nvq

0000950123-07-004674.txt : 20070329 0000950123-07-004674.hdr.sgml : 20070329 20070329132728 ACCESSION NUMBER: 0000950123-07-004674 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070131 FILED AS OF DATE: 20070329 DATE AS OF CHANGE: 20070329 EFFECTIVENESS DATE: 20070329 FILER: COMPANY DATA: COMPANY CONFORMED NAME: LEGG MASON PARTNERS INVESTMENT FUNDS, INC. CENTRAL INDEX KEY: 0000355747 IRS NUMBER: 133089608 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-03275 FILM NUMBER: 07726830 BUSINESS ADDRESS: STREET 1: 125 BROAD STREET STREET 2: 10TH FLOOR, MF-2 CITY: NEW YORK STATE: NY ZIP: 10004 BUSINESS PHONE: 800-451-2010 MAIL ADDRESS: STREET 1: 125 BROAD STREET STREET 2: 10TH FLOOR, MF-2 CITY: NEW YORK STATE: NY ZIP: 10004 FORMER COMPANY: FORMER CONFORMED NAME: SMITH BARNEY INVESTMENT FUNDS INC DATE OF NAME CHANGE: 20060105 FORMER COMPANY: FORMER CONFORMED NAME: SMITH BARNEY INVESTMENT FUNDS INC /MD/ DATE OF NAME CHANGE: 20010308 FORMER COMPANY: FORMER CONFORMED NAME: SMITH BARNEY SHEARSON INVESTMENT FUNDS INC DATE OF NAME CHANGE: 19931015

0000355747 S000008863 Legg Mason Partners Multiple Discipline Funds - All Cap Growth and Value Fund

C000024123 Class Y

C000024124 Class A spaax

C000024125 Class B spbbx

C000024126 Class C spblx

C000040491 Class 1

N-Q 1 y32272nvq.htm FORM N-Q nvq

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-3275

Legg Mason Partners Investment Funds, Inc.

(Exact name of registrant as specified in charter)

125 Broad Street, New York, NY 10004
(Address of principal executive offices) (Zip code)

Robert I. Frenkel, Esq.
Legg Mason & Co., LLC
300 First Stamford Place
Stamford, CT 06902
(Name and address of agent for service)

Registrant’s telephone number, including area code: 1-800-451-2010

Date of fiscal year end: April 30,
Date of reporting period: January 31, 2007

ITEM 1. SCHEDULE OF INVESTMENTS

LEGG MASON PARTNERS INVESTMENT
FUNDS, INC.

LEGG MASON PARTNERS MULTIPLE DISCIPLINE
FUNDS ALL CAP GROWTH AND VALUE

FORM N-Q
JANUARY 31, 2007

Legg Mason Partners Multiple Discipline Funds All Cap Growth and Value


Schedule of Investments (unaudited)		January 31, 2007


Shares		Security	Value

COMMON STOCKS — 97.5%
CONSUMER DISCRETIONARY — 17.3%
Internet & Catalog Retail — 2.2%
	90,000	Amazon.com Inc. *	$	3,390,300
	94,150	Expedia Inc. *		2,019,517
	51,550	IAC/InterActiveCorp. *		1,979,520

		Total Internet & Catalog Retail		7,389,337

Media — 11.7%
	110,325	Cablevision Systems Corp., New York Group, Class A Shares*		3,341,744
	109,890	Comcast Corp., Special Class A Shares *		4,775,819
	45,840	Discovery Holding Co., Class A Shares *		759,569
	194,500	Interpublic Group of Cos. Inc. *		2,559,620
	26,377	Liberty Global Inc., Series A Shares *		792,893
	12,935	Liberty Global Inc., Series C Shares *		365,155
	17,420	Liberty Media Holding Corp., Capital Group, Series A Shares *		1,782,066
	149,100	Liberty Media Holding Corp., Interactive Group, Series A Shares *		3,633,567
	156,420	News Corp., Class B Shares		3,824,469
	205,240	Pearson PLC, ADR		3,236,635
	308,200	Time Warner Inc.		6,740,334
	179,500	Walt Disney Co.		6,313,015

		Total Media		38,124,886

Specialty Retail — 3.4%
	55,500	Bed Bath & Beyond Inc. *		2,341,545
	98,540	Charming Shoppes Inc. *		1,292,845
	40,000	Gap Inc.		766,800
	163,900	Home Depot Inc.		6,677,286

		Total Specialty Retail		11,078,476

		TOTAL CONSUMER DISCRETIONARY		56,592,699

CONSUMER STAPLES — 6.9%
Beverages — 2.1%
	81,700	Coca-Cola Co.		3,911,796
	45,305	PepsiCo Inc.		2,955,698

		Total Beverages		6,867,494

Food & Staples Retailing — 1.0%
	71,000	Wal-Mart Stores Inc.		3,385,990

Food Products — 2.0%
	126,500	Unilever PLC, ADR		3,454,715
	59,962	Wm. Wrigley Jr. Co.		3,089,242

		Total Food Products		6,543,957

Household Products — 1.8%
	25,000	Kimberly-Clark Corp.		1,735,000
	62,750	Procter & Gamble Co.		4,070,593

		Total Household Products		5,805,593

		TOTAL CONSUMER STAPLES		22,603,034

ENERGY — 8.9%
Energy Equipment & Services — 3.1%
	25,600	Baker Hughes Inc.		1,767,168
	40,000	BJ Services Co.		1,106,400
	44,600	GlobalSantaFe Corp.		2,587,246
	32,540	Grant Prideco Inc. *		1,274,917
	80,160	Weatherford International Ltd. *		3,236,861

		Total Energy Equipment & Services		9,972,592

Oil, Gas & Consumable Fuels — 5.8%
	140,000	Anadarko Petroleum Corp.		6,125,000
	10,000	Chevron Corp.		728,800

See Notes to Schedule of Investments.

Page 1

Legg Mason Partners Multiple Discipline Funds All Cap Growth and Value


Schedule of Investments (unaudited)		January 31, 2007


Shares		Security	Value

Oil, Gas & Consumable Fuels — 5.8% (continued)
	112,450	Exxon Mobil Corp.	$	8,332,545
	30,780	Murphy Oil Corp.		1,530,074
	87,930	Williams Cos. Inc.		2,373,231

		Total Oil, Gas & Consumable Fuels		19,089,650

		TOTAL ENERGY		29,062,242

FINANCIALS — 13.1%
Capital Markets — 4.9%
	10,000	Franklin Resources Inc.		1,191,100
	49,700	Lehman Brothers Holdings Inc.		4,087,328
	81,710	Merrill Lynch & Co. Inc.		7,644,788
	40,210	State Street Corp.		2,856,920

		Total Capital Markets		15,780,136

Consumer Finance — 1.0%
	56,170	American Express Co.		3,270,217

Diversified Financial Services — 2.2%
	61,842	Bank of America Corp.		3,251,652
	78,831	JPMorgan Chase & Co.		4,014,863

		Total Diversified Financial Services		7,266,515

Insurance — 2.7%
	80,630	American International Group Inc.		5,519,124
	64,660	Chubb Corp.		3,364,906

		Total Insurance		8,884,030

Thrifts & Mortgage Finance — 2.3%
	56,070	MGIC Investment Corp.		3,460,641
	85,500	PMI Group Inc.		4,088,610

		Total Thrifts & Mortgage Finance		7,549,251

		TOTAL FINANCIALS		42,750,149

HEALTH CARE — 17.7%
Biotechnology — 6.8%
	6,945	Alkermes Inc. *		103,620
	70,800	Amgen Inc. *		4,982,196
	122,750	Biogen Idec Inc. *		5,933,735
	36,460	Genentech Inc. *		3,185,510
	50,840	Genzyme Corp. *		3,341,713
	92,000	ImClone Systems Inc. *		2,710,320
	176,780	Millennium Pharmaceuticals Inc. *		1,962,258

		Total Biotechnology		22,219,352

Health Care Providers & Services — 1.4%
	88,300	UnitedHealth Group Inc.		4,614,558

Pharmaceuticals — 9.5%
	69,585	Abbott Laboratories		3,688,005
	31,000	Eli Lilly & Co.		1,677,720
	67,695	Forest Laboratories Inc. *		3,798,367
	48,400	GlaxoSmithKline PLC, ADR		2,619,892
	110,200	Johnson & Johnson		7,361,360
	30,500	Novartis AG, ADR		1,759,545
	265,110	Pfizer Inc.		6,956,486
	64,390	Wyeth		3,181,510

		Total Pharmaceuticals		31,042,885

		TOTAL HEALTH CARE		57,876,795

INDUSTRIALS — 9.3%
Aerospace & Defense — 3.5%
	19,500	Boeing Co.		1,746,420
	77,750	Honeywell International Inc.		3,552,398

See Notes to Schedule of Investments.

Page 2

Legg Mason Partners Multiple Discipline Funds All Cap Growth and Value


Schedule of Investments (unaudited)		January 31, 2007


Shares		Security	Value

Aerospace & Defense — 3.5% (continued)
	36,935	L-3 Communications Holdings Inc.	$	3,041,228
	60,000	Raytheon Co.		3,114,000

		Total Aerospace & Defense		11,454,046

Building Products — 0.1%
	12,975	Simpson Manufacturing Co. Inc.		424,412

Electrical Equipment — 1.1%
	80,000	Emerson Electric Co.		3,597,600

Industrial Conglomerates — 3.1%
	144,600	General Electric Co.		5,212,830
	152,225	Tyco International Ltd.		4,852,933

		Total Industrial Conglomerates		10,065,763

Machinery — 1.5%
	41,050	Caterpillar Inc.		2,630,073
	64,105	Pall Corp.		2,228,290

		Total Machinery		4,858,363

		TOTAL INDUSTRIALS		30,400,184

INFORMATION TECHNOLOGY — 18.8%
Communications Equipment — 2.9%
	255,900	Cisco Systems Inc. *		6,804,381
	130,100	Motorola Inc.		2,582,485

		Total Communications Equipment		9,386,866

Computers & Peripherals — 2.8%
	110,990	Dell Inc. *		2,691,507
	22,380	International Business Machines Corp.		2,218,977
	39,900	SanDisk Corp. *		1,603,980
	94,907	Seagate Technology		2,571,031

		Total Computers & Peripherals		9,085,495

Electronic Equipment & Instruments — 0.8%
	77,000	Agilent Technologies Inc. *		2,464,000

Internet Software & Services — 1.9%
	33,500	eBay Inc. *		1,085,065
	40,000	VeriSign Inc. *		956,000
	146,500	Yahoo! Inc. *		4,147,415

		Total Internet Software & Services		6,188,480

Semiconductors & Semiconductor Equipment — 6.0%
	105,000	Applied Materials Inc.		1,861,650
	42,500	Broadcom Corp., Class A Shares *		1,356,600
	61,690	Cree Inc. *		948,792
	181,600	Intel Corp.		3,806,336
	179,175	Micron Technology Inc. *		2,320,316
	47,100	Novellus Systems Inc. *		1,452,093
	225,933	Taiwan Semiconductor Manufacturing Co., Ltd., ADR		2,464,929
	151,300	Texas Instruments Inc.		4,719,047
	44,427	Verigy Ltd. *		814,347

		Total Semiconductors & Semiconductor Equipment		19,744,110

Software — 4.4%
	55,385	Advent Software Inc. *		1,980,014
	53,000	Autodesk Inc. *		2,317,160
	51,000	Electronic Arts Inc. *		2,550,000
	241,900	Microsoft Corp.		7,465,034

		Total Software		14,312,208

		TOTAL INFORMATION TECHNOLOGY		61,181,159

See Notes to Schedule of Investments.

Page 3

Legg Mason Partners Multiple Discipline Funds All Cap Growth and Value


Schedule of Investments (unaudited)		January 31, 2007


Shares		Security	Value

MATERIALS — 3.7%
Chemicals — 1.4%
	33,500	Dow Chemical Co.	$	1,391,590
	63,000	E.I. du Pont de Nemours & Co.		3,122,280

		Total Chemicals		4,513,870

Metals & Mining — 1.1%
	107,120	Alcoa Inc.		3,459,976
	59,976
Paper & Forest Products — 1.2%
	53,930	Weyerhaeuser Co.		4,044,750

		TOTAL MATERIALS		12,018,596

TELECOMMUNICATION SERVICES — 1.8%
Diversified Telecommunication Services — 0.9%
	73,700	Verizon Communications Inc.		2,838,924

Wireless Telecommunication Services — 0.9%
	100,421	Vodafone Group PLC, ADR		2,951,373

		TOTAL TELECOMMUNICATION SERVICES		5,790,297

		TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENT
		(Cost — $250,389,125)		318,275,155


Face
Amount

SHORT-TERM INVESTMENT — 2.7%
Repurchase Agreement — 2.7%
$	9,028,000	Interest in $535,536,000 joint tri-party repurchase agreement dated 1/31/07 with Deutsche Bank Securities Inc., 5.260% due 2/1/07; Proceeds at maturity — $9,029,319; (Fully collateralized by various U.S. government agency obligations, 0.000% to 14.299% due 11/25/15 to 2/25/37; Market value — $9,208,560) (Cost — $9,028,000)		9,028,000

		TOTAL INVESTMENTS — 100.2% (Cost — $259,417,125#)		327,303,155
		Liabilities in Excess of Other Assets — (0.2)%		(758,746	)

		TOTAL NET ASSETS — 100.0%	$	326,544,409


*		Non-income producing security.

#		Aggregate cost for federal income tax purposes is substantially the same.

		Abbreviation used in this schedule:

		ADR — American Depositary Receipt

See Notes to Schedule of Investments.

Page 4

Notes to Schedule of Investments (unaudited)

1. Organization and Significant Accounting Policies

The Legg Mason Partners Multiple Discipline Funds All Cap Growth and Value (the “Fund”) is a separate diversified series of Legg Mason Partners Investment Funds, Inc. (the “Company”). The Company, a Maryland corporation, is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company.

On February 2, 2007, the Fund was renamed Legg Mason Partners All Cap Fund.

The following are significant accounting policies consistently followed by the Fund and are in conformity with U.S. generally accepted accounting principles (“GAAP”).

(a) Investment Valuation. Equity securities for which market quotations are available are valued at the last sale price or official closing price on the primary market or exchange on which they trade. Debt securities are valued at the mean between the bid and asked prices provided by an independent pricing service that are based on transactions in debt obligations, quotations from bond dealers, market transactions in comparable securities and various other relationships between securities. When prices are not readily available, or are determined not to reflect fair value, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded, but before the Fund calculates its net asset value, the Fund may value these investments at fair value as determined in accordance with the procedures approved by the Fund’s Board of Directors. Short-term obligations with maturities of 60 days or less are valued at amortized cost, which approximates market value.

(b) Repurchase Agreements. When entering into repurchase agreements, it is the Fund’s policy that its custodian or a third party custodian take possession of the underlying collateral securities, the market value of which at least equals the principal amount of the repurchase transaction, including accrued interest. To the extent that any repurchase transaction exceeds one business day, the value of the collateral is marked-to-market to ensure the adequacy of the collateral. If the seller defaults, and the market value of the collateral declines or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of the collateral by the Fund may be delayed or limited.

(c) Security Transactions. Security transactions are accounted for on a trade date basis.

2. Investments

At January 31, 2007, the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:



Gross unrealized appreciation	$	73,106,911
Gross unrealized depreciation		(5,220,881	)

Net unrealized appreciation	$	67,886,030

Page 5

ITEM 2.

CONTROLS AND PROCEDURES.

	(a)		The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a- 3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the 1940 Act and 15d-15(b) under the Securities Exchange Act of 1934.

	(b)		There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are likely to materially affect the registrant’s internal control over financial reporting.

ITEM 3.

EXHIBITS.

Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are attached hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Legg Mason Partners Investment Funds, Inc.


By		/s/ R. Jay Gerken

R. Jay Gerken
Chief Executive Officer

Date: March 29, 2007

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.


By		/s/ R. Jay Gerken

R. Jay Gerken
Chief Executive Officer

Date: March 29, 2007


By		/s/ Kaprel Ozsolak

Kaprel Ozsolak
Chief Financial Officer

Date: March 29, 2007

EX-99.CERT 2 y32272exv99wcert.htm EX-99.CERT: CERTIFICATION EX-99.CERT

CERTIFICATIONS

I, R. Jay Gerken, certify that:

1.		I have reviewed this report on Form N-Q of Legg Mason Partners Investment Funds, Inc. — Legg Mason Partners Multiple Discipline Funds All Cap Growth and Value;

2.		Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.		Based on my knowledge, the schedule of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

4.		The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

	a)		Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

	b)		Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

	c)		Evaluated the effectiveness of the registrant’s disclosure controls and procedures and

			presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

	d)		Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

	a)		All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

	b)		Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


Date: March 29, 2007		/s/ R. Jay Gerken

		R. Jay Gerken
		Chief Executive Officer

I, Kaprel Ozsolak, certify that:

1.		I have reviewed this report on Form N-Q of Legg Mason Partners Investment Funds, Inc. — Legg Mason Partners Multiple Discipline Funds All Cap Growth and Value;

2.		Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.		Based on my knowledge, the schedule of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

4.		The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

	a)		Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

	b)		Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

	c)		Evaluated the effectiveness of the registrant’s disclosure controls and procedures and

			presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

	d)		Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

	a)		All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

	b)		Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


Date: March 29, 2007		/s/ Kaprel Ozsolak

		Kaprel Ozsolak
		Chief Financial Officer