Three Legg Mason trusts to reorganize as statutory trusts in February

By Toni Weeks

San Diego, Nov. 17 - The boards of the Legg Mason Global Capital Management Growth Trust, the Legg Mason Capital Management Special Investment Trust and the Legg Mason Capital Management Value Trust have approved the reorganization of each of the funds into a new series of a Maryland statutory trust, the Legg Mason Global Asset Management Trust.

According to a 497 filing with the Securities and Exchange Commission, the funds are organized as series of Maryland corporations. The reorganizations, which are expected to occur on Feb. 29, will provide flexibility to the trustees in conducting the business of the new trust and will allow it to operate in a more cost-efficient manner.

The reorganizations will be "shell reorganizations" and not result in a combination of assets of the funds. Shareholders will hold the same proportionate interest in the same portfolio of assets after the reorganization. The portfolio management teams, investment objectives, strategies, policies and restrictions, class structures, fees and board members of the new funds will be the same as in their predecessor funds.

The reorganization will result in changes to fund governances as a result of the differences between Maryland General Corporate Law and the Maryland Statutory Trust Act. There will be changes to voting power, the written consent of shareholders, approval of charter amendments, removal of directors, redemption of shares, derivative actions and ability to inspect books and records.

The funds' adviser is Baltimore-based Legg Mason Capital Management.

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