Legg Mason Clearbridge US Large Cap Growth Fund...Legg Mason Clearbridge US Large Cap Growth Fund:...

March 2018

Legg Mason Clearbridge

US Large Cap Growth Fund

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.

Source: ClearBridge, as at 31 December 2017.

Clearbridge Investments

A Distinguished History In Equity Investing

A well-established global investment manager with a legacy

dating back more than 50 years

▪ US$137.0 billion AUM

▪ Benefits from the strength of Legg Mason ownership, while

operating with investment independence

▪ Headquartered in New York with offices in Baltimore, San

Francisco and Wilmington with 211 employees

▪ A global equity investment manager: focused on building

equity portfolios for clients who seek income solutions, high

active share or low volatility

▪ Corporate access: ClearBridge’s investment professionals

meet with over 1000 companies a year

▪ A shared research platform: consisting of experienced

analysts who support portfolio management

▪ Co-ownership of products: management and investment

professionals are shareholders in proprietary products

Citigroup forms a combined asset managerCitigroup Asset Management

Boutique Asset Managers Benefits of Scale

Individual, specialisedasset management firmsSmith Barney Asset ManagementLoeb Rhoades Asset ManagementDavis Skaggs Asset ManagementShearson Asset ManagementSalomon Bros. Asset Management

Singular Focus on

Investment Management

1962 – 1997 1998 – 2005 2005 – present

A Timeline of ClearBridge Investments:

2

Source: ClearBridge, as at 31 December 2017. Total ESG AUM are included in Total AUM of US$127.3B.

Strategies Constructed To Address Client Objectives

Total Assets Under Management:

US$137.0 Billion

High Active

Share $94.0

Billion

Income

Solutions$26.7

Billion

Low

Volatility $16.4

Billion

Intermediaries $89.4

Billion

Institutional $42.6

Billion

Offshore*$5.0 Billion

3

Diversified Growth Stock Picking

4

Portfolio management team


Peter Bourbeau, Managing Director, Portfolio Manager▪ 26 years of investment industry experience

▪ Joined a predecessor firm in 1991

▪ MBA in Finance from Fordham University

▪ BSBA in Business from University of Florida

Margaret Vitrano, Managing Director, Portfolio Manager▪ 21 years of investment industry experience

▪ Joined a predecessor firm in 1997

▪ Citigroup – Research Analyst for consumer discretionary sector

▪ MBA in Finance from University of Pennsylvania

▪ BA in Public Policy Studies and Art History from Duke University

5

Strong long-term track record of

over 18 yearsLong-term track record of the US Large Cap Growth representative account

*Sector Median Performance: Refers to the Morningstar US Large-Cap Growth Equity Category from Morningstar. ©2018 Morningstar. All Rights Reserved.Past Performance is no guide to future results. Please refer to the section entitled “Important Information” for additional details.** Inception Date: 18 February 1999.

Source: Legg Mason/Morningstar/ClearBridge, as at 28 February 2018. Representative account as at the 31 October 2017. NAV to NAV with gross income reinvested without initial charges, but

reflecting annual management fees, based in USD for Class A Inc Shares. There are differences between the US Large Cap Growth representative account and the Legg Mason ClearBridge US

Large Cap Growth Fund including differences in the amount of assets under management, cash flows, fees and expenses, and applicable regulatory requirements, including investment and

borrowing restrictions. The past performance of the US Large Cap Growth representative account is, therefore, not indicative of the future performance of the Legg Mason ClearBridge US Large Cap

Growth Fund. The US Large Cap Growth representative account has been used to demonstrate the longer term track record of the investment manager. Base 0 in August 1997.

-100

0

100

200

300

400

500

1997 2000 2003 2006 2009 2012 2015

US Large Cap Growth representative account Russell 1000 Growth S&P 500

432%

287%

318%

Annualised returns (%) YTD 1 Year 3 Years 5 Years 10 Years Inception Date**

Legg Mason ClearBridge US Large Cap Growth Fund

(Class A Acc (G) US$)3.44 21.38 12.63 16.17 11.04 5.92

Russell 1000 Growth 4.27 26.11 13.51 17.03 11.58 5.60

S&P 500 1.83 17.10 11.14 14.73 9.73 8.00

Past performance is not a reliable indicator of future results

Currency exchange rate fluctuations may impact the value of your investment

6

Legg Mason Clearbridge

US Large Cap Growth Fund: key facts

▪ Peter Bourbeau has been running the strategy since 2003, joined by Margaret Vitrano in 2012

▪ The focus is on innovative, secular growth businesses

▪ Typically invested in 40 – 50 holdings

▪ Employs a bottom-up approach but individual holdings are within a +/-5% of index weight and

sector weighting deviations are kept within a +/-50% weight around the largest sectors of the

Russell 1000 Growth Index

▪ Valuation sensitive and entry points tend to be contrarian rather than based on price momentum

▪ Investment horizon is long-term and portfolio turnover is low, typically between 15% to 30%

▪ Portfolio is comprised of three buckets: Cyclical (10-25%), Stable (50-65%) and Select (25-35%),

providing a balanced and diversified exposure across the growth spectrum while maintaining high

active share

Source: Legg Mason, as at 31 December 2017. These are internal limits/guidelines and are subject to change. Portfolio characteristics may change without notice.

7

What differentiates the fund from the competition?

▪ Focus on business models first and foremost as opposed to the use of screens. Identifying

companies with the characteristics required to outgrow the market over the long term is a

qualitative process that cannot be replicated passively.

▪ Team typically initiates positions at times of controversy or underperformance (e.g. Adobe in

3Q 2015 or Alexion in 1Q 2016), rather than buying into positive momentum.

▪ Portfolio construction across three “growth buckets”: growth strategies will typically focus

either on “select” or “stable” growth stocks, rarely both. The “cyclical” (i.e. broken growth) category

is also somewhat unusual.

▪ Flexibility of valuation tools, also depending on type of growth stock (e.g. EV/sales or PEG for

select, P/E for stable…) as opposed to rigidly using the same metric across the portfolio.

Source: Legg Mason, as at 31 December 2017. These are internal limits/guidelines and are subject to change. Portfolio characteristics may change without notice.

8

Upside/Downside Capture Vs

Russell 1000 Growth – 5-year Horizon

Source: Legg Mason, as at 31 December 2017. Upside and downside capture ratios have been calculated using net returns. Past Performance is no guide to future results and may not be repeated.

Over a 5-year horizon, the Fund managed to capture 94% of the upside, suffering less

than 92% of the downside

94.092.0

100.0 100.0

80

90

100

110

Up Capture Ratio Down Capture Ratio

Legg Mason ClearBridge US Large Cap Growth Russell 1000 Growth Index


9

Risk factors over 3 years

information ratio and sharpe ratio

Information Ratio

Low score indicates high relative information ratio

the Legg Mason ClearBridge US Large Cap Growth Fund is

ranked in the first quartile


Morningstar US Large-Cap Growth

Peer Group: Open End Funds - Europe/Africa/Asia – US Large-Cap Growth Equity

Source: Morningstar Direct, as at 31 December 2017. information ratio and Sharpe ratio have been calculated using net returns.

0.0

25.0

50.0

75.0

100.0

0.0

25.0

50.0

75.0

100.0

Sharpe Ratio

Low score indicates high relative Sharpe Ratio

the Legg Mason ClearBridge US Large Cap Growth Fund is

ranked in the first quartile


Russell 1000 Growth

Morningstar US Large-Cap Growth

3 Years

3 Years


10

Investment process overview

For illustrative purposes only. Portfolio characteristics may change without notice.

▪ Investment universe: generally US$5 billion and higher market

capitalisation

▪ Ideas sourced from PM/analyst dialogue

▪ Attracted to controversy that may create pricing inefficiencies

▪ Look for “ quality growth” characteristics in company financials and

competitive position

▪ Management analysis to assess soundness of strategy, ability to

execute and alignment of incentives

▪ Determine appropriate entry price

▪ Build focused portfolio of 40-50 holdings with a range of growth and

volatility

▪ Ensure factor diversification while maintaining high active share

▪ Monitor sector weightings and correlations among current holdings

▪ Identify key risks and be aware of bear case

▪ Patient approach to entering a position, sensitive to valuation

▪ Active review of investment rationale, especially on laggards and

biggest winners over recent term to avoid thesis creep

Step 1Initial investment universe

Step 2Fundamental Analysis & Valuation

Step 3Portfolio Construction

Step 4Risk Management/Evaluation

Disclipline

11

Portfolio constructiondiversification across the spectrum of growth

Source: ClearBridge, as at 31 December 2017. For illustrative purposes only. Individual securities mentioned are intended as examples only and are not to be taken as advice nor are they intended

as a recommendation to buy or sell any investment or interest.

Gro

wth

ROICLow High

Cyclic

al

Su

sta

inab

le

Cyclical

Schlumberger

W.W. Grainger

Select

Amazon

Visa

Stable

Anheuser Busch-InBev

Microsoft

We will pay a premium for

companies with sustainable growth

characteristics and a superior ROIC

12

Contribution to return by growth category for

representative account

Source: Legg Mason/Factset, as at 31 December 2017. Excludes holdings not assigned to one of the three buckets due to either being sold during the period or reclassified from one bucket to another mid-period. Unassigned accounts for

+1.06% in 2014 and -0.05% in 2015. 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 intended as examples only and are not to be taken

as advice nor are they intended as a recommendation to buy or sell any investment or interest.

2014 2015Rep Account: +14.7%

Index: +13.0%

Fund*: +12.6%

Rep Account: +10.4%

Index: +5.7%

Fund*: +8.5%

*NAV to NAV with gross income reinvested without initial charges, but reflecting annual management fees, based in USD for Class A Inc Shares. There may be differences between the strategy

composites shown above, the Legg Mason ClearBridge US Large Cap Growth Fund, including differences in the amount of assets under management, cash flows, fees and expenses, and applicable

regulatory requirements, including investment and borrowing restrictions. The past performance and allocations of the strategy composite may not be indicative of the Legg Mason ClearBridge US

Large Cap Growth Fund over the same period. For more information on the strategy composites, please see the composite disclosures in the appendix.

2016Rep Account: +8.1%

Index: +7.1%

Fund*: +6.3%


0

5

10

15

20

25

30

-4

-3

-2

-1

0

Stable Select Cyclical

2017Rep Account: +26.4%

Index: +30.2%

Fund*: +23.7%

Co

ntr

ibu

tors

De

tra

cto

rs

Eg. CVS, Apple, UnitedHealth,

Home Depot, Walt DisneyEg. Home Depot, MSFT,

GE,

UnitedHealth Eg. UnitedHealth,

Comcast

Eg. Celgene, Akamai,

Biogen

Idec, Facebook

Eg. Amazon, Alphabet,

Facebook, VisaEg. Akamai Technologies,

Amazon

Eg. Target

Eg. Cameron Int’l

Eg. Schlumberger,

Texas Instruments Inc

Eg. Amazon, Google

Eg. NetApp, Cameron Int’l

Eg. Monsanto, American

Express

Eg. Eaton, Schlumberger

Eg. Akamai

Eg. CVS Health

Eg. Yum China Holdings

Eg. Regeneron

Eg. Microsoft, UnitedHealth,

Home Depot

Eg. Amazon, Alphabet,

Adobe, Facebook, Red Hat,

Visa, PayPal

Eg. Aetna, CVS, GE, Oracle

Eg. Akamai, Alexion Pharmaceuticals, Celgene

Eg. Schlumberger,

Chipotle, Pioneer

13

0%

20%

40%

60%

80%

100%

Dec.

2013

Mar.

2014

Jun.

2014

Sep.

2014

Dec.

2014

Mar.

2015

Jun.

2015

Sep.

2015

Dec.

2015

Mar.

2016

Jun.

2016

Sep.

2016

Dec.

2016

Mar.

2017

Jun.

2017

Sep.

2017

Dec.

2017

Diversification across the spectrum of growth

Source: Clearbridge, as at 31 December 2017. ClearBridge Large Cap Growth Representative Account data. Figures may not sum to 100% due to rounding.

Durability of Portfolio Construction

Select

Stable

Cyclical

34%

53%

10%

% of Equity

14

Risk management/valuation discipline

Security Level

▪ Undertake thorough fundamental analysis, understanding downside scenarios

▪ Identify key risks and listen to the most bearish views from internal and external sources before and after

investing

▪ Use industry analysts to assess expectations for a company

▪ Patient approach to entering a position, sensitive to valuation

▪ Active review of investment rationale, especially on laggards and biggest winners over recent term

▪ Avoid thesis creep

Portfolio Level

▪ Create portfolio with a range of growth rates and valuations (cyclical, stable, select)

▪ Highest conviction ideas are weighted as such and position sizes are adjusted to manage portfolio risk

▪ Maximum +/-5% security active weight

▪ Sector collars (+/-50% weight around largest sectors of Russell 1000 Growth Index)

ClearBridge Level

▪ Quarterly review by independent risk committee

▪ Adherence to ClearBridge portfolio risk controls and guideline systems & trading oversight

These are internal limits/guidelines which are subject to change.

15

Portfolio Positioning & Performance

16

sector exposure relative to

Russel 1000 Growth Index

Source: Legg Mason, as at 28 February 2018. Portfolio characteristics may change without notice.

Fund Index Underweight Overweight

Health Care 16.92% 12.76%

Financials 6.01% 3.38%

Energy 3.35% 0.78%

Consumer Staples 7.32% 6.22%

Utilities 0.00% 0.01%

Materials 3.13% 3.51%

Telecommunication Services 0.00% 0.88%

Real Estate 1.22% 2.25%

Information Technology 37.62% 39.04%

Consumer Discretionary 16.06% 18.57%

Industrials 6.26% 12.61%

Cash & Cash Equivalents 2.10% 0.00% 2.10

-6.35

-2.51

-1.42

-1.03

-0.88

-0.37

-0.01

1.11

2.57

2.64

4.16

-8 -6 -4 -2 0 2 4 6

17

Source: Legg Mason, as at 28 February 2018. Individual securities mentioned are intended as examples only and are not to be taken as advice nor are they intended as a recommendation to buy or

sell any investment or interest. Portfolio characteristics may change without notice.

Top 10 fund holdings

Security

Amazon.com Inc

Alphabet Inc

Microsoft Corp

Visa Inc

Adobe Systems Inc

UnitedHealth Group Inc

Red Hat Inc

Home Depot Inc/The

Facebook Inc

Akamai Technologies Inc

Total

Total Number of Holdings

5.70

4.04

3.48

2.99

2.83

2.74

2.69

2.62

2.44

36.12

48

6.57

% of Total Fund

18

Portfolio characteristics may change without notice.

Portfolio characteristics

Benchmark: Russell 1000 Grow th Index

Source: FactSet, as at 28 February 2018.

Portfolio Characteristics Fund Index

Value FactorsHarmonic P/E Ratio (Forecasted 12 Months) 22.68 20.91

Price/Book 6.50 7.41

Price/Sales 5.96 5.40

Growth FactorsEPS Growth Next 3-5 Years 17.03% 15.65%

Quality FactorsDebt to Equity 1.74 2.42

Risk Factors over 3 YearsStandard Deviation 3 Years 10.22% 10.88%

Tracking Error 3 Years 2.93% 0.00%

Beta 0.91 1.00

Market CapWeighted Median Market Cap ($bn) 95.29 101.71

Weighted Average Cap ($bn) 216.55 236.37


19

3.4

21.0

12.2

15.8

13.7

10.7

5.8

4.3

26.1

13.5

17.0

13.9

11.6

5.6

1.8

17.1

11.1

14.713.9

9.7

6.2

0

5

10

15

20

25

30

Year to Date 1 Year 3 Years 5 Years Since ModifiedStrategy

(01.01.2010)

10 Years Since Inception(18.02.99)

Perc

en

tag

e

Legg Mason ClearBridge US Large Cap Growth Fund - Class A US$ Distributing (A) Russell 1000 Growth Index S&P 500 Index

Fund annualised performance

Source: Legg Mason at 28 February 2018 for class A US$ Distributing (A) USD. Performance is calculated on a NAV to NAC basis, with gross income reinvested and after deduction of annual fund

expenses. Performance for periods less than one year is not annualised. Past performance in no guide to future returns and mat not be repeated.

©2016 Morningstar. All Rights Reserved. Past Performance is no guide to future results. Please refer to the section entitled “Important Information” for additional details. *The strategy mandate

evolved toward an increased portfolio diversification starting in 2010.



The strategy mandate evolved toward

an increased portfolio diversification

starting in 2010.

20

Fund calendar year performance

Performance in USD

Source: Legg Mason as at 31 December 2017 for Class A US$ 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. Past performance is no guide to future returns and may not be repeated.

©2016 Morningstar. All Rights Reserved. Past Performance is no guide to future results. Please refer to the section entitled “Important Information” for additional details.

The strategy mandate evolved toward an increased portfolio

diversification starting in 2010.



-37.5

40.9

8.5

-1.1

18.6

34.4

12.6

8.56.3

23.7

-38.4

37.2

16.7

2.6

15.3

33.5

13.0

5.7 7.1

30.2

-37.0

26.5

15.1

2.1

16.0

32.4

13.7

1.4

12.0

21.8

-50

-40

-30

-20

-10

0

10

20

30

40

50

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Perc

en

tag

e

Legg Mason ClearBridge US Large Cap Growth Fund - Class A US$ Distributing (A) Russell 1000 Growth Index S&P 500 Index

21

Standardised past performance (%)

Rolling Period Returns

Source: Legg Mason as at 28 February 2018. Performance is calculated on a NAV to NAV basis, with net income reinvested and after deduction of annual fund expenses.

Rolling 12 month performance to

28 February 2018

28 Feb 2017 -

28 Feb 2018 %

29 Feb 2016 -

28 Feb 2017 %

28 Feb 2015 -

29 Feb 2016 %

28 Feb 2014 -

28 Feb 2015 %

28 Feb 2013 -

28 Feb 2014 %

Legg Mason Clearbridge US Large Cap

Growth Fund - Cl A Distr. (A)20.96 20.42 -2.92 14.89 28.04



22

Portfolio holdings

Source: Legg Mason, as at 28 February 2018. Individual securities mentioned are intended as examples only and are not to be taken as advice nor are they intended as a recommendation to buy or

sell any investment or interest. The high % of Cash and Cash Equivalents in the portfolio is due to inflows which occurred at the end of the month. We don’t expect to have this level for an extended

period of time.

Cash 2.10% Thermo Fisher Scientific Inc. 2.01%

Biogen, Inc. 1.98% Materials 3.13%

Consumer Discretionary 16.06% Dentsply Sirona Inc. 1.52% Ecolab Inc. 1.72%

Amazon.Com, Inc. 6.57% Alexion Pharmaceuticals, Inc. 1.49% Praxair Inc. 1.42%

The Home Depot, Inc. 2.69% Johnson & Johnson 1.44%

Comcast Corp Class A 2.08% REGENERON PHARMACEUTICALS COMM 1.08% Real Estate 1.22%

Yum China Holdings Inc. 1.88% EQUINIX INC 1.22%

The Walt Disney Company 1.88% Industrials 6.26%

CHIPOTLE MEXICAN GRILL INC 0.96% Honeywell International Inc Co 1.97% Total 100.00%

W.W. Grainger, Inc. 1.86% Number of Holdings 48

Consumer Staples 7.32% United Parcel Service 1.58%

Anheuser-Busch Inbev SA ADR 1.63% Caterpillar Inc. 0.84%

Costco Wholesale Corp. 1.62%

The Coca-Cola Company 1.50% Information Technology 37.62%

CVS Health 1.42% Microsoft Corp 4.04%

Mccormick + Co Non Vtg Shrs Co 1.15% Visa Inc 3.48%

Alphabet Inc. 3.34%

Energy 3.35% Adobe Systems Incorporated 2.99%

Schlumberger Ltd 1.95% Red Hat Inc 2.74%

Pioneer Natural Resources Company 1.41% Facebook Inc 2.62%

Akamai Technologies, Inc. 2.44%

Financials 6.01% Alphabet Inc. 2.36%

Blackrock, Inc. 2.41% PAYPAL HOLDINGS USD0.0001 2.06%

Schwab (Charles) Corp. 1.95% Apple Inc. 1.99%

American Express Company 1.66% Texas Instruments Incorporated 1.86%

Palo Alto Networks Inc. 1.82%

Health Care 16.92% Oracle Corporation 1.79%

Unitedhealth Group Inc 2.83% Splunk Inc. 1.70%

Zoetis Inc. 2.33% VMWARE INC CLASS A COMMON STOC 1.38%

Celgene Corporation 2.23% Ebay Inc 1.01%

23

New & eliminated positions

Source: ClearBridge, as at 31 December 2017. For illustrative purposes only. Individual securities mentioned are intended as examples only and are not to be taken as advice nor are they intended

as a recommendation to buy or sell any investment or interest.

New Positions Eliminated Positions New Positions Eliminated Positions

American Express Company Towers Watson & Co Alphabet Inc Precision Castparts C NVP

Adobe Systems Incorporated Aetna Inc. Google Inc

Ecolab Rockwell Collins EMC Corp

PayPal Holdings FMC TECHNOLOGIES


Alexion Pharmaceuticals, Inc. Nike Inc. Fortinet Inc Cameron International Corporation

CME Group Inc. Palo Alto Networks, Inc. Citrix Systems, Inc

LinkedIn Corp.


Eaton Corp PLC Dentsply Sirona Bristol-Myers Squibb Company

Chipotle Mexican Grill Inc


Pioneer Natural Resources Company General Electric Splunk Inc. Fortinet Inc.

Honeywell International Inc. Aetna Inc.

Bioverativ, Inc.


McCormick & Company, Incorporated Xilinx, Inc Costco Wholesale Corporation

Praxair, Inc.

Oracle Corporation

Nasdaq, Inc

Twenty-First Century Fox, Inc. Class A

3Q 2017

1Q 2017

4Q 20163Q 2016

4Q 2015 3Q 2015

1Q 2016 2Q 2016

2Q 2017

Q4 2017

24

Fund composition

Market Capitalisation

Source: FactSet, as at 28 February 2018.

48.1

22.2

14.7 14.1

1.0

51.6

15.313.5 12.8

5.7

0

10

20

30

40

50

60

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 Large Cap Growth Fund Russell 1000 Growth Index

25

Attribution analysis YTD

The attribution figures above are based on the Fund's holdings and do not reflect fees or expenses of the Fund.

Benchmark: Russell 1000 Grow th IndexSource: Legg Mason, as at 28 February 2018.

Port BM (+/-) Port BM Sector Stock Total

Consumer Discretionary 15.78 18.51 -2.73 9.01 6.91 -0.08 0.33 0.25

Consumer Staples 7.56 6.46 1.10 -2.31 -4.87 -0.10 0.22 0.11

Energy 3.63 0.85 2.78 -1.88 -7.84 -0.35 0.25 -0.10

Financials 6.06 3.36 2.70 3.51 4.07 -0.01 -0.02 -0.04

Health Care 17.59 12.94 4.66 -3.95 3.78 -0.01 -1.45 -1.46

Industrials 6.59 12.68 -6.08 -0.77 2.36 0.12 -0.22 -0.10

Information Technology 36.33 38.31 -1.98 9.03 7.47 -0.05 0.55 0.50

Materials 3.75 3.64 0.11 -1.77 -2.19 0.00 0.02 0.02

Real Estate 0.32 2.32 -2.00 -8.60 -6.78 0.25 -0.09 0.16

Telecommunication Services 0.00 0.93 -0.93 0.00 -8.06 0.12 0.00 0.12

Utilities 0.00 0.01 -0.01 0.00 -9.09 0.00 0.00 0.00

Cash and Equivalents 2.38 0.00 2.38 0.26 0.00 -0.10 0.00 -0.10

Total Fund 100.00 100.00 0.00 3.64 4.27 -0.20 -0.43 -0.63

Sector Allocation for YTDAverage Weight Total Return Attribution Effects


26

Performance contribution YTD

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 intended as examples only and are not to be taken


Benchmark: Russell 1000 Grow th Index Source: Legg Mason, as at 28 February 2018.

Name Sector Port BM (+/-) Return Contrib Name Sector Port BM (+/-) Return Contrib

AMAZON.COM INCConsumer

Discretionary5.89 4.08 1.81 29.33 1.54 CELGENE CORP Health Care 2.54 0.58 1.96 -16.52 -0.46

RED HAT INCInformation

Technology2.42 0.17 2.25 22.73 0.52 DENTSPLY SIRONA INC Health Care 1.58 0.00 1.58 -14.84 -0.26

ADOBE SYSTEMS INCInformation

Technology2.76 0.72 2.04 19.34 0.50 COMCAST CORP-CLASS A

Consumer

Discretionary2.31 1.31 1.00 -9.24 -0.22

MICROSOFT CORPInformation

Technology3.87 5.10 -1.24 10.13 0.38

UNITED PARCEL SERVICE-CL

BIndustrials 1.80 0.62 1.18 -11.62 -0.22

PALO ALTO NETWORKS INCInformation

Technology1.64 0.10 1.53 19.62 0.31 BIOGEN INC Health Care 2.21 0.49 1.72 -9.29 -0.21

VISA INC-CLASS A SHARESInformation

Technology3.39 1.65 1.74 8.01 0.27

REGENERON

PHARMACEUTICALSHealth Care 1.19 0.21 0.98 -14.77 -0.19

ZOETIS INC Health Care 2.19 0.28 1.91 12.43 0.27 HOME DEPOT INCConsumer

Discretionary2.82 1.71 1.11 -3.83 -0.11

SPLUNK INCInformation

Technology1.63 0.09 1.54 12.51 0.19 JOHNSON & JOHNSON Health Care 1.51 0.43 1.09 -6.45 -0.10

WW GRAINGER INC Industrials 1.79 0.09 1.70 11.24 0.19 COCA-COLA CO/THEConsumer

Staples1.71 0.99 0.72 -5.80 -0.10

THERMO FISHER SCIENTIFIC

INCHealth Care 2.00 0.28 1.71 9.85 0.18 EQUINIX INC Real Estate 0.32 0.25 0.07 -8.60 -0.10

Bottom Ten Contributors (%) for YTD ending 28 February 2018

Average Weight Average Weight

Top Ten Contributors (%) for YTD ending 28 February 2018


27

Attribution analysis 1 year





Consumer Staples 6.70 7.51 -0.81 5.89 2.44 0.22 0.14 0.35

Energy 3.59 0.72 2.86 -12.78 -3.35 -0.98 -0.45 -1.43

Financials 6.70 3.19 3.51 31.58 27.47 0.00 0.27 0.28

Health Care 18.84 14.15 4.69 6.21 19.97 -0.30 -2.73 -3.02

Industrials 7.00 11.85 -4.85 21.21 27.25 -0.10 -0.39 -0.49

Information Technology 33.58 36.39 -2.81 42.58 37.78 -0.22 1.50 1.28

Materials 3.94 3.68 0.25 6.41 14.91 0.02 -0.38 -0.37

Real Estate 0.05 2.58 -2.53 -8.60 4.77 0.56 -0.11 0.45

Telecommunication Services 0.00 0.96 -0.96 0.00 1.13 0.26 0.00 0.26

Utilities 0.00 0.02 -0.02 0.00 53.60 0.00 0.00 0.00


Total Fund 100.00 100.00 0.00 23.23 26.11 -1.64 -1.24 -2.88

Sector Allocation for 1 YearAverage Weight Total Return Attribution Effects


28

Performance contribution 1 year






Discretionary5.09 3.43 1.66 78.97 3.58 CELGENE CORP Health Care 3.12 0.77 2.35 -29.46 -1.03


Technology3.59 4.72 -1.13 49.61 1.63 SCHLUMBERGER LTD Energy 2.22 0.00 2.22 -15.83 -0.43


Technology2.45 0.64 1.82 76.73 1.55

CHIPOTLE MEXICAN GRILL

INC

Consumer

Discretionary1.01 0.08 0.93 -23.97 -0.31


Technology2.18 0.16 2.02 78.01 1.46 CVS HEALTH CORP

Consumer

Staples1.83 0.22 1.61 -13.77 -0.29

PAYPAL HOLDINGS INCInformation

Technology1.94 0.57 1.37 89.06 1.32 DENTSPLY SIRONA INC Health Care 1.62 0.00 1.62 -11.26 -0.23


Technology3.21 1.59 1.63 40.75 1.23

REGENERON


ALPHABET INC-CL CInformation

Technology3.21 2.40 0.81 34.20 1.03

ALEXION PHARMACEUTICALS

INCHealth Care 1.64 0.19 1.45 -10.51 -0.16

ZOETIS INC Health Care 2.12 0.26 1.87 52.72 1.03 WALT DISNEY CO/THEConsumer

Discretionary2.15 1.11 1.04 -4.83 -0.12

UNITEDHEALTH GROUP INC Health Care 2.81 1.55 1.26 38.81 0.99 EQUINIX INC Real Estate 0.05 0.28 -0.22 -8.60 -0.12

BLACKROCK INC Financials 2.32 0.00 2.32 45.14 0.99 COMCAST CORP-CLASS AConsumer

Discretionary2.64 1.41 1.23 -1.66 -0.08

Bottom Ten Contributors (%) for 1 Year ending 28 February 2018


Top Ten Contributors (%) for 1 Year ending 28 February 2018


29

Attribution analysis 3 years


Benchmark: Russell 1000 Grow th Index

Source: Legg Mason, as at 28 February 2018.



Consumer Staples 7.08 9.60 -2.51 -4.83 18.36 0.20 -2.44 -2.24

Energy 3.79 1.08 2.71 0.20 -35.95 -3.88 2.77 -1.11

Financials 6.97 4.26 2.70 65.36 55.67 0.28 0.77 1.05

Health Care 18.83 15.58 3.25 17.07 22.44 -0.08 -1.11 -1.19

Industrials 7.81 11.28 -3.47 35.68 43.85 -0.18 -0.49 -0.67

Information Technology 31.91 31.55 0.36 90.42 73.63 -0.17 4.28 4.12

Materials 3.34 3.66 -0.32 0.88 18.95 0.27 -0.67 -0.40

Real Estate 0.02 1.31 -1.30 -8.60 3.74 1.07 -0.13 0.94

Telecommunication Services 0.00 1.54 -1.54 0.00 15.16 0.18 0.00 0.18

Utilities 0.00 0.04 -0.04 0.00 67.42 0.01 0.00 0.01


Total Fund 100.00 100.00 0.00 49.53 46.26 -5.45 8.72 3.27

Sector Allocation for 3 YearsAverage Weight Total Return Attribution Effects


30

Performance contribution 3 years






Discretionary4.59 2.67 1.92 297.81 8.07 CVS HEALTH CORP

Consumer

Staples2.71 0.61 2.10 -30.79 -1.12


Technology3.26 3.51 -0.26 130.14 3.43 CELGENE CORP Health Care 2.94 0.81 2.13 -28.31 -1.06


Technology1.70 0.50 1.20 170.44 2.77 BIOGEN INC Health Care 2.33 0.61 1.73 -23.40 -0.65


Technology3.09 1.46 1.63 85.15 2.41 SCHLUMBERGER LTD Energy 2.54 0.15 2.39 -15.48 -0.41

UNITEDHEALTH GROUP INC Health Care 2.70 1.17 1.53 108.86 2.41CHIPOTLE MEXICAN GRILL

INC

Consumer

Discretionary0.41 0.13 0.28 -16.76 -0.26

FACEBOOK INC-AInformation

Technology2.41 2.52 -0.10 125.80 2.21 FMC TECHNOLOGIES INC Energy 0.26 0.02 0.24 -23.31 -0.25


Technology2.03 0.14 1.89 113.26 2.13

REGENERON


ALPHABET INC-CL CInformation

Technology2.44 1.79 0.65 72.21 2.06

ANHEUSER-BUSCH INBEV-

SPN ADR

Consumer

Staples1.93 0.00 1.93 -8.53 -0.24

ZOETIS INC Health Care 2.21 0.23 1.98 79.41 1.80 DENTSPLY SIRONA INC Health Care 0.68 0.02 0.66 -1.96 -0.16

PAYPAL HOLDINGS INCInformation

Technology1.53 0.42 1.11 96.21 1.72

ALEXION PHARMACEUTICALS

INCHealth Care 1.07 0.27 0.80 -19.52 -0.14

Bottom Ten Contributors (%) for 3 Years ending 28 February 2018


Top Ten Contributors (%) for 3 Years ending 28 February 2018


31


Clearbridge Fundamental Research Team

A specialised team serving as a crucial, shared resource

Chuck Harris, Director of Research

Sector Based Research Team

Consumer DiscretionaryNeal Austria

Consumer StaplesRobert Buesing, Jr.

Energy/UtilitiesDmitry Dayen, CFA

Tatiana Thibodeau

FinancialsStephen Rigo, CFA

David Hochstim, CFA

Health CareMarshall Gordon

Nick Wu, PHD

Industrials/Basic MaterialsChuck Harris

Humphrey Oleng

Information Technology & CommunicationsHilary Frisch, CFA

Amanda Tedesco, CFADeepon Nag

32

Fund risksInvestment 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 location: 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.

Concentrated fund: The fund invests in fewer companies than other funds which invest in shares usually do. This means that the fund does not spread its

risk as widely as other funds and will therefore be affected more if an individual company has significant losses.

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 assets.

33

Appendix

34

Risk/Return Profiles

(10 Years, Annualised)

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

15.0% 15.2% 15.4% 15.6% 15.8% 16.0% 16.2% 16.4%

10 Y

ear

An

nu

alised

Retu

rns

10 Year Annualised Standard Deviation

S&P 500

Russell 1000 Growth

Morningstar EAA OE US Large-Cap Growth

Equity Peer Group

Legg Mason

ClearBridge

US Large Cap Growth

Fund

ClearBridge Large Cap Growth

Composite (Gross)*

Source: Morningstar, ClearBridge, as at 31 December 2017. There may be differences between the strategy composites shown above, the Legg Mason ClearBridge US Large Cap Growth Fund,

including differences in the amount of assets under management, cash flows, fees and expenses, and applicable regulatory requirements, including investment and borrowing restrictions. The past

performance and allocations of the strategy composite may not be indicative of the Legg Mason ClearBridge US Large Cap Growth Fund over the same period. For more information on the strategy

composites, please see the composite disclosures in the appendix. *Gross of fees.

©2018 Morningstar. All Rights Reserved. Past Performance is no guide to future results. Please refer to the section entitled “Important Information” for additional details.


35

Clearbridge Investments

US Equity capabilities

Source: Legg Mason, as at 31 December 2017. **as at 30 September 2017. *These are targets and there is no guarantee that they will be met. **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. Portfolio characteristics may change without notice.

US Aggressive

GrowthUS Appreciation US Large Cap Growth Value

Tactical Dividend

Income

US Equity

Sustainability Leaders

Strategy inception Oct-83 Mar-70 Aug-97 Apr-82 Jan-12 Apr-15

Size of fund US$1.9B US$279M US$972M US$343M US$58M $3.6M

Size of strategy US$36.6B US$10.0B US$24.4B US$3.5B US$1.7B US$333M

Benchmark Russell 3000 Growth S&P 500 Russell 1000 Growth S&P 500Dow Jones U.S. Select

Dividend IndexRussell 3000

Investment Aim*

Outperform the

benchmark

Outperform the S&P 500

over a market cycle

(3 - 5Y) with lower

volatility

Outperform the

benchmark

Outperform the S&P 500

over a market cycle

• Primary objective is to

provide a high current

dividend yield

• Secondary objective is

to provide capital

appreciation over time

Outperform the

benchmark

Seeks companies with

demonstrated ESG

leadership and emerging

opportunities

Target yield* N/A N/A N/A N/ABenchmark

+ 125 - 175bps (gross)N/A

Current dividend

yield**1.0% 1.8% 1.0% 1.5% 4.7% 1.2%

Securities employed Common stocks Common stocks Common stocks Common stocks

Common stocks, energy

infrastructure assets,

REITs, converts and

preferreds

Common stocks

Investment approach Bottom upBottom up with a top

down overlayBottom up

Bottom up with a top

down overlay

Bottom up with a top

down overlayBottom up

Investment style Growth Core Growth Blend Value Core

Beta profileHigher than benchmark

(1.0 - 1.1)

Lower than benchmark

(0.8 -0.9)In line with benchmark

Higher than benchmark

(1.2 – 1.3)

Marginally lower than

benchmarkIn line with benchmark

Market cap profile All cap Large / mega cap Large Cap Large Cap with flexibility All cap All cap

Weighted average

market cap

[benchmark]

US$55B

[US$197B]

US$229B

[US$189B]

US$193

[US$214B]

US$118

[US$189B]

US$82B

[US$42B]**

US$142B

[US$158B]

Number of holdings 50 - 80 80 – 100 40-50 40-50 60 – 100 30 – 50

Geographic focus US US US US US with global flexibility US

Portfolio Turnover 5-10% 30-50% 15-30% 30-50% 30-50% 20-30%

36

Clearbridge Large Cap Growth

Composite information

n/m - Information is not statistically meaningful due to an insufficient number of portfolios in the

composite for the entire year.

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, 2015.

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. The

ClearBridge Large Cap Growth composite has been examined for the periods January 1, 2005 -

December 31, 2015. The verification and performance examination reports are available upon

request.

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 Large Cap Growth composite consists of institutional discretionary accounts with

an account minimum of US $1 million. All accounts within the composite are invested in issuers that

demonstrate high earnings growth rates. All accounts within the composite are primarily invested in

large-capitalization U.S. equities, with an objective of outperforming the Russell 1000 Growth Index.

The main risks of this strategy are issuer risk, concentration risk, market capitalization risk and

equity risk. Prior to June 2008, the account minimum was $10 million.

Input and Calculation Data:

Returns reflect the deduction of all trading expenses and the reinvestment of dividends and other

earnings. Gross of fee returns do not reflect the deduction of investment advisory fees or any other

expenses that may be incurred in the management of the account. Net of fee returns are calculated

using product investment advisory fees and are derived by deducting 1/12th of the maximum fixed

fee rate in effect for the respective time period from the gross monthly composite return. The

management fee schedule currently in effect is as follows: [0.65% on the first $25 million, 0.55% on

the next $25 million, 0.45% on the next $50 million and 0.40% above $100 million]. ClearBridge's

investment advisory fees are described in Part 2A of Form ADV. 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. 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 1000® Growth Index measures the performance of those Russell 1000 companies with

higher price-to-book ratios and higher forecasted growth values. Benchmark returns are not

covered by the report of independent verifiers.

Reporting Currency: USD

Inception Date: August 1997 Composite Creation Date: January 2007Total Composite Total Firm

Total Total Russell 1000 Growth Assets at End of Percentage Assets at End of

Return Return Benchmark Number of Composite Composite Benchmark Period of Firm Period

Period (Gross) (Net) Return Portfolios Dispersion 3 Yr. St. Dev. 3 Yr. St. Dev. (USD million) Assets (USD million)

2016 8.06% 7.36% 7.08% 14 0.05% 11.07% 11.31% 5,572.2 5.5% 100,936.9

2015 10.43% 9.72% 5.67% 8 n/m 11.06% 10.85% 2,564.7 2.8% 92,536.4

2014 14.65% 13.91% 13.05% <5 n/m 10.41% 9.73% 1,893.5 1.9% 100,721.5

2013 39.01% 38.14% 33.48% <5 n/m 12.81% 12.35% 1,276.2 1.5% 85,024.7

2012 21.63% 20.85% 15.26% <5 n/m 16.23% 15.88% 968.3 1.8% 54,624.3

2011 -0.14% -0.79% 2.64% 5 0.21% 18.08% 18.01% 968.1 1.9% 50,870.8

2010 10.40% 9.69% 16.71% 5 0.12% n/a n/a 1,304.2 2.4% 55,366.5

2009 42.96% 42.07% 37.21% 7 0.20% n/a n/a 2,178.3 4.1% 53,522.7

2008 -36.42% -36.85% -38.44% 8 0.17% n/a n/a 2,123.0 4.2% 50,614.9

2007 5.75% 4.96% 11.81% 10 n/m n/a n/a 4,994.4 9.2% 54,209.3


37

Enterprise risk management:

Three lines of defence

Ex

tern

al A

ud

it

Reg

ula

tors

Senior Management

Board Risk Committee/Audit Committee

Legg Mason

Other oversight Groups

Business Continuity

Chief Information Security Officer

Legal

Compliance

Enterprise Risk Management

Internal Audit

2nd Line of Defence 3rd Line of Defence

Affiliates

Affiliate Risk Management Program

Management Oversight

1st Line of Defence

Investment Activities

38

Important InformationThis is a sub-fund of Legg Mason Global Funds plc (“LMGF plc”), an umbrella fund with segregated liability between sub-funds, established as an open-ended investment company with variable capital, organised as an

undertaking for collective investment in transferable securities (“UCITS”) under the laws of Ireland as a public limited company pursuant to the Irish Companies Acts and UCITS regulations. LMGF plc is authorised in

Ireland by the Central Bank of Ireland.

It should be noted that the value of investments and the income from them may go down as well as up. Investing in a sub-fund involves investment risks, including the possible loss of the amount invested. Past

performance is not a reliable indicator of future results.

The information and data in this material has been prepared from sources believed reliable but is not guaranteed in any way by any Legg Mason, Inc. company or affiliate (together "Legg Mason"). No representation is

made that the information is correct as of any time subsequent to its date.

Individual securities mentioned are intended as examples only and are not to be taken as advice nor are they intended as a recommendation to buy or sell any investment or interest.

Opinions expressed are subject to change without notice and do not take into account the particular investment objectives, financial situations or needs of investors.

Before investing investors should read in their entirety LMGF plc’s application form and a sub-fund’s share class KIID and the Prospectus (which describe the investment objective and risk factors in full). These and

other relevant documents may be obtained free of charge in English, French, German, Greek, Italian, Norwegian and Spanish from LMGF plc’s registered office at Riverside Two, Sir John Rogerson’s Quay, Grand

Canal Dock, Dublin 2, Ireland, from LMGF plc’s administrator, BNY Mellon Fund Services (Ireland) Limited, at the same address or from www.leggmasonglobal.com.

© 2016 Morningstar. All Rights Reserved. The information, data, analyses and opinions (“Information”) contained herein: (1) include the proprietary information of Morningstar and its content providers; (2) may not be

copied or redistributed except as specifically authorised; (3) do not constitute investment advice; (4) are provided solely for informational purposes; (5) are not warranted to be complete, accurate or timely; and (6) may

be drawn from fund data published on various dates. Morningstar is not responsible for any trading decisions, damages or other losses related to the Information or its use. Please verify all of the Information before

using it and don’t make any investment decision except upon the advice of a professional financial adviser. Past performance is no guarantee of future results. The value and income derived from investments may go

down as well as up.

This material is not intended for any person or use that would be contrary to local law or regulation. Legg Mason is not responsible and takes no liability for the onward transmission of this material.This material does

not constitute an offer or solicitation by anyone in any jurisdiction in which such offer or solicitation is not lawful or in which the person making such offer or solicitation is not qualified to do so or to anyone to whom it is

unlawful to make such offer or solicitation.

Issued and approved by Legg Mason Investments (Europe) Limited, registered office 201 Bishopsgate, London, EC2M 3AB. Registered in England and Wales, Company No. 1732037. Authorised and regulated by the

UK Financial Conduct Authority.

In Switzerland, issued and approved by Legg Mason Investments (Switzerland) GmbH, authorised by the Swiss Financial Market Supervisory Authority FINMA.

Investors in Switzerland: The representative in Switzerland is FIRST INDEPENDENT FUND SERVICES LTD., Klausstrasse 33, 8008 Zurich, Switzerland and the paying agent in Switzerland is NPB Neue Privat Bank

AG, Limmatquai 1, 8024 Zurich, Switzerland. Copies of the Articles of Association, the Prospectus, the Key Investor Information Documents and the annual and semi-annual reports of the Company may be obtained

free of charge from the representative in Switzerland.

German investors: The prospectus, Key Investor Information Document, annual report and semi-annual report are available free of charge from the German Information agent [Legg Mason Investments (Europe)

Limited, Zweigniederlassung Frankfurt am Main, MesseTurm, 21. Etage, Friedrich-Ebert-Anlage 49, 60308 Frankfurt a.M., Germany] or from www.leggmasonglobal.com.

March 2018

This document is for professional clients, eligible counterparties or qualified investors. It is not aimed at, or for use by, retail clients.

39

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