ClearBridge Dividend Strategy Portfolios THE THREE Rs OF DIVIDENDS

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1 ClearBridge Dividend Strategy Portfolios THE THREE Rs OF DIVIDENDS RISK MANAGEMENT A time-tested approach to managing risk, with the goal of reducing the Portfolios volatility. With ClearBridge Dividend Strategy Portfolios, investing for income is elementary. Go back to basics, targeting dividend growth, risk management and total returns. TOTAL RETURN POSSIBILITY Income growth is an important component of the Portfolios total return, and a key to staying ahead of rising costs. A disciplined process is used to identify high-quality companies with expectations of increasing their dividend payouts. RISING DIVIDEND POTENTIAL 2Q 2018 INVESTMENT PRODUCTS: NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE

2 THE POWER OF DIVIDENDS Few investments offer the potential for a rising stream of income. Yet amid a host of uncertainties, ClearBridge Dividend Strategy Portfolios have offered just that. Veteran portfolio managers draw on over 90 years of collective investment wisdom to identify companies committed to sound dividend increases over time. Dividend Yields(%) As of June 0, ClearBridge Dividend Strategy Portfolios 1 S&P 500 Index 1 10-Year U.S.Treasury 2 The portfolio holdings have generated sound dividend yield compared with the benchmark Dividend yields (%) as of December 1, ClearBridge Dividend Strategy Portfolios 1 S&P 500 Index 1 10-Year U.S. Treasury Q 2Q Q 4Q 1Q 2Q Q 4Q 1Q 2Q Q 4Q 1Q 2Q Q 4Q 1Q 2Q Q 4Q Source: FactSet. The characteristics for ClearBridge Dividend Strategy Portfolios and S&P 500 Index are stated as of dates for data shown and are subject to change at any time. Portfolio characteristics for the ClearBridge Dividend Strategy Portfolios 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. 2 Source: U.S. Department of the Treasury. Dividends and yields represent past performance. There is no assurance they will continue to be paid in the future. Past performance is no guarantee of future results. Yields are subject to change and are not guaranteed. U.S. Treasury securities are backed by the full faith and credit of the U.S. government. Equity and fixed income securities are subject to additional risks. U.S. Treasuries are direct debt obligations issued and backed by the full faith and credit of the U.S. government. The U.S. government guarantees the principal and interest payments on U.S. Treasuries when the securities are held to maturity. Unlike U.S. Treasury securities, debt securities issued by the federal agencies and instrumentalities and related investments may or may not be backed by the full faith and credit of the U.S. government. Even when the U.S. government guarantees principal and interest payments on securities, this guarantee does not apply to losses resulting from declines in the market value of these securities. Investors cannot invest directly in an index and unmanaged index returns do not reflect any fees, expenses or sales charges. 2

3 CAPITAL APPRECIATION: THE FINAL VARIABLE Over the long term, the Portfolios combination of dividends and capital appreciation has added up to solid total returns. ClearBridge s equity strategies all start with the same fundamental principle: Select high-quality companies through rigorous research and analysis. Hersh Cohen Co-Chief Investment Officer The strategy s downside capture ratio helped temper volatility while fostering long-term capital growth Capture ratios gross of fees (%) as of June 0, 2018 Preliminary Up capture ratio Down capture ratio year -year 5-year 7-year 10-year Solid total return across long-term market cycles Annualized rates of return (%) Gross and net of fees, as of June 0, 2018 Preliminary ClearBridge Dividend Strategy Portfolios Gross ClearBridge Dividend Strategy Portfolios Net S&P 500 Index Year -Year 5-Year 7-Year 10-Year Source: Legg Mason. Past performance is no guaranteeof future results.the strategy returns shown are preliminary composite returns, subject to future revision (downward or upward). Please visit for the latest performance figures. Investors cannot invest directly in an index and unmanaged index returns do not reflect any fees, expenses or sales charges. FEES: Gross performance shown does not reflect the deduction of investment management fees and certain transaction costs, which will reduce portfolio performance. Net performance includes the deduction of a.0% annual wrap fee, which is the maximum anticipated wrap fee for equity and balanced portfolios. Actual fees may vary. For fee schedules, contact your financial professional, or if you enter into an agreement directly with Legg Mason Private Portfolio Group, LLC, refer to Legg Mason Private Portfolio Group s Form ADV disclosure document. The returns reflect the reinvestment of dividends and other earnings. Please see the GIPS Endnotes for important additional information regarding the portfolio performance shown and for effects of fees. Management and performance of individual accounts may vary for reasons that include the existence of different implementation practices and model requirements in different investment programs.

4 DIVERSIFY YOUR SECTOR EXPOSURE Our actively managed Portfolios include broad exposure to well-known names across a wide variety of sectors. These high-quality stocks offer the potential for attractive dividend yields. Our focus over the past several years has been on the attraction of companies with the ability to pay a rising stream of dividends. This approach has been a good way to get more income than was available on risk-free alternatives. Michael Clarfeld, CFA Portfolio Manager Dividend growers Company dividend increases 2Q1811 out of 60 companies reporting increase % Average 9.1 increase out of61 % companies Average reporting increase increase The top 10 portfolio holdings: 1 Account for 25.4% of the Portfolio 2 Average 12 years consecutive raising dividends Average 0 years in paying dividends consecutively Dividends with a strong history Top 10 holdings as of June 0, 2018 Name 4 Ticker 4 Sector 4 % of portfolio 4 Dividend yield 4 5-Year dividend growth (%) 4 Paid dividend consecutively since 5 Consecutive years of raising dividends 5 Microsoft Corp MSFT Information Technology Home Depot Inc. HD Consumer Discretionary Texas Instruments Inc. TXN Information Technology Bank of America Corp BAC Financials BlackRock Inc. BLK Financials Mastercard Inc. MA Information Technology Sysco Corp SYY Consumer Staples Apple Inc. AAPL Information Technology Enbridge Inc. ENB Energy International Paper Co IP Materials Source: ClearBridge. For 2017, only stocks that were held in the portfolio for the entire year were included. 4 Source: FactSet. Past performance is no guarantee of future results. 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, clientimposed restrictions, the timing of client investments, market conditions, contributions, withdrawals and other factors. Dividends and yields represent past performance, and there is no assurance they will continue to be paid in the future. Diversification does not guarantee a profit or protect against loss. 4

5 Remaining holdings as of June 0, 2018 Name 4 Ticker 4 Sector 4 yield (%) 4 Dividend 5-year dividend growth (%) 4 M Co MMM Industrials American Tower Corp AMT Real Estate Anheuser-Busch Inbev 6 BUD Consumer Staples.8 - AT&T Inc. T Telecommunication Services Bank of New York Mellon Corp BK Financials Coca-Cola Co KO Consumer Staples Comcast Corp CMCSA Consumer Discretionary DowDuPont Inc. DWDP Materials Ecolab Inc. ECL Materials Exxon Mobil Corp XOM Energy General Motors Co GM Consumer Discretionary.86 - Healthcare Trust of America HTA Real Estate Intel Corp INTC Information Technology Johnson & Johnson JNJ Health Care Kimberly-Clark Corp KMB Consumer Staples McCormick & Co MKC Consumer Staples McDonald's Corp MCD Consumer Discretionary Merck & Co Inc. MRK Health Care MetLife Inc. MET Financials Mondelez International Inc. MDLZ Consumer Staples Nestle NSRGY Consumer Staples NextEra Energy Inc. NEE Utilities PepsiCo Inc. PEP Consumer Staples Pfizer Inc. PFE Health Care Phillips 66 PSX Energy PNC Financial Services Group PNC Financials PPG Industries Inc. PPG Materials Praxair Inc. PX Materials Procter & Gamble Co PG Consumer Staples Raytheon Co RTN Industrials Schlumberger Ltd SLB Energy Suncor Energy Inc. SU Energy Travelers Cos Inc. TRV Financials Union Pacific Corp UNP Industrials United Parcel Service UPS Industrials UnitedHealth Group Inc. UNH Health Care U.S. Bancorp USB Financials Verizon Communications Inc. VZ Telecommunication Services Visa, Inc. V Information Technology Walt Disney Co DIS Consumer Discretionary Waste Management Inc. WM Industrials WEC Energy Group Inc. WEC Utilities Weyerhaeuser Co WY Real Estate Williams Cos Inc. WMB Energy Zoetis Inc. ZTS Health Care Source: Dividend history of individual companies. Researched by Legg Mason, Inc. Consecutive years of rising dividends are based on calendar year, ending in December 1, American Depositary Receipts. Dividends paid in euros and converted into U.S. dollars. Dividends and yields represent past performance, and there is no assurance they will continue to be paid in the future. Dividend income may be taxed either as ordinary dividends or qualified dividends. For more information, please seek advice from a tax professional. 5

6 SEASONED MANAGEMENT Diversified sector exposure Our actively managed Portfolios include broad low-turnover exposure to well-known names across a wide variety of sectors. Dedicated to seeking income An independent, active approach gives portfolio managers the freedom to pursue companies with rising dividends. Seasoned active management Veteran portfolio managers draw on over 90 years of collective investment wisdom. A well-established, global investment manager focusing on proprietary research and fundamental investing Over 50 years of experience building portfolios for clients seeking income solutions, high active share or low volatility Long-tenured portfolio managers provide strong leadership in a centralized investment structure ClearBridge Dividend Strategy Portfolios may be a solution for risk-averse investors who are looking for additional income from a seasoned management team that looks to take measured risks. Peter Vanderlee, CFA Michael Clarfeld, CFA Managing Director, PortfolioManager Industry since 2000 Peter Vanderlee,CFA Managing Director, PortfolioManager 1999 Industry since Diane Keady Managing Director, PortfolioManager Industry since 2000 Scott Glasser Co-Chief Investment Officer, Managing Director, Portfolio Manager 1991 Industry since To find out more about how you may be able to enjoy an income stream from the ClearBridge Dividend Strategy Portfolios, contact your financial advisor or visit Active share is a measure of the percentage of stock holdings in a manager s portfolio that differs from the benchmark index. 6

7 ClearBridge Dividend Strategy Portfolios SMA GIPS Endnotes Inception date: January Composite creation date: June Total return (net) (%) Total return (pure gross) (%) S&P 500 Index return (%) Bundled fee portfolios (%) Composite dispersion (%) Composite -year St. dev (%) Benchmark -year St. dev (%) Total composite assets Total Firm assets (MM USD) Number of % of Firm Period portfolios (MM USD) assets , , , , , , , , , , , , , , , , , , , , , n/a n/a , , n/a n/a , , n/a n/a ,614.9 Pure gross of fee returns do not reflect the deduction of any expenses, including transaction costs, andarepresented assupplemental to thenetof feereturns. COMPLIANCE STATEMENT: ClearBridge Investments, LLC claims compliance with the Global Investment Performance Standards (GIPS ) and has prepared and presented this report in compliance with the GIPS standards. ClearBridge Investments, LLC has been independently verified for the periods January 1, December 1, The verification reports are available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm's policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation. FIRM INFORMATION: ClearBridge Investments, LLC ("ClearBridge") is a wholly owned subsidiary of Legg Mason, Inc. ("Legg Mason"). The investment advisory business now known as ClearBridge was registered in September 2005 to facilitate Legg Mason's acquisition of substantially all the equity asset management businesses known as Citigroup Asset Management. These former businesses serve as the foundation of ClearBridge and its claim of GIPS compliance for institutional accounts through predecessor firms, effective as of January In June 2008, ClearBridge combined this business with its retail business to form a single GIPS firm. As of April 1, 201 and January 1, 2016, ClearBridge's affiliates, Global Currents Investment Management, LLC, and ClearBridge, LLC, respectively, have become part of the ClearBridge GIPS firm. COMPOSITE INFORMATION: The ClearBridge Dividend Strategy SMA composite consists of discretionary wrap accounts with an account minimum of U.S. $25,000. Accounts within the composite seek dividend income, growth of dividend income and long-term capital appreciation by investing in stocks that either pay an existing dividend or are expected to pay a dividend in the near future. The main risks of this strategy are General Investment Risk, Small Cap Risk, Mid Cap Risk and Non-U.S. Investment Risk. Prior to June 2008, the minimum was $5,000. INPUT AND CALCULATIONDATA: The fee schedule currently in effect is.00% on all assets. Net of fee composite returns are calculated by reducing each monthly composite pure gross rate of return by the highest "bundled" fee charged (.00%) annually, prorated to a monthly ratio. The "bundled" fee includes transaction costs, investment management, custodial, and other administrative fees. The pure gross return reflects the deduction of transaction costs for some accounts in the composite. Effective January 1, 201, the number of portfolios reflects a change from prior periods due to an aggregation of accounts as reported by one sponsor. As of January 2014, the internal dispersion of annual returns is measured by the asset-weighted standard deviation of portfolio returns included in the composite for the entire year. For prior years, the equal-weighted standard deviation was used. The composite employed a 10% significant cash flow policy which was discontinued in January A list of composite descriptions is available upon request. Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request. Past performance is not necessarily indicative of future results. Past performance isnotnecessarilyindicative of future results. BENCHMARK INFORMATION: The S&P 500 Index is a broad-based measurement of changes in stock market conditions based on the average performance of 500 widely held common stocks. TERMS AND DEFINITIONS: Dividend yield is a financial ratio that shows how much a company pays out in dividends. Dividend yield is determined by dividing a stock s annual dividends per share by the current market price per share. The Up capture ratio measures the manager s overall performance to the benchmark s overall performance, considering only quarters that are positive in the benchmark. An Up Capture Ratio ofmore than 1.0 indicates a manager who outperforms the relative benchmark in the benchmark s positive quarters. The Down capture ratio is the ratio of the manager s overall performance to the benchmark s overall performance, considering only quarters that are negative in the benchmark. A Down Capture Ratio of less than 1.0 indicates a manager who outperforms the relative benchmark in the benchmark s negative quarters and protects more of a portfolio s value during down markets. 7

8 Brandywine Global Clarion Partners Legg Mason is a leading global investment company committed to helping clients reach their financial goals through long-term, actively managed investmentstrategies. ClearBridge Investments EnTrustPermal Martin Currie QS Investors RARE Infrastructure Royce & Associates Over $767 billion* in assets invested worldwide in a broad mix of equities, fixedincome, alternatives and cash strategies A diverse family of specialized investment managers, each with its own independent approach to research and analysis Over a century of experience inidentifying opportunities and delivering astute investment solutions to clients Western Asset LeggMason.com What should I know before investing? All investments involve risk, including loss of principal, and there is no guarantee that investment objectives will be met. Investments may be made in small- and mid-cap companies, which involve a higher degree of risk and volatility than investments in large-cap companies. 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. Limited investments also may be made in non-dividend-paying stocks that are not expected to pay a dividend in the near future. The manager may hold significant portions of portfolio assets in cash equivalents while waiting for buying opportunities. Legg Mason, Inc., its affiliates, and its employees are not in the business of providing tax or legal advice to taxpayers. These materials and any tax-related statements are not intended or written to be used, and cannot be used or relied upon, by any such taxpayer for the purpose of avoiding tax penalties or complying with any applicable tax laws or regulations. Tax-related statements, if any, may have been written in connection with the promotion or marketing of the transaction(s) or matter(s) addressed by these materials, to the extent allowed by applicable law. Any such taxpayer should seek advice based on the taxpayer s particular circumstances from an independent tax advisor. Separately Managed Accounts (SMAs) are investment services provided by Legg Mason Private Portfolio Group, LLC (LMPPG), a federally registered investment advisor. Client portfolios are managed based on investment instructions or advice provided by one or more of the following Legg Mason-affiliated subadvisors: ClearBridge Investments, LLC and Western Asset Management Company. Management is implemented by LMPPG, the designated subadvisor or, in the case of certain programs, the program sponsor or its designee. * As of December 1, Any information, statement oropinion 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 ofinvesting 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 all investment managers mentioned are subsidiaries of Legg Mason, Inc AMXX /18