Legg Mason ClearBridge US Appreciation Fund May 2020 The value of investments and the income from them may go down as well as up and you may not get back the amount you originally invested. This information is only for use by professional clients, eligible counterparties or qualified investors. It is not aimed at, or for use by, retail clients.
24
Embed
Legg Mason ClearBridge US Appreciation Fund...Legg Mason ClearBridge US Appreciation Fund May 2020 The value of investments and the income from them may go down as well as up and you
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Legg Mason ClearBridge US Appreciation Fund
May 2020
The value of investments and the income from them may go down as well as up and you may not get back the amount you originally invested.
This information is only for use by professional clients, eligible counterparties or qualified investors. It is not aimed at, or for use by, retail clients.
Firm Overview
ClearBridge Investments
Source: ClearBridge, as at 31 March 2020.
A Long-Term Focus Drives a Distinguished History
3
$121 billion in assets under management
Headquartered in New York; offices in Baltimore, London, San Francisco, Sydney and Wilmington
Operate with investment independence, wholly-owned subsidiary of Legg Mason
PRI Signatory since 2008
Committed to authentic active management
▪ Performance distinct from market benchmarks
and factor-based strategies
▪ Long-term investment horizon
▪ Robust risk management
▪ Active ownership
Culture of longevity, consistency and risk
awareness
▪ Highly experienced and tenured investment
professionals
▪ Deliberate succession planning
▪ Risk considerations examined in all decisions
Robust fundamental research platform
▪ Bottom-up, quality focus
▪ Proprietary research and ESG ratings
▪ 30 year history of ESG investing with a fully-
integrated approach
Client focus
▪ Alignment of interests with clients
▪ Innovative compensation plan
Global investment manager with a 50+ year legacy as a leader in active management
Innovating to meet investor needs and evolving markets
Source: ClearBridge. For illustrative purposes only.
ClearBridge milestones
Appreciation
Strategy launched,
introducing
Low Volatility
approach
Aggressive Growth
Strategy
launched,
introducing
High Active
Share approach
Dividend Strategy launched, introducing
Income Solutions approach
2003
ClearBridge name established
ClearBridge Institutional Sector
Research Platform introduced
2005
Energy MLP
Strategies
launched
2010
TDI expands
equity income
offerings
2012
International Value
Strategy launched,
introducing
International
capabilities
1994
Introduced
Active ETFs
2017
ClearBridge signs UNPRI
2008
Proprietary
ESG
Company
Ratings
introduced
2014
Introduced
Dynamic MDAs
2015
19701983
Responsible Investing Program launched,
introducing ESG capabilities
1987
Boutique Asset Managers
Individual, specialized asset management firms
Smith Barney Asset Management
Loeb Rhoades Asset Management
Davis Skaggs Asset Management
Shearson Asset Management
Salomon Bros. Asset Management
Benefits of scale
Citigroup forms a
Combined Asset
Manager Citigroup
Asset Management
A singular focus on Investment Management
ClearBridge Investments
4
Independent Risk ManagementIdentify and address investment and business risk
5
Dedicated team of seven risk management and portfolio analytics professionals distinguished by:
▪ Independence – Direct reporting line to Chief Executive Officer and General Counsel
▪ Flexibility – Preventive risk program focusing on business needs
▪ Clarity – Promote risk aware culture with defined responsibilities
Investment Risk
Analyses
Investment Policy Risk tolerance, instrument/transaction analysis (derivatives, short selling, etc.)
Consumer Staples 7.03% CVS Health 0.44% VULCAN MATERIALS CO 0.68%
Wal Mart Stores Inc 2.31% Ball Corp. 0.51%
Procter & Gamble Co/T Npv 1.58% Industrials 5.49%
Pepsico Inc 1.29% Honeywell International Inc Co 2.07% Real Estate 2.07%
Mondelez International, Inc. Class A 0.94% Waste Management Inc 1.24% American Tower Corp 2.07%
The Coca-Cola Company 0.90% United Parcel Service 1.12%
3M Co 0.77% Utilities 0.53%
Energy 3.53% Canadian Pacific Railway Ltd. 0.29% NextEra Energy, Inc. 0.29%
Chevron Corp 1.39% Sempra Energy 0.25%
Exxon Mobil Corp 0.92% Information Technology 26.14%
Kinder Morgan, Inc. Class P 0.75% Microsoft Corp 7.63% Total 100.00%
Pioneer Natural Resources Company 0.47% Apple Inc. 4.85% Number of Holdings 64
Fund compositionMarket capitalisation30 April 2020
Source: Legg Mason, 30 April 2020.
14
76.63
11.97
7.003.94
0.46
58.00
14.3311.99 12.48
2.67
0
10
20
30
40
50
60
70
80
90
More than 100,000 mil 50,000 - 100,000 mil 25,000 - 50,000 mil 10,000 - 25,000 mil 5,000 - 10,000 mil
% o
f F
un
d
$ Millions
Legg Mason ClearBridge US Appreciation Fund S&P 500 Index
Portfolio Characteristics Fund Index
Value FactorsHarmonic P/E Ratio (Forecasted 12 Months) 22.15 20.98
Current Dividend Yield 1.91% 2.04%
Price/Book 7.65 5.78
Price/Sales 4.79 4.40
Growth FactorsEPS Growth Next 3-5 Years 10.60% 9.78%
Quality FactorsReturn on Equity 26.37% 23.30%
Risk Factors over 3 YearsStandard Deviation 3 Years 15.10% 16.79%
Tracking Error 3 Years 2.85% 0.00%
Beta 3 Years 0.89 1.00
Market CapWeighted Median Market Cap ($bn) 197.74 133.45
Weighted Average Cap ($bn) 374.29 322.80
Portfolio characteristics30 April 2020
Portfolio characteristics may change without notice.Source: Factset, 30 April 2020.
The current dividend yield is the gross annual income (interest or dividends) paid out by the underlying investments within the fund divided by their current price. Past performance is not a reliable indicator of
future results.
15
S&P500
Annualised performanceClass P USD Distributing (A) (USD)30 April 2020
Past performance is not a reliable indicator of future results.Currency exchange rate fluctuations may impact the value of your investment.Source: Legg Mason 30 April 2020for Class P USD Distributing (A) USD. Performance is calculated on a NAV to NAV basis, with gross income reinvested and after deduction of annual fund expenses. Performance
for periods less than one year is not annualised. From 25 March 2019, the pricing of securities held in Legg Mason Global Funds Plc(“LMGF”) and Legg Mason Qualified Investor Funds (II) Plc (collectively the
“Funds”), will use the mean (or mid) value of the bid and ask prices, to calculate the Funds’ Net Asset Values (“NAV”). The Funds previously used a bid price methodology for fixed income securities, and last traded
price for equity securities. The NAV pricing methodology of the LMGF Legg Mason Western Asset US Government Liquidity Fund is unchanged.
-9.72 -10.39
-0.80
7.94 7.80
11.80
-9.26 -9.29
0.86
9.04 9.12
14.04
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
3 months Year-to-date 1 year 3 years (p.a.) 5 years (p.a.) Since inception (p.a.)9 April 2009
Legg Mason ClearBridge US Appreciation Fund – Class P USD Distributing (A) S&P 500 Index
16
Calendar year performanceClass P USD Distributing (A) (USD)31 December 2019
Past performance is not a reliable indicator of future resultsCurrency exchange rate fluctuations may impact the value of your investment.Source: Legg Mason as at 31 December 2019 for Class P USD Distributing (A) USD incepted in May of 2010. Performance is calculated on a NAV to NAV basis, with gross income reinvested and after deduction of
annual fund expenses. Performance for periods less than one year is not annualised. Past performance is no guide to future returns and may not be repeated. Please refer to the section entitled ‘Important
Information’ for additional details. From 25 March 2019, the pricing of securities held in Legg Mason Global Funds Plc (“LMGF”) and Legg Mason Qualified Investor Funds (II) Plc (collectively the “Funds”), will use
the mean (or mid) value of the bid and ask prices, to calculate the Funds’ Net Asset Values (“NAV”). The Funds previously used a bid price methodology for fixed income securities, and last traded price for equity
securities. The NAV pricing methodology of the LMGF Legg Mason Western Asset US Government Liquidity Fund is unchanged.
11.75
2.06
15.01
28.55
10.58
1.00
8.93
19.17
-2.47
28.87
15.06
2.11
16.00
32.39
13.69
1.38
11.96
21.83
-4.38
31.49
-10%
0%
10%
20%
30%
40%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Legg Mason ClearBridge US Appreciation Fund - Class P US$ Distributing (A) S&P 500 Index
17
Standardised past performanceRolling period returns30 April 2020
Past performance is not a reliable indicator of future results.Currency exchange rate fluctuations may impact the value of your investment.Source: Legg Mason, performance 30 April 2020. Performance is calculated on a NAV to NAV basis, with gross income reinvested and after deduction of annual fund expenses. From 25 March 2019, the pricing of
securities held in Legg Mason Global Funds Plc (“LMGF”) and Legg Mason Qualified Investor Funds (II) Plc (collectively the “Funds”), will use the mean (or mid) value of the bid and ask prices, to calculate the
Funds’ Net Asset Values (“NAV”). The Funds previously used a bid price methodology for fixed income securities, and last traded price for equity securities.
The NAV pricing methodology of the LMGF Legg Mason Western Asset US Government Liquidity Fund is unchanged.
Rolling 12-month performance
(%)
01 May 2019 -
30 Apr 2020
01 May 2018 -
30 Apr 2019
01 May 2017 -
30 Apr 2018
01 May 2016 -
30 Apr 2017
01 May 2015 -
30 Apr 2016
Legg Mason ClearBridge US Appreciation Fund
Class P Dist. (A) USD-0.80 15.45 9.81 14.07 1.47
S&P 500 0.86 13.49 13.27 17.92 1.21
18
Fund risksLegg Mason ClearBridge US Appreciation Fund
Investment in company shares: The fund invests in shares of companies, and the value of these shares can be negatively affected by changes in the
company, its industry or the economy in which it operates.
Geographical focus: This fund invests primarily in the United States, which means that it is more sensitive to local economic, market, political or regulatory
events in the United States, and will be more affected by these events than other funds that invest in a broader range of regions.
Fund operations: The fund is subject to the risk of loss resulting from inadequate or failed internal processes, people or systems or those of third parties such
as those responsible for the custody of its asset
19
Attribution analysis One year (%)30 April 2020
Past performance is not a reliable indicator of future results. Source: Legg Mason, 30 April 2020.
The attribution figures above are based on the Fund’s holdings and do not reflect fees or expenses of the Fund. BM = benchmark – S&P 500 Index. – S&P 500 Index.
20
Average Weight Total Return Attribution Effects
Port BM (+/-) Port BM Sector Stock Total
Communication Services 13.34 10.47 2.87 -2.12 3.30 0.06 -0.69 -0.63
Total Fund 100.00 100.00 0.00 0.70 0.86 -1.24 1.07 -0.17
Sector Allocation for 1 Year
Performance contribution One year (%)30 April 2020
Past performance is not a reliable indicator of future results. Source: Legg Mason, 30 April 2020. The attribution figures above are based on the Fund’s holdings and do not reflect fees or expenses of the Fund. Individual securities mentioned are not to be taken as advice nor
are they intended as a recommendation to buy or sell any investment or interest. BM = benchmark – S&P 500 Index.
21
Average Weight Average Weight
Name Sector Port BM (+/-) Return Contrib Name Sector Port BM (+/-) Return Contrib
MICROSOFT CORPInformation
Technology6.89 4.56 2.33 39.04 2.43 EXXON MOBIL CORP Energy 1.35 1.11 0.24 -39.13 -0.67
Total Fund 100.00 100.00 0.00 31.34 29.66 -2.42 4.09 1.68
Sector Allocation for 3 Years
Performance contribution Three years (%)30 April 2020
Past performance is not a reliable indicator of future results.Source: Legg Mason, 30 April 2020. The attribution figures above are based on the Fund's holdings and do not reflect fees or expenses of the Fund. Individual securities mentioned are not to be taken as advice nor
are they intended as a recommendation to buy or sell any investment or interest. BM = benchmark – S&P 500 Index.
23
Average Weight Average Weight
Name Sector Port BM (+/-) Return Contrib Name Sector Port BM (+/-) Return Contrib