolio Changes (Unaudited) - (continued) For the six months ended August 31, 2005

Western Asset U.S. High Yield Bond Fund

MAJOR PURCHASES SHARES MAJOR SALES SHARES (in 000’s) (in 000’s) Toys 'R' Us, Inc., 7.375% due 10/15/18 1,300 Premier Entertainment Biloxi Finance, 10.750% due 02/01/12 929 General Motors Acceptance Corp., 8.000% due 11/01/31 1,080 Toys 'R' Us, Inc., 7.375% due 10/15/18 870 General Motors Acceptance Corp., 6.875% due 08/28/12 870 Portola Packaging, Inc., 8.250% due 02/01/12 870 Visteon Corp., 8.250% due 08/01/10 850 Cincinnati Bell, Inc., 8.375% due 01/15/14 760 Premier Entertainment Biloxi Finance, 10.750% due 02/01/12 820 Charter Communications Holdings LLC, 10.250% due 09/15/10 690 Reliant Energy, Inc., 6.750% due 12/15/14 800 Ardent Health Services, Inc., 10.000% due 08/15/13 686 Sinclair Broadcasting Group Inc., 8.750% due 12/15/11 780 Centennial Communications Corp., 8.125% due 02/01/14 675 Charter Communications Holdings LLC, 0.000% due 05/15/11 720 Sinclair Broadcasting Group Inc., 8.750% due 12/15/11 659 NewPage Corp., 12.000% due 05/01/13 680 Inmarsat Finance II Plc, 10.375% due 11/15/12 657 Sungard Data Systems Inc., 10.250% due 08/15/15 670 Sensus Metering Systems Inc., 8.625% due 12/15/13 613 Allied Waste Industries, 9.250%, 05/01/21 590 Allied Waste Industries, 9.250%, 05/01/21 590 L-3 Communications Corp., 6.375% due 10/15/15 570 Reliant Energy, Inc., 6.750% due 12/15/14 580 Continental Airlines, Inc., 7.033% due 06/15/11 568 General Motors Acceptance Corp., 8.000% due 11/01/31 520 Cincinnati Bell, Inc., 7.000% due 02/15/15 550 Allied Waste North America, 8.875% due 04/01/08 517 Echostar DBS Corp., 6.625% due 10/01/14 540 Jostens IH Corp, 7.625% due 10/01/12 510 DaVita, Inc., 7.250% due 03/15/15 530 General Motors Acceptance Corp., 7.750% due 01/19/10 460 Abitibi-Consolidated Inc., 8.375% due 04/01/15 480 NRG Energy Inc., 8.000% due 12/15/13 453 General Motors Acceptance Corp., 7.750% due 01/19/10 460 Qwest Services Corp., 13.500% due 12/15/10 440 Ocean Rig Norway AS, 8.375% due 07/01/13 400 Orion Power Holdings, Inc. 12.000% due 05/01/10 432 Alliance One Intl., Inc., 11.000% due 05/15/12 400 National Waterworks, Inc., 10.500% due 12/01/12 421 Hawaiian Telecom Communications, Inc., 12.500% due 05/01/15 390 Sungard Data Systems Inc., 9.125% due 08/15/13 370 CitiSteel USA, Inc., 11.553% due 09/01/10 370 Telcordia Technologies, 10.000% due 03/15/13 350 General Motors Acceptance Corp., 6.125% due 01/22/08 350 American Airlines, Inc., 7.800% due 10/01/06 350 Charter Communications Holdings LLC, 10.250% due 09/15/10 340 Kerr-McGee Corp., 7.875% due 09/15/31 300

Western Asset Emerging Markets Bond Fund

MAJOR PURCHASES SHARES MAJOR SALES SHARES (in 000’s) (in 000’s) Russian Federation, 5.000% due 03/31/30 3,050 Federal Republic of Brazil, 10.125% due 05/15/27 2,750 Federal Republic of Brazil, 8.875% due 04/15/24 2,630 Russian Federation, 5.000% due 03/31/30 1,030 Federal Republic of Brazil, 14.500% due 10/15/09 1,500 Federal Republic of Brazil, 8.000% due 04/15/14 958 United Mexican States, 8.375% due 01/14/11 1,210 Ministry of Finance Russia, 3.000% due 05/14/06 770 Federal Republic of Brazil, 12.250% due 03/06/30 880 United Mexican States, 7.500% due 04/08/33 570 Russian Federation, 12.750% due 06/24/28 640 Republic of Peru, 7.350% due 07/21/25 500 United Mexican States, 7.500% due 04/08/33 950 Republic of Philippines, 9.875% due 01/15/19 437 U.S. Treasury Note, 3.875% due 04/15/10 1,000 Federal Republic of Brazil, 14.500% due 10/15/09 350 Republic of Turkey, 7.000% due 06/05/20 845 Caue Finance Ltd., 8.875% due 08/01/15 400 Gazstream S.A., 5.625% due 07/22/13 770 Federal Republic of Brazil, 8.000% due 01/15/18 390 Federal Republic of Brazil CDS, due 05/20/10 700 Republic of Colombia, 10.500% due 07/09/10 300 United Mexican States, 8.300% due 08/15/31 530 Bavaria SA, 8.875% due 11/01/20 200 Federal Republic of Brazil, 11.000% due 08/17/40 535 Hanaro Telecom, 7.000% due 02/01/12 200 Federal Republic of Brazil, 10.125% due 05/15/27 550 TFM SA de CV, 11.750% due 06/15/09 170 Federal Republic of Brazil, 8.000% due 01/15/18 538 Republic of Panama, 9.625% due 08/08/11 135 Republic of Peru, 7.350% due 07/21/25 500 Republic of Turkey, 11.75% due 06/15/10 118 Republic of Philippines, 10.625% due 03/16/25 440 Hynix Semiconductor Inc., 9.875% due 07/01/12 130 Caue Finance Ltd., 8.875% due 08/01/15 400 Federal Republic of Brazil, 4.313% due 04/15/12 112 Gazprom OAO, 8.110% due 01/18/07 10,620 Republic of Bulgaria, 3.750% due 07/28/12 100 Republic of Turkey, 11.875% due 01/15/30 250 Ukraine Government, 11.000% due 03/15/07 75 Federal Republic of Brazil, 4.313% due 04/15/12 371 Peru Bono Soberano, 8.600% due 08/12/17 1,100 Republic of Colombia CDS, due 06/20/10 330 Republic of Colombia, 10.500% due 07/09/10 255 Republic of Peru, 8.750% due 11/21/33 250

87 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Statement of Major Portfolio Changes (Unaudited) - (continued) For the six months ended August 31, 2005

Brandywine Global Opportunities Bond Fund

MAJOR PURCHASES SHARES MAJOR SALES* SHARES (in 000’s) (in 000’s) Poland Government, 5.750% due 06/24/08 65,025 Swedish Government, 5.000% due 01/28/09 129,110 U.S. Treasury Bills, 0.000% due 12/08/05 35,530 Norwegian Government, 6.750% due 01/15/07 72,990 Canadian Treasury Bills, 0.000% due 01/26/06 31,370 Swedish Government, 3.500% due 04/20/06 67,300 FNMA, 4.000% due 05/23/07 25,225 Poland Government, 5.000% due 10/24/13 65,025 FHLB, 4.000% due 04/25/07 22,325 Canadian Treasury Bills, 0.000% due 03/24/05 26,435 U.S. Treasury Bills, 0.000% due 11/17/05 20,230 Buoni Poliennali del Tesoro, 5.500% due 11/01/10 8,390 Poland Government, 5.000% due 10/24/13 15,900 New Zealand Government, 6.000% due 04/15/15 7,135 Swedish Government, 5.000% due 01/28/09 15,500 Norwegian Government, 6.750% due 01/15/07 7,100 U.S. Treasury Bills, 0.000% due 06/09/05 12,560 Norwegian Government, 6.750% due 01/15/07 5,600 Swedish Government, 3.500% due 04/20/06 12,000 Bundesobligation, 5.000% due 08/19/05 5,430 Province of Ontario, 6.250% due 06/16/15 7,500 Swedish Government, 5.000% due 01/28/09 1,800 Singapore Government, 4.000% due 03/01/07 4,600 Queensland Treasury, 8.000% due 09/14/07 4,400 Bundesrepublic Deutschland, 4.500% due 07/04/09 4,300 New South Wales Treasury, 6.000% due 05/01/12 4,270 Canada, Government of, 6.000% due 06/01/11 3,720 Canadian Treasury Bills, 0.000% due 03/24/05 2,800 New Zealand Government, 6.000% due 04/15/15 2,400 Bundesrepublic Deutschland, 5.2500% due 07/04/10 1,500 Buoni Poliennali del Tesoro, 5.500% due 11/01/10 1,300

Legg Mason Growth Fund

MAJOR PURCHASES SHARES MAJOR SALES SHARES (in 000’s) (in 000’s) Nokia Corp., ADR 66 IAC/InteractiveCorp 119 Cisco Systems, Inc. 63 Nextel Communications, Inc. 90 Amazon.Com, Inc. 47 Vodaphone Group Plc, ADR 47 Expedia Inc. 44 Microsoft Corp. 24 Computer Associates International, Inc. 40 McKesson Corp. 22 Harley Davidson, Inc. 40 Nokia Corp., ADR 20 Pfizer, Inc. 38 DIRECTV Group, Inc. 16 Yahoo!, Inc. 37 Morgan Stanley 15 eBay, Inc. 36 Amazon.Com, Inc. 14 DIRECTV Group, Inc.. 34 Merrill Lynch & Co., Inc. 11 Sprint Corp. 29 Yahoo!, Inc. 9 Dell Inc. 28 Computer Associates International, Inc. 9 International Game Technology 27 Pfizer, Inc. 9 American International Group, Inc. 26 UnitedHealth Group, Inc. 8 Electronic Arts, Inc. 25 International Game Technology 8 Citigroup, Inc. 25 Wellpoint, Inc. 8 IAC/InteractiveCorp. (RESTR) 24 eBay, Inc. 8 Aetna, Inc. 23 Citigroup, Inc. 7 Nextel Communications, Inc. 23 Electronic Arts, Inc. 7 QUALCOMM, Inc. 22 QUALCOMM, Inc. 7 Accenture Ltd. 21 Countrywide Financial Corp. 7 Countrywide Financial Corp. 20 American International Group, Inc. 6 FedEx Corp. 13 Harley Davidson, Inc. 5 IAC/InteractiveCorp 12 Caterpillar, Inc. 3 Caterpillar, Inc. 11 Aetna, Inc. 3 UnitedHealth Group, Inc. 9 Google, Inc. 1 Morgan Stanley 7 The Goldman Sachs Group, Inc. 4 Google, Inc. 3

88 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Statement of Major Portfolio Changes (Unaudited) - (continued) For the six months ended August 31, 2005

Legg Mason Value Fund

MAJOR PURCHASES SHARES MAJOR SALES SHARES (in 000’s) (in 000’s) Yahoo! Inc. 1,864 Nextel Communications, Inc. 7,130 Cisco Systems, Inc. 1,426 IAC/InteractiveCorp. 5,243 Pfizer, Inc. 784 Kroger Co. 1,416 eBay, Inc. 524 Comcast Corp. 1,372 Countrywide Financial Corp. 463 Washington Mutual, Inc. 667 Eastman Kodak Co. 431 Waste Management, Inc. 666 IAC/InteractiveCorp. 401 WPP Group Plc 432 Sears Holdings Corp. 329 Albertson's, Inc. 402 Expedia Inc. 239 UnitedHealth Group Inc. 360 IAC/InteractiveCorp. 200 McKesson Corp. 302 Seagate Technology, Inc. 183 Kmart Holding Corp. 257 Symantec Corp. 168 AES Corp. 240 UnitedHealth Group Inc. 153 MGIC Investment Corp. 152 Amazon.Com, Inc. 129 Aetna, Inc. 106 Sprint Corp. 97 Tyco International, Ltd. 72 AES Corp. 75 Fannie Mae 64 Health Net, Inc. 69 JP Morgan Chase & Co. 41 St. Paul Travelers Cos., Inc. 56 Amazon.Com, Inc. 37 Tyco International, Ltd. 40 Electronic Arts, Inc. 29 Kmart Holding Corp. 30 Citigroup, Inc. 25

Royce U.S. Small Cap Equity Fund

MAJOR PURCHASES SHARES MAJOR SALES SHARES (in 000’s) (in 000’s) Vignette Corp. 115 Insight Communications Co. 166 Aspen Technology, Inc. 113 Playtex Products, Inc. 124 Silicon Storage Technology, Inc. 109 Metris Cos., Inc. 120 Harris Interactive, Inc. 103 Emmis Communications Corp. 86 UTStarcom, Inc. 74 Ascential Software Corp. 85 Albany Molecular Research, Inc. 71 The Mosaic Co. 82 Celestica, Inc. 65 Sea Containers, Ltd. 81 GrafTech International, Ltd. 64 Hexcel Corp. 72 QAD, Inc. 62 Titanium Metals Corp. 69 Sanmina-SCI Corp. 60 Oregon Steel Mills, Inc. 66 Fairchild Semiconductor International, Inc. 56 UNOVA, Inc. 50 Interwoven, Inc. 48 The Warnaco Group, Inc. 47 Actel Corp. 45 Orient-Express Hotels, Ltd., Class A 45 Kellwood Co. 43 Vail Resorts, Inc. 40 Advanced Energy Industries, Inc. 42 Long Drug Stores Co. 39 Ferro Corp. 42 Alaska Air Group, Inc. 38 Charlotte Russe Holding Inc. 40 Teledyne Technologies, Inc. 32 Avid Technology, Inc. 38 Lifepoint Hospitals, Inc. 31 Chaparral Steel Co. 32 Gardner Denver, Inc. 29 Bay View Capital Corp. 31 EMCOR Group, Inc. 25 NN, Inc. 30 Nanometrics Inc. 27 Affordable Residential Communities 26 Insteel Industries, Inc. 25 Teradyne, Inc. 22 Commercial Metals Co. 22 Oregon Steel Mills, Inc. 21 Eddie Bauer Holdings, Inc. 17 Linens 'N Things, Inc. 15 Cytec Industries Inc. 14 Piper Jaffray Companies, Inc. 14 McGrath RentCorp 11 Varian Semiconductor Equipment Associates, Inc. 9 Analogic Corp. 8

89 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Statement of Major Portfolio Changes (Unaudited) - (continued) For the six months ended August 31, 2005

Royce 100 Equity Fund

MAJOR PURCHASES SHARES MAJOR SALES SHARES (in 000’s) (in 000’s) On Assignment, Inc. 19 Acton Performance Cos., Inc. 10 RealNetworks, Inc. 17 Exar Corp. 6 Advanced Energy Industries, Inc. 15 Natuzzi Spa, ADR 6 Elan Corp., Plc, ADR 14 Mantech International Corp. 5 Orchid Cellmark, Inc. 12 Foundry Networks, Inc. 5 Universal Truckload Services, Inc. 11 Vishay Intertechnology, Inc. 4 Sapient Corp. 11 Big Lots, Inc. 4 MarketAxess Holdings, Inc. 9 LECG Corp. 4 MPS Group, Inc. 9 E*Trade Financial Corp. 4 eResearch Technology, Inc. 8 Arrow International, Inc. 4 Ceridian Corp. 8 Stewart & Stevenson Services, Inc. 4 Perrigo Co. 8 Gamestop Corp., Class B 4 Foundry Networks, Inc. 7 Kimball international, Inc. 4 Big Lots, Inc. 6 Perrigo Co. 3 ADE Corp. 6 Gamestop Corp., Class A 3 Tektronix , Inc. 5 Priority Healthcare Corp. 3 Morningstar, Inc. 5 Advanced Energy Industries, Inc. 3 Perot Systems Corp. 5 Steris Corp. 3 I-Flow Corp. 4 Universal Truckload Services, Inc. 3 International Securities Exchange, Inc. 4 Arthur J Gallagher & Co. 2 SPSS Inc. 4 Bill Barrett Corp. 2 Corinthian Colleges, Inc. 4 Viasys Healthcare, Inc. 2 Benchmark Electronics, Inc. 3 Sigmatel Inc. 2 A.O. Smith Corp. 3 Endo Pharmaceutical Holdings, Inc. 2 Borders Group, Inc. 3 Dress Barn, Inc. 2 Adesa, Inc. 3 Ensign Resource Service Group, Inc. 2 Holly Corp. 3 Diamond Offshore Drilling, Inc. 2 Nuveen Investments, Inc. 3 Cognex Corp. 1 NAM TAI Electronics, Inc. 3 EMCOR Group 1 Nordson Corp. 2 CBRL Group, Inc. 1 Thor Industries, Inc. 2 American Woodmark Corp. 1 Sigmatel Inc. 2 Mentor Corp. 1 Columbia Sportswear Co. 2 Lufkin Industries, Inc. 1 Arkansas Best Corp. 2 Florida Rock Industries, Inc. 1 Banta Corp. 2 Graco, Inc. 1 Pharmaceutical Product Development, Inc. 1 Lincoln Electric Holdings, Inc. 1

90 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Statement of Major Portfolio Changes (Unaudited) - (continued) For the six months ended August 31, 2005

Batterymarch European Equity Fund

MAJOR PURCHASES SHARES MAJOR SALES SHARES (in 000’s) (in 000’s) SCOR SA 141 Scor SA 71 Gemplus International SA 99 Magyar Tavkozlesi Rt. (Matav) 45 Fyffes Plc 79 Unipol SpA 43 Banco Commercial Portugues SA 60 Banco Bilbao Vizcaya Argentaria SA 39 Unipol SpA 43 Fyffes Plc 36 Greencore Group Plc 42 Banco Santander Central Hispano SA 33 Intracom SA 38 Gettinge AB 29 IFIL - Investments SpA 31 Milano Assicurazioni SpA 28 ASM Lithography Holding NV 21 Telefonica SA 25 ING Groep NV 18 Koninklijke Wessanen NV 15 Nokia Oyj 17 Public Power Corp. 13 Banco Santander Central Hispano SA 16 Novartis AG - Registered Shares 11 Anglo Irish Bank Corp., PLC 15 Skandinaviska Enskilda Banken AB 10 Koninklijke Wessanen NV 15 Royal Dutch Petroleum Co. 9 Bank of Ireland 13 Petroleum Geo - Services SA 9 Eniro AB 13 ASM Lithography Holding NV 9 Irish Life & Permanent Plc 11 RHI AG 8 Endesa SA 11 Foreningssparbanken AB 8 Banche Popolari Unite SCRL 10 Nokia Oyj 8 Allied Irish Banks Plc 9 E. ON AG 8 Intralot SA 8 ING Groep NV 7 Foreningssparbanken AB 8 France Telecom SA 6 Novartis AG - Registered Shares 8 Sanofi-Synthelabo SA 5 Wolters Kluwer NV 8 Axalto Holding NV 5 Deutsche Telekom AG 7 Deutsche Bank AG 4 TUI AG 7 Metro AG 4 OPAP SA 6 Delhaize Group 3 Thomson 5 Baloise Holding AG 3 Orkla ASA 5 Allianz AG 3 Sanofi-Synthelabo SA 5 UBS AG - Registered Shares 3 UBS AG - Registered Shares 5 Renault SA 3 Cap Gemini SA 5 Rodamco Europe NV 2 United Services Group NV 4 Cie Generale de Geophysique SA 2 BNP Paribas SA 4 BNP Paribas SA 2 Grope Steria SCA 4 Andritz AG 2 RWE AG 3 Nokian Renkaat Oyj 2 Boskalis Westminster - CVA 3 Norsk Hydro ASA 2 Roche Holding AG 3 Swiss Life Holding 1 Tessenderlo Chemie NV 3 Wereldhave NV 1 Nutreco Holding NV 3 Zurich Financial Service - Reg 1 Rodamco Europe NV 2 Leica Geosystems AG 1 DSM NV 2 Nestle SA - Registered 1 Holcim Ltd. - Registered Shares 2 Charles Voegele Holding AG 2 Deutsche Bank AG 2 Total SA 2 Assurances Generales de France 2 E. ON AG 2 Wereldhave NV 1 Zurich Financial Service - Reg 1 Leica Geosystems AG 1 Nestle SA - Registered 1

91 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Statement of Major Portfolio Changes (Unaudited) - (continued) For the six months ended August 31, 2005

Battermarch Pacific Equity Fund

MAJOR PURCHASES SHARES MAJOR SALES SHARES (in 000’s) (in 000’s) PT Telekomuikasi Indonesia Tbk 1,519 PT Bumi Resources Tbk 7,661 Prime Success International Group Ltd. 1,441 PT Berlian Laju Tanker Tbk 2,759 PT Bank Central Asia Tbk 1,075 PT Bank Mandiri 1,549 United Tractors Tbk 1,008 Krung Thai Bank PCL 1,243 Petrochina Co., Ltd. 778 I.T., Ltd. 1,086 CNOOC, Ltd. 660 China Telecom Corp., Ltd. 1,062 China Life Insurance Co., Ltd. 656 PT Perusahaan Gas Negara 1,049 Hengan International Group Co., Ltd. 612 PT Bank Danamon Indonesia Tbk 686 Powerchip Semiconductor Corp. 582 SA SA International Holdings, Ltd. 618 Nanya Technology Corp. 540 First Financial Holding Co., Ltd. 502 Sino Land Co. 486 Beauty China Holdings, Ltd. 485 Dongfang Electrical Machinery Co., Ltd. 404 Yuanta Core Pacific Securities Co. 459 Plus Expressways Berhad 402 Taishin Financial Holdings Co., Ltd. 425 PT Astra International Tbk 317 Yanzhou Coal Mining Co., Ltd. 378 Li & Fung, Ltd. 316 Varitronix International, Ltd. 320 Capitaland Ltd. 281 PT Astra International Tbk 317 Lifestyle International Holdings, Ltd. 254 China International Marine Containers (Group) Co., Ltd. 271 China Mobile Hong Kong, Ltd. 245 Top Glove Corp., Berhad 265 Tenaga Nasional Berhad 181 Kerry Properties, Ltd. 147 Bank of India 145 Telecom Malaysia, Berhad 119 China International Marine Containers (Group) Co., Ltd. 136 ZTE Corp. 115 Radiant Opto-Electronics Corp. 121 CLP Holdings, Ltd. 100 Hon Hai Precision Industry Co., Ltd. 90 Total Acces Communication PCL 92 PTT PCL 84 Esprit Holdings, Ltd. 66 LG Telecom, Ltd. 71 Woori Finance Holdings Co., Ltd. 54 Hutchison Whampoa, Ltd. 59 Jardine Strategic Holdings, Ltd. 48 Woori Finance Holdings Co., Ltd. 54 Kumho Industrial Co., Ltd. 47 Kia Motors Corp. 53 Reliance Industries Ltd., GDR, 144A 26 Dacom Corp. 41 Reliance Industries Ltd., GDR, 144A 26 Shinhan Financial Group Ltd. 39 Kia Motors Corp. 23 Jardine Strategic Holdings, Ltd. 33 Daewoo Shipbuilding & Marine Engineering Co., Ltd. 21 Daewoo Shipbuilding & Marine Engineering Co., Ltd. 32 ICICI Bank Ltd., ADR 19 Entergisul Co., Ltd. 18 INTOPS Co., Ltd. 18 Hyundai Motor Co. 13 Entergisul Co., Ltd. 18 Kookmin Bank, ADR 13 Hyundai Engineering & Construction Co., Ltd. 14 Megastudy Co., Ltd. 12 Shinhan Financial Group Ltd. 12 Infosys Technologies Ltd. 9 Megastudy Co., Ltd. 12 Samsung Electronics Co., Ltd. 2 KT&G Corp. 11 LG Corp. 10 Korea Zinc Co., Ltd. 9 LG Electronics, Inc. 6 Hyundai Mobis 4 Samsung Electronics Co., Ltd. 2

92 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Directors and Other Information

Board of Directors Shareholder Servicing Agents Edward A. Taber III (American) Legg Mason Wood Walker, Inc. Deepak Chowdhury (Indian) 100 Light Street Frank Ennis * Baltimore, Maryland 21202 Joseph Keane * U.S.A.

* Independent non-executive Irish Resident Directors Legg Mason Investments (Europe) Limited Registered Office 32 Harbour Exchange Square London E14 9JX Abbey Court United Kingdom Block C Irish Life Centre Lower Abbey Street Legal Advisor Dublin 1, Ireland Arthur Cox Earlsfort Centre Distributors Earlsfort Terrace Dublin 2, Ireland Legg Mason Wood Walker, Inc. 100 Light Street Baltimore, Maryland 21202 Custodian U.S.A. PFPC Trustee and Custodial Services Limited Abbey Court Legg Mason Investments (Europe) Limited Block C 32 Harbour Exchange Square Irish Life Centre London E14 9JX Lower Abbey Street United Kingdom Dublin 1, Ireland

Distributor Status (relevant to UK Shareholders only) Independent Auditors It is intended that the Company will pursue a distribution policy so PricewaterhouseCoopers that such certification can be applied in respect of the six month Chartered Accountants & period ended August 31, 2005 and subsequent periods. Registered Auditors George’s Quay Dublin 2, Ireland

Administrator PFPC International Limited Abbey Court Block C Irish Life Centre Lower Abbey Street Dublin 1, Ireland

Sponsoring Broker Davy Stock Brokers Limited Davy House 49 Dawson Street Dublin 2, Ireland

Investment Manager – Legg Mason Value Fund Legg Mason Funds Management Inc. 100 Light Street Baltimore, Maryland 21202 U.S.A.

93 Legg Mason Global Funds Plc Semi-Annual Report August 31, 2005 Directors and Other Information - (continued)

Investment Manager – Western Asset U.S. Money Sub-Investment Manager - Western Asset U.S. Money Market Fund Market Fund Western Asset U.S. Core Bond Fund Western Asset U.S. Core Western Asset Euro Core Bond Fund Bond Fund Western Asset Diversified Strategic Western Asset Euro Core Income Bond Fund Bond Fund Western Asset Global Multi Western Asset Diversified Strategy Fund Strategic Income Bond Fund Western Asset U.S. High Yield Western Asset Global Multi Bond Fund Strategy Fund Western Asset Emerging Market Western Asset U.S. High Yield Bond Fund Bond Fund Brandywine Global Opportunities Western Asset Emerging Market Bond Fund Bond Fund Legg Mason Growth Fund Western Asset Management Company Royce U.S. Small Cap Equity Fund 117 East Colorado Boulevard Royce 100 Equity Fund Pasadena, California 91105 Batterymarch European Equity Fund U.S.A Batterymarch Pacific Equity Fund

Legg Mason Fund Advisor Inc. Sub-Investment Manager – Royce U.S. Small Cap Equity Fund 100 Light Street Royce 100 Equity Fund Baltimore, Maryland 21202 U.S.A Royce & Associates 1414 Avenue of the Americas New York, NY 10019 Sub-Investment Manager - Western Asset U.S. Money U.S.A Market Fund Western Asset U.S. Core Bond Fund Sub-Investment Manager – Brandywine Global Opportunities Western Asset Euro Core Bond Fund Bond Fund Brandywine Asset Management LLC Western Asset Diversified Three Christina Centre; Suite 1200 Strategic Income Bond Fund 200 North Walnut Street Western Asset Global Multi Wilmington, DE 19801 Strategy Fund U.S.A Western Asset U.S. High Yield Bond Fund Sub-Investment Manager – Batterymarch European Western Asset Emerging Market Equity Fund Bond Fund Batterymarch Pacific Equity Fund Western Asset Management Company Limited Batterymarch Financial Management 155 Bishopsgate 200 Clarendon Street London EC2M 3XG Boston, MA 02116 United Kingdom U.S.A

Sub-Investment Manager – Legg Mason Growth Fund Legg Mason Funds Management Inc. 100 Light Street Baltimore, Maryland 21202 U.S.A

Fund Launch Dates Western Asset U.S. Money Market Fund; 27 February 2004 Western Asset U.S. Core Bond Fund; 3 September, 2002 Western Asset Euro Core Bond Fund; 1 October 2003 Western Asset Diversified Strategic Income Bond Fund; 24 February 2004 Western Asset Global Multi Strategy Fund; 3 September 2002 Western Asset U.S. High Yield Bond Fund; 27 February 2004 Western Asset Emerging Market Bond Fund; 24 February 2004 Brandywine Global Opportunities Bond Fund; 1 October 2003 Legg Mason Growth Fund; 25 February 2004 Legg Mason Value Fund; 23 March 1998 Royce U.S. Small Cap Equity Fund; 6 November 2002 Royce 100 Equity Fund; 1 March 2004 Batterymarch European Equity Fund; 3 September 2002 Batterymarch Pacific Equity Fund; 25 February 2004

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