ClearBridge Multi Cap Growth Portfolios

Transcription

1 Q417 Separately Managed Accounts Quarterly Attribution Report ClearBridge Multi Cap Growth Portfolios Quarterly Attribution Report (SUPPLEMENTAL INFORMATION) (TO BE USED ONLY IN CONJUNCTION WITH PRODUCT FACT CARD) ONE-ON- ONE PRESENTATION Forecasts are inherently limited and should not be relied upon as an indicator of future performance. INVESTMENT PRODUCTS: NOT FDIC INSURED NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY NO BANK GUARANTEE MAY LOSE VALUE

2 Profile* As of December 29, 2017 This information does not constitute, and should not be construed as, investment advice or recommendations with respect to the sectors and securities listed and should not be used as the sole basis for any investment decision. Source: FactSet. Portfolio characteristics are based on a model portfolio, not an actual client account. The model portfolio is a hypothetical portfolio whereby the portfolio characteristics are based on simulated trading and account activity of a client account invested in this strategy. The model portfolio assumes no withdrawals, contributions or client-imposed restrictions. Portfolio characteristics of individual client accounts may differ from those of the model portfolio as a result of account size, client-imposed restrictions, the timing of client investments, market conditions, contributions, withdrawals and other factors. Please see Endnotes for additional information. Portfolio characteristics¹ Portfolio R.3000G Number of Holdings 41 1,726 Wtd Avg Mkt Cap ($B) Median Market Cap ($B) Forecast P/E Price-to-Book Portfolio composition Equity (%) 96.4 Cash (%) 3.6 Top holdings¹ % of Equity UnitedHealth Group Inc 9.6 Comcast Corp 8.5 Broadcom Ltd 7.5 Biogen Inc 5.9 Anadarko Petroleum Corp 5.3 TE Connectivity Ltd 5.3 Autodesk Inc 4.8 Freeport-McMoRan Inc 4.5 Seagate Technology PLC 3.5 Western Digital Corp 3.3 Total 58.0 Economic sectors¹ Portfolio R.3000G Consumer Discretionary Consumer Staples Energy Financials Health Care Industrials Information Technology Materials Real Estate Telecommunication Services Utilities Cash P/E ratio Year 1 and Long-term EPS growth are provided by I/B/E/S, are inherently limited and should not be used as an indication of future performance. Yields and dividends represent past performance and there is no guarantee they will continue to be paid. 1 Return % (security level): Total Return for the period held. Please see definitions and terms for additional important information. Past performance is no guarantee of future results.

3 Performance Summary* Oct 1, 2017 through Dec 31, 2017 This information does not constitute, and should not be construed as, investment advice or recommendations with respect to the sectors and securities listed and should not be used as the sole basis for any investment decision. Source: FactSet. Portfolio characteristics are based on a model portfolio, not an actual client account. The model portfolio is a hypothetical portfolio whereby the portfolio characteristics are based on simulated trading and account activity of a client account invested in this strategy. The model portfolio assumes no withdrawals, contributions or client-imposed restrictions. Portfolio characteristics of individual client accounts may differ from those of the model portfolio as a result of account size, client-imposed restrictions, the timing of client investments, market conditions, contributions, withdrawals and other factors. Please see Endnotes for additional information. Top holdings Average Weight (%) UnitedHealth Group Incorporated 9.57 Comcast Corporation 8.15 Broadcom Limited 7.82 Biogen Inc Autodesk, Inc Best performers Average Weight (%) Worst performers Average Weight (%) Twitter, Inc NOW, Inc Freeport-McMoRan, Inc Allergan plc 3.69 Cree, Inc ImmunoGen, Inc Seagate Technology public limited company 3.22 Liberty Broadband Corp Fluor Corporation 1.51 Liberty Media Corp Greatest contributors¹ Contribution to Equity Return (%) Greatest detractors¹ Contribution to Equity Return (%) UnitedHealth Group Incorporated 1.21 Allergan plc Freeport-McMoRan, Inc Autodesk, Inc Seagate Technology public limited company 0.81 Weatherford International plc TE Connectivity Ltd Western Digital Corporation Broadcom Limited 0.53 Liberty Broadband Corp Past performance is no guarantee of future results. The performance results shown do not reflect the deduction of any investment management fees and certain transaction costs, which will reduce portfolio performance. Returns reflect the reinvestment of dividends and other earnings. For fee schedules, contact your financial professional, or if you enter into an agreement directly with Legg Mason Private Portfolio Group, LLC (LMPPG), refer to LMPPG s Form ADV disclosure document. As fees are deducted quarterly, the compounding effect will be to increase their impact by an amount directly related to gross portfolio performance. For example, on a portfolio with a 2% annual fee, if gross annual performance is 10%, the compounding effect of the fees will result in net annual performance of 7.81%. Please see GIPS Endnotes in the attached Fact Card for additional important information regarding the portfolio s performance and for effects of fees. Management and performance of individual accounts may vary for reasons that include the existence of different implementation and model requirements in different investment programs. P/E ratio Year 1 and Long-term EPS growth are provided by I/B/E/S, are inherently limited and should not be used as an indication of future performance. Yields and dividends represent past performance and there is no guarantee they will continue to be paid. 1 Return % (security level): Total Return for the period held. Please see definitions and terms for additional important information. Past performance is no guarantee of future results.

4 Performance Summary* Oct 1, 2017 through Dec 31, 2017 This information does not constitute, and should not be construed as, investment advice or recommendations with respect to the sectors and securities listed and should not be used as the sole basis for any investment decision. Source: FactSet. Portfolio characteristics are based on a model portfolio, not an actual client account. The model portfolio is a hypothetical portfolio whereby the portfolio characteristics are based on simulated trading and account activity of a client account invested in this strategy. The model portfolio assumes no withdrawals, contributions or client-imposed restrictions. Portfolio characteristics of individual client accounts may differ from those of the model portfolio as a result of account size, client-imposed restrictions, the timing of client investments, market conditions, contributions, withdrawals and other factors. Please see Endnotes for additional information. All returns are gross-of-fees. Sector allocation and returns² Economic sector allocation (%) Economic sector returns (%) Information Technology Health Care Consumer Discretionary Industrials Energy Materials Real Estate Utilities Telecommunication Services Consumer Staples Financials Cash Past performance is no guarantee of future results. The performance results shown do not reflect the deduction of any investment management fees and certain transaction costs, which will reduce portfolio performance. Returns reflect the reinvestment of dividends and other earnings. For fee schedules, contact your financial professional, or if you enter into an agreement directly with Legg Mason Private Portfolio Group, LLC (LMPPG), refer to LMPPG s Form ADV disclosure document. As fees are deducted quarterly, the compounding effect will be to increase their impact by an amount directly related to gross portfolio performance. For example, on a portfolio with a 2% annual fee, if gross annual performance is 10%, the compounding effect of the fees will result in net annual performance of 7.81%. Please see GIPS Endnotes in the attached Fact Card for additional important information regarding the portfolio s performance and for effects of fees. Management and performance of individual accounts may vary for reasons that include the existence of different implementation and model requirements in different investment programs. Investors cannot invest directly in an index and unmanaged index returns do not reflect any fees, expenses or sales charges. 2 Portfolio Return: Total Return for the equity portion of the portfolio only. Please see definitions and terms for additional important information. Past performance is no guarantee of future results. ClearBridge Multi Cap Growth Portfolios Russell 3000 Growth Index

5 Performance Attribution by Sector* This information does not constitute, and should not be construed as, investment advice or recommendations with respect to the sectors and securities listed and should not be used as the sole basis for any investment decision. Source: FactSet. Portfolio characteristics are based on a model portfolio, not an actual client account. The model portfolio is a hypothetical portfolio whereby the portfolio characteristics are based on simulated trading and account activity of a client account invested in this strategy. The model portfolio assumes no withdrawals, contributions or client-imposed restrictions. Portfolio characteristics of individual client accounts may differ from those of the model portfolio as a result of account size, client-imposed restrictions, the timing of client investments, market conditions, contributions, withdrawals and other factors. Please see Endnotes for additional information. All returns are gross-of-fees. Oct 1, 2017 through Dec 31, 2017 Economic Sectors Portfolio Weight Benchmark Weight Weight Difference Portfolio Return Benchmark Return Return Difference Sector Performance Sector Select Stock Select Active Contribution Materials Information Technology Real Estate Financials Telecommunication Services Utilities Consumer Staples Energy Industrials Health Care Consumer Discretionary Cash TOTAL Sector Selection Contribution (%) Stock Selection Contribution (%) Active Contribution (%) Materials Information Technology Real Estate Financials Telecommunication Services Utilities Consumer Staples Energy Industrials Health Care Consumer Discretionary Cash The performance results shown do not reflect the deduction of any investment management fees and certain transaction costs, which will reduce portfolio performance. Returns reflect the reinvestment of dividends and other earnings. For fee schedules, contact your financial professional, or if you enter into an agreement directly with Legg Mason Private Portfolio Group, LLC (LMPPG), refer to LMPPG s Form ADV disclosure document. As fees are deducted quarterly, the compounding effect will be to increase their impact by an amount directly related to gross portfolio performance. For example, on a portfolio with a 2% annual fee, if gross annual performance is 10%, the compounding effect of the fees will result in net annual performance of 7.81%. Please see GIPS Endnotes in the attached Fact Card for additional important information regarding the portfolio s performance and for effects of fees. Management and performance of individual accounts may vary for reasons that include the existence of different implementation and model requirements in different investment programs. Investors cannot invest directly in an index and unmanaged index returns do not reflect any fees, expenses or sales charges. Percentages represent the equity portion only. Please see definitions and terms for additional important information. Past performance is no guarantee of future results.

6 Definitions and Terms Index definitions 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. Investors cannot invest directly in an index and unmanaged index returns do not reflect any fees, expenses or sales charges. Dividends are subject to reinvestment. Risks All investments involve risk, including loss of principal and there is no guarantee that investment objectives will be met. In addition to investments in large-capitalization companies, investments may be made in speculative and/or small-cap and mid-cap companies which involve a higher degree of risk and volatility than investments in larger, more established companies. In addition, because the investments may be concentrated in a limited number of industries and companies, the portfolios may involve heightened risk. While most investments are in U.S. companies, investments may also be made in ADRs and other securities of non-u.s. companies in developed and emerging markets which involve risks in addition to those ordinarily associated with investing in domestic securities, including the potentially negative effects of currency fluctuation, political and economic developments, foreign taxation and differences in auditing and other financial standards. These risks are magnified in emerging markets. Certain limits on the amount of investment in any one company may cause individual MCG investment portfolios to vary from each other and thus the performance results of such portfolios may also vary from each other, particularly when combined with the price volatility of stocks in such portfolios. Glossary Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. Beta is used in the capital asset pricing model (CAPM), a model that calculates the expected return of an asset based on its beta and expected market returns.. EPS (Earnings Per Share) is the portion of a company's profit allocated to each outstanding share of common stock. Historical EPS Growth 1 Yr (Trailing EPS) The sum of a company's earnings per share for the previous four quarters. Historical EPS Growth 5 Yr (Trailing EPS) The sum of a company's earnings per share for the previous 60 quarters. P/E Ratio is the last closing share price divided by the earnings per share based on the trailing 4 quarters of earnings. Forecast P/E is measure of the price-to-earnings ratio (P/E) using forecasted earnings for the P/E calculation. The forecasted earnings used in the formula is for the next 12 months. Trailing P/E is the sum of a company's price-to-earnings, calculated by taking the current stock price and dividing it by the trailing earnings per share for the past 12 months. Market Capitalization measures the number of outstanding common shares of a given corporation multiplied by the latest price per share. Weighted Median Market Capitalization represents the value at which half the portfolio s market capitalization weight falls above and half falls below. Weighted Average Market Capitalization represents the average value of the companies held in the portfolio. When that figure is weighted, the impact of each company s capitalization on the overall average is proportional to the total market value of its shares. Price-to-Book ratio compares a stock's market value to its book value. It is calculated by dividing the current closing price of the stock by the latest quarter's book value per share. R2 (R-Squared) is a statistical measure that represents the percentage of a fund or security's movements that can be explained by movements in a benchmark index. Generally, the higher the R2, the more meaningful the beta figure. Yield (Current Yield) The income return on an investment. This refers to the interest or dividends received from a security and is expressed annually as a percentage based on its current market value. Factual information relating to the securities discussed was obtained from sources believed to be reliable, but there can be no guarantee as to its accuracy. It should not be assumed that investments made in the future will be profitable or will equal the performance of the securities discussed in the material. Separately Managed Accounts (SMAs) are investment services provided by Legg Mason Private Portfolio Group, LLC (LMPPG), a federally registered investment adviser. Client portfolios are managed based on investment instructions or advice provided by one or more of the following Legg Mason-affiliated sub-advisers: ClearBridge Investments, LLC., and Western Asset Management Company. Management is implemented by LMPPG, the designated sub-adviser or, in the case of certain programs, the program sponsor or its designee. Investments for the program(s) discussed herein are traded primarily in U.S. markets and unless otherwise noted, equity and fixed income investments for such program(s) are primarily of U.S. issuers. In addition, unless otherwise noted, indexes referred to herein represent groups of securities that are issued primarily by U.S. issuers. Investments are not obligations of, and are not guaranteed by, LMPPG or any other Legg Mason, Inc affiliate or subsidiary; are not FDIC or government insured; and are subject to risks, including possible loss of the principal amount invested. Professional money management may not be suitable for all investors. Any information, statement or opinion set forth herein is general in nature, is not directed to or based on the financial situation or needs of any particular investor, and does not constitute, and should not be construed as, investment advice, forecast of future events, a guarantee of future results, or a recommendation with respect to any particular security or investment strategy or type of retirement account. Investors seeking financial advice regarding the appropriateness of investing in any securities or investment strategies should consult their financial professional Legg Mason Investor Services, LLC, member FINRA, SIPC. Legg Mason Investor Services, LLC and ClearBridge Investments are subsidiaries of Legg FN Mason, Inc.