Legg Mason Partners Variable Equity Trust NCSR Certified annual shareholder report (management investment company)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-21128

Legg Mason Partners Variable Portfolios IV

(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, 4^th Floor
Stamford, CT 06902
(Name and address of agent for service)

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

Date of fiscal year end: December 31

Date of reporting period: December 31, 2006

ITEM 1. REPORT TO STOCKHOLDERS.

The Annual Report to Stockholders is filed herewith.


		Legg Mason Partners Variable Portfolios IV Legg Mason Partners Variable Multiple Discipline Portfolio – All Cap Growth and Value Legg Mason Partners Variable Multiple Discipline Portfolio – Large Cap Growth and Value Legg Mason Partners Variable Multiple Discipline Portfolio – Global All Cap Growth and Value Legg Mason Partners Variable Multiple Discipline Portfolio – Balanced All Cap Growth and Value

ANNUAL REPORT


	DECEMBER 31, 2006


	INVESTMENT PRODUCTS: NOT FDIC INSURED•NO BANK GUARANTEE•MAY LOSE VALUE


	Legg Mason Partners Variable Portfolios IV

Annual Report • December 31, 2006

What’s

Inside


Letter from the Chairman		I
Legg Mason Partners Variable Multiple Discipline Portfolio — All Cap Growth and Value
	Portfolio Overview	1
	Fund at a Glance	4
	Historical and Fund Performance	5
Legg Mason Partners Variable Multiple Discipline Portfolio — Large Cap Growth and Value
	Portfolio Overview	6
	Fund at a Glance	9
	Historical and Fund Performance	10
Legg Mason Partners Variable Multiple Discipline Portfolio — Global All Cap Growth and Value
	Portfolio Overview	11
	Fund at a Glance	14
	Historical and Fund Performance	15
Legg Mason Partners Variable Multiple Discipline Portfolio — Balanced All Cap Growth and Value
	Portfolio Overview	16
	Fund at a Glance	19
	Historical and Fund Performance	20
Fund Expenses		22
Schedules of Investments		24
Statements of Assets and Liabilities		47
Statements of Operations		48
Statements of Changes in Net Assets		49
Financial Highlights		53
Notes to Financial Statements		57
Report of Independent Registered Public Accounting Firm		67
Additional Information		68
Additional Shareholder Information		76
Important Tax Information		78


	Letter from the Chairman

R. JAY GERKEN, CFA

Chairman, President and
Chief Executive Officer


	Dear Shareholder,

	U.S. economic growth was mixed during the 12-month reporting period. After gross domestic product (“GDP”)ⁱ increased 1.7% in the fourth quarter of 2005, the economy then rebounded sharply in the first quarter of 2006. Over this period, GDP rose 5.6%, its best showing since the third quarter of 2003. Second quarter 2006 GDP growth was 2.6% and it further moderated to 2.0% in the third quarter. The economy then strengthened in the fourth quarter, due largely to increased consumer spending. Over this time, the advance estimate for GDP growth was 3.5%.


	After increasing the federal funds rateⁱⁱ to 5.25% in June — its 17th consecutive rate hike — the Federal Reserve Board (“Fed”)ⁱⁱⁱ paused from raising rates at its next five meetings. In its statement accompanying the January 2007 meeting, the Fed stated, “Recent indicators have suggested somewhat firmer economic growth, and some tentative signs of stabilization have appeared in the housing market. Readings on core inflation have improved modestly in recent months, and inflation pressures seem likely to moderate over time.”
	After treading water during the first half of 2006, U.S. stocks rallied sharply and generated strong results during the second half of the reporting period. Early in the year, continued Fed rate hikes, record high oil prices and uncertainty about the economy dragged down the stock market. However, oil prices then retreated, the economy began to weaken and the Fed held rates steady. These factors, combined with continued strong corporate profits, propelled the market higher. All told, the S&P 500 Index^iv returned 15.78% during the 12 months ended December 31, 2006.
	International equities also generated positive results during the reporting period, and handily outperformed their U.S. counterparts. During the 12 months ended December 31, 2006, the MSCI EAFE Index^v returned 26.34%. As was the case in the U.S., international equities experienced periods of

Legg Mason Partners Variable Portfolios IV I


	volatility, but rallied as the period progressed. One notable exception was Japan, as its equity market lagged the MSCI EAFE Index during the reporting period. Mixed economic data and concerns over the likelihood of higher interest rates dragged its market down.

	During the reporting period, short- and long-term Treasury yields experienced periods of significant volatility. After peaking in late June — with two- and 10-year Treasuries hitting 5.29% and 5.25%, respectively—rates fell sharply as the Fed paused from its tightening cycle. In addition, inflationary pressures eased as oil prices fell after reaching a record high in mid-July. Overall, during the 12 months ended December 31, 2006, two-year Treasury yields increased from 4.41% to 4.82%. Over the same period, 10-year Treasury yields moved from 4.39% to 4.71%. Looking at the 12-month period as a whole, the overall bond market, as measured by the Lehman Brothers U.S. Aggregate Index^vi, returned 4.33%.

	Please read on for a more detailed look at prevailing economic and market conditions during the Portfolios’ fiscal year and to learn how those conditions have affected each Portfolio’s performance.

Special Shareholder Notices

Legg Mason Partners Variable Multiple Discipline Portfolio — All Cap Growth and Value¹


	Effective August 1, 2006, Legg Mason Partners Fund Advisor, LLC (“LMPFA”) became the Portfolio’s investment manager and ClearBridge Advisors, LLC (“ClearBridge”), formerly CAM North America, LLC, became the Portfolio’s subadviser. The portfolio managers who are responsible for the day-to-day management of the Portfolio remained the same immediately prior to and immediately after the date of these changes. LMPFA and ClearBridge are wholly- owned subsidiaries of Legg Mason, Inc.

	The Portfolio was formerly known as Multiple Discipline Portfolio — All Cap Growth and Value.

Legg Mason Partners Variable Multiple Discipline Portfolio — Large Cap Growth and Value¹


	Effective August 1, 2006, Legg Mason Partners Fund Advisor, LLC (“LMPFA”) became the Portfolio’s investment manager and ClearBridge Advisors, LLC (“ClearBridge”),


¹	The Portfolio is an underlying investment option of various variable annuity and variable life insurance products.

II Legg Mason Partners Variable Portfolios IV

formerly CAM North America, LLC, became the Portfolio’s subadviser. The portfolio managers who are responsible for the day-to-day management of the Portfolio remained the same immediately prior to and immediately after the date of these changes. LMPFA and ClearBridge are wholly-owned subsidiaries of Legg Mason, Inc.


	The Portfolio was formerly known as Multiple Discipline Portfolio — Large Cap Growth and Value.

Legg Mason Partners Variable Multiple Discipline Portfolio — Global All Cap Growth and Value¹


	Effective August 1, 2006, Legg Mason Partners Fund Advisor, LLC (“LMPFA”) became the Portfolio’s investment manager and ClearBridge Advisors, LLC (“ClearBridge”), formerly CAM North America, LLC, became the Portfolio’s subadviser. The portfolio managers who are responsible for the day-to-day management of the Portfolio remained the same immediately prior to and immediately after the date of these changes. LMPFA and ClearBridge are wholly- owned subsidiaries of Legg Mason, Inc.
	The Portfolio was formerly known as Multiple Discipline Portfolio — Global All Cap Growth and Value.

Legg Mason Partners Variable Multiple Discipline Portfolio — Balanced All Cap Growth and Value¹


	Effective August 1, 2006, Legg Mason Partners Fund Advisor, LLC (“LMPFA”) became the Portfolio’s investment manager and ClearBridge Advisors, LLC (“ClearBridge”), formerly CAM North America, LLC, and Western Asset Management Company (“Western Asset”) became the Portfolio’s subadvisers. LMPFA, ClearBridge, and Western Asset are wholly-owned subsidiaries of Legg Mason, Inc.
	The portfolio managers who are responsible for the day-to-day management of the Portfolio remained the same immediately prior to and immediately after the date of these changes.
	In addition to the investment manager and subadviser changes discussed above, on December 11, 2006, shareholder approval was obtained authorizing the Portfolio’s Board to change the Portfolio’s investment objective and investment strategy. Pursuant to Board authorization, on or about April 30, 2007, the Portfolio’s new investment objective will be total return (that is, a combination of income and long-


¹	The Portfolio is an underlying investment option of various variable annuity and variable life insurance products.

Legg Mason Partners Variable Portfolios IV III

term capital appreciation). In connection with the change in the Portfolio’s investment objective, it is expected that the Portfolio will no longer follow a fixed asset allocation strategy.


	The Portfolio’s new strategy will be to invest in equity and fixed income securities of both U.S. and foreign issuers. The Portfolio will seek to generate income and appreciation by investing in income and non-income producing equity and equity-related securities, including common stocks, interests in real estate investment trusts and convertible securities. In an effort to generate income, the Portfolio will be permitted to purchase investment-grade and high-yield fixed income securities or unrated securities of equivalent quality.
	Upon adopting the new investment strategy discussed above, the Portfolio will be renamed Legg Mason Partners Variable Capital and Income Portfolio. Additionally, at that time, Robert Gendelman, a portfolio manager of ClearBridge, will become the sole portfolio manager responsible for the day-to-day management of the Portfolio.
	The Portfolio was formerly known as Multiple Discipline Portfolio — Balanced All Cap Growth and Value.

Information About Your Portfolios


	As you may be aware, several issues in the mutual fund industry have come under the scrutiny of federal and state regulators. Affiliates of the Portfolios’ manager have, in recent years, received requests for information from various government regulators regarding market timing, late trading, fees, and other mutual fund issues in connection with various investigations. The regulators appear to be examining, among other things, the Portfolios’ response to market timing and shareholder exchange activity, including compliance with prospectus disclosure related to these subjects. The Portfolios are not in a position to predict the outcome of these requests and investigations.
	Important information with regard to recent regulatory developments that may affect the Portfolios is contained in the Notes to Financial Statements included in this report.

IV Legg Mason Partners Variable Portfolios IV


	As always, thank you for your confidence in our stewardship of your assets. We look forward to helping you meet your financial goals.

Sincerely,

R. Jay Gerken, CFA

Chairman, President and Chief Executive Officer

January 31, 2007

All index performance reflects no deduction for fees, expenses or taxes. Please note that an investor cannot invest directly in an index.


ⁱ		Gross domestic product is a market value of goods and services produced by labor and property in a given country.

ⁱⁱ		The federal funds rate is the interest rate that banks with excess reserves at a Federal Reserve district bank charge other banks that need overnight loans.

ⁱⁱⁱ		The Federal Reserve Board is responsible for the formulation of a policy designed to promote economic growth, full employment, stable prices, and a sustainable pattern of international trade and payments.

^iv		The S&P 500 Index is an unmanaged index of 500 stocks that is generally representative of the performance of larger companies in the U.S.

^v		The MSCI EAFE Index is an unmanaged index of common stocks of companies located in Europe, Australasia and the Far East.

^vi		The Lehman Brothers U.S. Aggregate Index is a broad-based bond index comprised of government, corporate, mortgage and asset-backed issues, rated investment grade or higher, and having at least one year to maturity.

Legg Mason Partners Variable Portfolios IV V

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Portfolio Overview

Legg Mason Partners Multiple Discipline Portfolio – All Cap Growth and Value

Q. What were the overall market conditions during the Portfolio’s reporting period?

A. The economy weakened during the period due, in part, to the lagged effect of higher short-term interest rates and a rapidly cooling housing market. Inflationary pressures intensified during the first half of the reporting period. However, as oil prices retreated from their July record high and housing prices moderated, inflation became less of an issue. The Federal Reserve Board (“Fed”)ⁱ boosted its target federal funds rateⁱⁱ from 4.25% when the reporting period began to 5.25% in June 2006. The Fed then held rates steady during the remainder of the year.

After a weak first half of the year, the U.S. stock market rallied sharply and generated strong returns in the second half of 2006. The stock market’s early woes were due to a variety of factors. These included the Fed continuing to raise short-term interest rates, record high oil prices, the cooling housing market, and concerns about the future direction of the economy and corporate profits. However, many of these issues soon lifted as oil prices fell sharply, the Fed paused from raising interest rates, and corporate profits continued to surprise on the upside. For the year as a whole, the S&P 500 Indexⁱⁱⁱ rose 15.78%, its best performance since 2003. The market’s gains were broad in scope. All 10 sectors in the S&P 500 Index posted positive returns during the year, led by telecommunications services and energy. In contrast, healthcare and information technology lagged the overall market. From a style perspective, value stocks outperformed their growth counterparts during the reporting period, as the Russell 3000 Value^iv and Russell 3000 Growth^v Indices returned 22.34% and 9.46%, respectively.

Performance Update

For the 12 months ended December 31, 2006, Legg Mason Partners Variable Multiple Discipline Portfolio – All Cap Growth and Value¹ returned 13.62%. These shares underperformed the Lipper Variable Multi-Cap Core Funds Category Average,² which increased 14.45% over the same time frame. The Portfolio’s unmanaged benchmarks, the Russell 3000 Index^vi and the S&P 500 Index, returned 15.72% and 15.78%, respectively, for the same period.

The Portfolio is an underlying investment option of various variable annuity and variable life insurance products. The Portfolio’s performance returns do not reflect the deduction of initial sales charges and expenses imposed in connection with investing in variable annuity or variable life insurance contracts, such as administrative fees, account charges, and surrender charges, which, if reflected, would reduce the performance of the Portfolio. Past performance is no guarantee of future results.


²	Lipper, Inc. is a major independent mutual-fund tracking organization. Returns are based on the 12-month period ended December 31, 2006, including the reinvestment of all distributions, including returns of capital, if any, calculated among the 196 funds in the Portfolio’s Lipper category.

Legg Mason Partners Variable Portfolios IV 2006 Annual Report 1


	Performance Snapshot as of December 31, 2006 (unaudited)


	6 months		12 months

MDP – All Cap Growth and Value¹		12.11%		13.62%

Russell 3000 Index		12.09%		15.72%

S&P 500 Index		12.73%		15.78%

Lipper Variable Multi-Cap Core Funds Category Average		10.79%		14.45%


	The performance shown represents past performance Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown above. Principal value and investment returns will fluctuate and investors’ shares, when redeemed, may be worth more or less than their original cost.

	Performance figures reflect reimbursements and/or fee waivers, without which the performance would have been lower.

	Portfolio returns assume the reinvestment of all distributions, including returns of capital, if any, at net asset value and the deduction of all fund expenses.

Q. What were the most significant factors affecting Portfolio performance? What were the leading contributors to performance?

A. Stock selection in the consumer discretionary, industrials, and consumer staples sectors was the largest contributor to relative performance. From a sector allocation perspective, the Portfolio’s underweights in the materials, and consumer staples sectors were beneficial to performance.

On an individual stock basis, the largest absolute contributors to performance were Cisco Systems Inc., Merrill Lynch & Co. Inc., Comcast Corp., The Walt Disney Co., and Exxon Mobil Corp.

What were the leading detractors from performance?

A. The Portfolio’s underperformance was largely due to sector positioning, including its overweight in healthcare and underweights in the financials and telecommunication sectors. In addition, stock selection in the energy, healthcare, and materials sectors detracted from results.

On an individual stock basis, the largest detractors from absolute performance were Yahoo! Inc., Amgen Inc., Lear Corp., ImClone Systems Inc., and Intel Corp.

Q. Were there any significant changes to the Portfolio during the reporting period?

A. There were no material changes in the target allocations made to the segments, nor was there a significant net change in sector or market weightings during the period.

2 Legg Mason Partners Variable Portfolios IV 2006 Annual Report

Thank you for your investment in the Legg Mason Partners Variable Multiple Discipline Portfolio – All Cap Growth and Value. As always, we appreciate that you have chosen us to manage your assets and we remain focused on seeking to achieve the Portfolio’s investment goals.

Sincerely,



Roger Paradiso Coordinating Portfolio Manager ClearBridge Advisors, LLC		Kirstin Mobyed Co-Coordinating Portfolio Manager ClearBridge Advisors, LLC

January 25, 2007

The information provided is not intended to be a forecast of future events, a guarantee of future results or investment advice. Views expressed may differ from those of the firm as a whole.

Portfolio holdings and breakdowns are as of December 31, 2006 and are subject to change and may not be representative of the Portfolio managers’ current or future investments. The Portfolio’s top ten holdings (as a percentage of net assets) as of this date were: Johnson & Johnson (2.3%), Cisco Systems Inc. (2.3%), Merrill Lynch & Co. Inc. (2.3%), Microsoft Corp. (2.2%), Time Warner Inc. (2.2%), Pfizer Inc. (2.2%), Home Depot Inc. (2.1%), Exxon Mobil Corp. (2.0%), Biogen Idec Inc. (1.9%) and Walt Disney Co. (1.9%). Please refer to pages 24 through 28 for a list and percentage breakdown of the Portfolio’s holdings.

The mention of sector breakdowns is for informational purposes only and should not be construed as a recommendation to purchase or sell any securities. The information provided regarding such sectors is not a sufficient basis upon which to make an investment decision. Investors seeking financial advice regarding the appropriateness of investing in any securities or investment strategies discussed should consult their financial professional. The Portfolio’s top five sector holdings (as a percentage of net assets) as of December 31, 2006 were: Information Technology (19.1%), Health Care (17.6%), Consumer Discretionary (17.1%), Financials (13.9%) and Industrials (9.1%). The Portfolio’s composition is subject to change at any time.

All index performance reflects no deduction for fees, expenses or taxes. Please note that an investor cannot invest directly in an index.


ⁱ		The Federal Reserve Board is responsible for the formulation of a policy designed to promote economic growth, full employment, stable prices, and a sustainable pattern of international trade and payments.


ⁱⁱ		The federal funds rate is the interest rate that banks with excess reserves at a Federal Reserve district bank charge other banks that need overnight loans.


ⁱⁱⁱ		The S&P 500 Index is an unmanaged index of 500 stocks that is generally representative of the performance of larger companies in the U.S.


^iv		The Russell 3000 Value Index measures the performance of those Russell 3000 Index companies with lower price-to-book ratios and lower forecasted growth values. (A price-to-book ratio is the price of a stock compared to the difference between a company’s assets and liabilities.)


^v		The Russell 3000 Growth Index measures the performance of those Russell 3000 Index companies with higher price-to-book ratios and higher forecasted growth values.


^vi		The Russell 3000 Index measures the performance of the 3,000 largest U.S. companies based on total market capitalization, which represent approximately 98% of the U.S. equity market.

Legg Mason Partners Variable Portfolios IV 2006 Annual Report 3

Fund at a Glance (unaudited)

Legg Mason Partners Variable Multiple Discipline Portfolio -

All Cap Growth and Value


	Investment Breakdown

4 Legg Mason Partners Variable Portfolios IV 2006 Annual Report

Historical Performance (unaudited)

Legg Mason Partners Variable Multiple Discipline Portfolio -

All Cap Growth and Value


	Value of $10,000 Invested in Shares of the Legg Mason Partners Variable Multiple Discipline Portfolio – All Cap Growth and Value vs. Russell 3000 Index† (October 2002 - December 2006)


†		Hypothetical illustration of $10,000 investment in shares of the Variable Multiple Discipline Portfolio – All Cap Growth and Value on October 1, 2002 (commencement of operations), assuming reinvestment of all distributions, including returns of capital, if any, at net asset value through December 31, 2006. The Russell 3000 Index measures the performance of the 3,000 largest U.S. companies based on total market capitalization, which represent approximately 98% of the U.S. equity market. The Index is unmanaged and is not subject to the same management and trading expenses of a mutual fund. Please note that an investor cannot invest directly in an index.


		The performance shown above represents past performance. Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown above. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Total returns do not reflect expenses associated with the separate account such as administrative fees, account charges and surrender charges, which, if reflected, would reduce the total returns. Performance figures may reflect fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements, the total return would have been lower. To obtain performance data current to the most recent month-end, please visit our website at www.leggmason.com/InvestorServices.


	*Average Annual Total Returns (unaudited)**


Twelve Months Ended 12/31/06	13.62	%

10/1/02** through 12/31/06	14.61


	*Cumulative Total Return (unaudited)**


10/1/02** through 12/31/06	78.52	%


*		Assumes reinvestment of all distributions, including returns of capital, if any, at net asset value. All figures represent past performance and are not a guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Total returns do not reflect expenses associated with the separate account such as administrative fees, account charges and surrender charges, which, if reflected, would reduce the total returns. Performance figures may reflect fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements, the total return would have been lower.

**		Commencement of operations.

Legg Mason Partners Variable Portfolios IV 2006 Annual Report 5

Portfolio Overview

Legg Mason Partners Variable Multiple Discipline Portfolio – Large Cap Growth and Value

Q. What were the overall market conditions during the Portfolio’s
reporting period?

Performance Update

For the 12 months ended December 31, 2006, Legg Mason Partners Variable Multiple Discipline Portfolio–Large Cap Growth and Value¹ returned 12.27%. These shares underperformed the Lipper Variable Large-Cap Core Funds Category Average,² which increased 13.31% over the same time period. The Portfolio’s unmanaged benchmarks, the Russell 1000 Index^vi and the S&P 500 Index, returned 15.46% and 15.78%, respectively, for the same period.


²	Lipper, Inc. is a major independent mutual-fund tracking organization. Returns are based on the 12-month period ended December 31, 2006, including the reinvestment of all distributions, including returns of capital, if any, calculated among the 224 funds in the Portfolio’s Lipper category.

6 Legg Mason Partners Variable Portfolios IV 2006 Annual Report


	Performance Snapshot as of December 31, 2006 (unaudited)


	6 months		12 months

MDP — Large Cap Growth and Value¹		12.78%		12.27%

Russell 1000 Index		12.36%		15.46%

S&P 500 Index		12.73%		15.78%

Lipper Variable Large-Cap Core Funds Category Average		11.56%		13.31%


	The performance shown represents past performance. Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown above. Principal value and investment returns will fluctuate and investors’ shares, when redeemed, may be worth more or less than their original cost.

	Performance figures reflect reimbursements and/or fee waivers, without which the performance would have been lower.

	Portfolio returns assume the reinvestment of all distributions , including returns of capital, if any, at net asset value and the deduction of all fund expenses.

Q. What were the most significant factors affecting Portfolio performance? What were the leading contributors to performance?

A. During the reporting period, the Portfolio’s stock selection in the consumer discretionary, industrials, and materials sectors enhanced its relative results. From a sector allocation perspective, the Portfolio’s overweights in telecommunication services and consumer discretionary and an underweight in industrials were beneficial to performance.

On an individual stock basis, the largest absolute contributors to performance were Merrill Lynch & Co. Inc., Cisco Systems Inc., Time Warner Inc., The Walt Disney Co., and AT&T, Inc.

What were the leading detractors from performance?

A. During the reporting period, the Portfolio’s underperformance was due to overall negative results from its stock selection and sector positioning. In particular, stock selection in the information technology, telecommunications services, and healthcare sectors detracted from results. In addition, underweights in utilities, energy, and financials hurt performance.

On an individual stock basis, the largest detractors from absolute performance were Yahoo!, Inc., Amgen, Inc., Intel Corp, Dell Inc., and Texas Instruments, Inc.

Q. Were there any significant changes to the Portfolio during the reporting period?

A. There were no material changes in the target allocations made to the segments, nor was there a significant net change in sector or market weightings during the period.

Legg Mason Partners Variable Portfolios IV 2006 Annual Report 7

Thank you for your investment in the Legg Mason Partners Variable Multiple Discipline Portfolio–Large Cap Growth and Value. As always, we appreciate that you have chosen us to manage your assets and we remain focused on seeking to achieve the Portfolio’s investment goals.

Sincerely,



Roger Paradiso Coordinating Portfolio Manager ClearBridge Advisors, LLC		Kirstin Mobyed Co-Coordinating Portfolio Manager ClearBridge Advisors, LLC

January 25, 2007

The information provided is not intended to be a forecast of future events, a guarantee of future results or investment advice. Views expressed may differ from those of the firm as a whole.

Portfolio holdings and breakdowns are as of December 31, 2006 and are subject to change and may not be representative of the portfolio managers’ current or future investments. The Portfolio’s top ten holdings (as a percentage of net assets) as of this date were: State Street Bank & Trust Repurchase Agreement (5.4%), Merrill Lynch & Co. Inc. (3.2%), Time Warner Inc. (3.0%), American International Group Inc. (3.0%), Home Depot Inc. (3.0%), Johnson & Johnson (2.6%), Microsoft Corp. (2.5%), Amgen Inc. (2.3%), Texas Instruments Inc. (2.1%), Coca-Cola Co. (2.0%). Please refer to pages 29 through 33 for a list and percentage breakdown of the Portfolio’s holdings.

The mention of sector breakdowns is for informational purposes only and should not be construed as a recommendation to purchase or sell any securities. The information provided regarding such sectors is not a sufficient basis upon which to make an investment decision. Investors seeking financial advice regarding the appropriateness of investing in any securities or investment strategies discussed should consult their financial professional. The Portfolio’s top five sector holdings (as a percentage of net assets) as of December 31, 2006 were: Financials (17.8%), Consumer Discretionary (17.6%), Information Technology (15.4%), Health Care (13.2%) and Consumer Staples (11.1%). The Portfolio’s composition is subject to change at any time.

RISKS: Diversification does not assure against loss. The Portfolio may use derivatives, such as options and futures, which can be illiquid, may disproportionately increase losses, and have a potentially large impact on performance. Please see the Portfolio’s prospectus for more information on these and other risks.

All index performance reflects no deduction for fees, expenses or taxes. Please note that an investor cannot invest directly in an index.


ⁱ		The Federal Reserve Board is responsible for the formulation of a policy designed to promote economic growth, full employment, stable prices, and a sustainable pattern of international trade and payments.


ⁱⁱ		The federal funds rate is the interest rate that banks with excess reserves at a Federal Reserve district bank charge other banks that need overnight loans.


ⁱⁱⁱ		The S&P 500 Index is an unmanaged index of 500 stocks that is generally representative of the performance of larger companies in the U.S.


^iv		The Russell 3000 Value Index measures the performance of those Russell 3000 Index companies with lower price-to-book ratios and lower forecasted growth values. (A price-to-book ratio is the price of a stock compared to the difference between a company’s assets and liabilities.)


^v		The Russell 3000 Growth Index measures the performance of those Russell 3000 Index companies with higher price-to-book ratios and higher forecasted growth values.


^vi		The Russell 1000 Index measures the performance of the 1,000 largest companies in the Russell 3000 Index, which represent approximately 92% of the total market capitalization of the Russell 3000 Index.

8 Legg Mason Partners Variable Portfolios IV 2006 Annual Report

Fund at a Glance (unaudited)

Legg Mason Partners Variable Multiple Discipline Portfolio –
Large Cap Growth and Value


	Investment Breakdown

Legg Mason Partners Variable Portfolios IV 2006 Annual Report 9

Historical Performance (unaudited)

Legg Mason Partners Variable Multiple Discipline Portfolio -
Large Cap Growth and Value


	Value of $10,000 Invested in Shares of the Legg Mason Partners Variable Multiple Discipline Portfolio – Large Cap Growth and Value vs. Russell 1000 Index† (October 2002 - December 2006)

†

Hypothetical illustration of $10,000 invested in shares of the Variable Multiple Discipline Portfolio - Large Cap Growth and Value on October 1, 2002 (commencement of operations), assuming reinvestment of all distributions, including returns of capital, if any, at net asset value through December 31, 2006. The Russell 1000 Index measures the performance of the 1,000 largest companies in the Russell 3000 Index, which represents approximately 92% of the total market capitalization of the Russell 3000 Index. The Index is unmanaged and is not subject to the same management and trading expenses of a mutual fund. Please note that an investor cannot invest directly in an index.

The performance shown above represents past performance. Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown above. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Total returns do not reflect expenses associated with the separate account such as administrative fees, account charges and surrender charges, which, if reflected, would reduce the total returns. Performance figures may reflect fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements, the total return would have been lower. To obtain performance data current to the most recent month-end, please visit our website at www.leggmason.com/InvestorServices.


	*Average Annual Total Returns (unaudited)**


Twelve Months Ended 12/31/06	12.27	%

10/1/02** through 12/31/06	13.58


	*Cumulative Total Return (unaudited)**


10/1/02** through 12/31/06	71.77	%

Assumes reinvestment of all distributions, including returns of capital, if any, at net asset value. All figures represent past performance and are not a guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Total returns do not reflect expenses associated with the separate account such as administrative fees, account charges and surrender charges, which, if reflected, would reduce the total returns. Performance figures may reflect fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements, the total return would have been lower.


**	Commencement of operations.

10 Legg Mason Partners Variable Portfolios IV 2006 Annual Report

Portfolio Overview

Legg Mason Partners Variable Multiple Discipline Portfolio – Global All Cap Growth and Value

Q. What were the overall market conditions during the Portfolio’s reporting period?

A. The U.S. economy weakened during the period due, in part, to the lagged effect of higher short-term interest rates and a rapidly cooling housing market. Inflationary pressures intensified during the first half of the reporting period. However, as oil prices retreated from their July record high and housing prices moderated, inflation became less of an issue. The Federal Reserve Board (“Fed”)ⁱ boosted its target federal funds rateⁱⁱ from 4.25% when the reporting period began to 5.25% in June 2006. The Fed then held rates steady during the remainder of the year.

After a weak first half of the year, the U.S. stock market rallied sharply and generated strong returns in 2006. The stock market’s early woes were due to a variety of factors. These included the Fed continuing to raise short-term interest rates, record high oil prices, the cooling housing market, and concerns about the future direction of the economy and corporate profits. However, many of these issues soon lifted as oil prices fell sharply, the Fed paused from raising interest rates, and corporate profits continued to surprise on the upside. For the year as a whole, the S&P 500 Indexⁱⁱⁱ rose 15.78%, its best performance since 2003.

As well as U.S. stocks performed, their international equity counterparts did even better. For the 12 months ended December 31, 2006, the MSCI EAFE Index^iv returned 26.34%. Positive economic news, solid corporate profits and a robust merger and acquisition environment aided the international equity markets. This was more than enough to offset the negatives associated with geopolitical events, inflationary pressures and central banks in several regions raising interest rates.

Performance Update

For the 12 months ended December 31, 2006, Legg Mason Partners Variable Multiple Discipline Portfolio – Global All Cap Growth and Value¹ returned 15.20%. These shares outperformed the Lipper Variable Large-Cap Core Funds Category Average,² which increased 13.31% over the same time period. The Portfolio’s unmanaged benchmarks, the Russell 3000 Index,^v the MSCI EAFE Index, the MSCI World Index^vi and the S&P 500 Index, returned 15.72%, 26.34%, 20.07% and 15.78%, respectively, for the same period.


²	Lipper, Inc. is a major independent mutual-fund tracking organization. Returns are based on the 12-month period ended December 31, 2006, including the reinvestment of all distributions, including returns of capital, if any, calculated among the 224 funds in the Portfolio’s Lipper category.

Legg Mason Partners Variable Portfolios IV 2006 Annual Report 11


	Performance Snapshot as of December 31, 2006 (unaudited)


	6 months		12 months

MDP – Global All Cap Growth and Value¹		12.23%		15.20%

Russell 3000 Index		12.09%		15.72%

MSCI EAFE Index		14.69%		26.34%

MSCI World Index		13.21%		20.07%

S&P 500 Index		12.73%		15.78%

Lipper Variable Large-Cap Core Funds Category Average		11.56%		13.31%


	The performance shown represents past performance. Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown above. Principal value and investment returns will fluctuate and investors’ shares, when redeemed, may be worth more or less than their original cost.

	Performance figures reflect reimbursements and/or fee waivers, without which the performance would have been lower.

	Portfolio returns assume the reinvestment of all distributions , including returns of capital, if any, at net asset value and the deduction of all fund expenses.

Q. What were the most significant factors affecting Portfolio performance? What were the leading contributors to performance?

A. The Portfolio’s stock selection, in particular within the consumer discretionary, consumer staples, and materials sectors, was the major contributor to relative performance. From a sector allocation perspective, the Portfolio’s overweights in the consumer discretionary and telecommunication sectors and underweight in the information technology sector were beneficial to performance.

On an individual stock basis, the largest absolute contributors to performance were Merrill Lynch & Co. Inc., Comcast Corp., Cisco Systems Inc., Cablevision Systems Corp., and News Corp.

What were the leading detractors from performance?

A. During the reporting period, the Portfolio’s sector positioning was an overall detractor from results. In particular, an overweight in healthcare and underweights in financials and utilities hurt performance. In addition, stock selection in the information technology, energy, and telecommunications services sectors detracted from results.

On an individual stock basis, the largest detractors from absolute performance were Yahoo! Inc., UnitedHealth Group, Inc., Intel Corp, Amgen Inc., and ImClone Systems Inc.

Q. Were there any significant changes to the Portfolio during the reporting period?

A. There were no material changes in the target allocations made to the segments, nor was there a significant net change in sector or market weightings during the period.

12 Legg Mason Partners Variable Portfolios IV 2006 Annual Report

Thank you for your investment in Legg Mason Partners Variable Multiple Discipline Portfolio – Global All Cap Growth and Value. As always, we appreciate that you have chosen us to manage your assets and we remain focused on seeking to achieve the Portfolio’s investment goals.

Sincerely,


Roger Paradiso Coordinating Portfolio Manager ClearBridge Advisors, LLC		Kirstin Mobyed Co-Coordinating Portfolio Manager ClearBridge Advisors, LLC

January 25, 2007

The information provided is not intended to be a forecast of future events, a guarantee of future results or investment advice. Views expressed may differ from those of the firm as a whole.

Portfolio holdings and breakdowns are as of December 31, 2006 and are subject to change and may not be representative of the portfolio managers’ current or future investments. The Portfolio’s top ten holdings (as a percentage of net assets) as of this date were: State Street Bank & Trust Co. Repurchase Agreement (5.7%), Merrill Lynch & Co. Inc. (2.1%), UnitedHealth Group Inc. (2.1%), Time Warner Inc. (1.9%), American International Group Inc. (1.8%), Biogen Idec Inc. (1.7%), Home Depot Inc. (1.7%), Microsoft Corp. (1.6%), Johnson & Johnson (1.5%), Tyco International Ltd. (1.5%). Please refer to pages 34 through 40 for a list and percentage breakdown of the Portfolio’s holdings.

The mention of sector breakdowns is for informational purposes only and should not be construed as a recommendation to purchase or sell any securities. The information provided regarding such sectors is not a sufficient basis upon which to make an investment decision. Investors seeking financial advice regarding the appropriateness of investing in any securities or investment strategies discussed should consult their financial professional. The Portfolio’s top five sector holdings (as a percentage of net assets) as of December 31, 2006 were: Consumer Discretionary (17.1%), Financials (15.9%), Information Technology (15.2%), Health Care (14.7%) and Consumer Staples (8.8%). The Portfolio’s composition is subject to change at any time.

RISKS: Diversification does not assure against loss. The Portfolio may invest in small- and mid-cap companies that may involve a higher degree of risk and volatility than investments in large-cap companies. The Portfolio may use derivatives, such as options and futures, which can be illiquid, may disproportionately increase losses, and have a potentially large impact on performance. Foreign stocks are subject to certain risks of overseas investing not associated with domestic investing such as currency fluctuations and changes in political and economic conditions, which could result in significant market fluctuation. These risks are magnified in emerging markets. Please see the Portfolio’s prospectus for more information on these and other risks.

All index performance reflects no deduction for fees, expenses or taxes. Please note that an investor cannot invest directly in an index.


ⁱ		The Federal Reserve Board is responsible for the formulation of a policy designed to promote economic growth, full employment, stable prices, and a sustainable pattern of international trade and payments.


ⁱⁱ		The federal funds rate is the interest rate that banks with excess reserves at a Federal Reserve district bank charge other banks that need overnight loans.


ⁱⁱⁱ		The S&P 500 Index is an unmanaged index of 500 stocks that is generally representative of the performance of larger companies in the U.S.


^iv		The MSCI EAFE Index is an unmanaged index of common stocks of companies located in Europe, Australasia and the Far East.


^v		The Russell 3000 Index measures the performance of the 3,000 largest U.S. companies based on total market capitalization, which represent approximately 98% of the U.S. equity market.


^vi		MSCI World Index, which is an unmanaged index of common stocks of companies representative of the market structure of 22 developed market countries in North America, Europe, and the Asia/ Pacific Region. The index is calculated without dividends, with net or with gross dividends reinvested, in both U.S. dollars and local currencies.

Legg Mason Partners Variable Portfolios IV 2006 Annual Report 13

Fund at a Glance (unaudited)

Legg Mason Partners Variable Multiple Discipline Portfolio -
Global All Cap Growth and Value


	Investment Breakdown

14 Legg Mason Partners Variable Portfolios IV 2006 Annual Report

Historical Performance (unaudited)

Legg Mason Partners Variable Multiple Discipline Portfolio -
Global All Cap Growth and Value


	Value of $10,000 Invested in Shares of the Legg Mason Partners Variable Multiple Discipline Portfolio - Global All Cap Growth and Value vs. Russell 3000 Index, MSCI EAFE Index and MSCI World Index^† (October 2002 - December 2006)

†

Hypothetical illustration of $10,000 invested in shares of the Variable Multiple Discipline Portfolio - Global All Cap Growth and Value on October 1, 2002 (commencement of operations), assuming reinvestment of all distributions, including returns of capital, if any, at net asset value through December 31, 2006. The Russell 3000 Index measures the performance of the 3,000 largest U.S. companies based on total market capitalization, which represent approximately 98% of the U.S. equity market. The MSCI EAFE Index is an unmanaged index of common stocks of companies located in Europe, Australasia and the Far East. The MSCI World Index is a free float-adjusted market capitalization index that is designed to measure global developed market equity performance. The Indices are unmanaged and are not subject to the same management and trading expenses of a mutual fund. Please note that an investor cannot invest directly in an index.


	*Average Annual Total Returns (unaudited)**


Twelve Months Ended 12/31/06	15.20	%

10/1/02** through 12/31/06	16.58


	*Cumulative Total Return (unaudited)**


10/1/02** through 12/31/06	91.90	%


**	Commencement of operations.

Legg Mason Partners Variable Portfolios IV 2006 Annual Report 15

Portfolio Overview

Legg Mason Partners Variable Multiple Discipline Portfolio – Balanced All Cap Growth and Value

Q. What were the overall market conditions during the Portfolio’s reporting period?

Turning to the bond market, the Treasury yield curve^vi flattened in 2006, as the difference between short- and long-term yields narrowed. Throughout much of 2006, the Treasury yield curve was inverted, with two-year Treasury yields surpassing their 10-year counterparts. Historically, this anomaly has often been a precursor of slowing economic growth and, in many cases, a recession.¹

Performance Update

For the 12 months ended December 31, 2006, Legg Mason Partners Variable Multiple Discipline Portfolio — Balanced All Cap Growth and Value² returned 10.50%. These shares underperformed the Lipper Variable Mixed-Asset Target Allocation Funds Category Average,³ which increased 11.67% over the same time frame. The Portfolio’s unmanaged benchmarks, the Russell 1000 Index,^vii the Russell 3000 Growth Index, the Russell 3000


¹	Source: The Wall Street Journal, 1/07.


³	Lipper, Inc. is a major independent mutual-fund tracking organization. Returns are based on the 12-month period ended December 31, 2006, including the reinvestment of all distributions, including returns of capital, if any, calculated among the 141 funds in the Portfolio’s Lipper category.

16 Legg Mason Partners Variable Portfolios IV 2006 Annual Report

Value Index, and the Lehman Brothers Intermediate Treasury Bond Index^viii returned 15.46%, 9.46%, 22.34%, and 3.51%, respectively, for the same period.


	Performance Snapshot as of December 31, 2006 (unaudited)


	6 Months		12 Months

MDP – Balanced All Cap Growth and Value²		9.58%		10.50%

Russell 1000 Index		12.36%		15.46%

Russell 3000 Growth Index		9.81%		9.46%

Russell 3000 Value Index		14.45%		22.34%

Lehman Brothers Intermediate Treasury Bond Index		3.71%		3.51%

Lipper Variable Mixed-Asset Target Allocation Funds Category Average		9.29%		11.67%


	The performance shown represents past performance. Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown above. Principal value and investment returns will fluctuate and investors’ shares, when redeemed, may be worth more or less than their original cost.

	Performance figures reflect reimbursements and/or fee waivers, without which the performance would have been lower.

	Portfolio returns assume the reinvestment of all distributions, including returns of capital, if any, at net asset value and the deduction of all fund expenses.

Q. What were the most significant factors affecting Portfolio performance? What were the leading contributors to performance?

A. During the reporting period, the largest contributors to the Portfolio’s performance were the consumer discretionary and financials sectors. On an individual stock basis, the largest absolute contributors to performance were Cisco Systems Inc., Merrill Lynch & Co. Inc., The Walt Disney Co., Comcast Corp., and Exxon Mobil Corp.

What were the leading detractors from performance?

A. Over the period, the Portfolio had minimal exposure to the telecommunications sector. As this was the best performing sector during the period, the Portfolio’s small position hurt its results. The Portfolio’s two largest exposures were in the information technology and healthcare sectors. While the Portfolio’s holdings in these sectors generated positive results over the period, these sectors were the two worst areas of the market. Therefore, the Portfolio’s large weightings were a drag on performance.

On an individual stock basis, the largest detractors from absolute performance were Yahoo! Inc., Amgen Inc., Lear Corp., ImClone Systems Inc., and Intel Corp.

Q. Were there any significant changes to the Portfolio during the reporting period?

A. There were no material changes in the target allocations made to the segments, nor was there a significant net change in sector or market weightings during the period.

Legg Mason Partners Variable Portfolios IV 2006 Annual Report 17

Thank you for your investment in Legg Mason Partners Variable Multiple Discipline Portfolio — Balanced All Cap Growth and Value. As always, we appreciate that you have chosen us to manage your assets and we remain focused on seeking to achieve the Portfolio’s investment goals.

Sincerely,



Roger Paradiso Coordinating Portfolio Manager ClearBridge Advisors, LLC		Kirstin Mobyed Co-Coordinating Portfolio Manager ClearBridge Advisors, LLC

January 25, 2007

The information provided is not intended to be a forecast of future events, a guarantee of future results or investment advice. Views expressed may differ from those of the firm as a whole.

Portfolio holdings and breakdowns are as of December 31, 2006 and are subject to change and may not be representative of the Portfolio managers’ current or future investments. The Portfolio’s top ten holdings (as a percentage of net assets) as of this date were: Federal National Mortgage Association, 5.750% due 2/15/08 (6.2%), U.S. Treasury Notes, 4.250% due 8/15/14 (4.8%), U.S. Treasury Notes, 4.000% due 4/15/10 (4.0%) U.S. Treasury Notes, 5.000% due 2/15/11 (2.8%), Federal Home Loan Mortgage Corp., 3.625% due 9/15/08 (2.7%), U.S. Treasury Notes, 4.875% due 2/15/12 (2.1%), Merrill Lynch & Co. Inc. (1.7%), Cisco Systems Inc. (1.6%), Johnson & Johnson (1.6%) and Time Warner Inc. (1.6%). Please refer to pages 41 through 46 for a list and percentage breakdown of the Portfolio’s holdings.

The mention of sector breakdowns is for informational purposes only and should not be construed as a recommendation to purchase or sell any securities. The information provided regarding such sectors is not a sufficient basis upon which to make an investment decision. Investors seeking financial advice regarding the appropriateness of investing in any securities or investment strategies discussed should consult their financial professional. Portfolio holdings are subject to change at any time and may not be representative of the portfolio managers’ current or future investments. The Portfolio’s top five sector holdings (as a percentage of net assets) as of December 31, 2006 were: U.S. Government & Agency Obligations (26.7%), Information Technology (13.2%), Consumer Discretionary (12.2%), Health Care (12.1%) and Financials (9.8%). The Portfolio’s composition is subject to change at any time.

RISKS: Diversification does not assure against loss. The Portfolio may invest in small- and mid-cap companies that may involve a higher degree of risk and volatility than investments in large-cap companies. Interest rates typically cause the prices of fixed income securities to decline and may, reduce the value of the Portfolio’s share price. The Portfolio may use derivatives, such as options and futures, which can be illiquid, may disproportionately increase losses, and have a potentially large impact on Portfolio performance. Please see the Portfolio’s prospectus for more information on these and other risks.

All index performance reflects no deduction for fees, expenses or taxes. Please note that an investor cannot invest directly in an index.


i	The Federal Reserve Board is responsible for the formulation of a policy designed to promote economic growth, full employment, stable prices, and a sustainable pattern of international trade and payments.


ii	The federal funds rate is the interest rate that banks with excess reserves at a Federal Reserve district bank charge other banks that need overnight loans.


iii	The S&P 500 Index is an unmanaged index of 500 stocks that is generally representative of the performance of larger companies in the U.S.

iv	The Russell 3000 Value Index measures the performance of those Russell 3000 Index companies with lower price-to-book ratios and lower forecasted growth values. (A price-to-book ratio is the price of a stock compared to the difference between a company’s assets and liabilities.)

v	The Russell 3000 Growth Index measures the performance of those Russell 3000 Index companies with higher price-to-book ratios and higher forecasted growth values.

vi	The yield curve is the graphical depiction of the relationship between the yield on bonds of the same credit quality but different maturities.

vii	The Russell 1000 Index measures the performance of the 1,000 largest companies in the Russell 3000 Index, which represents approximately 92% of the total market capitalization of the Russell 3000 Index.

viii	The Lehman Brothers Intermediate Treasury Bond Index is an unmanaged index composed of all bonds covered by the Lehman Brothers Treasury Index with maturities between one and 9.9 years. The Lehman Brothers Treasury Index is a measure of the public obligations of the U.S. Treasury.

18 Legg Mason Partners Variable Portfolios IV 2006 Annual Report

Fund at a Glance (unaudited)

Legg Mason Partners Variable Multiple Discipline Portfolio -
Balanced All Cap Growth and Value


	Investment Breakdown

Legg Mason Partners Variable Portfolios IV 2006 Annual Report 19

Historical Performance (unaudited)

Legg Mason Partners Variable Multiple Discipline Portfolio -
Balanced All Cap Growth and Value


	Value of $10,000 Invested in Shares of the Legg Mason Partners Variable Multiple Discipline Portfolio - Balanced All Cap Growth and Value vs. Russell 1000 Index, Russell 3000 Growth Index, Russell 3000 Value Index and Lehman Brothers Intermediate Treasury Bond Index^† (October 2002 - December 2006)


†		Hypothetical Illustration of $10,000 invested in shares of the Multiple Discipline Portfolio - Balanced All Cap Growth and Value on October 1, 2002 (commencement of operations), assuming reinvestment of all distributions, including returns of capital, if any, at net asset value through December 31, 2006. The Russell 1000 Index measures the performance of the 1,000 largest companies in the Russell 3000 Index, which represents approximately 92% of the total market capitalization of the Russell 3000 Index. The Russell 3000 Growth Index measures the performance of those Russell 3000 Index companies with higher price-to-book ratios and higher forecasted growth values. (A price-to-book ratio is the price of a stock compared to the difference between a company’s assets and liabilities). The Russell 3000 Value Index measures the performance of those Russell 3000 Index companies with lower price-to-book ratios and lower forecasted growth values. The Lehman Brothers Intermediate Treasury Bond Index is an unmanaged index of U.S. Treasury bonds with maturities between one and ten years. The indices are unmanaged and are not subject to the same management and trading expenses of a mutual fund. Please note that an investor cannot invest directly in an index.


		The performance shown above represent past performance. Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown above. Investment return and principal value or an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Performance figures may reflect fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements, the total return would have been lower. To obtain performance data current to the most recent month-end, please visit our website at www.leggmason.com/InvestorServices.

20 Legg Mason Partners Variable Portfolios IV 2006 Annual Report

Historical Performance (unaudited) (continued)

Legg Mason Partners Variable Multiple Discipline Portfolio -
Balanced All Cap Growth and Value


	*Average Annual Total Returns (unaudited)**


Twelve Months Ended 12/31/06	10.50	%

10/1/02** through 12/31/06	10.64


	*Cumulative Total Return (unaudited)**


10/1/02** through 12/31/06	53.69	%


**	Commencement of operations.

Legg Mason Partners Variable Portfolios IV 2006 Annual Report 21

Fund Expenses (unaudited)

Example

As a shareholder of the Funds, you may incur two types of costs: (1) transaction costs; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.

This example is based on an investment of $1,000 invested on July 1, 2006 and held for the six months ended December 31, 2006.

Actual Expenses

The table below titled “Based on Actual Total Return” provides information about actual account values and actual expenses. You may use the information provided in this table, together with the amount you invested, to estimate the expenses that you paid over the period. To estimate the expenses you paid on your account, divide your ending account value by $1,000 (for example, an $8,600 ending account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During the Period”.


	Based on Actual Total Return (1)


				Beginning		Ending		Annualized			Expenses
	Actual Total			Account		Account		Expense			Paid During
	Return(2)			Value		Value		Ratio(3)			the Period(4)

All Cap Growth and Value		12.11	%	$	1,000.00	$	1,121.10		0.96	%	$	5.13

Large Cap Growth and Value		12.78			1,000.00		1,127.80		0.98			5.26

Global All Cap Growth and Value		12.23			1,000.00		1,122.30		0.84			4.49

Balanced All Cap Growth and Value		9.58			1,000.00		1,095.80		0.96			5.07


⁽¹⁾		For the six months ended December 31, 2006.

⁽²⁾		Assumes reinvestment of all distributions, including returns of capital, if any, at net asset value. Total return is not annualized, as it may not be representative of the total return for the year. Total returns do not reflect expenses associated with the separate account such as administrative fees, account charges and surrender charges which, if reflected, would reduce the total returns. Performance figures may reflect fee waivers and/or expense reimbursements. Past performance is no guarantee of future results. In the absence of fee waivers and/or expense reimbursements, the total return would have been lower.

⁽³⁾		The expense ratios do not include the non-recurring and/or reorganization fees.

⁽⁴⁾		Expenses (net of fee waivers and/or expense reimbursements) are equal to each Fund’s respective annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, then divided by 365.

22 Legg Mason Partners Variable Portfolios IV 2006 Annual Report

Fund Expenses (unaudited) (continued)

Hypothetical Example for Comparison Purposes

The table below titled “Based on Hypothetical Total Return” provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio and an assumed rate of return of 5.00% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use the information provided in this table to compare the ongoing costs of investing in the Funds and other funds. To do so, compare the 5.00% hypothetical example relating to the Fund with the 5.00% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table below are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.


	Based on Hypothetical Total Return (1)


	Hypothetical			Beginning		Ending		Annualized			Expenses
	Annualized			Account		Account		Expense			Paid During
	Total Return			Value		Value		Ratio(2)			the Period(3)

All Cap Growth and Value		5.00	%	$	1,000.00	$	1,020.37		0.96	%	$	4.89

Large Cap Growth and Value		5.00			1,000.00		1,020.27		0.98			4.99

Global All Cap Growth and Value		5.00			1,000.00		1,020.97		0.84			4.28

Balanced All Cap Growth and Value		5.00			1,000.00		1,020.37		0.96			4.89


⁽¹⁾		For the six months ended December 31, 2006.

⁽²⁾		The expense ratios do not include the non-recurring restructuring and/or reorganization fees.

⁽³⁾		Expenses (net of fee waivers and/or expense reimbursements) are equal to each Fund’s respective annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, then divided by 365.

Legg Mason Partners Variable Portfolios IV 2006 Annual Report 23


	Schedules of Investments (December 31, 2006)

LEGG MASON PARTNERS VARIABLE MULTIPLE DISCIPLINE PORTFOLIO — ALL CAP GROWTH AND VALUE



Shares		Security	Value

COMMON STOCKS — 97.6%
CONSUMER DISCRETIONARY — 17.1%
Internet & Catalog Retail — 2.2%
	64,000	Amazon.com Inc.*	$	2,525,440
	79,945	Expedia Inc.*		1,677,246
	44,945	IAC/ InterActiveCorp.*		1,670,156

		Total Internet & Catalog Retail		5,872,842

Media — 11.6%
	91,340	Cablevision Systems Corp., New York Group, Class A Shares		2,601,363
	90,460	Comcast Corp., Special Class A Shares*		3,788,465
	32,377	Discovery Holding Co., Class A Shares*		520,946
	3,222	Idearc Inc.*		92,310
	199,000	Interpublic Group of Cos. Inc.*		2,435,760
	22,193	Liberty Global Inc., Series A Shares*		646,926
	6,390	Liberty Global Inc., Series C Shares*		178,920
	13,188	Liberty Media Holding Corp., Capital Group, Series A Shares*		1,292,160
	120,944	Liberty Media Holding Corp., Interactive Group, Series A Shares*		2,608,762
	145,590	News Corp., Class B Shares		3,240,834
	191,370	Pearson PLC, ADR		2,889,687
	274,535	Time Warner Inc.		5,979,373
	150,230	Walt Disney Co.		5,148,382

		Total Media		31,423,888

Specialty Retail — 3.3%
	42,500	Bed Bath & Beyond Inc.*		1,619,250
	76,160	Charming Shoppes Inc.*		1,030,445
	40,000	Gap Inc.		780,000
	141,234	Home Depot Inc.		5,671,957

		Total Specialty Retail		9,101,652

		TOTAL CONSUMER DISCRETIONARY		46,398,382

CONSUMER STAPLES — 7.9%
Beverages — 2.4%
	67,963	Coca-Cola Co.		3,279,215
	11,000	Molson Coors Brewing Co., Class B Shares		840,840
	38,013	PepsiCo Inc.		2,377,713

		Total Beverages		6,497,768

Food & Staples Retailing — 1.7%
	60,700	Safeway Inc.		2,097,792
	57,000	Wal-Mart Stores Inc.		2,632,260

		Total Food & Staples Retailing		4,730,052

See Notes to Financial Statements.

24 Legg Mason Partners Variable Portfolios IV 2006 Annual Report


	Schedules of Investments (December 31, 2006) (continued)


Shares		Security	Value

Food Products — 2.1%
	112,260	Unilever PLC, ADR	$	3,123,073
	47,675	Wm. Wrigley Jr. Co.		2,465,751

		Total Food Products		5,588,824

Household Products — 1.7%
	20,000	Kimberly-Clark Corp.		1,359,000
	52,341	Procter & Gamble Co.		3,363,956

		Total Household Products		4,722,956

		TOTAL CONSUMER STAPLES		21,539,600

ENERGY — 7.7%
Energy Equipment & Services — 2.6%
	19,000	Baker Hughes Inc.		1,418,540
	31,640	GlobalSantaFe Corp.		1,859,799
	27,546	Grant Prideco Inc.*		1,095,504
	65,350	Weatherford International Ltd.*		2,730,977

		Total Energy Equipment & Services		7,104,820

Oil, Gas & Consumable Fuels — 5.1%
	101,520	Anadarko Petroleum Corp.		4,418,150
	8,800	Chevron Corp.		647,064
	72,280	Exxon Mobil Corp.		5,538,817
	28,620	Murphy Oil Corp.		1,455,327
	72,300	Williams Cos. Inc.		1,888,476

		Total Oil, Gas & Consumable Fuels		13,947,834

		TOTAL ENERGY		21,052,654

FINANCIALS — 13.9%
Capital Markets — 4.7%
	8,000	Franklin Resources Inc.		881,360
	43,004	Lehman Brothers Holdings Inc.		3,359,473
	65,804	Merrill Lynch & Co. Inc.		6,126,352
	34,530	State Street Corp.		2,328,703

		Total Capital Markets		12,695,888

Consumer Finance — 1.0%
	46,145	American Express Co.		2,799,617

Diversified Financial Services — 2.2%
	51,829	Bank of America Corp.		2,767,150
	66,832	JPMorgan Chase & Co.		3,227,986

		Total Diversified Financial Services		5,995,136

See Notes to Financial Statements.

Legg Mason Partners Variable Portfolios IV 2006 Annual Report 25


	Schedules of Investments (December 31, 2006) (continued)


Shares		Security	Value

Insurance — 3.7%
	66,985	American International Group Inc.	$	4,800,145
	681	Berkshire Hathaway Inc., Class B Shares*		2,496,546
	50,770	Chubb Corp.		2,686,241

		Total Insurance		9,982,932

Thrifts & Mortgage Finance — 2.3%
	47,145	MGIC Investment Corp.		2,948,448
	70,000	PMI Group Inc.		3,301,900

		Total Thrifts & Mortgage Finance		6,250,348

		TOTAL FINANCIALS		37,723,921

HEALTH CARE — 17.6%
Biotechnology — 6.6%
	2,746	Alkermes Inc.*		36,714
	58,945	Amgen Inc.*		4,026,533
	106,655	Biogen Idec Inc.*		5,246,359
	30,752	Genentech Inc.*		2,494,910
	44,050	Genzyme Corp.*		2,712,599
	65,000	ImClone Systems Inc.*		1,739,400
	145,120	Millennium Pharmaceuticals Inc.*		1,581,808

		Total Biotechnology		17,838,323

Health Care Providers & Services — 1.6%
	79,260	UnitedHealth Group Inc.		4,258,640

Pharmaceuticals — 9.4%
	57,290	Abbott Laboratories		2,790,596
	26,000	Eli Lilly & Co.		1,354,600
	60,080	Forest Laboratories Inc.*		3,040,048
	38,130	GlaxoSmithKline PLC, ADR		2,011,739
	95,624	Johnson & Johnson		6,313,097
	25,000	Novartis AG, ADR		1,436,000
	226,516	Pfizer Inc.		5,866,764
	56,610	Wyeth		2,882,581

		Total Pharmaceuticals		25,695,425

		TOTAL HEALTH CARE		47,792,388

INDUSTRIALS — 9.1%
Aerospace & Defense — 3.5%
	15,000	Boeing Co.		1,332,600
	69,960	Honeywell International Inc.		3,164,991
	29,186	L-3 Communications Holdings Inc.		2,386,831
	47,590	Raytheon Co.		2,512,752

		Total Aerospace & Defense		9,397,174

Building Products — 0.1%
	10,300	Simpson Manufacturing Co. Inc.		325,995

See Notes to Financial Statements.

26 Legg Mason Partners Variable Portfolios IV 2006 Annual Report


	Schedules of Investments (December 31, 2006) (continued)


Shares		Security	Value

Electrical Equipment — 1.1%
	67,570	Emerson Electric Co.	$	2,979,161

Industrial Conglomerates — 2.9%
	110,200	General Electric Co.		4,100,542
	128,621	Tyco International Ltd.		3,910,078

		Total Industrial Conglomerates		8,010,620

Machinery — 1.5%
	35,882	Caterpillar Inc.		2,200,643
	54,200	Pall Corp.		1,872,610

		Total Machinery		4,073,253

		TOTAL INDUSTRIALS		24,786,203

INFORMATION TECHNOLOGY — 19.1%
Communications Equipment — 3.7%
	225,975	Cisco Systems Inc.*		6,175,897
	92,220	Motorola Inc.		1,896,043
	92,210	Nokia Oyj, ADR		1,873,707

		Total Communications Equipment		9,945,647

Computers & Peripherals — 2.9%
	95,780	Dell Inc.*		2,403,120
	19,435	International Business Machines Corp.		1,888,110
	33,300	SanDisk Corp.*		1,432,899
	80,061	Seagate Technology		2,121,617

		Total Computers & Peripherals		7,845,746

Electronic Equipment & Instruments — 0.6%
	50,790	Agilent Technologies Inc.*		1,770,032

Internet Software & Services — 1.8%
	29,000	eBay Inc.*		872,030
	30,000	VeriSign Inc.*		721,500
	124,500	Yahoo! Inc.*		3,179,730

		Total Internet Software & Services		4,773,260

Semiconductors & Semiconductor Equipment — 6.0%
	80,000	Applied Materials Inc.		1,476,000
	30,000	Broadcom Corp., Class A Shares*		969,300
	829	Cabot Microelectronics Corp.*		28,136
	46,136	Cree Inc.*		799,076
	150,990	Intel Corp.		3,057,547
	153,662	Micron Technology Inc.*		2,145,122
	42,900	Novellus Systems Inc.*		1,476,618
	193,113	Taiwan Semiconductor Manufacturing Co., Ltd., ADR		2,110,725
	127,210	Texas Instruments Inc.		3,663,648
	41,218	Verigy Ltd.*		731,619

		Total Semiconductors & Semiconductor Equipment		16,457,791

See Notes to Financial Statements.

Legg Mason Partners Variable Portfolios IV 2006 Annual Report 27


	Schedules of Investments (December 31, 2006) (continued)


Shares		Security	Value

Software — 4.1%
	42,900	Advent Software Inc.*	$	1,513,941
	40,820	Autodesk Inc.*		1,651,577
	41,000	Electronic Arts Inc.*		2,064,760
	200,730	Microsoft Corp.		5,993,798

		Total Software		11,224,076

		TOTAL INFORMATION TECHNOLOGY		52,016,552

MATERIALS — 3.4%
Chemicals — 1.3%
	29,600	Dow Chemical Co.		1,182,224
	49,000	E.I. du Pont de Nemours & Co.		2,386,790

		Total Chemicals		3,569,014

Metals & Mining — 1.0%
	88,945	Alcoa Inc.		2,669,239

Paper & Forest Products — 1.1%
	41,975	Weyerhaeuser Co.		2,965,534

		TOTAL MATERIALS		9,203,787

TELECOMMUNICATION SERVICES — 1.8%
Diversified Telecommunication Services — 0.9%
	64,440	Verizon Communications Inc.		2,399,746

Wireless Telecommunication Services — 0.9%
	94,377	Vodafone Group PLC, ADR		2,621,793

		TOTAL TELECOMMUNICATION SERVICES		5,021,539

		TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENT (Cost — $214,949,374)		265,535,026


Face
Amount

SHORT-TERM INVESTMENT — 2.6%
Repurchase Agreement — 2.6%
$	6,945,000	State Street Bank & Trust Co. dated 12/29/06, 4.370% due 1/2/07; Proceeds at maturity — $6,948,372; (Fully collateralized by U.S. Treasury Bond, 6.25% due 8/15/23; Market value — $7,086,843) (Cost — $6,945,000)		6,945,000

		TOTAL INVESTMENTS — 100.2% (Cost — $221,894,374#)		272,480,026
		Liabilities in Excess of Other Assets — (0.2)%		(543,407	)

		TOTAL NET ASSETS — 100.0%	$	271,936,619


*		Non-income producing security.

^#		Aggregate cost for federal income tax purposes is $222,025,908.

Abbreviation used in this schedule:


ADR		— American Depositary Receipt

See Notes to Financial Statements.

28 Legg Mason Partners Variable Portfolios IV 2006 Annual Report


	Schedules of Investments (December 31, 2006) (continued)

LEGG MASON PARTNERS VARIABLE MULTIPLE DISCIPLINE PORTFOLIO —
LARGE CAP GROWTH AND VALUE



Shares		Security	Value

COMMON STOCKS — 94.7%
CONSUMER DISCRETIONARY — 17.6%
Hotels, Restaurants & Leisure — 1.1%
	8,720	McDonald’s Corp.	$	386,558

Household Durables — 0.8%
	9,990	Newell Rubbermaid Inc.		289,210

Internet & Catalog Retail — 3.7%
	14,500	Amazon.com Inc.*		572,170
	18,500	Expedia Inc.*		388,130
	10,450	IAC/InterActiveCorp.*		388,322

		Total Internet & Catalog Retail		1,348,622

Media — 7.6%
	5,000	EchoStar Communications Corp., Class A Shares*		190,150
	2,239	Liberty Media Holding Corp., Capital Group, Series A Shares*		219,377
	11,197	Liberty Media Holding Corp., Interactive Group, Series A Shares*		241,519
	20,600	News Corp., Class B Shares		458,556
	50,550	Time Warner Inc.		1,100,979
	15,840	Walt Disney Co.		542,837

		Total Media		2,753,418

Multiline Retail — 0.5%
	3,215	Target Corp.		183,416

Specialty Retail — 3.9%
	9,000	Bed Bath & Beyond Inc.*		342,900
	26,775	Home Depot Inc.		1,075,284

		Total Specialty Retail		1,418,184

		TOTAL CONSUMER DISCRETIONARY		6,379,408

CONSUMER STAPLES — 11.1%
Beverages — 3.4%
	15,320	Coca-Cola Co.		739,190
	7,960	PepsiCo Inc.		497,898

		Total Beverages		1,237,088

Food & Staples Retailing — 1.7%
	11,990	Kroger Co.		276,609
	7,000	Wal-Mart Stores Inc.		323,260

		Total Food & Staples Retailing		599,869

Food Products — 1.5%
	10,862	Wm. Wrigley Jr. Co.		561,783

See Notes to Financial Statements.

Legg Mason Partners Variable Portfolios IV 2006 Annual Report 29


	Schedules of Investments (December 31, 2006) (continued)


Shares		Security	Value

Household Products — 2.8%
	3,965	Kimberly-Clark Corp.	$	269,422
	11,396	Procter & Gamble Co.		732,421

		Total Household Products		1,001,843

Tobacco — 1.7%
	7,100	Altria Group Inc.		609,322

		TOTAL CONSUMER STAPLES		4,009,905

ENERGY — 6.0%
Energy Equipment & Services — 1.2%
	8,620	Halliburton Co.		267,651
	2,500	Noble Corp.		190,375

		Total Energy Equipment & Services		458,026

Oil, Gas & Consumable Fuels — 4.8%
	4,380	ConocoPhillips		315,141
	7,285	Exxon Mobil Corp.		558,250
	2,140	Royal Dutch Shell PLC, ADR, Class A Shares		151,491
	2,650	Suncor Energy Inc.		209,111
	6,890	Total SA, ADR		495,529

		Total Oil, Gas & Consumable Fuels		1,729,522

		TOTAL ENERGY		2,187,548

FINANCIALS — 17.8%
Capital Markets — 4.7%
	4,500	Bank of New York Co. Inc.		177,165
	1,790	Goldman Sachs Group Inc.		356,837
	12,635	Merrill Lynch & Co. Inc.		1,176,318

		Total Capital Markets		1,710,320

Commercial Banks — 2.0%
	6,506	Wachovia Corp.		370,517
	10,000	Wells Fargo & Co.		355,600

		Total Commercial Banks		726,117

Consumer Finance — 2.3%
	6,655	American Express Co.		403,759
	5,730	Capital One Financial Corp.		440,178

		Total Consumer Finance		843,937

Diversified Financial Services — 2.0%
	6,602	Bank of America Corp.		352,481
	7,715	JPMorgan Chase & Co.		372,634

		Total Diversified Financial Services		725,115

See Notes to Financial Statements.

30 Legg Mason Partners Variable Portfolios IV 2006 Annual Report


	Schedules of Investments (December 31, 2006) (continued)


Shares		Security	Value

Insurance — 6.8%
	4,500	AFLAC Inc.	$	207,000
	15,160	American International Group Inc.		1,086,366
	118	Berkshire Hathaway Inc., Class B Shares*		432,588
	5,000	Chubb Corp.		264,550
	8,500	Marsh & McLennan Cos. Inc.		260,610
	3,560	St. Paul Travelers Cos. Inc.		191,136

		Total Insurance		2,442,250

		TOTAL FINANCIALS		6,447,739

HEALTH CARE — 13.2%
Biotechnology — 5.2%
	12,440	Amgen Inc.*		849,776
	11,120	Biogen Idec Inc.*		546,993
	6,100	Genentech Inc.*		494,893

		Total Biotechnology		1,891,662

Health Care Providers & Services — 2.1%
	7,150	UnitedHealth Group Inc.		384,169
	4,650	WellPoint Inc.*		365,909

		Total Health Care Providers & Services		750,078

Pharmaceuticals — 5.9%
	4,500	Abbott Laboratories		219,195
	14,300	Johnson & Johnson		944,086
	4,650	Novartis AG, ADR		267,096
	27,680	Pfizer Inc.		716,912

		Total Pharmaceuticals		2,147,289

		TOTAL HEALTH CARE		4,789,029

INDUSTRIALS — 6.8%
Aerospace & Defense — 1.8%
	3,090	Boeing Co.		274,516
	2,000	L-3 Communications Holdings Inc.		163,560
	4,050	Raytheon Co.		213,840

		Total Aerospace & Defense		651,916

Building Products — 0.5%
	6,500	Masco Corp.		194,155

Commercial Services & Supplies — 0.9%
	4,950	Avery Dennison Corp.		336,253

Industrial Conglomerates — 3.1%
	19,210	General Electric Co.		714,804
	4,200	Textron Inc.		393,834

		Total Industrial Conglomerates		1,108,638

See Notes to Financial Statements.

Legg Mason Partners Variable Portfolios IV 2006 Annual Report 31


	Schedules of Investments (December 31, 2006) (continued)


Shares		Security	Value

Machinery — 0.5%
	2,400	Parker Hannifin Corp.	$	184,512

		TOTAL INDUSTRIALS		2,475,474

INFORMATION TECHNOLOGY — 15.4%
Communications Equipment — 3.4%
	26,705	Cisco Systems Inc.*		729,848
	8,525	Comverse Technology Inc.*		179,963
	16,055	Nokia Oyj, ADR		326,237

		Total Communications Equipment		1,236,048

Computers & Peripherals — 2.5%
	20,280	Dell Inc.*		508,825
	4,070	International Business Machines Corp.		395,401

		Total Computers & Peripherals		904,226

Internet Software & Services — 1.6%
	22,200	Yahoo! Inc.*		566,988

Semiconductors & Semiconductor Equipment — 4.0%
	32,895	Intel Corp.		666,124
	26,670	Texas Instruments Inc.		768,096

		Total Semiconductors & Semiconductor Equipment		1,434,220

Software — 3.9%
	9,950	Electronic Arts Inc.*		501,082
	30,910	Microsoft Corp.		922,972

		Total Software		1,424,054

		TOTAL INFORMATION TECHNOLOGY		5,565,536

MATERIALS — 1.7%
Chemicals — 1.7%
	4,150	Air Products & Chemicals Inc.		291,662
	6,500	E.I. du Pont de Nemours & Co.		316,615

		TOTAL MATERIALS		608,277

TELECOMMUNICATION SERVICES — 4.1%
Diversified Telecommunication Services — 1.7%
	11,061	AT&T Inc.		395,431
	4,090	Embarq Corp.		214,970

		Total Diversified Telecommunication Services		610,401

Wireless Telecommunication Services — 2.4%
	6,000	ALLTEL Corp.		362,880
	27,315	Sprint Nextel Corp.		515,981

		Total Wireless Telecommunication Services		878,861

		TOTAL TELECOMMUNICATION SERVICES		1,489,262

See Notes to Financial Statements.

32 Legg Mason Partners Variable Portfolios IV 2006 Annual Report


	Schedules of Investments (December 31, 2006) (continued)


Shares		Security	Value

UTILITIES — 1.0%
Multi-Utilities — 1.0%
	6,800	Sempra Energy	$	381,072

		TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENT (Cost — $28,636,157)		34,333,250


Face
Amount

SHORT-TERM INVESTMENT — 5.4%
Repurchase Agreement — 5.4%
$	1,957,000	State Street Bank & Trust Co. dated 12/29/06, 4.370% due 1/2/07; Proceeds at maturity — $1,957,950; (Fully collateralized by U.S. Treasury Bond, 7.625% due 2/15/25; Market value — $1,998,000) (Cost — $1,957,000)	$	1,957,000

		TOTAL INVESTMENTS — 100.1% (Cost — $30,593,157#)		36,290,250
		Liabilities in Excess of Other Assets — (0.1)%		(40,513	)

		TOTAL NET ASSETS — 100.0%	$	36,249,737


*		Non-income producing security.

^#		Aggregate cost for federal income tax purposes is $30,621,537.

Abbreviation used in this schedule:


ADR		— American Depositary Receipt

See Notes to Financial Statements.

Legg Mason Partners Variable Portfolios IV 2006 Annual Report 33


	Schedules of Investments (December 31, 2006) (continued)

LEGG MASON PARTNERS VARIABLE MULTIPLE DISCIPLINE PORTFOLIO —
GLOBAL ALL CAP GROWTH AND VALUE



Shares		Security	Value

COMMON STOCKS — 94.4%
CONSUMER DISCRETIONARY — 17.1%
Automobiles — 0.5%
	11,050	Honda Motor Co., Ltd., ADR	$	436,917

Hotels, Restaurants & Leisure — 0.7%
	14,116	McDonald’s Corp.		625,762

Household Durables — 0.9%
	10,620	Koninklijke Philips Electronics NV, New York Registered Shares		399,100
	15,670	Newell Rubbermaid Inc.		453,646

		Total Household Durables		852,746

Internet & Catalog Retail — 1.9%
	20,500	Amazon.com Inc.*		808,930
	20,125	Expedia Inc.*		422,223
	16,665	IAC/InterActiveCorp.*		619,271

		Total Internet & Catalog Retail		1,850,424

Media — 10.2%
	30,370	Cablevision Systems Corp., New York Group, Class A Shares		864,938
	33,025	Comcast Corp., Special Class A Shares*		1,383,087
	8,599	Discovery Holding Co., Class A Shares*		138,358
	7,950	EchoStar Communications Corp., Class A Shares*		302,339
	14,240	Grupo Televisa SA, ADR		384,622
	5,516	Liberty Global Inc., Series A Shares*		160,791
	989	Liberty Global Inc., Series C Shares*		27,692
	7,323	Liberty Media Holding Corp., Capital Group, Series A Shares*		717,508
	58,620	Liberty Media Holding Corp., Interactive Group, Series A Shares*		1,264,433
	61,180	News Corp., Class B Shares		1,361,867
	83,735	Time Warner Inc.		1,823,748
	26,615	Walt Disney Co.		912,096
	6,290	WPP Group PLC, ADR		426,085

		Total Media		9,767,564

Multiline Retail — 0.3%
	4,730	Target Corp.		269,847

Specialty Retail — 2.6%
	13,810	Bed Bath & Beyond Inc.*		526,161
	27,460	Charming Shoppes Inc.*		371,534
	40,165	Home Depot Inc.		1,613,026

		Total Specialty Retail		2,510,721

		TOTAL CONSUMER DISCRETIONARY		16,313,981

See Notes to Financial Statements.

34 Legg Mason Partners Variable Portfolios IV 2006 Annual Report


	Schedules of Investments (December 31, 2006) (continued)


Shares		Security	Value

CONSUMER STAPLES — 8.8%
Beverages — 2.4%
	24,030	Coca-Cola Co.	$	1,159,447
	5,050	Diageo PLC, ADR		400,516
	12,145	PepsiCo Inc.		759,670

		Total Beverages		2,319,633

Food & Staples Retailing — 1.8%
	16,750	Kroger Co.		386,422
	16,750	Tesco PLC, ADR		402,419
	9,300	Wal-Mart de Mexico SA de CV, Series V Shares, ADR		409,200
	12,000	Wal-Mart Stores Inc.		554,160

		Total Food & Staples Retailing		1,752,201

Food Products — 1.9%
	12,470	Groupe Danone, ADR		406,522
	6,200	Nestle SA, ADR		550,715
	16,487	Wm. Wrigley Jr. Co.		852,708

		Total Food Products		1,809,945

Household Products — 1.7%
	6,725	Kimberly-Clark Corp.		456,964
	17,723	Procter & Gamble Co.		1,139,057

		Total Household Products		1,596,021

Tobacco — 1.0%
	11,300	Altria Group Inc.		969,766

		TOTAL CONSUMER STAPLES		8,447,566

ENERGY — 6.5%
Energy Equipment & Services — 2.0%
	9,515	Grant Prideco Inc.*		378,412
	11,600	Halliburton Co.		360,180
	3,500	Noble Corp.		266,525
	21,370	Weatherford International Ltd.*		893,052

		Total Energy Equipment & Services		1,898,169

See Notes to Financial Statements.

Legg Mason Partners Variable Portfolios IV 2006 Annual Report 35


	Schedules of Investments (December 31, 2006) (continued)


Shares		Security	Value

Oil, Gas & Consumable Fuels — 4.5%
	23,700	Anadarko Petroleum Corp.	$	1,031,424
	8,270	BP PLC, ADR		554,917
	5,885	ConocoPhillips		423,426
	7,750	Exxon Mobil Corp.		593,882
	4,450	Royal Dutch Shell PLC, ADR, Class A Shares		315,015
	3,400	Suncor Energy Inc.		268,294
	14,990	Total SA, ADR		1,078,081

		Total Oil, Gas & Consumable Fuels		4,265,039

		TOTAL ENERGY		6,163,208

FINANCIALS — 15.9%
Capital Markets — 5.1%
	7,500	Bank of New York Co. Inc.		295,275
	2,580	Goldman Sachs Group Inc.		514,323
	14,570	Lehman Brothers Holdings Inc.		1,138,209
	21,440	Merrill Lynch & Co. Inc.		1,996,064
	22,510	Nomura Holdings Inc., ADR		426,339
	8,080	UBS AG		487,466

		Total Capital Markets		4,857,676

Commercial Banks — 3.3%
	4,780	Bank of Ireland, ADR		440,573
	600	Comerica Inc.		35,208
	4,070	HSBC Holdings PLC, ADR		373,016
	44,810	Mitsubishi UFJ Financial Group Inc., ADR		557,884
	20,500	National Bank of Greece SA, ADR		190,650
	16,380	United Overseas Bank Ltd., ADR		414,004
	9,946	Wachovia Corp.		566,425
	16,000	Wells Fargo & Co.		568,960

		Total Commercial Banks		3,146,720

Consumer Finance — 2.0%
	9,740	American Express Co.		590,926
	8,900	Capital One Financial Corp.		683,698
	4,610	ORIX Corp., ADR		676,748

		Total Consumer Finance		1,951,372

Diversified Financial Services — 1.6%
	10,662	Bank of America Corp.		569,244
	8,510	ING Groep NV, ADR		375,887
	12,185	JPMorgan Chase & Co.		588,535

		Total Diversified Financial Services		1,533,666

See Notes to Financial Statements.

36 Legg Mason Partners Variable Portfolios IV 2006 Annual Report


	Schedules of Investments (December 31, 2006) (continued)


Shares		Security	Value

Insurance — 3.9%
	7,000	AFLAC Inc.	$	322,000
	23,450	American International Group Inc.		1,680,427
	10,095	AXA, ADR		407,131
	92	Berkshire Hathaway Inc., Class B Shares*		337,272
	7,900	Chubb Corp.		417,989
	14,000	Marsh & McLennan Cos. Inc.		429,240
	1,750	St. Paul Travelers Cos. Inc.		93,958

		Total Insurance		3,688,017

		TOTAL FINANCIALS		15,177,451

HEALTH CARE — 14.7%
Biotechnology — 5.9%
	730	Alkermes Inc.*		9,760
	17,970	Amgen Inc.*		1,227,531
	33,505	Biogen Idec Inc.*		1,648,111
	9,550	Genentech Inc.*		774,791
	15,515	Genzyme Corp.*		955,414
	17,000	ImClone Systems Inc.*		454,920
	49,130	Millennium Pharmaceuticals Inc.*		535,517

		Total Biotechnology		5,606,044

Health Care Equipment & Supplies — 0.5%
	8,800	Smith & Nephew PLC, ADR		460,504

Health Care Providers & Services — 2.6%
	36,440	UnitedHealth Group Inc.		1,957,921
	6,300	WellPoint Inc.*		495,747

		Total Health Care Providers & Services		2,453,668

Pharmaceuticals — 5.7%
	7,500	Abbott Laboratories		365,325
	18,790	Forest Laboratories Inc.*		950,774
	10,030	GlaxoSmithKline PLC, ADR		529,183
	22,080	Johnson & Johnson		1,457,722
	13,200	Novartis AG, ADR		758,208
	5,110	Novo-Nordisk A/S, ADR		427,349
	38,600	Pfizer Inc.		999,740

		Total Pharmaceuticals		5,488,301

		TOTAL HEALTH CARE		14,008,517

See Notes to Financial Statements.

Legg Mason Partners Variable Portfolios IV 2006 Annual Report 37


	Schedules of Investments (December 31, 2006) (continued)


Shares		Security	Value

INDUSTRIALS — 7.6%
Aerospace & Defense — 1.8%
	5,270	Boeing Co.	$	468,187
	11,770	L-3 Communications Holdings Inc.		962,550
	6,250	Raytheon Co.		330,000

		Total Aerospace & Defense		1,760,737

Building Products — 0.3%
	10,000	Masco Corp.		298,700

Commercial Services & Supplies — 0.5%
	6,400	Avery Dennison Corp.		434,752

Industrial Conglomerates — 4.1%
	30,775	General Electric Co.		1,145,138
	7,620	Hutchison Whampoa Ltd., ADR		387,287
	6,350	Textron Inc.		595,439
	19,200	Tomkins PLC, ADR		372,480
	47,285	Tyco International Ltd.		1,437,464

		Total Industrial Conglomerates		3,937,808

Machinery — 0.9%
	17,540	Pall Corp.		606,007
	3,400	Parker Hannifin Corp.		261,392

		Total Machinery		867,399

		TOTAL INDUSTRIALS		7,299,396

INFORMATION TECHNOLOGY — 15.2%
Communications Equipment — 2.4%
	43,070	Cisco Systems Inc.*		1,177,103
	12,800	Comverse Technology Inc.*		270,208
	40,315	Nokia Oyj, ADR		819,201

		Total Communications Equipment		2,266,512

Computers & Peripherals — 2.7%
	28,580	Dell Inc.*		717,072
	5,650	International Business Machines Corp.		548,898
	9,700	SanDisk Corp.*		417,391
	32,476	Seagate Technology		860,614

		Total Computers & Peripherals		2,543,975

Electronic Equipment & Instruments — 0.7%
	8,015	Mettler-Toledo International Inc.*		631,983

Internet Software & Services — 1.0%
	36,500	Yahoo! Inc.*		932,210

Office Electronics — 0.6%
	10,915	Canon Inc., ADR		617,680

See Notes to Financial Statements.

38 Legg Mason Partners Variable Portfolios IV 2006 Annual Report


	Schedules of Investments (December 31, 2006) (continued)


Shares		Security	Value

Semiconductors & Semiconductor Equipment — 3.6%
	11,000	Broadcom Corp., Class A Shares*	$	355,410
	150	Cabot Microelectronics Corp.*		5,091
	15,830	Cree Inc. *		274,176
	51,870	Intel Corp.		1,050,367
	46,340	Micron Technology Inc.*		646,906
	39,970	Texas Instruments Inc.		1,151,136

		Total Semiconductors & Semiconductor Equipment		3,483,086

Software — 4.2%
	12,660	Advent Software Inc.*		446,771
	15,880	Autodesk Inc.*		642,505
	9,400	Electronic Arts Inc.*		473,384
	50,870	Microsoft Corp.		1,518,978
	11,570	SAP AG, ADR		614,367
	12,500	Trend Micro Inc., ADR*		367,500

		Total Software		4,063,505

		TOTAL INFORMATION TECHNOLOGY		14,538,951

MATERIALS — 2.5%
Chemicals — 1.4%
	6,200	Air Products & Chemicals Inc.		435,736
	4,450	BASF AG, ADR		432,585
	10,000	E.I. du Pont de Nemours & Co.		487,100

		Total Chemicals		1,355,421

Construction Materials — 0.7%
	15,340	CRH PLC, ADR		651,950

Metals & Mining — 0.4%
	1,770	Rio Tinto PLC, ADR		376,107

		TOTAL MATERIALS		2,383,478

TELECOMMUNICATION SERVICES — 4.4%
Diversified Telecommunication Services — 1.8%
	17,608	AT&T Inc.		629,486
	5,599	Embarq Corp.		294,283
	15,245	Nippon Telegraph & Telephone Corp., ADR		377,924
	6,502	Telefonica SA, ADR		414,502

		Total Diversified Telecommunication Services		1,716,195

See Notes to Financial Statements.

Legg Mason Partners Variable Portfolios IV 2006 Annual Report 39


	Schedules of Investments (December 31, 2006) (continued)


Shares		Security	Value

Wireless Telecommunication Services — 2.6%
	10,550	ALLTEL Corp.	$	638,064
	15,210	SK Telecom Co., Ltd., ADR		402,761
	43,984	Sprint Nextel Corp.		830,858
	21,590	Vodafone Group PLC, ADR		599,770

		Total Wireless Telecommunication Services		2,471,453

		TOTAL TELECOMMUNICATION SERVICES		4,187,648

UTILITIES — 1.7%
Electric Utilities — 0.6%
	12,990	Endesa SA, ADR		604,295

Gas Utilities — 0.4%
	164,350	Hong Kong & China Gas, ADR		373,896

Multi-Utilities — 0.7%
	10,800	Sempra Energy		605,232

		TOTAL UTILITIES		1,583,423

		TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENT		90,103,619
		(Cost — $72,590,266)


Face
Amount

SHORT-TERM INVESTMENT — 5.7%
Repurchase Agreement — 5.7%
$	5,408,000	State Street Bank & Trust Co. dated 12/29/06, 4.370% due 1/2/07; Proceeds at maturity — $5,410,626; (Fully collateralized by U.S. Treasury Bonds, 6.250% to 7.625% due 8/15/23 to 2/15/25; Market value — $5,531,372) (Cost — $5,408,000)		5,408,000

		TOTAL INVESTMENTS — 100.1% (Cost — $77,998,266#)		95,511,619
		Liabilities in Excess of Other Assets — (0.1)%		(74,147	)

		TOTAL NET ASSETS — 100.0%	$	95,437,472


*		Non-income producing security.

^#		Aggregate cost for federal income tax purposes is $78,374,931.

Abbreviation used in this schedule:


ADR		— American Depositary Receipt

See Notes to Financial Statements.

40 Legg Mason Partners Variable Portfolios IV 2006 Annual Report


	Schedules of Investments (December 31, 2006) (continued)

LEGG MASON PARTNERS VARIABLE MULTIPLE DISCIPLINE PORTFOLIO —
BALANCED ALL CAP GROWTH AND VALUE



Shares		Security	Value

COMMON STOCKS — 68.3%
CONSUMER DISCRETIONARY — 12.2%
Internet & Catalog Retail — 1.5%
	32,500	Amazon.com Inc.*	$	1,282,450
	45,595	Expedia Inc.*		956,583
	26,595	IAC/InterActiveCorp.*		988,270

		Total Internet & Catalog Retail		3,227,303

Media — 8.3%
	50,265	Cablevision Systems Corp., New York Group, Class A Shares		1,431,547
	51,135	Comcast Corp., Special Class A Shares*		2,141,534
	16,958	Discovery Holding Co., Class A Shares*		272,854
	1,778	Idearc Inc.*		50,940
	112,500	Interpublic Group of Cos. Inc.*		1,377,000
	10,039	Liberty Global Inc., Series A Shares*		292,637
	3,273	Liberty Global Inc., Series C Shares*		91,644
	7,329	Liberty Media Holding Corp., Capital Group, Series A Shares*		718,095
	66,646	Liberty Media Holding Corp., Interactive Group, Series A Shares*		1,437,554
	80,270	News Corp., Class B Shares		1,786,810
	101,360	Pearson PLC, ADR		1,530,536
	154,695	Time Warner Inc.		3,369,257
	84,180	Walt Disney Co.		2,884,849

		Total Media		17,385,257

Specialty Retail — 2.4%
	24,500	Bed Bath & Beyond Inc.*		933,450
	43,660	Charming Shoppes Inc.*		590,720
	20,000	Gap Inc.		390,000
	79,505	Home Depot Inc.		3,192,921

		Total Specialty Retail		5,107,091

		TOTAL CONSUMER DISCRETIONARY		25,719,651

CONSUMER STAPLES — 5.5%
Beverages — 1.7%
	38,105	Coca-Cola Co.		1,838,566
	6,000	Molson Coors Brewing Co., Class B Shares		458,640
	21,135	PepsiCo Inc.		1,321,994

		Total Beverages		3,619,200

Food & Staples Retailing — 1.2%
	32,070	Safeway Inc.		1,108,339
	31,000	Wal-Mart Stores Inc.		1,431,580

		Total Food & Staples Retailing		2,539,919

See Notes to Financial Statements.

Legg Mason Partners Variable Portfolios IV 2006 Annual Report 41


	Schedules of Investments (December 31, 2006) (continued)


Shares		Security	Value

Food Products — 1.4%
	56,400	Unilever PLC, ADR	$	1,569,048
	26,737	Wm. Wrigley Jr. Co.		1,382,838

		Total Food Products		2,951,886

Household Products — 1.2%
	11,000	Kimberly-Clark Corp.		747,450
	28,591	Procter & Gamble Co.		1,837,544

		Total Household Products		2,584,994

		TOTAL CONSUMER STAPLES		11,695,999

ENERGY — 5.4%
Energy Equipment & Services — 1.8%
	9,200	Baker Hughes Inc.		686,872
	17,760	GlobalSantaFe Corp.		1,043,933
	14,875	Grant Prideco Inc.*		591,579
	36,040	Weatherford International Ltd.*		1,506,111

		Total Energy Equipment & Services		3,828,495

Oil, Gas & Consumable Fuels — 3.6%
	54,440	Anadarko Petroleum Corp.		2,369,229
	4,800	Chevron Corp.		352,944
	40,355	Exxon Mobil Corp.		3,092,404
	12,920	Murphy Oil Corp.		656,982
	38,550	Williams Cos. Inc.		1,006,926

		Total Oil, Gas & Consumable Fuels		7,478,485

		TOTAL ENERGY		11,306,980

FINANCIALS — 9.8%
Capital Markets — 3.3%
	4,000	Franklin Resources Inc.		440,680
	23,570	Lehman Brothers Holdings Inc.		1,841,289
	37,460	Merrill Lynch & Co. Inc.		3,487,526
	16,380	State Street Corp.		1,104,667

		Total Capital Markets		6,874,162

Consumer Finance — 0.8%
	27,085	American Express Co.		1,643,247

Diversified Financial Services — 1.5%
	28,532	Bank of America Corp.		1,523,324
	35,554	JPMorgan Chase & Co.		1,717,258

		Total Diversified Financial Services		3,240,582

See Notes to Financial Statements.

42 Legg Mason Partners Variable Portfolios IV 2006 Annual Report


	Schedules of Investments (December 31, 2006) (continued)


Shares		Security	Value

Insurance — 2.6%
	36,550	American International Group Inc.	$	2,619,173
	355	Berkshire Hathaway Inc., Class B Shares		1,301,430
	30,620	Chubb Corp.		1,620,104

		Total Insurance		5,540,707

Thrifts & Mortgage Finance — 1.6%
	25,365	MGIC Investment Corp.		1,586,327
	38,000	PMI Group Inc.		1,792,460

		Total Thrifts & Mortgage Finance		3,378,787

		TOTAL FINANCIALS		20,677,485

HEALTH CARE — 12.1%
Biotechnology — 4.5%
	1,690	Alkermes Inc.*		22,595
	32,800	Amgen Inc.*		2,240,568
	54,455	Biogen Idec Inc.*		2,678,641
	15,850	Genentech Inc.*		1,285,911
	22,425	Genzyme Corp.*		1,380,932
	33,500	ImClone Systems Inc.*		896,460
	79,650	Millennium Pharmaceuticals Inc.*		868,185

		Total Biotechnology		9,373,292

Health Care Providers & Services — 1.1%
	43,780	UnitedHealth Group Inc.		2,352,299

Pharmaceuticals — 6.5%
	30,410	Abbott Laboratories		1,481,271
	14,000	Eli Lilly & Co.		729,400
	30,560	Forest Laboratories Inc.*		1,546,336
	21,350	GlaxoSmithKline PLC, ADR		1,126,426
	51,875	Johnson & Johnson		3,424,788
	13,500	Novartis AG, ADR		775,440
	121,073	Pfizer Inc.		3,135,791
	29,795	Wyeth		1,517,161

		Total Pharmaceuticals		13,736,613

		TOTAL HEALTH CARE		25,462,204

INDUSTRIALS — 6.4%
Aerospace & Defense — 2.5%
	9,020	Boeing Co.		801,337
	39,000	Honeywell International Inc.		1,764,360
	14,560	L-3 Communications Holdings Inc.		1,190,717
	27,815	Raytheon Co.		1,468,632

		Total Aerospace & Defense		5,225,046

See Notes to Financial Statements.

Legg Mason Partners Variable Portfolios IV 2006 Annual Report 43


	Schedules of Investments (December 31, 2006) (continued)


Shares		Security	Value

Building Products — 0.0%
	1,600	Simpson Manufacturing Co. Inc.	$	50,640

Electrical Equipment — 0.8%
	37,010	Emerson Electric Co.		1,631,771

Industrial Conglomerates — 2.1%
	61,510	General Electric Co.		2,288,787
	71,950	Tyco International Ltd.		2,187,280

		Total Industrial Conglomerates		4,476,067

Machinery — 1.0%
	18,830	Caterpillar Inc.		1,154,844
	29,190	Pall Corp.		1,008,514

		Total Machinery		2,163,358

		TOTAL INDUSTRIALS		13,546,882

INFORMATION TECHNOLOGY — 13.2%
Communications Equipment — 2.6%
	126,510	Cisco Systems Inc.*		3,457,518
	50,115	Motorola Inc.		1,030,364
	46,740	Nokia Oyj, ADR		949,757

		Total Communications Equipment		5,437,639

Computers & Peripherals — 2.0%
	52,080	Dell Inc.*		1,306,687
	10,360	International Business Machines Corp.		1,006,474
	15,060	SanDisk Corp.*		648,032
	45,551	Seagate Technology		1,207,102

		Total Computers & Peripherals		4,168,295

Electronic Equipment & Instruments — 0.4%
	28,775	Agilent Technologies Inc.*		1,002,809

Internet Software & Services — 1.2%
	17,500	eBay Inc.*		526,225
	15,500	VeriSign Inc.*		372,775
	62,500	Yahoo! Inc.*		1,596,250

		Total Internet Software & Services		2,495,250

See Notes to Financial Statements.

44 Legg Mason Partners Variable Portfolios IV 2006 Annual Report


	Schedules of Investments (December 31, 2006) (continued)


Shares		Security	Value

Semiconductors & Semiconductor Equipment — 4.1%
	42,500	Applied Materials Inc.	$	784,125
	17,000	Broadcom Corp., Class A Shares*		549,270
	505	Cabot Microelectronics Corp.*		17,140
	25,215	Cree Inc.*		436,724
	81,290	Intel Corp.		1,646,122
	72,640	Micron Technology Inc.*		1,014,054
	19,000	Novellus Systems Inc.*		653,980
	107,947	Taiwan Semiconductor Manufacturing Co., Ltd., ADR		1,179,861
	68,610	Texas Instruments Inc.		1,975,968
	21,023	Verigy Ltd.*		373,158

		Total Semiconductors & Semiconductor Equipment		8,630,402

Software — 2.9%
	22,890	Advent Software Inc.*		807,788
	22,740	Autodesk Inc.*		920,060
	24,000	Electronic Arts Inc.*		1,208,640
	107,240	Microsoft Corp.		3,202,187

		Total Software		6,138,675

		TOTAL INFORMATION TECHNOLOGY		27,873,070

MATERIALS — 2.4%
Chemicals — 0.9%
	14,500	Dow Chemical Co.		579,130
	27,500	E.I. du Pont de Nemours & Co.		1,339,525

		Total Chemicals		1,918,655

Metals & Mining — 0.7%
	47,535	Alcoa Inc.		1,426,525

Paper & Forest Products — 0.8%
	23,740	Weyerhaeuser Co.		1,677,231

		TOTAL MATERIALS		5,022,411

TELECOMMUNICATION SERVICES — 1.3%
Diversified Telecommunication Services — 0.6%
	35,570	Verizon Communications Inc.		1,324,627

Wireless Telecommunication Services — 0.7%
	48,936	Vodafone Group PLC, ADR		1,359,442

		TOTAL TELECOMMUNICATION SERVICES		2,684,069

		TOTAL COMMON STOCKS
		(Cost — $115,445,189)		143,988,751

See Notes to Financial Statements.

Legg Mason Partners Variable Portfolios IV 2006 Annual Report 45


	Schedules of Investments (December 31, 2006) (continued)


Face
Amount		Security	Value

U.S. GOVERNMENT & AGENCY OBLIGATIONS — 26.7%
U.S. Government Agencies — 11.6%
$	2,825,000	Federal Home Loan Bank (FHLB), Global Bonds, 4.625% due 7/18/07	$	2,815,799
		Federal Home Loan Mortgage Corp. (FHLMC):
	3,000,000	4.875% due 11/15/13		2,985,996
	5,750,000	Notes, 3.625% due 9/15/08		5,619,475
	12,925,000	Federal National Mortgage Association (FNMA), 5.750% due 2/15/08		13,004,889

		Total U.S. Government Agencies		24,426,159

U.S. Government Obligations — 15.1%
		U.S. Treasury Notes:
	8,650,000	4.000% due 4/15/10		8,466,871
	5,885,000	5.000% due 2/15/11		5,960,404
	4,425,000	4.875% due 2/15/12		4,466,834
	2,860,000	4.375% due 8/15/12		2,819,783
	10,425,000	4.250% due 8/15/14		10,122,842

		Total U.S. Government Obligations		31,836,734

		TOTAL U.S. GOVERNMENT & AGENCY OBLIGATIONS
		(Cost — $56,507,236)		56,262,893

		TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENT
		(Cost — $171,952,425)		200,251,644

SHORT-TERM INVESTMENT — 4.8%
Repurchase Agreement — 4.8%
	10,131,000	State Street Bank & Trust Co. dated 12/29/06, 4.370% due 1/2/07; Proceeds at maturity — $10,135,919; (Fully collateralized by U.S. Treasury Bonds, 6.250% to 7.625% due 8/15/23 to 2/15/25; Market value — $10,345,099) (Cost — $10,131,000)		10,131,000

		TOTAL INVESTMENTS — 99.8% (Cost — $182,083,425#)		210,382,644
		Other Assets in Excess of Liabilities — 0.2%		474,746

		TOTAL NET ASSETS — 100.0%	$	210,857,390


*		Non-income producing security.

^#		Aggregate cost for federal income tax purposes is $182,585,677.

Abbreviation used in this schedule:


ADR		— American Depositary Receipt

See Notes to Financial Statements.

46 Legg Mason Partners Variable Portfolios IV 2006 Annual Report


	Statements of Assets and Liabilities (December 31, 2006)


		Legg Mason			Legg Mason			Legg Mason			Legg Mason
		Partners			Partners			Partners			Partners
		Variable			Variable			Variable			Variable
		Multiple			Multiple			Multiple			Multiple
		Discipline			Discipline			Discipline			Discipline
		Portfolio—			Portfolio—			Portfolio—			Portfolio—
		All Cap			Large Cap			Global All Cap			Balanced All
		Growth and			Growth and			Growth and			Cap Growth
		Value			Value			Value			and Value

ASSETS:
	Investments, at cost	$	221,894,374		$	30,593,157		$	77,998,266		$	182,083,425

	Investments, at value		272,480,026			36,290,250			95,511,619			210,382,644
	Cash		—			1,679			2,041			1,637
	Dividends and interest receivable		253,037			32,987			94,730			1,045,384
	Receivable from Manager		66,260			8,615			21,953			51,408
	Receivable for Fund shares sold		22,838			—			—			724
	Prepaid expenses		3,305			522			1,467			2,536

	Total Assets		272,825,466			36,334,053			95,631,810			211,484,333

LIABILITIES:
	Due to custodian		286,751			—			—			—
	Payable for Fund shares repurchased		242,910			13,282			52,815			323,957
	Investment management fee payable		174,407			23,148			60,965			135,115
	Trustees’ fees payable		133,578			17,968			44,312			103,705
	Distribution fees payable		11,185			—			—			2,894
	Accrued expenses		40,016			29,918			36,246			61,272

	Total Liabilities		888,847			84,316			194,338			626,943

Total Net Assets		$	271,936,619		$	36,249,737		$	95,437,472		$	210,857,390

NET ASSETS:
	Par value (Note 4)	$	16,561		$	2,280		$	5,318		$	14,841
	Paid-in capital in excess of par value		219,099,388			30,377,471			77,683,570			182,017,214
	Overdistributed net investment income		(66,737	)		(8,695	)		(284,273	)		(23,129	)
	Accumulated net realized gain on investments		2,301,755			181,588			519,504			549,245
	Net unrealized appreciation on investments		50,585,652			5,697,093			17,513,353			28,299,219

Total Net Assets		$	271,936,619		$	36,249,737		$	95,437,472		$	210,857,390

Shares Outstanding			16,561,322			2,279,623			5,317,684			14,841,156

Net Asset Value			$16.42		$	15.90		$	17.95		$	14.21

See Notes to Financial Statements.

Legg Mason Partners Variable Portfolios IV 2006 Annual Report 47


	Statements of Operations (For the year ended December 31, 2006)


		Legg Mason			Legg Mason			Legg Mason			Legg Mason
		Partners			Partners			Partners			Partners
		Variable			Variable			Variable			Variable
		Multiple			Multiple			Multiple			Multiple
		Discipline			Discipline			Discipline			Discipline
		Portfolio—			Portfolio—			Portfolio—			Portfolio—
		All Cap			Large Cap			Global All Cap			Balanced All
		Growth			Growth and			Growth and			Cap Growth
		and Value			Value			Value			and Value

INVESTMENT INCOME:
	Dividends	$	4,016,640		$	537,064		$	1,339,032		$	2,153,719
	Interest		311,067			78,198			269,024			3,112,543
	Less: Foreign taxes withheld		(28,870	)		(5,924	)		(38,733	)		(15,321	)

	Total Investment Income		4,298,837			609,338			1,569,323			5,250,941

EXPENSES:
	Investment management fee (Note 2)		2,089,714			268,844			672,810			1,604,341
	Distribution fees (Note 2)		696,571			89,615			224,270			534,781
	Trustees’ fees (Note 9)		171,455			27,769			59,048			133,981
	Shareholder reports		31,809			7,080			8,133			23,312
	Legal fees		25,097			24,552			20,412			18,312
	Audit and tax		24,600			24,402			27,400			26,400
	Restructuring and reorganization fees (Note 9)		15,281			3,351			5,959			38,778
	Insurance		6,290			745			1,517			4,684
	Custody fees		4,818			785			1,215			3,048
	Registration fees		3,160			811			3,406			3,960
	Transfer agent fees		97			121			139			84
	Miscellaneous expenses		6,393			4,898			5,617			1,756

	Total Expenses		3,075,285			452,973			1,029,926			2,393,437
	Less: Fee waivers and/or expense reimbursements (Notes 2, 6 and 9)		(352,755	)		(100,576	)		(249,613	)		(271,683	)

	Net Expenses		2,722,530			352,397			780,313			2,121,754

Net Investment Income			1,576,307			256,941			789,010			3,129,187

REALIZED AND UNREALIZED GAIN ON INVESTMENTS (NOTES 1 AND 3):
	Net Realized Gain From Investment Transactions		13,852,572			1,094,944			2,991,423			6,740,627

	Change in Net Unrealized Appreciation/ Depreciation From Investments		19,665,433			2,760,459			9,000,025			11,349,867

Net Gain on Investments			33,518,005			3,855,403			11,991,448			18,090,494

Increase in Net Assets From Operations		$	35,094,312		$	4,112,344		$	12,780,458		$	21,219,681

See Notes to Financial Statements.

48 Legg Mason Partners Variable Portfolios IV 2006 Annual Report


	Statements of Changes in Net Assets (For the years ended December 31,)


Legg Mason Partners Variable Multiple Discipline Portfolio –
All Cap Growth and Value		2006			2005

OPERATIONS:
	Net investment income	$	1,576,307		$	1,015,249
	Net realized gain		13,852,572			9,158,915
	Change in net unrealized appreciation/depreciation		19,665,433			4,684,494

	Increase in Net Assets From Operations		35,094,312			14,858,658

DISTRIBUTIONS TO SHAREHOLDERS FROM (NOTES 1 and 5):
	Net investment income		(1,657,129	)		(1,000,008	)
	Net realized gains		(12,569,504	)		(5,609,221	)

	Decrease in Net Assets From Distributions to Shareholders		(14,226,633	)		(6,609,229	)

FUND SHARE TRANSACTIONS (NOTE 4):
	Net proceeds from sale of shares		11,042,459			49,267,087
	Reinvestment of distributions		14,226,633			6,609,229
	Cost of shares repurchased		(58,580,574	)		(26,087,662	)

	Increase (Decrease) in Net Assets From Fund Share Transactions		(33,311,482	)		29,788,654

Increase (Decrease) in Net Assets			(12,443,803	)		38,038,083
NET ASSETS:
	Beginning of year		284,380,422			246,342,339

	End of year*	$	271,936,619		$	284,380,422

* Includes overdistributed net investment income of:			$(66,737	)	$	(1,196	)

See Notes to Financial Statements.

Legg Mason Partners Variable Portfolios IV 2006 Annual Report 49


	Statements of Changes in Net Assets (For the years ended December 31,) (continued)


Legg Mason Partners Variable Multiple Discipline Portfolio –
Large Cap Growth and Value		2006			2005

OPERATIONS:
	Net investment income	$	256,941		$	222,795
	Net realized gain		1,094,944			634,889
	Change in net unrealized appreciation/depreciation		2,760,459			530,765

	Increase in Net Assets From Operations		4,112,344			1,388,449

DISTRIBUTIONS TO SHAREHOLDERS FROM (NOTES 1 and 5):
	Net investment income		(268,785	)		(222,675	)
	Net realized gains		(896,728	)		(484,105	)

	Decrease in Net Assets From Distributions to Shareholders		(1,165,513	)		(706,780	)

FUND SHARE TRANSACTIONS (NOTE 4):
	Net proceeds from sale of shares		2,833,102			11,085,447
	Reinvestment of distributions		1,165,513			706,780
	Cost of shares repurchased		(6,630,955	)		(4,122,953	)

	Increase (Decrease) in Net Assets From Fund Share Transactions		(2,632,340	)		7,669,274

Increase in Net Assets			314,491			8,350,943
NET ASSETS:
	Beginning of year		35,935,246			27,584,303

	End of year*	$	36,249,737		$	35,935,246

* Includes overdistributed net investment income of:			$(8,695	)	$	(202	)

See Notes to Financial Statements.

50 Legg Mason Partners Variable Portfolios IV 2006 Annual Report


	Statements of Changes in Net Assets (For the years ended December 31,) (continued)


Legg Mason Partners Variable Multiple Discipline Portfolio –
Global All Cap Growth and Value		2006			2005

OPERATIONS:
	Net investment income	$	789,010		$	427,403
	Net realized gain		2,991,423			1,034,391
	Change in net unrealized appreciation/depreciation		9,000,025			3,787,169

	Increase in Net Assets From Operations		12,780,458			5,248,963

DISTRIBUTIONS TO SHAREHOLDERS FROM (NOTES 1 and 5):
	Net investment income		(1,074,520	)		(567,440	)
	Net realized gains		(2,398,051	)		(847,896	)

	Decrease in Net Assets From Distributions to Shareholders		(3,472,571	)		(1,415,336	)

FUND SHARE TRANSACTIONS (NOTE 4):
	Net proceeds from sale of shares		12,413,562			32,026,581
	Reinvestment of distributions		3,472,571			1,415,336
	Cost of shares repurchased		(12,320,426	)		(4,092,321	)

	Increase in Net Assets From Fund Share Transactions		3,565,707			29,349,596

Increase in Net Assets			12,873,594			33,183,223
NET ASSETS:
	Beginning of year		82,563,878			49,380,655

	End of year*	$	95,437,472		$	82,563,878

* Includes overdistributed net investment income of:			$(284,273	)	$	(80,288	)

See Notes to Financial Statements.

Legg Mason Partners Variable Portfolios IV 2006 Annual Report 51


	Statements of Changes in Net Assets (For the years ended December 31,) (continued)


Legg Mason Partners Variable Multiple Discipline Portfolio –
Balanced All Cap Growth and Value		2006			2005

OPERATIONS:
	Net investment income	$	3,129,187		$	2,574,320
	Net realized gain		6,740,627			3,158,471
	Change in net unrealized appreciation/depreciation		11,349,867			3,389,794

	Increase in Net Assets From Operations		21,219,681			9,122,585

DISTRIBUTIONS TO SHAREHOLDERS FROM (NOTES 1 and 5):
	Net investment income		(3,213,668	)		(2,550,005	)
	Net realized gains		(6,100,693	)		(1,896,929	)

	Decrease in Net Assets From Distributions to Shareholders		(9,314,361	)		(4,446,934	)

FUND SHARE TRANSACTIONS (NOTE 4):
	Net proceeds from sale of shares		9,910,365			48,478,002
	Reinvestment of distributions		9,314,361			4,446,934
	Cost of shares repurchased		(37,203,124	)		(15,592,333	)

	Increase (Decrease) in Net Assets From Fund Share Transactions		(17,978,398	)		37,332,603

Increase (Decrease) in Net Assets			(6,073,078	)		42,008,254
NET ASSETS:
	Beginning of year		216,930,468			174,922,214

	End of year*	$	210,857,390		$	216,930,468

* Includes (overdistributed) undistributed net investment income of:			$(23,129	)	$	22,574

See Notes to Financial Statements.

52 Legg Mason Partners Variable Portfolios IV 2006 Annual Report


	Financial Highlights

For a share of beneficial interest outstanding throughout each year ended December 31, unless otherwise noted:



Legg Mason Partners Variable
Multiple Discipline Portfolio -
All Cap Growth and Value		2006			2005			2004			2003(1)			2002(1)(2)

Net Asset Value, Beginning of Year			$15.24			$14.82			$13.99			$10.65			$10.00

Income From Operations:
	Net investment income		0.10			0.05			0.04			0.02			0.01
	Net realized and unrealized gain		1.97			0.73			0.89			3.33			0.64

Total Income From Operations			2.07			0.78			0.93			3.35			0.65

Less Distributions From:
	Net investment income		(0.10	)		(0.05	)		(0.05	)		(0.01	)		—
	Net realized gains		(0.79	)		(0.31	)		(0.05	)		(0.00	)(3)		—

Total Distributions			(0.89	)		(0.36	)		(0.10	)		(0.01	)		—

Net Asset Value, End of Year			$16.42			$15.24			$14.82			$13.99			$10.65

Total Return(4)			13.62	%		5.25	%		6.64	%		31.44	%		6.50	%

Net Assets, End of Year (000s)			$271,937			$284,380			$246,342			$103,769			$3,330

Ratios to Average Net Assets:
	Gross expenses		1.10	%^†		1.06	%		1.07	%		1.31	%		21.24	%(5)
	Net expenses(6)(7)		0.98	^†		0.96			0.95			1.00			1.00	(5)
	Net investment income		0.57			0.38			0.43			0.17			0.49	(5)

Portfolio Turnover Rate			14	%		22	%		9	%		3	%		2	%


⁽¹⁾		Per share amounts have been calculated using the average shares method.

⁽²⁾		For the period October 1, 2002 (commencement of operations) to December 31, 2002.

⁽³⁾		Amount represents less than $0.01 per share.

⁽⁴⁾		Performance figures may reflect fee waivers and/or expense reimbursements. Past performance is no guarantee of future results. In the absence of fee waivers and/or expense reimbursements, the total return would be lower. Total returns do not reflect expenses associated with the separate accounts such as administrative fees, account charges and surrender charges which, if reflected, would reduce the total return for all periods shown. Total returns for periods of less than one year are not annualized.

⁽⁵⁾		Annualized.

⁽⁶⁾		As a result of a voluntary expense limitation, the ratio of expenses to average net assets, other than interest, brokerage, taxes and extraordinary expenses, of shares will not exceed 1.00%.

⁽⁷⁾		Reflects fee waivers and/or expense reimbursements.

^†		Included in the expense ratios are certain non-recurring restructuring and (reorganization if applicable) fees that were incurred by the Fund during the period. Without these fees, the gross and net expense ratios would have been 1.05% and 0.95%, respectively (Note 9).

See Notes to Financial Statements.

Legg Mason Partners Variable Portfolios IV 2006 Annual Report 53


	Financial Highlights (continued)

For a share of beneficial interest outstanding throughout each year ended December 31, unless otherwise noted:



Legg Mason Partners Variable
Multiple Discipline Portfolio -
Large Cap Growth and Value		2006			2005			2004			2003(1)			2002(1)(2)

Net Asset Value, Beginning of Year			$14.63			$14.41			$13.74			$10.73			$10.00

Income From Operations:
	Net investment income		0.12			0.09			0.11			0.02			0.01
	Net realized and unrealized gain		1.67			0.42			0.82			3.09			0.72

Total Income From Operations			1.79			0.51			0.93			3.11			0.73

Less Distributions From:
	Net investment income		(0.12	)		(0.09	)		(0.11	)		(0.03	)		—
	Net realized gains		(0.40	)		(0.20	)		(0.15	)		(0.07	)		—

Total Distributions			(0.52	)		(0.29	)		(0.26	)		(0.10	)		—

Net Asset Value, End of Year			$15.90			$14.63			$14.41			$13.74			$10.73

Total Return(3)			12.27	%		3.55	%		6.75	%		29.00	%		7.30	%

Net Assets, End of Year (000s)			$36,250			$35,935			$27,584			$10,811			$436

Ratios to Average Net Assets:
	Gross expenses		1.26	% ^†		1.24	%		1.36	%		2.35	%		119.99	%(4)
	Net expenses(5)(6)		0.98	^†		0.99			1.00			1.00			1.00	(4)
	Net investment income		0.72			0.67			1.12			0.62			0.69	(4)

Portfolio Turnover Rate			15	%		33	%		16	%		5	%		3	%


⁽¹⁾		Per share amounts have been calculated using the average shares method.

⁽²⁾		For the period October 1, 2002 (commencement of operations) to December 31, 2002.

⁽³⁾		Performance figures may reflect fee waivers and/or expense reimbursements. Past performance is no guarantee of future results. In the absence of fee waivers and/or expense reimbursements, the total return would be lower. Total returns do not reflect expenses associated with the separate accounts such as administrative fees, account charges and surrender charges which, if reflected, would reduce the total return for all periods shown. Total returns for periods of less than one year are not annualized.

⁽⁴⁾		Annualized.

⁽⁵⁾		As a result of a voluntary expense limitation, the ratio of expenses to average net assets, other than interest, brokerage, taxes and extraordinary expenses, of shares will not exceed 1.00%.

⁽⁶⁾		Reflects fee waivers and/or expense reimbursements.

^†		Included in the expense ratios are certain non-recurring restructuring (and reorganization if applicable) fees that were incurred by the Fund during the period. Without these fees, the gross and net expense ratios would have been 1.21% and 0.95%, respectively (Note 9).

See Notes to Financial Statements.

54 Legg Mason Partners Variable Portfolios IV 2006 Annual Report


	Financial Highlights (continued)

For a share of beneficial interest outstanding throughout each year ended December 31, unless otherwise noted:



Legg Mason Partners Variable
Multiple Discipline Portfolio -
Global All Cap Growth and Value			2006(1)			2005			2004			2003(1)			2002(1)(2)

Net Asset Value, Beginning of Year				$16.17			$15.44			$14.11			$10.78			$10.00

Income From Operations:
	Net investment income			0.15			0.10			0.07			0.04			0.01
	Net realized and unrealized gain			2.31			0.91			1.38			3.36			0.77

Total Income From Operations				2.46			1.01			1.45			3.40			0.78

Less Distributions From:
	Net investment income			(0.21	)		(0.11	)		(0.07	)		(0.02	)		—
	Net realized gains			(0.47	)		(0.17	)		(0.05	)		(0.05	)		—

Total Distributions				(0.68	)		(0.28	)		(0.12	)		(0.07	)		—

Net Asset Value, End of Year				$17.95			$16.17			$15.44			$14.11			$10.78

Total Return(3)				15.20	%		6.54	%		10.25	%		31.55	%		7.80	%

Net Assets, End of Year (000s)				$95,437			$82,564			$49,381			$10,974			$1,003

Ratios to Average Net Assets:
	Gross expenses			1.15	%^†		1.15	%		1.28	%		2.56	%		52.11	%(4)
	Net expenses(5)(6)			0.87	^†		0.90			1.00			1.00			1.00	(4)
	Net investment income	��		0.88			0.64			0.75			0.36			0.38	(4)

Portfolio Turnover Rate				18	%		18	%		10	%		6	%		2	%


⁽¹⁾		Per share amounts have been calculated using the average shares method.

⁽²⁾		For the period October 1, 2002 (commencement of operations) to December 31, 2002.

⁽³⁾		Performance figures may reflect fee waivers and/or expense reimbursements. Past performance is no guarantee of future results. In the absence of fee waivers and/or expense reimbursements, the total return would be lower. Total returns do not reflect expenses associated with the separate accounts such as administrative fees, account charges and surrender charges which, if reflected, would reduce the total return for all periods shown. Total returns for periods of less than one year are not annualized.

⁽⁴⁾		Annualized.

⁽⁵⁾		As a result of a voluntary expense limitation, the ratio of expenses to average net assets, other than interest, brokerage, taxes and extraordinary expenses, of shares will not exceed 1.00%.

⁽⁶⁾		Reflects fee waivers and/or expense reimbursements.

^†		Included in the expense ratios are certain non-recurring restructuring (and reorganization if applicable) fees that were incurred by the Fund during the period. Without these fees, the gross and net expense ratios would have been 1.09% and 0.84%, respectively (Note 9).

See Notes to Financial Statements.

Legg Mason Partners Variable Portfolios IV 2006 Annual Report 55


	Financial Highlights (continued)

For a share of beneficial interest outstanding throughout each year ended December 31, unless otherwise noted:



Legg Mason Partners Variable
Multiple Discipline Portfolio -
Balanced All Cap Growth and Value		2006			2005			2004			2003(1)			2002(1)(2)

Net Asset Value, Beginning of Year			$13.45			$13.17			$12.67			$10.42			$10.00

Income From Operations:
	Net investment income		0.22			0.16			0.10			0.08			0.02
	Net realized and unrealized gain		1.20			0.40			0.54			2.20			0.40

Total Income From Operations			1.42			0.56			0.64			2.28			0.42

Less Distributions From:
	Net investment income		(0.23	)		(0.16	)		(0.11	)		(0.03	)		—
	Net realized gains		(0.43	)		(0.12	)		(0.03	)		(0.00	)(3)		—

Total Distributions			(0.66	)		(0.28	)		(0.14	)		(0.03	)		—

Net Asset Value, End of Year			$14.21			$13.45			$13.17			$12.67			$10.42

Total Return(4)			10.50	%		4.25	%		5.01	%		21.93	%		4.20	%

Net Assets, End of Year (000s)			$210,857			$216,930			$174,922			$77,788			$3,234

Ratios to Average Net Assets:
	Gross expenses		1.12	%^†		1.06	%		1.08	%		1.39	%		23.28	%(5)
	Net expenses(6)(7)		0.99	^†		0.96			0.97			1.00			1.00	(5)
	Net investment income		1.46			1.29			1.09			0.69			1.28	(5)

Portfolio Turnover Rate			36	%		61	%		49	%		39	%		7	%


⁽¹⁾		Per share amounts have been calculated using the average shares method.

⁽²⁾		For the period October 1, 2002 (commencement of operations) to December 31, 2002.

⁽³⁾		Amount represents less than $0.01 per share.

⁽⁴⁾		Performance figures may reflect fee waivers and/or expense reimbursements. Past performance is no guarantee of future results. In the absence of fee waivers and/or expense reimbursements, the total return would be lower. Total returns do not reflect expenses associated with the separate accounts such as administrative fees, account charges and surrender charges which, if reflected, would reduce the total return for all periods shown. Total returns for periods of less than one year are not annualized.

⁽⁵⁾		Annualized.

⁽⁶⁾		As a result of a voluntary expense limitation, the ratio of expenses to average net assets, other than interest, brokerage, taxes and extraordinary expenses, of shares will not exceed 1.00%.

⁽⁷⁾		Reflects fee waivers and/or expense reimbursements.

^†		Included in the expense ratios are certain non-recurring restructuring and (reorganization if applicable) fees that were incurred by the Fund during the period. Without these fees, the gross and net expense ratios would have been 1.05% and 0.95%, respectively (Note 9).

See Notes to Financial Statements.

56 Legg Mason Partners Variable Portfolios IV 2006 Annual Report

Notes to Financial Statements


1.	Organization and Significant Accounting Policies

Legg Mason Partners Variable Multiple Discipline Portfolio — All Cap Growth and Value (“All Cap Growth and Value”), Legg Mason Partners Variable Multiple Discipline Portfolio — Large Cap Growth and Value (“Large Cap Growth and Value”), Legg Mason Partners Variable Multiple Discipline Portfolio — Global All Cap Growth and Value (“Global All Cap Growth and Value”) and Legg Mason Partners Variable Multiple Discipline Portfolio — Balanced All Cap Growth and Value (“Balanced All Cap Growth and Value”) (formerly known as Multiple Discipline Portfolio — All Cap Growth and Value, Multiple Discipline Portfolio — Large Cap Growth and Value, Multiple Discipline Portfolio — Global All Cap Growth and Value and Multiple Discipline Portfolio — Balanced All Cap Growth and Value) (the “Funds”) are separate diversified investment funds of Legg Mason Partners Variable Portfolios IV (formerly known as Smith Barney Multiple Discipline Trust) (the “Trust”). The Trust, a Massachusetts business trust, is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust is offered exclusively for use with certain variable annuity and variable life insurance contracts offered through the separate accounts of various affiliated life insurance companies and qualified pension and retirement plans.

The following are significant accounting policies consistently followed by the Funds and are in conformity with U.S. generally accepted accounting principles (“GAAP”). Estimates and assumptions are required to be made regarding assets, liabilities and changes in net assets resulting from operations when financial statements are prepared. Changes in the economic environment, financial markets and any other parameters used in determining these estimates could cause actual results to differ.

(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 Funds calculate their net asset value, the Funds may value these investments at fair value as determined in accordance with the procedures approved by the Funds’ Board of Trustees. 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 Funds’ policy that their 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

Legg Mason Partners Variable Portfolios IV 2006 Annual Report 57

Notes to Financial Statements (continued)

of the collateral declines or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of the collateral by the Funds may be delayed or limited.

(c) Security Transactions and Investment Income. Security transactions are accounted for on a trade date basis. Interest income, adjusted for amortization of premium and accretion of discount, is recorded on the accrual basis. Dividend income is recorded on the ex-dividend date. Foreign dividend income is recorded on the ex-dividend date or as soon as practical after the Funds determine the existence of a dividend declaration after exercising reasonable due diligence. The cost of investments sold is determined by use of the specific identification method. To the extent any issuer defaults on an expected interest payment, the Funds’ policy is to generally halt any additional interest income accruals and consider the realizability of interest accrued up to the date of default.

(d) Distributions to Shareholders. Distributions from net investment income and distributions of net realized gains, if any, are declared at least annually. Distributions to shareholders of the Funds are recorded on the ex-dividend date and are determined in accordance with income tax regulations, which may differ from GAAP.

(e) Federal and Other Taxes. It is the Funds’ policy to comply with the federal income and excise tax requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies. Accordingly, the Funds intend to distribute substantially all of its income and net realized gains on investments, if any, to shareholders each year. Therefore, no federal income tax provision is required in the Funds’ financial statements. Under the applicable foreign tax laws, a withholding tax may be imposed on interest, dividends and capital gains at various rates.

(f) Reclassification. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. During the current year, the following reclassifications have been made:


		Overdistributed Net		Accumulated Net			Paid-in
Fund		Investment Income		Realized Gain			Capital

All Cap Growth and Value	(a)	$	15,281		—		$	(15,281	)

Large Cap Growth and Value	(a)		3,351		—			(3,351	)

Global All Cap Growth and Value	(a)		5,959		—			(5,959	)
	(b)		75,566	$	(75,566	)		—

Balanced All Cap Growth and Value	(a)		38,778		—			(38,778	)


^(a)		Reclassifications are primarily due to book/tax differences in the treatment of various items.

^(b)		Reclassifications are primarily due to book/tax differences in the treatment of passive foreign investment companies.


2.	Investment Management Agreement and Other Transactions with Affiliates

Prior to August 1, 2006, Smith Barney Fund Management LLC (“SBFM”), an indirect wholly-owned subsidiary of Legg Mason, Inc. (“Legg Mason”), acted as the investment manager of the Funds. Under the investment management agreement, each Fund paid an

58 Legg Mason Partners Variable Portfolios IV 2006 Annual Report

Notes to Financial Statements (continued)

investment management fee calculated at an annual rate of 0.75% of the Funds’ average daily net assets. This fee is calculated daily and paid monthly.

Effective August 1, 2006, Legg Mason Partners Fund Advisor, LLC (“LMPFA”) became the Funds’ investment manager and ClearBridge Advisors, LLC (ClearBridge) became the Funds’ subadviser. Western Asset Management Company (“Western Asset”) became the co-subadviser to Balanced All Cap Growth and Value. The portfolio managers who are responsible for the day-to-day management of the Funds remain the same immediately prior to and immediately after the date of these changes. LMPFA, ClearBridge and Western Asset are wholly-owned subsidiaries of Legg Mason.

LMPFA provides administrative and certain oversight services to the Funds. LMPFA has delegated to the subadvisers the day-to-day portfolio management of the Funds. The Funds’ investment management fee remains unchanged. For its services, LMPFA pays ClearBridge and Western Asset 70% of the net management fee it receives from the Funds. For Balanced All Cap Growth and Value, this fee is divided between ClearBridge and Western Asset, on a pro rata basis, based on the assets allocated to each subadviser, from time to time.

During the year ended December 31, 2006, All Cap Growth and Value, Large Cap Growth and Value, Global All Cap Growth and Value and Balanced All Cap Growth and Value each had expense limitations in place of 1.00%.

During the year ended December 31, 2006, SBFM waived a portion of its fee in the amount of $7,866, $2,346, $3,390, and $6,363 for All Cap Growth and Value, Large Cap Growth and Value, Global All Cap Growth and Value and Balanced All Cap Growth and Value, respectively.

In addition, during the year ended December 31, 2006, All Cap Growth and Value, Large Cap Growth and Value, Global All Cap Growth and Value and Balanced All Cap Growth and Value were reimbursed for expenses in the amount of $66,260, $8,615, $21,953 and $51,408, respectively.

Citigroup Global Markets Inc. (“CGM”) and Legg Mason Investor Services, LLC (“LMIS”), serve as co-distributors of the Funds. LMIS is a wholly-owned broker-dealer subsidiary of Legg Mason.

The Funds have adopted a Rule 12b-1 distribution plan and under that plan, the Funds pay a distribution fee of 0.25% of the average daily net assets of each Fund, respectively. These fees are calculated daily and paid monthly.

During the year ended December 31, 2006, CGM and LMIS waived a portion of their distribution fees equal to 0.10% of the average daily net assets for All Cap Growth and Value and Balanced All Cap Growth and Value, resulting in waivers of $278,629 and $213,912, respectively. In addition, CGM and LMIS waived all of their distribution fees for Large Cap Growth and Value and Global All Cap Growth and Value, resulting in waivers of $89,615 and $224,270, respectively. The distribution plan fee waivers can be terminated at any time.

Certain officers and one Trustee of the Trust are employees of Legg Mason or its affiliates and do not receive compensation from the Trust.

Legg Mason Partners Variable Portfolios IV 2006 Annual Report 59

Notes to Financial Statements (continued)


3.	Investments

During the year ended December 31, 2006, the aggregate cost of purchases and proceeds from sales of investments (excluding short-term investments) and U.S. Government & Agency obligations were as follows:


					U.S. Government &
	Investments				Agency Obligations

	Purchases		Sales		Purchases		Sales

All Cap Growth and Value	$	36,888,240	$	83,521,177		—		—

Large Cap Growth and Value		5,315,132		8,735,663		—		—

Global All Cap Growth and Value		16,648,026		14,864,248		—		—

Balanced All Cap Growth and Value		20,241,947		45,304,611	$	53,066,083	$	58,080,664

At December 31, 2006, the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were as follows:


	Gross Unrealized		Gross Unrealized			Net Unrealized
	Appreciation		Depreciation			Appreciation

All Cap Growth and Value	$	54,538,735	$	(4,084,617	)	$	50,454,118

Large Cap Growth and Value		6,131,018		(462,305	)		5,668,713

Global All Cap Growth and Value		18,246,131		(1,109,443	)		17,136,688

Balanced All Cap Growth and Value		30,113,081		(2,316,114	)		27,796,967

60 Legg Mason Partners Variable Portfolios IV 2006 Annual Report

Notes to Financial Statements (continued)


4.	Shares of Beneficial Interest

At December 31, 2006, the Trust had an unlimited number of shares authorized with a par value of $0.001 per share.

Transactions in shares of each Fund were as follows:


	Year Ended			Year Ended
	December 31, 2006			December 31, 2005

All Cap Growth and Value
Shares sold		698,147			3,357,104
Shares issued on reinvestment		868,168			430,288
Shares repurchased		(3,665,357	)		(1,749,491	)

Net Increase (Decrease)		(2,099,042	)		2,037,901

Large Cap Growth and Value
Shares sold		189,137			778,434
Shares issued on reinvestment		73,226			47,982
Shares repurchased		(439,044	)		(284,538	)

Net Increase (Decrease)		(176,681	)		541,878

Global All Cap Growth and Value
Shares sold		734,898			2,083,470
Shares issued on reinvestment		194,260			86,994
Shares repurchased		(718,429	)		(262,077	)

Net Increase		210,729			1,908,387

Balanced All Cap Growth and Value
Shares sold		715,808			3,701,338
Shares issued on reinvestment		654,470			328,915
Shares repurchased		(2,663,764	)		(1,176,083	)

Net Increase (Decrease)		(1,293,486	)		2,854,170


5.	Income Tax Information and Distributions to Shareholders

The tax character of distributions paid during the fiscal year ended December 31, 2006 was as follows:


						Global		Balanced
		All Cap		Large Cap		All Cap		All Cap
		Growth and		Growth and		Growth and		Growth and
		Value		Value		Value		Value

Distributions paid from:
	Ordinary Income	$	1,855,440	$	427,234	$	1,287,616	$	3,213,668
	Net Long-term Capital Gains		12,371,193		738,279		2,184,955		6,100,693

Total Distributions Paid		$	14,226,633	$	1,165,513	$	3,472,571	$	9,314,361

Legg Mason Partners Variable Portfolios IV 2006 Annual Report 61

Notes to Financial Statements (continued)

The tax character of distributions paid during the fiscal year ended December 31, 2005 was as follows:


						Global		Balanced
		All Cap		Large Cap		All Cap		All Cap
		Growth and		Growth and		Growth and		Growth and
		Value		Value		Value		Value

Distributions paid from:
	Ordinary Income	$	1,000,008	$	222,675	$	567,440	$	2,550,005
	Net Long-term Capital Gains		5,609,221		484,105		847,896		1,896,929

Total Distributions Paid		$	6,609,229	$	706,780	$	1,415,336	$	4,446,934

As of December 31, 2006, the components of accumulated earnings on a tax basis were as follows:


							Global			Balanced
	All Cap			Large Cap			All Cap			All Cap
	Growth and			Growth and			Growth and			Growth and
	Value			Value			Value			Value

Undistributed ordinary income — net	$	386,131			—		$	51,955		$	260,102
Undistributed long-term capital gains — net		2,047,158		$	209,968			582,082			820,109

Total undistributed earnings		2,433,289			209,968			634,037			1,080,211
Other book/tax temporary differences		(66,737	) ^(a)		(8,695	) ^(a)		(22,141	) ^(a)		(51,843	) ^(a)
Unrealized appreciation/(depreciation)		50,454,118	^(b)		5,668,713	^(b)		17,136,688	^(c)		27,796,967	^(b)

Total accumulated earnings/(losses) — net	$	52,820,670		$	5,869,986		$	17,748,584		$	28,825,335


^(a)		Other book/tax temporary differences are attributable primarily to differences in the book/tax treatment of organization costs and to differences in the book/tax treatment of various items.

^(b)		The difference between book-basis and tax-basis unrealized appreciation/(depreciation) is attributable primarily to the tax deferral of losses on wash sales.

^(c)		The difference between book-basis and tax-basis unrealized appreciation/(depreciation) is attributable primarily to the tax deferral of losses on wash sales and the realization for tax purposes of unrealized gains on investments in passive foreign investment companies.


6.	Regulatory Matters

On May 31, 2005, the U.S. Securities and Exchange Commission (“SEC”) issued an order in connection with the settlement of an administrative proceeding against SBFM, the Funds’ prior investment manager, and CGM relating to the appointment of an affiliated transfer agent for the Smith Barney family of mutual funds (the “Funds”).

The SEC order finds that SBFM and CGM willfully violated Section 206(1) of the Investment Advisers Act of 1940 (“Advisers Act”). Specifically, the order finds that SBFM and CGM knowingly or recklessly failed to disclose to the boards of the Funds in 1999 when proposing a new transfer agent arrangement with an affiliated transfer agent that: First Data Investors Services Group (“First Data”), the Funds’ then-existing transfer agent, had offered to continue as transfer agent and do the same work for substantially less money than before; and that Citigroup Asset Management (“CAM”), the Citigroup business unit

62 Legg Mason Partners Variable Portfolios IV 2006 Annual Report

Notes to Financial Statements (continued)

that, at the time, included the Funds’ investment manager and other investment advisory companies, had entered into a side letter with First Data under which CAM agreed to recommend the appointment of First Data as sub-transfer agent to the affiliated transfer agent in exchange for, among other things, a guarantee by First Data of specified amounts of asset management and investment banking fees to CAM and CGM. The order also finds that SBFM and CGM willfully violated Section 206(2) of the Advisers Act by virtue of the omissions discussed above and other misrepresentations and omissions in the materials provided to the Funds’ boards, including the failure to make clear that the affiliated transfer agent would earn a high profit for performing limited functions while First Data continued to perform almost all of the transfer agent functions, and the suggestion that the proposed arrangement was in the Funds’ best interests and that no viable alternatives existed. SBFM and CGM do not admit or deny any wrongdoing or liability. The settlement does not establish wrongdoing or liability for purposes of any other proceeding.

The SEC censured SBFM and CGM and ordered them to cease and desist from violations of Sections 206(1) and 206(2) of the Advisers Act. The order requires Citigroup to pay $208.1 million, including $109 million in disgorgement of profits, $19.1 million in interest, and a civil money penalty of $80 million. Approximately $24.4 million has already been paid to the Funds, primarily through fee waivers. The remaining $183.7 million, including the penalty, has been paid to the U.S. Treasury and will be distributed pursuant to a plan submitted for the approval of the SEC. At this time, there is no certainty as to how the above-described proceeds of the settlement will be distributed, to whom such distributions will be made, the methodology by which such distributions will be allocated, and when such distributions will be made. The order also required that transfer agency fees received from the Funds since December 1, 2004, less certain expenses, be placed in escrow and provided that a portion of such fees might be subsequently distributed in accordance with the terms of the order. On April 3, 2006, an aggregate amount of approximately $9 million was distributed to the affected Funds.

The order required SBFM to recommend a new transfer agent contract to the Funds’ boards within 180 days of the entry of the order; if a Citigroup affiliate submitted a proposal to serve as transfer agent or sub-transfer agent, SBFM and CGM would have been required, at their expense, to engage an independent monitor to oversee a competitive bidding process. On November 21, 2005, and within the specified timeframe, the Funds’ Board selected a new transfer agent for the Funds. No Citigroup affiliate submitted a proposal to serve as transfer agent. Under the order, SBFM also must comply with an amended version of a vendor policy that Citigroup instituted in August 2004.

Although there can be no assurance, the Funds’ manager does not believe that this matter will have a material adverse effect on the Funds.

On December 1, 2005, Citigroup completed the sale of substantially all of its global asset management business, including SBFM, to Legg Mason.

Legg Mason Partners Variable Portfolios IV 2006 Annual Report 63

Notes to Financial Statements (continued)


7.	Legal Matters

Beginning in August 2005, five class action lawsuits alleging violations of federal securities laws and state law were filed against CGM and SBFM, (collectively, the “Defendants”) based on the May 31, 2005 settlement order issued against the Defendants by the SEC as described in Note 6. The complaints seek injunctive relief and compensatory and punitive damages, removal of SBFM as the advisor for the Smith Barney family of funds, rescission of the Funds’ management and other contracts with SBFM, recovery of all fees paid to SBFM pursuant to such contracts, and an award of attorneys’ fees and litigation expenses.

On October 5, 2005, a motion to consolidate the five actions and any subsequently filed, related action was filed. That motion contemplates that a consolidated amended complaint alleging substantially similar causes of action will be filed in the future.

As of the date of this report, the Funds’ manager believes that resolution of the pending lawsuit will not have a material effect on the financial position or results of operations of the Funds or the ability of the Funds’ manager and its affiliates to continue to render services to the Funds under their respective contracts.

* * *

Beginning in June 2004, class action lawsuits alleging violations of the federal securities laws were filed against CGM and a number of its then affiliates, including SBFM and Salomon Brothers Asset Management Inc (“SBAM”), which were then investment adviser or manager to certain of the Funds (the “Managers”), substantially all of the mutual funds then managed by the Managers (the “Defendant Funds”), and Board members of the Defendant Funds (collectively, the “Defendants”). The complaints alleged, among other things, that CGM created various undisclosed incentives for its brokers to sell Smith Barney and Salomon Brothers funds. In addition, according to the complaints, the Managers caused the Defendant Funds to pay excessive brokerage commissions to CGM for steering clients towards proprietary funds. The complaints also alleged that the Defendants breached their fiduciary duty to the Defendant Funds by improperly charging Rule 12b-1 fees and by drawing on fund assets to make undisclosed payments of soft dollars and excessive brokerage commissions. The complaints also alleged that the Defendant Funds failed to adequately disclose certain of the allegedly wrongful conduct. The complaints sought injunctive relief and compensatory and punitive damages, rescission of the Defendant Funds’ contracts with the Managers, recovery of all fees paid to the Managers pursuant to such contracts and an award of attorneys’ fees and litigation expenses.

On December 15, 2004, a consolidated amended complaint (the “Complaint”) was filed alleging substantially similar causes of action. On May 27, 2005, all of the Defendants filed motions to dismiss the Complaint. On July 26, 2006, the court issued a decision and order (1) finding that plaintiffs lacked standing to sue on behalf of the shareholders of the Funds in which none of the plaintiffs had invested (including the Funds) and dismissing those Funds from the case (although stating that they could be brought back into the case if standing as to them could be established), and (2) other than one stayed claim, dismissing all of the causes of action against the remaining Defendants, with prejudice,

64 Legg Mason Partners Variable Portfolios IV 2006 Annual Report

Notes to Financial Statements (continued)

except for the cause of action under Section 36(b) of the 1940 Act, which the court granted plaintiffs leave to repeal as a derivative claim.

On October 16, 2006, plaintiffs filed their Second Consolidated Amended Complaint (“Second Amended Complaint”) which alleges derivative claims on behalf of nine funds identified in the Second Amended Complaint, under Section 36(b) of the 1940 Act, against CAM, SBAM, SBFM and CGM as investment advisers to the identified funds, as well as CGM as a distributor for the identified funds (collectively, the “Second Amended Complaint Defendants”). The Funds were not identified in the Second Amended Complaint. The Second Amended Complaint alleges no claims against any of the Funds or any of their Board members. Under Section 36(b), the Second Amended Complaint alleges similar facts and seeks similar relief against the Second Amended Complaint Defendants as the Complaint.

Additional lawsuits arising out of these circumstances and presenting similar allegations and requests for relief may be filed in the future.


8.	Other Matters

On September 16, 2005, the staff of the SEC informed SBFM and SBAM that the staff is considering recommending that the SEC institute administrative proceedings against SBFM and SBAM for alleged violations of Section 19(a) and 34(b) of the 1940 Act (and related Rule 19a-1). The notification is a result of an industry wide inspection by the SEC and is based upon alleged deficiencies in disclosures regarding dividends and distributions paid to shareholders of certain funds. Section 19(a) and related Rule 19a-1 of the 1940 Act generally require funds that are making dividend and distribution payments to provide shareholders with a written statement disclosing the source of the dividends and distributions, and, in particular, the portion of the payments made from each of net investment income, undistributed net profits and/or paid-in capital. In connection with the contemplated proceedings, the staff may seek a cease and desist order and/or monetary damages from SBFM or SBAM.

Although there can be no assurance, the Funds’ manager believes that this matter is not likely to have a material adverse effect on the Funds.


9.	Special Shareholder Meeting and Reorganization

The Boards and the shareholders of the Legg Mason Partners Variable Total Return Portfolio and the Legg Mason Partners Variable Capital and Income Portfolio (the “Acquired Funds”) and the Board of Balanced All Cap Growth and Value have approved, at the October 2006 Shareholder Meeting, an Agreement and Plan of Reorganization providing for the acquisition of all of the assets and the assumption of all the liabilities of the Acquired Funds, in exchange for shares of Balanced All Cap Growth and Value. It is expected that the reorganization will occur on or about April 27, 2007.

Shareholders also approved a number of initiatives designed to streamline and restructure the fund complex. These matters generally are expected to be implemented in 2007. As noted in the proxy materials, Legg Mason will pay for a portion of the costs

Legg Mason Partners Variable Portfolios IV 2006 Annual Report 65

Notes to Financial Statements (continued)

related to these initiatives. The portion of the costs that is borne by the fund will be recognized in the period during which the expense is incurred. Such expenses relate to obtaining shareholder votes for proposals presented in the proxy, the election of board members, retirement of board members, as well as printing, mailing, and soliciting proxies. The portions of these costs borne by the Fund and reflected in the Statement of Operations are deemed extraordinary for expense cap purposes and are not subject to the Funds’ expense limitation agreements. See also “Additional Shareholder Information” at the end of this report.


10.	Recent Accounting Pronouncements

During June 2006, the Financial Accounting Standards Board (“FASB”) issued FASB Interpretation 48 (“FIN 48” or the “Interpretation”), Accounting for Uncertainty in Income Taxes — an interpretation of FASB Statement 109. FIN 48 supplements FASB Statement 109, Accounting for Income Taxes, by defining the confidence level that a tax position must meet in order to be recognized in the financial statements. FIN 48 prescribes a comprehensive model for how a fund should recognize, measure, present, and disclose in its financial statements uncertain tax positions that the fund has taken or expects to take on a tax return. FIN 48 requires that the tax effects of a position be recognized only if it is “more likely than not” to be sustained based solely on its technical merits. Management must be able to conclude that the tax law, regulations, case law, and other objective information regarding the technical merits sufficiently support the position’s sustainability with a likelihood of more than 50 percent. FIN 48 is effective for fiscal periods beginning after December 15, 2006, which for these Funds will be January 1, 2007. At adoption, the financial statements must be adjusted to reflect only those tax positions that are more likely than not to be sustained as of the adoption date. Management of the Funds have determined that adopting FIN 48 will not have a material impact on the Funds’ financial statements.

* * *

On September 20, 2006, FASB released Statement of Financial Accounting Standards No. 157 Fair Value Measurements (“FAS 157”). FAS 157 establishes an authoritative definition of fair value, sets out a framework for measuring fair value, and requires additional disclosures about fair value measurements. The application of FAS 157 is required for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. At this time, management is evaluating the implications of FAS 157 and its impact on the financial statements has not yet been determined.

66 Legg Mason Partners Variable Portfolios IV 2006 Annual Report

Report of Independent Registered Public Accounting Firm

The Board of Trustees and Shareholders
Legg Mason Partners Variable Portfolios IV:

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Legg Mason Partners Variable Multiple Discipline Portfolio (formerly Multiple Discipline Portfolio) — All Cap Growth and Value, — Balanced All Cap Growth and Value, — Global All Cap Growth and Value, and — Large Cap Growth and Value, each a series of Legg Mason Partners Variable Portfolios IV (formerly Smith Barney Multiple Discipline Trust), as of December 31, 2006, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the four-year period then ended, and for the period from October 1, 2002 (commencement of operations) to December 31, 2002. These financial statements and financial highlights are the responsibility of the Trust’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2006, by correspondence with the custodian and brokers or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Legg Mason Partners Variable Multiple Discipline Portfolio — All Cap Growth and Value, — Balanced All Cap Growth and Value, — Global All Cap Growth and Value, and — Large Cap Growth and Value as of December 31, 2006, and the results of their operations for the year then ended, the changes in their net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the four-year period then ended, and from October 1, 2002 to December 31, 2002 in conformity with U.S. generally accepted accounting principles.

New York, New York
February 21, 2007

Legg Mason Partners Variable Portfolios IV 2006 Annual Report 67

Additional Information (unaudited)

Information about Trustees and Officers

The business and affairs of the Legg Mason Partners Variable Multiple Discipline Portfolio (formerly known as Smith Barney Multiple Discipline Trust) (the “Trust”) are managed under the direction of the Trust’s Board of Trustees. Information pertaining to the Trustees and officers of the Trust is set forth below. The Statement of Additional Information includes additional information about the Trustees and is available without charge, upon request by calling Legg Mason Partners Shareholder Services at 1-800-451-2010.


				Number of
		Term of		Portfolios
		*Office and**	Principal	in Fund	Other Board
	Position(s)	Length of	Occupation(s)	Complex	Memberships
	Held with	Time	During Past	Overseen by	Held by
Name, Address and Birth Year	Fund	Served	Five Years	Trustee	Trustee

Non-Interested Trustees:
Walter E. Auch 6001 N 62nd Place Paradise Valley, AZ 85253 Years of Birth: 1921	Trustee	Since 2005	Retired	23	Director, Nicholas Applegate Funds; Director, UBS Funds; Director, US Bancorp Advisory Group

H. John Ellis 858 East Crystal Downs Drive Frankfort, MI 49635 Year of Birth: 1927	Trustee	Since 2002	Retired	23	None

Armon E. Kamesar 7328 Country Club Drive LaJolla, CA 92037 Year of Birth: 1927	Trustee	Since 2002	Chairman, TEC International; Trustee, U.S. Bankruptcy Court	23	Inter Ocean Systems Inc.

Stephen E. Kaufman c/o R. Jay Gerken Legg Mason 399 Park Avenue, 4^thFloor New York, NY 10022 Year of Birth: 1932	Trustee	Since 2002	Attorney	36	Trustee, Consulting Group Capital Markets Fund

John J. Murphy 123 Prospect Street Ridgewood, NJ 07450 Year of Birth: 1944	Trustee	Since 2002	President, Murphy Capital Management	23	Barclays International Funds Group Ltd. and affiliated companies

68 Legg Mason Partners Variable Portfolios IV

Additional Information (unaudited) (continued)


				Number of
		Term of		Portfolios
		*Office and**	Principal	in Fund	Other Board
	Position(s)	Length of	Occupation(s)	Complex	Memberships
	Held with	Time	During Past	Overseen by	Held by
Name, Address and Birth Year	Fund	Served	Five Years	Trustee	Trustee


Interested Trustee:
R. Jay Gerken, CFA** Legg Mason & Co., LLC (“Legg Mason”) 399 Park Avenue, 4th Floor New York, NY 10022 Year of Birth: 1951	Chairman, President and Chief Executive Officer	Since 2002	Managing Director of Legg Mason, Chairman of the Board, Trustee, or Director of 162 funds associated with Legg Mason Partners Fund Advisor, LLC (“LMPFA”) and its affiliates; President, LMPFA (since 2006); Chairman, President and Chief Executive Officer of certain mutual funds associated with Legg Mason or its affiliates; Formerly, Chairman Smith Barney Fund Management LLC (“SBFM”) and Citi Fund Management Inc. (“CFM”) (from 2002 to 2006); Formerly, Chairman, President and Chief Executive Officer of Travelers Investment Advisers, Inc. (from 2002 to 2005).	162	None

Legg Mason Partners Variable Portfolios IV 69

Additional Information (unaudited) (continued)


				Number of
		Term of		Portfolios
		*Office and**	Principal	in Fund	Other Board
	Position(s)	Length of	Occupation(s)	Complex	Memberships
	Held with	Time	During Past	Overseen by	Held by
Name, Address and Birth Year	Fund	Served	Five Years	Trustee	Trustee

Officers:
Robert Brault Legg Mason 125 Broad Street 11th Floor New York, NY 10004 Birth Year: 1965	Chief Financial Officer and Treasurer	Since 2004	Director of Legg Mason; Chief Financial Officer and Treasurer of certain mutual funds associated with Legg Mason. Formerly, Director of Internal Control for CAM U.S. Mutual Fund Administration (from 2002 to 2004); Director of Project Management & Information Systems for CAM U.S. Mutual Fund Administration (from 2000 to 2002)	N/A	N/A

Kirstin Mobyed ClearBridge Advisors, LLC 399 Park Avenue New York, NY 10022 Year of Birth: 1969	Investment Officer	Since 2003	Director of Legg Mason (since 2003); Private Client Manager (since 2001) and analyst at CGM and its predecessor (since 1992)	N/A	N/A

Roger Paradiso ClearBridge Advisors, LLC 399 Park Avenue New York, NY 10022 Year of Birth: 1966	Investment Officer	Since 2003	Managing Director of Legg Mason	N/A	N/A

70 Legg Mason Partners Variable Portfolios IV

Additional Information (unaudited) (continued)


				Number of
		Term of		Portfolios
		*Office and**	Principal	in Fund	Other Board
	Position(s)	Length of	Occupation(s)	Complex	Memberships
	Held with	Time	During Past	Overseen by	Held by
Name, Address and Birth Year	Fund	Served	Five Years	Trustee	Trustee


Valerie Bannon Legg Mason 399 Park Avenue, 4th Floor New York, NY 10022 Birth Year: 1973	Vice President and Investment Officer	Since 2004	Director of Legg Mason; Investment Officer of Western Asset Management Company (“Western Asset”) and investment officer of certain mutual funds associated with Legg Mason	N/A	N/A

Alan J. Blake Legg Mason 399 Park Avenue, 4th Floor New York, NY 10022 Birth Year: 1949	Vice President and Investment Officer	Since 2003	Managing Director of Legg Mason; Investment Officer of ClearBridge Advisors, LLC (“ClearBridge”) and investment officer of certain mutual funds associated with Legg Mason	N/A	N/A
Ellen S. Cammer Legg Mason 399 Park Avenue, 4th Floor New York, NY 10022 Birth Year: 1954	Vice President and Investment Officer	Since 2003	Managing Director of Legg Mason; Investment Officer of Western Asset and investment officer of certain mutual funds associated with Legg Mason	N/A	N/A

Robert Feitler, Jr. Legg Mason 399 Park Avenue, 4th Floor New York, NY 10022 Birth Year: 1959	Vice President and Investment Officer	Since 2004	Director of Legg Mason; Investment Officer of ClearBridge; officer of certain mutual funds associated with Legg Mason	N/A	N/A

Legg Mason Partners Variable Portfolios IV 71

Additional Information (unaudited) (continued)


				Number of
		Term of		Portfolios
		*Office and**	Principal	in Fund	Other Board
	Position(s)	Length of	Occupation(s)	Complex	Memberships
	Held with	Time	During Past	Overseen by	Held by
Name, Address and Birth Year	Fund	Served	Five Years	Trustee	Trustee


Richard A. Freeman Legg Mason 399 Park Avenue, 4th Floor New York, NY 10022 Birth Year: 1953	Vice President and Investment Officer	Since 2003	Managing Director of Legg Mason; Investment Officer of ClearBridge and investment officer of certain mutual funds associated with Legg Mason	N/A	N/A

John Goode Legg Mason One Sansome Street, 36th Floor San Francisco, CA 94104 Birth Year: 1944	Vice President and Investment Officer	Since 2003	Managing Director of Legg Mason; Investment Officer of ClearBridge and investment officer of certain mutual funds associated with Legg Mason	N/A	N/A

Peter J. Hable Legg Mason One Sansome Street, 36th Floor San Francisco, CA 94104 Birth Year: 1958	Vice President and Investment Officer	Since 2003	Managing Director of Legg Mason; Investment Officer of ClearBridge and investment officer of certain mutual funds associated with Legg Mason	N/A	N/A

Mark J. McAllister Legg Mason 399 Park Avenue, 4th Floor New York, NY 10022 Birth Year: 1962	Vice President and Investment Officer	Since 2004	Managing Director of Legg Mason; Investment Officer of ClearBridge; former Executive Vice President, JLW Capital Management Inc. (from 1988- 1999); Officer of certain mutual funds associated with Legg Mason	N/A	N/A

72 Legg Mason Partners Variable Portfolios IV

Additional Information (unaudited) (continued)


				Number of
		Term of		Portfolios
		*Office and**	Principal	in Fund	Other Board
	Position(s)	Length of	Occupation(s)	Complex	Memberships
	Held with	Time	During Past	Overseen by	Held by
Name, Address and Birth Year	Fund	Served	Five Years	Trustee	Trustee


Jeffrey Russell, CFA Legg Mason 399 Park Avenue, 4th Floor New York, NY 10022 Birth Year: 1957	Vice President and Investment Officer	Since 2003	Managing Director of Legg Mason; Investment Officer of ClearBridge; officer of certain mutual funds associated with Legg Mason	N/A	N/A

Ted P. Becker Legg Mason 399 Park Avenue, New York, NY 10022 Birth Year: 1951	Chief Compliance Officer	Since 2006	Director of Global Compliance (since 2006); Managing Director of Compliance at Legg Mason (since 2005); Chief Compliance Officer with certain mutual funds associated with Legg Mason, LMPFA and certain affiliates (since 2006); Managing Director of Compliance Legg Mason or its predecessor (from 2002-2005). Prior to 2002, Managing Director-Internal Audit & Risk Review at Citigroup Inc.	N/A	N/A

Legg Mason Partners Variable Portfolios IV 73

Additional Information (unaudited) (continued)


				Number of
		Term of		Portfolios
		*Office and**	Principal	in Fund	Other Board
	Position(s)	Length of	Occupation(s)	Complex	Memberships
	Held with	Time	During Past	Overseen by	Held by
Name, Address and Birth Year	Fund	Served	Five Years	Trustee	Trustee


John Chiota Legg Mason 100 First Stamford Place, 5th Floor Stamford, CT 06902 Birth Year: 1968	Chief Anti- Money Laundering Compliance Officer	Since 2006	Vice President of Legg Mason (since 2004); Chief Anti-Money Laundering Compliance Officer with certain mutual funds associated with Legg Mason or its affiliates (since 2006); Prior to August 2004, Chief AML Compliance Officer with TD Waterhouse	N/A	N/A

74 Legg Mason Partners Variable Portfolios IV

Additional Information (unaudited) (continued)


				Number of
		Term of		Portfolios
		*Office and**	Principal	in Fund	Other Board
	Position(s)	Length of	Occupation(s)	Complex	Memberships
	Held with	Time	During Past	Overseen by	Held by
Name, Address and Birth Year	Fund	Served	Five Years	Trustee	Trustee


Robert I. Frenkel Legg Mason 300 First Stamford Place, 4th Floor Stamford, CT 06902 Year of Birth: 1954	Secretary and Chief Legal Officer	Since 2003	Managing Director and General Counsel of Global Mutual Funds for Legg Mason and its predecessor (since 1994); Secretary and Chief Legal Officer of mutual funds associated with Legg Mason (since 2003); formerly, Secretary of CFM (from 2001-2004)	N/A	N/A


*		Each Trustee and Officer serves until his or her successor has been duly elected and qualified.

**		Mr. Gerken is an “interested person” of the Trust as defined in the Investment Company Act of 1940, as amended, because Mr. Gerken is an officer of LMPFA and certain of its affiliates.

Legg Mason Partners Variable Portfolios IV 75

Additional Shareholder Information (unaudited)

Results of a Special Meeting of Shareholders

On December 11, 2006, a Special Meeting of Shareholders was held to vote on various proposals recently approved by the Funds’ Board Members. The following tables provide the number of votes cast for, against, as well as the number of abstentions and broker non-votes as to the following proposals: (1) Elect Board Members and (2) Revise Fundamental Investment Policies.

Proposal 1: Election of Board Members†


			Authority				Broker
Nominees	Votes For		Withheld		Abstentions		Non-Votes

Paul R Ades		38,380,157.085		830,369.222		0.000		0.000
Andrew L. Breech		38,424,395.360		786,130.947		0.000		0.000
Dwight B. Crane		38,424,395.360		786,130.947		0.000		0.000
Robert M. Frayn, Jr.		38,405,874.619		804,651.688		0.000		0.000
Frank G. Hubbard		38,402,254.860		808,271.447		0.000		0.000
Howard J. Johnson		38,444,033.166		766,493.141		0.000		0.000
David E. Maryatt		38,407,393.350		803,132.957		0.000		0.000
Jerome H. Miller		38,398,750.134		811,776.173		0.000		0.000
Ken Miller		38,424,395.360		786,130.947		0.000		0.000
John J. Murphy		38,461,035.176		749,491.131		0.000		0.000
Thomas T. Schlafly		38,398,750.134		811,776.173		0.000		0.000
Jerry A. Viscione		38,393,611.644		816,914.663		0.000		0.000
R. Jay Gerken, CFA		38,414,949.218		795,557.089		0.000		0.000


†		Board Members are elected by the shareholders of all of the series of the Trust of which each Fund is a series.

Proposal 2: Revise Fundamental Investment Policies

Legg Mason Variable Multiple Discipline Portfolio-
All Cap Growth and Value


			Votes				Broker
Items Voted On	Votes For		Against		Abstentions		Non-Votes

Borrowing Money		16,101,944.521		461,110.963		278,602.666		0.000
Underwriting		16,136,011.510		427,043.974		278,602.666		0.000
Lending		16,136,616.160		428,887.711		276,154.279		0.000
Issuing Senior Securities		16,194,941.095		371,291.279		275,425.776		0.000
Real Estate		16,198,725.079		363,014.518		279,918.553		0.000
Commodities		16,136,595.977		417,802.971		287,259.202		0.000
Concentration		16,198,638.247		355,760.701		287,259.202		0.000
Non-Fundamental		16,076,003.143		475,326.913		290,328.094		0.000

76 Legg Mason Partners Variable Portfolios IV

Additional Shareholder Information (unaudited)
(continued)

Legg Mason Variable Multiple Discipline Portfolio-
Large Cap Growth and Value


			Votes				Broker
Items Voted On	Votes For		Against		Abstentions		Non-Votes

Borrowing Money		2,222,362.201		53,830.647		10,537.447		0.000
Underwriting		2,199,625.705		48,916.546		38,188.044		0.000
Lending		2,222,362.201		53,830.647		10,537.447		0.000
Issuing Senior Securities		2,227,276.304		48,916.544		10,537.447		0.000
Real Estate		2,227,276.304		48,916.544		10,537.447		0.000
Commodities		2,220,499.827		55,693.021		10,537.447		0.000
Concentration		2,227,276.304		48,916.544		10,537.447		0.000
Non-Fundamental		2,220,499.827		55,693.021		10,537.447		0.000

Legg Mason Variable Multiple Discipline Portfolio-
Global All Cap Growth and Value


			Votes				Broker
Items Voted On	Votes For		Against		Abstentions		Non-Votes

Borrowing Money		5,015,175.627		79,426.085		104,508.180		0.000
Underwriting		5,033,480.843		79,426.084		86,202.965		0.000
Lending		5,051,815.444		42,786.268		104,508.180		0.000
Issuing Senior Securities		5,069,594.923		80,198.793		49,316.176		0.000
Real Estate		5,051,815.444		42,786.268		104,508.180		0.000
Commodities		5,049,117.303		99,903.706		50,088.883		0.000
Concentration		5,069,594.923		79,426.086		50,088.883		0.000
Non-Fundamental		4,997,137.129		98,237.292		103,735.471		0.000

Legg Mason Variable Multiple Discipline Portfolio-
Balanced All Cap Growth and Value


			Votes				Broker
Items Voted On	Votes For		Against		Abstentions		Non-Votes

Borrowing Money		14,436,842.490		117,123.340		329,062.140		0.000
Underwriting		14,447,297.765		117,123.341		318,606.864		0.000
Lending		14,418,368.177		143,042.862		321,616.931		0.000
Issuing Senior Securities		14,397,994.299		160,109,093		324,924.578		0.000
Real Estate		14,418,368.177		143,042.862		321,616.931		0.000
Commodities		14,363,165.170		148,541.679		371,321.121		0.000
Concentration		14,357,463.799		157,471.605		368,092.566		0.000
Non-Fundamental		14,351,518.663		157,471.590		374,037.717		0.000

Legg Mason Partners Variable Portfolios IV 77

Important Tax Information (unaudited)

The following information is provided with respect to the distributions paid during the taxable year ended December 31, 2006:


		All Cap Growth				Large Cap Growth				Global All Cap				Balanced All Cap
		and Va		lue		and Va		lue		Gowth an		d Vaue		Grwth and		Value

Record Date:			6/22/2006		12/26/2006		6/22/2006		12/26/2006		6/22/2006		12/26/2006		6/22/2006		12/26/2006
Payable Date:			6/23/2006		12/27/2006		6/23/2006		12/27/2006		6/23/2006		12/27/2006		6/23/2006		12/27/2006

	Dividends Qualifying for the Dividends Received Deduction for Corporations		—		100.00%		—		100.00%		69.30%		64.58%		54.22%		46.69%

Long-Term Capital Gain Dividend		$	0.063510	$	0.710262	$	0.013731	$	0.317405	$	0.011206	$	0.413271	$	0.021466	$	0.405076

Also, Large Cap Growth and Value designates an additional $3,216 as long-term capital gain dividends paid to shareholders during the taxable year ended December 31, 2006.

Please retain this information for your records.

78 Legg Mason Partners Variable Portfolios IV


	Legg Mason Partners Variable Portfolios IV

TRUSTEES

Walter E. Auch
H. John Ellis
R. Jay Gerken, CFA
Chairman
Armon E. Kamesar
Stephen E. Kaufman
John J. Murphy

INVESTMENT MANAGER

Legg Mason Partners Fund
Advisor, LLC

SUBADVISERS

ClearBridge Advisors, LLC
Western Asset Management Company

DISTRIBUTORS

Citigroup Global Markets Inc.
Legg Mason Investor Services, LLC

CUSTODIAN

State Street Bank and
Trust Company

TRANSFER AGENT

PFPC, Inc.
4400 Computer Drive

Westborough, Massachusetts 01581

INDEPENDENT
REGISTERED PUBLIC
ACCOUNTING FIRM

KPMG LLP
345 Park Avenue

New York, New York 10154


This report is submitted for the general information of the shareholders of the Legg Mason Partners Variable Portfolios IV and is not for use with the general public. This report must be preceded or accompanied by a free prospectus. Investors should consider the Funds’ investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other important information about the Funds. Please read the prospectus carefully before investing. www.leggmason.com/InvestorServices Ó 2007 Legg Mason cInvestor Services, LLC Member NASD, SIPC FD02701 2/07 SR07-274		Legg Mason Partners Variable Portfolios IV Legg Mason Partners Variable Multiple Discipline Portfolio - All Cap Growth and Value Legg Mason Partners Variable Multiple Discipline Portfolio - Large Cap Growth and Value Legg Mason Partners Variable Multiple Discipline Portfolio - Global All Cap Growth and Value Legg Mason Partners Variable Multiple Discipline Portfolio - Balanced All Cap Growth and Value The Funds are separate investment funds of the Legg Mason Partners Variable Portfolios IV, a Massachusetts business trust. LEGG MASON PARTNERS VARIABLE PORTFOLIOS IV Legg Mason Partners Funds 125 Broad Street 10th Floor, MF-2 New York, New York 10004 The Funds file their complete schedule of portfolio holdings with the Securities and Exchange Commission (“Commission”) for the first and third quarters of each fiscal year on the Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C., and information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. To obtain information on Form N-Q from the Funds, shareholders can call Legg Mason Partners Shareholder Services at 1-800-451-2010. Information on how the Funds voted proxies relating to portfolio securities during the prior 12-month period ended June 30th of each year and a description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio transactions is available (1) without charge, upon request, by calling 1-800-451-2010, (2) on the Funds’ website at www.leggmason.com/InvestorServices and (3) on the SEC’s website at www.sec.gov.

ITEM 2. CODE OF ETHICS.

The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

The Board of Trustees of the registrant has determined that Armon E. Kamesar, the Chairman of the Board’s Audit Committee, possesses the technical attributes identified in Instruction 2(b) of Item 3 to Form N-CSR to qualify as an “audit committee financial expert,” and has designated Mr. Kamesar as the Audit Committee’s financial expert. Mr. Kamesar is an “independent” Trustee pursuant to paragraph (a)(2) of Item 3 to Form N-CSR.

ITEM 4. Principal Accountant Fees and Services

a) Audit Fees. The aggregate fees billed in the last two fiscal years ending December 31, 2005 and December 31, 2006 (the “Reporting Periods”) for professional services rendered by the Registrant’s principal accountant (the “Auditor”) for the audit of the Registrant’s annual financial statements, or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $83,000 in 2005 and $89,000 in 2006.

b) Audit-Related Fees. There were no fees billed in the Reporting Periods for assurance and related services by the Auditor that are reasonably related to the performance of the audit of the Registrant’s financial statements and are not reported under paragraph (a) of this Item 4.

In addition, there were no Audit-Related Fees billed in the Reporting Period for assurance and related services by the Auditor to the Registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the Legg Mason Partners Variable Portfolios IV (“service affiliates”), that were reasonably related to the performance of the annual audit of the service affiliates. Accordingly, there were no such fees that required pre-approval by the Audit Committee for the Reporting Periods (prior to May 6, 2003 services provided by the Auditor were not required to be pre-approved).

(c) Tax Fees. The aggregate fees billed in the Reporting Periods for professional services rendered by the Auditor for tax compliance, tax advice and tax planning (“Tax Services”) were $9,900 in 2005 and $10,500 in 2006. These services consisted of (i) review or preparation of U.S. federal, state, local and excise tax returns; (ii) U.S. federal, state and local tax planning, advice and assistance regarding statutory, regulatory or administrative developments, and (iii) tax advice regarding tax qualification matters and/or treatment of various financial instruments held or proposed to be acquired or held.

There were no fees billed for tax services by the Auditors to service affiliates during the Reporting Periods that required pre-approval by the Audit Committee.

d) All Other Fees. There were no other fees billed in the Reporting Periods for products and services provided by the Auditor, other than the services reported in paragraphs (a) through (c) of this Item for the Legg Mason Partners Variable Portfolios IV

All Other Fees. There were no other non-audit services rendered by the Auditor to Smith Barney Fund Management LLC (“SBFM”), and any entity controlling, controlled by or under common control with SBFM that provided ongoing services to Legg Mason Partners Variable Portfolios IV requiring pre-approval by the Audit Committee in the Reporting Period.

(e) Audit Committee’s pre–approval policies and procedures described in paragraph (c) (7) of Rule 2-01 of Regulation S-X.

(1) The Charter for the Audit Committee (the “Committee”) of the Board of each registered investment company (the “Fund”) advised by Smith Barney Fund Management LLC or Salomon Brothers Asset Management Inc. or one of their affiliates (each, an “Adviser”) requires that the Committee shall approve (a) all audit and permissible non-audit services to be provided to the Fund and (b) all permissible non-audit services to be provided by the Fund’s independent auditors to the Adviser and any Covered Service Providers if the engagement relates directly to the operations and financial reporting of the Fund. The Committee may implement policies and procedures by which such services are approved other than by the full Committee.

The Committee shall not approve non-audit services that the Committee believes may impair the independence of the auditors. As of the date of the approval of this Audit Committee Charter, permissible non-audit services include any professional services (including tax services), that are not prohibited services as described below, provided to the Fund by the independent auditors, other than those provided to the Fund in connection with an audit or a review of the financial statements of the Fund. Permissible non-audit services may not include: (i) bookkeeping or other services related to the accounting records or financial statements of the Fund; (ii) financial information systems design and implementation; (iii) appraisal or valuation services, fairness opinions or contribution-in-kind reports; (iv) actuarial services; (v) internal audit outsourcing services; (vi) management functions or human resources; (vii) broker or dealer, investment adviser or investment banking services; (viii) legal services and expert services unrelated to the audit; and (ix) any other service the Public Company Accounting Oversight Board determines, by regulation, is impermissible.

Pre-approval by the Committee of any permissible non-audit services is not required so long as: (i) the aggregate amount of all such permissible non-audit services provided to the Fund, the Adviser and any service providers controlling, controlled by or under common control with the Adviser that provide ongoing services to the Fund (“Covered Service Providers”) constitutes not more than 5% of the total amount of revenues paid to the independent auditors during the fiscal year in which the permissible non-audit services are provided to (a) the Fund, (b) the Adviser and (c) any entity controlling, controlled by or under common control with the Adviser that provides ongoing services to the Fund during the fiscal year in which the services are provided that would have to be approved by the Committee; (ii) the permissible non-audit services were not recognized by the Fund at the time of the engagement to be non-audit services; and (iii) such services

are promptly brought to the attention of the Committee and approved by the Committee (or its delegate(s)) prior to the completion of the audit.

(2) For the Legg Mason Partners Variable Portfolios IV, the percentage of fees that were approved by the audit committee, with respect to: Audit-Related Fees were 100% and 0% for 2005 and 2006; Tax Fees were 100% and 0% for 2005 and 2006; and Other Fees were 100% and 0% for 2005 and 2006.

(f) N/A

(g) Non-audit fees billed by the Auditor for services rendered to Legg Mason Partners Variable Portfolios IV and CAM and any entity controlling, controlled by, or under common control with CAM that provides ongoing services to Legg Mason Partners Variable Portfolios IV during the reporting period were $0 in 2006 for fees related to the transfer agent matter as fully described in the notes the financial statements titled “additional information” and $75,000 for 2005.

(h) Yes. Legg Mason Partners Variable Portfolios IV’s Audit Committee has considered whether the provision of non-audit services that were rendered to Service Affiliates, which were not pre-approved (not requiring pre-approval), is compatible with maintaining the Accountant’s independence. All services provided by the Auditor to the Legg Mason Partners Variable Portfolios IV or to Service Affiliates, which were required to be pre-approved, were pre-approved as required.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable.

ITEM 6. SCHEDULE OF INVESTMENTS.

Included herein under Item 1.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not applicable.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

Not applicable.

ITEM 11. 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 half-year (the registrant’s second fiscal half-year in the case of an annual report) that have materially affected, or are likely to materially affect the registrant’s internal control over financial reporting.

ITEM 12. EXHIBITS.

(a) (1) Code of Ethics attached hereto.

Exhibit 99.CODE ETH

(a) (2) Certifications pursuant to section 302 of the Sarbanes-Oxley Act of 2002 attached hereto.

Exhibit 99.CERT

(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 attached hereto.

Exhibit 99.906CERT

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, there unto duly authorized.

Legg Mason Partners Variable Portfolios IV


By:		/s/ R. Jay Gerken (R. Jay Gerken)
		Chief Executive Officer of
		Legg Mason Partners Variable Portfolios IV

Date: March 9, 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 of
		Legg Mason Partners Variable Portfolios IV

Date: March 9, 2007


By:		/s/ Robert Brault (Robert Brault)
		Chief Financial Officer of
		Legg Mason Partners Variable Portfolios IV

Date: March 9, 2007

Legg Mason Partners Variable Equity Trust N-CSRCertified annual shareholder report (management investment company)