The ClearBridge Large Cap Value ESG Portfolios are designed for investors seeking long-term growth using a large-capitalization value investment style. The ClearBridge Large Cap Value ESG Portfolios are run by Bob Feitler, Dmitry Khaykin and their team.
The ESG Investment Program actively incorporates environmental, social and governance (ESG) factors into the fundamental research platform and the stock-selection process. In addition, ongoing company engagement and shareholder advocacy are key components of the Program.
A few examples of the ESG considerations include:
- Innovative workplace policies, employee benefits and programs
- Environmental management system strength, eco-efficiency and life-cycle analysis
- Community involvement, strategic philanthropy and reputation management
- Strong corporate governance and independence on the board
ClearBridge is a Signatory to the UN Principles for Responsible Investment, and is affiliated with the Investor Network on Climate Risk, the Carbon Disclosure Project, the Interfaith Center on Corporate Responsibility, the Global Impact Investing Network, and the US Forum for Sustainable and Responsible Investment.
- Managers utilize an interactive, research-driven approach to identify companies with strong business franchises and attractive valuations, and which have met our environmental, social and governance [ESG] criteria
Strong business franchises
- Proven business models that we understand
- Companies with sustainable competitive advantage
- Capable of generating solid returns across a range of potential scenarios
- Timing and probability of cash flows
- Discount earnings from emerging business models or products
- Evaluate price relative to normalized earnings power
There is no guarantee that the Portfolio's objectives will be met.
Develop a macroeconomic outlook
- Consider broad economic and financial trends, which helps create a framework for individual security analysis.
Define the investment universe
- Utilize bottom-up analysis to identify best ideas that include companies which we believe have strong franchises and the potential for price appreciation.
Employ fundamental analysis and identify catalysts
- Examine relative valuation, identify favorable entry points and focus on normalized earnings.
- Seek to achieve a valuation better than that of the S&P 500 Index.
Construct portfolio and manage risk
- Identify relevant socially aware considerations for each sector and compare management culture, programs and corporate policies.
- Select from among these candidates those with attractive valuations that meet ESG sustainable research criteria.
The investment process may change over time. The characteristics set forth above are intended as a general illustration of some of the criteria the strategy team considers in selecting securities for client portfolios. There is no guarantee investment objectives will be achieved.
meet your managers
With a legacy dating back over 50 years, ClearBridge Investments is a leading global equity manager committed to delivering differentiated long-term results through authentic active management.
Managing Director, Portfolio Manager
Managing Director, Portfolio Manager
Mary Jane McQuillen
Managing Director, Head of Environmental, Social and Governance Investment, Portfolio Manager
What I Should Know
All investments involve risk, including loss of principal and there is no guarantee that investment objectives will be met. Investments may be made in mid-cap companies, which involve a higher degree of risk and volatility than investments in larger, more established 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. The managers’ environmental social and governance (ESG) investment strategies may limit the types and number of investment opportunities available and, as a result, may underperform strategies that are not subject to such criteria.
IMPORTANT INFORMATION: 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 Franklin Resources, Inc affiliated sub-advisers: ClearBridge Investments, LLC. Management is implemented by LMPPG, the designated sub-adviser or, in the case of certain programs, the program sponsor or its designee.
Professional money management may not be suitable for all investors. 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.
Portfolio characteristics (Source: FactSet)
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.
|Period||Total Return (Net, %)
||Total Return (*Pure Gross, %)
||Benchmark Return (%)
||Number of Portfolios
||% of Bundled Fee Portfolios in the Composite
||Composite Dispersion (%)
||Composite 3 Yr. St. Dev. (%)
||Benchmark 3 Yr. St. Dev. (%)
||Total Composite Assets at End of Period (USD million)
||Percentage of Firm Assets
Firm Assets at End of Period (USD million)
*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.
n/m - Information is not statistically meaningful due to an insufficient number of portfolios in the composite for the entire year.
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, 2018. 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.
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.
The ClearBridge Large Cap Value ESG SMA composite consists of discretionary wrap accounts with an account minimum of US $25,000. The managers actively integrate criteria inclusive of environmental, social and governance (ESG) issues into the portfolio construction of the strategy. Accounts within the composite seek long-term capital appreciation by investing in securities with favorable risk-adjusted return characteristics. Investments are primarily made in large-capitalization U.S. companies but may also invest in mid-capitalization companies. The strategy is implemented by Legg Mason Private Portfolio Group, LLC (LMPPG). LMPPG claims compliance with the Global Investment Performance Standards (GIPS®). LMPPG has been independently verified for the periods January 1, 2013 - December 31, 2018. LMPPG is a wholly-owned subsidiary of Legg Mason, Inc and together with its sub-advisers, including ClearBridge, provides investment services primarily in investment programs sponsored by Sponsor Firms. To obtain a compl iant presentation and/or the firm's list of composite descriptions, please contact email@example.com. The main risks of this strategy are General Investment Risk, Mid Cap Risk, ESG Investing Risk, and Non-U.S. Investment Risk. The composite consists of the following percentages of non-fee-paying accounts as of each year end: 2013 - 11%, 2014 - 1.7%, 2015 - 1.4%, 2016 - 0.8%.
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-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 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.
The Russell 1000® Value Index measures the performance of the large-cap value segment of the U.S. equity universe. Benchmark returns are not covered by the report of independent verifiers.