LEGG MASON PARTNERS MONEY MARKET TRUST
SUPPLEMENT DATED SEPTEMBER 16, 2020
TO THE SUMMARY PROSPECTUS AND PROSPECTUS
EACH DATED DECEMBER 27, 2019
OF WESTERN ASSET U.S. TREASURY RESERVES (the “Fund”)
The following replaces the introductory narrative, fee table and footnotes and expense example in the section of the Fund’s Summary Prospectus and Prospectus entitled “Fees and expenses of the fund”:
The accompanying table describes the fees and expenses that you may pay if you buy, hold and sell shares of the fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries which are not reflected in the table and examples below.
| Shareholder fees | ||||||||
| (fees paid directly from your investment) |
| |||||||
| Class N | |
Service Shares |
||||||
| Maximum sales charge (load) imposed on purchases |
None | None | ||||||
| Maximum deferred sales charge (load) |
None | None | ||||||
| Small account fee1 |
$15 | None | ||||||
| Annual fund operating expenses (%)2 | ||||||||
| (expenses that you pay each year as a percentage of the value of your investment) |
| |||||||
| Class N | |
Service Shares |
||||||
| Management fees2 |
0.45 | 0.45 | ||||||
| Distribution and/or service (12b-1) fees |
0.103 | 0.50 | ||||||
| Other expenses4 |
0.08 | 3.70 | ||||||
| Total annual fund operating expenses2 |
0.63 | 4.65 | ||||||
| Fees waived and/or expenses reimbursed5 |
(0.03) | (3.65) | ||||||
| Total annual fund operating expenses after waiving fees and/or reimbursing expenses |
0.60 | 1.00 | ||||||
| 1 | If the value of your account is below $1,000 ($250 for retirement plans that are not employer-sponsored), the fund may charge you a fee of $3.75 per account that is determined and assessed quarterly by the fund or your Service Agent (with an annual maximum of $15.00 per account). Please contact your Service Agent or the fund for more information. |
| 2 | The fund is a feeder fund that invests in securities through an underlying mutual fund, U.S. Treasury Reserves Portfolio. The information in this table and in the Example below reflects the direct fees and expenses of the fund and its allocated share of fees and expenses of U.S. Treasury Reserves Portfolio. Provisions in the fund’s management agreement require the aggregate management fee of the fund and U.S. Treasury Reserves Portfolio not to exceed 0.45%. The gross expenses in the financial highlights do not reflect the reduction in the fund’s management fee by the amount paid by the fund for its allocable share of the management fee paid to U.S. Treasury Reserves Portfolio. |
| 3 | Class N shares may pay a fee of up to 0.25% of average daily net assets pursuant to the fund’s Rule 12b-1 plan. Effective September 16, 2020, the Board of Trustees has determined that, such payments shall not exceed 0.10% of average daily net assets attributable to Class N shares. This arrangement cannot be terminated prior to December 31, 2021 without the Board of Trustees’ approval. |
| 4 | “Other expenses” have been restated to reflect current expenses. |
| 5 | The manager has agreed to waive fees and/or reimburse operating expenses (other than interest, brokerage, taxes, extraordinary expenses and acquired fund fees and expenses) so that the ratio of total annual fund operating expenses will not exceed 0.60% for Class N shares and 1.00% for Service Shares, subject to recapture as described below. These arrangements cannot be terminated prior to December 31, 2021 without the Board of Trustees’ approval. Additional amounts may be voluntarily waived and/or reimbursed from time to time. The manager is permitted to recapture amounts waived and/or reimbursed to the class during the same fiscal year if the class’ total annual fund operating expenses have fallen to a level below the limits described above. In no case will the manager recapture any amount that would result, on any particular business day of the fund, in the class’ total annual fund operating expenses exceeding the applicable limits described above or any other lower limit then in effect. |
Example
This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes:
| • | You invest $10,000 in the fund for the time periods indicated |
| • | Your investment has a 5% return each year and the fund’s operating expenses remain the same (except that any applicable fee waiver or expense reimbursement is reflected only through its expiration date) |
| • | You reinvest all distributions and dividends without a sales charge |
Although your actual costs may be higher or lower, based on these assumptions your costs would be:
| Number of years you own your shares ($) | ||||||||||||||||||||
| 1 year | 3 years | 5 years | 10 years | |||||||||||||||||
| Class N (with or without redemption at end of period) |
61 | 198 | 347 | 783 | ||||||||||||||||
| Service Shares (with or without redemption at end of period) |
102 | 1,072 | 2,050 | 4,523 | ||||||||||||||||
The fund is a feeder fund that invests in securities through an underlying mutual fund, U.S. Treasury Reserves Portfolio, which has the same investment objective and strategies as the fund. This structure is sometimes known as a “master/feeder” structure.
Additionally, the section of the Fund’s Prospectus entitled “More on fund management – Distribution” is deleted in its entirety and replaced with the following
Legg Mason Investor Services, LLC (“LMIS”), an indirect, wholly-owned broker/dealer subsidiary of Franklin Resources, serves as each fund’s sole and exclusive distributor.
Each fund has adopted a shareholder services and distribution plan pursuant to Rule 12b-1 under the Investment Company Act of 1940, as amended. Under the plan, each fund pays distribution and/or service fees, based on annualized percentages of average daily net assets, of up to 0.10% for Class A and Class A2 shares, of up to 0.25% for Class N shares and up to 0.50% for Service Shares. Effective September 16, 2020, the Board has determined that such payments for Class N shares of U.S. Treasury Reserves shall not exceed 0.10% of average daily net assets attributable to such class. This arrangement cannot be terminated prior to December 31, 2021 without the Board’s approval. From time to time, LMIS and/or financial intermediaries may agree to a reduction or waiver of these fees. These fees are an ongoing expense and, over time, will increase the cost of your investment and may cost you more than other types of sales charges.
Please retain this supplement for future reference.
WASX618373
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