CLEARBRIDGE MULTI CAP GROWTH PORTFOLIOS

1Q 2018 Separately Managed Accounts Product Commentary CLEARBRIDGE MULTI CAP GROWTH PORTFOLIOS Richard Freeman and Evan Bauman Portfolio Managers Multi Cap Growth Portfolios Annualized returns net and gross of fees - PRELIMINARY (%) as of March 31, 2018 1-mo QTR YTD 1-yr 3-yr 5-yr 7-yr 10-yr Net of fees -1.83 0.86 0.86 8.34 5.41 10.37 10.37 9.26 "Pure" gross of fees Russell 3000 Growth Index -1.58 1.61 1.61 11.57 8.56 13.66 13.66 12.51-2.44 1.48 1.48 21.06 12.57 15.32 13.86 11.31 The strategy returns are preliminary composite returns, subject to future revision (downward or upward). Please visit www.leggmason.com for the latest performance figures. YTD numbers are not annualized. Monthly, quarterly and YTD numbers are not annualized. Past performance is no guarantee of future results. Please see the GIPS endnotes for important additional information regarding the portfolio performance 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. 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 3.0% 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 (LMPPG), refer to LMPPG's Form ADV disclosure document. Returns reflect the reinvestment of dividends and other earnings. Investors cannot invest directly in an index, and unmanaged index returns do not reflect any fees, expenses or sales charges. Russell 3000 Growth Index measures the performance of those Russell 3000 Index companies with higher price-to-book ratios and higher forecasted growth values. The portfolio composition typically varies from that of the above-noted, unmanaged index. Key takeaways The return of volatility after an unusually subdued 2017 should increase opportunities for active managers to take advantage of mispricings. Cyclical technology stocks drove portfolio performance, which could signal a rotation out of crowded mega-cap technology and Internet names. Tax reform and reduced regulation across several sectors are supportive of an increase in merger and acquisition activity. Market overview and outlook Coming into the year, our expectation was that tightening monetary policy, rising risks in crowded sectors like mega-cap technology and Internet, and a general lack of conviction among investors would lead to a normalization of volatility. We were confident that conditions supporting unusually restrained price movements (which led to the CBOE Volatility Index, or VIX, hitting its lowest point in history in November) were not sustainable. 2018 started off in much the same way the previous year had left off, with a momentum-driven market characterized by volatility and rising investor complacency. As measured by the Investors Intelligence Bull-Bear Ratio, the ratio of bulls to bears hit its highest level in 30 years in January, signaling that most investors did not acknowledge risks present in the equity market. An interest rate scare in late January, however, knocked stocks out of their doldrums and led to a rapid correction for the S&P 500 Index. INVESTMENT PRODUCTS: NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE

Stocks ended up enduring their first quarterly decline since September 2015, with risks posed by inflation, trade policy and greater regulation of technology companies causing a sharp increase in volatility and sending the S&P 500 to a loss of 0.76%. The small-cap Russell 2000 Index declined 0.08%, the Russell Midcap Index fell 0.46%, and the benchmark Russell 3000 Growth Index managed a gain of 1.48% as investors maintained a preference for growth stocks. The VIX spiked to its highest level in more than five years in early February as bond yields surged on signs of higher inflation. The fear gauge remained elevated for the remainder of the quarter as the Trump administration announced tariffs on imported steel and aluminum, and preliminary 301 tariffs on China, stoking fears of retaliation from trade partners. In late March, shares of Facebook sold off amid news that a political data firm gained access to private information of over 50 million users. Investors fear tougher regulation resulting from this incident could crimp Facebook s advertising revenue and hinder the growth of other tech giants with similar business models. The initial spike in volatility was sparked by the unwinding of short volatility derivative instruments rather than fundamental weakness. Instead, we continue to own well-managed companies with balance sheet strength in underappreciated sectors including health care, energy, media and cyclical technology. As contrarian growth managers who hold companies as long-term business owners, increased volatility should afford more chances to take advantage of short-term mispricings. In technology, the negative sentiment around Facebook and the other FAANG stocks could lead to a rotation out of this crowded area into under-owned segments of the sector and other parts of the market. Seagate Technology, for instance, was the top individual contributor during the first quarter, boosted by accelerating demand for storage in the cloud provided by its hard disk drives. The company is generating free cash flow that it is returning to shareholders through share buybacks and dividend payments. Rival storage provider Western Digital also outperformed on strength in its flash memory business. The Strategy also received solid performance from technology holdings Autodesk, Twitter and Intel. reform and deregulation take hold in industries like energy exploration & production and health care. We have been anticipating an uptick in merger & acquisition activity as tax reform and repatriation allow companies to put greater levels of cash to work. January saw record mergers & acquisitions (M&A) deal value, with several major takeouts in the health care sector where quality assets were acquired at meaningful premiums. Sanofi announced its intention to purchase portfolio holding Bioverativ at an approximately 60% premium, which gives us confidence that similar deals may follow. Biopharmaceutical stocks trade at or near historically low valuations, and many have underappreciated pipelines. The pipelines of our portfolio holdings could spark stock prices higher, as we expect near-term clinical trial readouts for compounds treating Alzheimer s disease, liver disease and other rare conditions. Media is another area that could benefit from consolidation, with portfolio holding Comcast among the bidders for British entertainment programmer and distributor Sky. As we have discussed in past commentaries, the desire for high-quality programming and the need for scale should lead to an increase in M&A activity. An improving backdrop marked by less regulation and lower taxes should also be conducive to accretive media deals. Crude oil prices rose 7.7% during the first quarter, yet energy stocks continued to lag the market. We believe this disconnect between company fundamentals and oil prices (Exhibit 1), which has been extended by tax-loss and short selling in the sector, will close over time, either through consolidation or a rotation back into the sector. Some E&P stocks are nearing valuations where it would be cheaper for the major oil companies to acquire them rather than drill on their own. In this environment, more companies are choosing to cut back production in favor of financial discipline. Anadarko Petroleum, for example, has been rewarded for the actions it has been taking to improve its balance sheet, from asset sales and returning capital to shareholders through the expansion of its share buyback program and a dividend increase. Given the poor sentiment holding back many areas of the market, we also realize that our portfolio holdings may need catalysts to monetize their value. These could come from several places. We believe the market will broaden out as tax 2

Exhibit 1: Correlation of Oil and Energy Stocks Breaking Down Comcast, Weatherford International, Biogen, Broadcom and Freeport-McMoRan. During the first quarter, we sold our position in Bioverativ, in the health care sector. As of March 20, 2018. Source: Strategas. Just as the market correction in early 2016 made us bullish on equities, the latest selling pressure could also serve to extend the current bull market. The difference this time is that the economy and corporate earnings are in much better shape. GDP growth in the fourth quarter rose at an annualized pace of 2.9%, while the unemployment rate stands at post-recession low of 4.1%, with steady job creation. Meanwhile, backed by the positive impacts of corporate tax reform passed late last year, first-quarter earnings for S&P 500 companies are forecast to grow in the high teens, according to Bloomberg. Portfolios highlights For the first quarter, the ClearBridge Multi Cap Growth Portfolios gained 1.61% (gross of fees), while the benchmark Russell 3000 Growth Index gained 1.48% for the same period. Over the longer term, the Portfolios have outperformed the benchmark for the 10-year period ended March 31, 2018 (gross of fees). On an absolute basis, the Portfolios had gains in two of the six sectors in which they were invested (out of 11 sectors total). The main contributor to performance was the information technology (IT) sector, while the main detractor was the consumer discretionary sector. In relative terms, the Portfolios outperformed their benchmark due to stock selection. In particular, stock selection in the IT, energy and industrials sectors contributed to relative results, as did the Portfolios lack of exposure to the consumer staples sector. Meanwhile, stock selection in the consumer discretionary and health care sectors and an over to energy hindered relative performance. On an individual stock basis, the largest contributors to absolute returns included Seagate Technology, Autodesk, Anadarko Petroleum Western Digital and Bioverativ. Meanwhile, the greatest detractors included positions in 3

Top contributors 1 Contribution to equity return % Seagate Technology public limited company 1.33 Autodesk, Inc. 0.89 Anadarko Petroleum Corporation 0.65 Western Digital Corporation 0.49 Bioverativ, Inc. 0.41 In terms of individual stocks, the positive contributors to the Portfolios performance for the quarter included: Seagate Technology (STX), in the IT sector, produces a range of hard disk drive (HDD) products for use in enterprise computing, PCs and electronic devices, and it also provides data storage services for small to medium-size businesses. Growing demand for cloud storage and strong free cash flow generation lifted the stock to new highs. Autodesk (ADSK), in the IT sector, is a design software and services company with customers in the architecture, engineering and construction, manufacturing and digital media and entertainment industries. The company s successful transition to a new subscription-based model, which should result in a recurring revenue stream and rising earnings, boosted shares. Anadarko Petroleum (APC), in the energy sector, is an oil and gas exploration and production company with major operations in North America and overseas. Investors are responding positively to the company s improved capital discipline, focus on drilling efforts on high-quality assets, and the return of excess cash to shareholders through dividends and buybacks. Bottom contributors 1 Contribution to equity return % Comcast Corporation -1.09 Weatherford International plc -0.98 Biogen Inc. -0.78 Broadcom, Inc. -0.44 Freeport-McMoRan, Inc. -0.27 The bottom contributors to the Portfolios performance for the quarter included: Comcast (CMCSA), in the consumer discretionary sector, offers consumer entertainment, information, and communication products and services, including cable TV systems, Internet and phone services and consolidated national programming networks. Investors soured on the company s decision to outbid Disney-Fox in the auction for British content programmer Sky, sending the stock lower. Weatherford International (WFT), in the energy sector, provides equipment and services used in drilling of oil and natural gas wells around the world. Weak fourth-quarter results and negative sentiment offset the company s progress in terming out its debt obligations to the second half of 2020. Biogen (BIIB), in the health care sector, is a biotechnology company that produces therapies in the areas of oncology, neurology and immunology. The shares were pressured by delays in its key clinical trial for Alzheimer s disease, which will not produce readouts until 2020. The selling overlooks the company s progress in gaining price increases for its key multiple sclerosis treatment, the ramp-up of its treatment for spinal muscular atrophy, and a strong cash position. 1 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. This information does not constitute, and should not be construed as, investment advice or recommendations with respect to the sectors and securities listed, and it should not be used as the sole basis for any investment decision. Past performance is no guarantee of future results. 4

Market capitalization 2 Market cap breakdown ($) Portfolio Benchmark Above 50 billion 36.54 60.51 25-50 billion 30.21 13.14 10-25 billion 19.96 12.22 3-10 billion 10.55 9.24 0-3 billion 2.74 4.89 Weighted average market cap ($bil) 59.10 203.89 Top 10 equity holdings 2 Percent of equity UnitedHealth Group Inc 9.22 Comcast Corp 7.17 Broadcom Ltd 6.87 Anadarko Petroleum Corp 5.94 Allergan PLC 5.87 Autodesk Inc 5.66 TE Connectivity Ltd 5.48 Biogen Inc 5.02 Seagate Technology PLC 4.79 Freeport-McMoRan Inc 4.09 Total number of holdings 40 Sector highlights 2 Average sector ings and performance (%) Gross of fees from 12/31/17 to 03/31/18 Sector Port. Port. return Benchmark* Benchmark* return Weight diff. Active contrib. Information Technology 34.20 9.93 37.45 3.72-3.25 1.85 Health Care 25.54-0.85 13.75 0.67 11.79-0.50 Consumer Discretionary 17.12-7.48 18.16 3.72-1.04-1.89 Energy 7.77-4.07 0.87-6.92 6.90-0.36 Industrials 7.75 1.23 13.10-0.24-5.35 0.20 Materials 4.78-6.89 3.65-5.20 1.13-0.13 Real Estate 0.00 0.00 2.37-3.85-2.37 0.14 Utilities 0.00 0.00 0.06-7.37-0.06 0.01 Telecomm Service 0.00 0.00 0.91-7.59-0.91 0.09 Consumer Staples 0.00 0.00 6.07-4.79-6.07 0.41 Financials 0.00 0.00 3.60 4.03-3.60-0.08 Cash 2.83 0.38 0.00 0.00 2.83-0.05 *Benchmark: Russell 3000 Growth Index. 2 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. This information does not constitute, and should not be construed as, investment advice or recommendations with respect to the sectors and securities listed, and it should not be used as the sole basis for any investment decision. Past performance is no guarantee of future results. 5

Important information 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, a 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. Please refer to www.leggmason.com for more information about the Portfolio, including objective, risks and investment process. The information presented does not constitute and should not be construed as investment advice with respect to any investment discussed. There is no guarantee that investment objectives will be met. An investor cannot invest directly in an index. Investments are not FDIC insured or guaranteed by any government agency. Values may fluctuate due to market conditions and other factors. Past performance is no guarantee of future results. 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 both of the following Legg Masonaffiliated 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. 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. Definitions and additional information An investor cannot invest directly in an index, and unmanaged index returns do not reflect any fees, expenses or sales charge. The bull/bear ratio is a market-sentiment indicator published weekly by Investor's Intelligence that uses information polled directly from market professionals. The Chicago Board Options Exchange (CBOE) Volatility Index (VIX) is a measure of market expectations of near-term volatility as conveyed by S&P 500 stock index option prices. E&P (exploration & production) is a specific sector within the oil and gas industry, focused on finding, augmenting, producing and merchandising different types of oil and gas. FAANG is an acronym for the five most popular and best-performing tech stocks in the market, namely Facebook, Apple, Amazon, Netflix and Alphabet s Google. FAANG was born out of the original acronym, FANG, which did not have Apple included when CNBC s Jim Cramer coined the term. Free cash flow (FCF) is a measure of financial performance calculated as operating cash flow minus capital expenditures. Gross domestic product (GDP) is an economic statistic that measures the market value of all final goods and services produced within a country in a given period of time. The price-to-earnings (P/E) ratio is a stock's price divided by its earnings per share. The Russell 2000 Index is composed of the 2,000 smallest companies in the Russell 3000 Index. An investor cannot invest directly in an index, and unmanaged index returns do not reflect any fees, expenses or sales charge. The Russell 3000 Index is an unmanaged index of the 3,000 largest U.S. companies. 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. The portfolio composition typically varies from that of the above-noted, unmanaged index. The Russell Midcap Index measures the performance of the 800 smallest companies in the Russell 1000 Index, which represents approximately 25% of the total market capitalization of the Russell 1000 Index. S&P 500 Index is an unmanaged index of common stock performance. 6

ClearBridge Multi Cap Growth SMA GIPS endnotes ($USD) Ending December 31 Inception date: January 2006; Composite creation date: June 2008 Period Total return (net) Total return (*pure gross) Russell 3000 Growth Index return Number of portfolios % of bundled fee portfolios in Composite the composite dispersion Composite 3 Yr. Standard Deviation Benchmark 3 Yr. Standard Deviation Total composite assets at end of period (USD million) % of firm assets Total firm assets at end of period (USD million) 2017 16.06% 19.50% 29.59% 6,757 100 1.11% 14.69% 10.77% 5,795.2 4.9% 119,187.1 2016 7.88% 11.11% 7.39% 7,942 100 1.43% 15.44% 11.50% 5,876.9 5.8% 100,936.9 2015-6.53% -3.71% 5.09% 8,467 100 0.68% 13.58% 10.95% 6,311.1 6.8% 92,536.4 2014 12.17% 15.50% 12.44% 7,870 100 0.99% 12.32% 9.87% 7,194.0 7.1% 100,721.5 2013 41.13% 45.24% 34.23% 5,294 100 1.88% 17.10% 12.66% 5,307.8 6.2% 85,024.7 2012 18.65% 22.16% 15.21% 10,718 100 1.89% 20.84% 16.21% 3,128.0 5.7% 54,624.3 2011-5.35% -2.49% 2.18% 9,619 100 1.79% 23.68% 18.43% 2,635.4 5.2% 50,870.8 2010 27.22% 30.97% 17.64% 8,977 100 1.87% n/a n/a 2,636.1 4.8% 55,366.5 2009 46.58% 50.85% 37.01% 9,733 100 3.94% n/a n/a 2,185.5 4.1% 53,522.7 2008-44.35% -42.58% -38.44% 12,211 100 2.11% n/a n/a 1,921.3 3.8% 50,614.9 *Pure gross of fee returns do not reflect the deduction of any expenses, including transaction costs, and are presented as supplemental to the net of fee returns. 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, 1997 - December 31, 2016. 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 1997. In June 2008, ClearBridge combined this business with its retail business to form a single GIPS firm. As of April 1, 2013 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 Multi Cap Growth SMA composite consists of discretionary wrap accounts with an account minimum of US $25,000. Accounts within the composite seek long-term capital appreciation by investing in the stocks of small, mid, and large capitalization companies that the manager believes have the potential for above-average long-term earnings and/or cash flow growth. The main risks of this strategy are General Investment Risk, Industry and Issuer Concentration Risk, Small Cap Risk, Mid Cap Risk, High Volatility Risk and Non-U.S. Investment Risk. Prior to June 2008, the minimum was $5,000. INPUT AND CALCULATION DATA: The fee schedule currently in effect is 3.00% 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 (3.00%) annually, prorated to a monthly ratio. The "bundled" fee includes transaction costs, investment management, custodial, and other administrative fees. Effective January 1, 2013, 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-ed standard deviation of portfolio returns included in the composite for the entire year. For prior years, the equal-ed standard deviation was used. The composite employed a 10% significant cash flow policy which was discontinued in January 2012. 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. BENCHMARK INFORMATION: 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. 2018 Legg Mason Investor Services, LLC, member FINRA, SIPC. Legg Mason Investor Services, LLC and ClearBridge Investments are subsidiaries of Legg Mason, Inc. 795827-AMXX109364 D6897 7