Form N-CSRS LEGG MASON PARTNERS EQUI For: May 31

July 23, 2021 1:16 PM EDT

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-CSR

 

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-06444

 

 

Legg Mason Partners Equity Trust

(Exact name of registrant as specified in charter)

 

 

620 Eighth Avenue, 47th Floor, New York, NY 10018

(Address of principal executive offices) (Zip code)

 

 

Marc A. De Oliveira

Franklin Templeton

100 First Stamford Place

Stamford, CT 06902

(Name and address of agent for service)

 

 

Registrant’s telephone number, including area code: 1-877-721-1926

Date of fiscal year end: November 30

Date of reporting period: May 31, 2021

 

 

 


ITEM 1.

REPORT TO STOCKHOLDERS.

The Semi-Annual Report to Stockholders is filed herewith.

 


LOGO

 

Semi-Annual Report   May 31, 2021

CLEARBRIDGE

LARGE CAP GROWTH FUND

 

The Fund intends to no longer mail paper copies of the Fund’s shareholder reports like this one, unless you specifically request paper copies of the reports from the Fund or from your Service Agent or financial intermediary (such as a broker-dealer or bank). Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

If you already elected to receive shareholder reports electronically (“e-delivery”), you will not be affected by this change and you need not take any action. If you have not already elected e-delivery, you may elect to receive shareholder reports and other communications from the Fund electronically by contacting your Service Agent or, if you are a direct shareholder with the Fund, by calling 1-877-721-1926.

You may elect to receive all future reports in paper free of charge. If you invest through a Service Agent, you can contact your Service Agent to request that you continue to receive paper copies of your shareholder reports. That election will apply to all Legg Mason Funds held in your account at that Service Agent. If you are a direct shareholder with the Fund, you can call the Fund at 1-877-721-1926, or write to the Fund by regular mail at Legg Mason Funds, P.O. Box 9699, Providence, RI 02940-9699 or by express, certified or registered mail to Legg Mason Funds, 4400 Computer Drive, Westborough, MA 01581 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. That election will apply to all Legg Mason Funds held in your account held directly with the fund complex.

 

LOGO

 

INVESTMENT PRODUCTS: NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE


What’s inside      
Letter from the president     II  
Performance review     III  
Fund at a glance     1  
Fund expenses     2  
Schedule of investments     4  
Statement of assets and liabilities     7  
Statement of operations     9  
Statements of changes in net assets     10  
Financial highlights     11  
Notes to financial statements     17  
Additional shareholder information     28  

Fund objective

The Fund seeks long-term capital growth.

 

Letter from the president

 

LOGO

 

Dear Shareholder,

We are pleased to provide the semi-annual report of ClearBridge Large Cap Growth Fund for the six-month reporting period ended May 31, 2021. Please read on for Fund performance information during the Fund’s reporting period.

As always, we remain committed to providing you with excellent service and a full spectrum of investment choices. We also remain committed to supplementing the support you receive from your financial advisor. One way we accomplish this is through our website, www.leggmason.com. Here you can gain immediate access to market and investment information, including:

 

 

Fund prices and performance,

 

 

Market insights and commentaries from our portfolio managers, and

 

 

A host of educational resources.

We look forward to helping you meet your financial goals.

Sincerely,

 

LOGO

Jane Trust, CFA

President and Chief Executive Officer

June 30, 2021

 

II    ClearBridge Large Cap Growth Fund


Performance review

 

For the six months ended May 31, 2021, Class A shares of ClearBridge Large Cap Growth Fund, excluding sales charges, returned 9.45%. The Fund’s unmanaged benchmark, the Russell 1000 Growth Indexi, returned 11.21% for the same period. The Lipper Large-Cap Growth Funds Category Averageii returned 11.19% over the same time frame.

 

Performance Snapshot as of May 31, 2021 (unaudited)  
(excluding sales charges)   6 months  
ClearBridge Large Cap Growth Fund:  

Class A

    9.45

Class C

    9.06

Class R

    9.27

Class I

    9.59

Class IS

    9.65

Class O1

    9.61
Russell 1000 Growth Index     11.21
Lipper Large-Cap Growth Funds Category Average     11.19

The performance shown represents past performance. Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown above. Principal value and investment returns will fluctuate and investors’ shares, when redeemed, may be worth more or less than their original cost. To obtain performance data current to the most recent month-end, please visit our website at www.leggmason.com/mutualfunds.

All share class returns assume the reinvestment of all distributions, including returns of capital, if any, at net asset value and the deduction of all Fund expenses. Returns have not been adjusted to include sales charges that may apply or the deduction of taxes that a shareholder would pay on Fund distributions. If sales charges were reflected, the performance quoted would be lower. Performance figures for periods shorter than one year represent cumulative figures and are not annualized.

Fund performance figures reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

 

Total Annual Operating Expenses (unaudited)

As of the Fund’s current prospectus dated March 31, 2021, the gross total annual fund operating expense ratios for Class A, Class C, Class R, Class I, Class IS and Class O shares were 1.00%, 1.71%, 1.31%, 0.72%, 0.62% and 0.67%, respectively.

Actual expenses may be higher. For example, expenses may be higher than those shown if average net assets decrease. Net assets are more likely to decrease and Fund expense ratios are more likely to increase when markets are volatile.

 

1 

Class O shares are offered only to former Class O shareholders of the ClearBridge Equity Fund.

 

ClearBridge Large Cap Growth Fund  

 

III


Performance review (cont’d)

 

As always, thank you for your confidence in our stewardship of your assets.

Sincerely,

 

LOGO

Jane Trust, CFA

President and Chief Executive Officer

June 30, 2021

RISKS: Common stocks are subject to market and price fluctuations. Large capitalization companies may fall out of favor with investors based on market and economic conditions. Growth stocks as a group may fall out of favor and underperform the overall equity market while the market concentrates on value stocks. Although the Fund will not concentrate its investments in any one industry or industry group, it may weight its investments toward certain industries, thus increasing its exposure to factors adversely affecting issuers within those industries. Diversification does not assure against market loss. Please see the Fund’s prospectus for a more complete discussion of these and other risks and the Fund’s investment strategies.

All investments are subject to risk including the possible loss of principal. Past performance is no guarantee of future results. All index performance reflects no deduction for fees, expenses or taxes. Please note that an investor cannot invest directly in an index.

 

i 

The Russell 1000 Growth Index measures the performance of those Russell 1000 Index companies with higher price-to-book ratios and higher forecasted growth values. (A price-to-book ratio is the price of a stock compared to the difference between a company’s assets and liabilities.) The Russell 1000 Index measures the performance of the large-cap segment of the U.S. equity universe. It is a subset of the Russell 3000 Index and includes approximately 1,000 of the largest securities based on a combination of their market cap and current index membership. The Russell 1000 represents approximately 90% of the U.S. market. The Russell 3000 Index measures the performance of the 3,000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the U.S. equity market.

 

ii 

Lipper, Inc., a wholly-owned subsidiary of Refinitiv, provides independent insight on global collective investments. Returns are based on the six-month period ended May 31, 2021, including the reinvestment of all distributions, including returns of capital, if any, calculated among the 671 funds in the Fund’s Lipper category, and excluding sales charges, if any.

 

 

 

 

IV

   ClearBridge Large Cap Growth Fund


Fund at a glance (unaudited)

 

Investment breakdown (%) as a percent of total investments

 

LOGO

 

The bar graph above represents the composition of the Fund’s investments as of May 31, 2021 and November 30, 2020. The Fund is actively managed. As a result, the composition of the Fund’s investments is subject to change at any time.

 

ClearBridge Large Cap Growth Fund 2021 Semi-Annual Report  

 

   1   


Fund expenses (unaudited)

 

Example

As a shareholder of the Fund, you may incur two types of costs: (1) transaction costs, including front-end and back-end sales charges (loads) on purchase payments; and (2) ongoing costs, including management fees; service and/or distribution (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

This example is based on an investment of $1,000 invested on December 1, 2020 and held for the six months ended May 31, 2021.

Actual expenses

The table below titled “Based on Actual Total Return” provides information about actual account values and actual expenses. You may use the information provided in this table, together with the amount you invested, to estimate the expenses that you paid over the period. To estimate the expenses you paid on your account, divide your ending account value by $1,000 (for example, an $8,600 ending account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During the Period”.

Hypothetical example for comparison purposes

The table below titled “Based on Hypothetical Total Return” provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio and an assumed rate of return of 5.00% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use the information provided in this table to compare the ongoing costs of investing in the Fund and other funds. To do so, compare the 5.00% hypothetical example relating to the Fund with the 5.00% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table below are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front-end or back-end sales charges (loads). Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.

 

 Based on actual total return1           Based on hypothetical total return1
     Actual
Total Return
Without
Sales
Charge2
  Beginning
Account
Value
  Ending
Account
Value
  Annualized
Expense
Ratio
  Expenses
Paid
During
the
Period3
           Hypothetical
Annualized
Total Return
  Beginning
Account
Value
  Ending
Account
Value
  Annualized
Expense
Ratio
  Expenses
Paid
During
the
Period3
Class A       9.45 %     $ 1,000.00     $ 1,094.50       0.99 %     $ 5.17       Class A       5.00 %     $ 1,000.00     $ 1,020.00       0.99 %     $ 4.99
Class C       9.06       1,000.00       1,090.60       1.71       8.91       Class C       5.00       1,000.00       1,016.41       1.71       8.60
Class R       9.27       1,000.00       1,092.70       1.31       6.83       Class R       5.00       1,000.00       1,018.40       1.31       6.59
Class I       9.59       1,000.00       1,095.90       0.72       3.76       Class I       5.00       1,000.00       1,021.34       0.72       3.63
Class IS       9.65       1,000.00       1,096.50       0.61       3.19       Class IS       5.00       1,000.00       1,021.89       0.61       3.07
Class O       9.61       1,000.00       1,096.10       0.66       3.45       Class O       5.00       1,000.00       1,021.64       0.66       3.33

 

 

 

   2   

   ClearBridge Large Cap Growth Fund 2021 Semi-Annual Report


1  

For the six months ended May 31, 2021.

 

2 

Assumes the reinvestment of all distributions, including returns of capital, if any, at net asset value and does not reflect the deduction of the applicable sales charge with respect to Class A shares or the applicable contingent deferred sales charge (“CDSC”) with respect to Class C shares. Total return is not annualized, as it may not be representative of the total return for the year. Performance figures may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower. Past performance is no guarantee of future results.

 

3 

Expenses (net of compensating balance arrangements, fee waivers and/or expense reimbursements) are equal to each class’ respective annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year (182), then divided by 365.

 

ClearBridge Large Cap Growth Fund 2021 Semi-Annual Report  

 

   3   


Schedule of investments (unaudited)

May 31, 2021

 

ClearBridge Large Cap Growth Fund

 

Security   Shares     Value  
Common Stocks — 98.4%                
Communication Services — 9.4%                

Entertainment — 3.0%

               

Sea Ltd., ADR

    835,440     $ 211,566,826  * 

Walt Disney Co.

    1,934,097       345,526,429  * 

Total Entertainment

            557,093,255  

Interactive Media & Services — 6.4%

               

Facebook Inc., Class A Shares

    3,655,418       1,201,645,559  * 

Total Communication Services

            1,758,738,814  
Consumer Discretionary — 20.1%                

Auto Components — 1.7%

               

Aptiv PLC

    2,080,960       313,018,003  * 

Hotels, Restaurants & Leisure — 1.4%

               

Booking Holdings Inc.

    108,466       256,147,882  

Internet & Direct Marketing Retail — 9.8%

               

Alibaba Group Holding Ltd., ADR

    1,038,514       222,200,456  * 

Amazon.com Inc.

    501,976       1,617,903,786  * 

Total Internet & Direct Marketing Retail

            1,840,104,242  

Specialty Retail — 7.2%

               

Advance Auto Parts Inc.

    1,518,488       288,102,728  

Home Depot Inc.

    1,428,720       455,633,095  

Tractor Supply Co.

    1,323,610       240,499,937  

Ulta Beauty Inc.

    1,082,565       373,874,649  * 

Total Specialty Retail

            1,358,110,409  

Total Consumer Discretionary

            3,767,380,536  
Consumer Staples — 2.6%                

Beverages — 2.6%

               

Anheuser-Busch InBev SA/NV, ADR

    2,476,550       187,648,193  

Monster Beverage Corp.

    3,206,795       302,304,565  * 

Total Consumer Staples

            489,952,758  
Health Care — 13.1%                

Biotechnology — 2.2%

               

Amgen Inc.

    1,156,598       275,200,928  

BioMarin Pharmaceutical Inc.

    1,839,953       142,228,367  * 

Total Biotechnology

            417,429,295  

Health Care Equipment & Supplies — 2.2%

               

Alcon Inc.

    3,623,709       252,500,043  

Intuitive Surgical Inc.

    178,350       150,202,803  * 

Total Health Care Equipment & Supplies

            402,702,846  

Health Care Providers & Services — 3.7%

               

UnitedHealth Group Inc.

    1,690,869       696,502,759  

Life Sciences Tools & Services — 2.5%

               

Thermo Fisher Scientific Inc.

    991,434       465,478,263  

 

 

See Notes to Financial Statements.

 

 

   4   

   ClearBridge Large Cap Growth Fund 2021 Semi-Annual Report


 

 

ClearBridge Large Cap Growth Fund

 

Security   Shares     Value  

Pharmaceuticals — 2.5%

               

Zoetis Inc.

    2,680,577     $ 473,604,344  

Total Health Care

            2,455,717,507  
Industrials — 10.1%                

Aerospace & Defense — 1.7%

               

Raytheon Technologies Corp.

    3,490,479       309,640,392  

Air Freight & Logistics — 2.7%

               

United Parcel Service Inc., Class B Shares

    2,389,288       512,741,205  

Professional Services — 1.9%

               

IHS Markit Ltd.

    3,355,965       353,416,674  

Road & Rail — 1.9%

               

Uber Technologies Inc.

    7,057,663       358,741,010  * 

Trading Companies & Distributors — 1.9%

               

W.W. Grainger Inc.

    771,924       356,752,396  

Total Industrials

            1,891,291,677  
Information Technology — 40.2%                

IT Services — 7.7%

               

Akamai Technologies Inc.

    2,351,962       268,617,580  * 

Fidelity National Information Services Inc.

    2,050,754       305,521,331  

Visa Inc., Class A Shares

    3,824,125       869,223,613  

Total IT Services

            1,443,362,524  

Semiconductors & Semiconductor Equipment — 8.3%

               

ASML Holding NV, Registered Shares

    384,786       259,911,400  

NVIDIA Corp.

    872,962       567,233,248  

NXP Semiconductors NV

    1,316,303       278,292,780  

QUALCOMM Inc.

    3,310,522       445,397,630  

Total Semiconductors & Semiconductor Equipment

            1,550,835,058  

Software — 19.8%

               

Adobe Inc.

    1,163,071       586,862,365  * 

Atlassian Corp. PLC, Class A Shares

    1,164,763       271,715,913  * 

Microsoft Corp.

    3,690,700       921,493,976  

Nutanix Inc., Class A Shares

    4,010,878       126,382,766  * 

Palo Alto Networks Inc.

    1,113,052       404,316,139  * 

salesforce.com Inc.

    2,470,755       588,286,765  * 

Splunk Inc.

    1,986,450       240,757,740  * 

UiPath Inc., Class A Shares

    1,263,099       100,820,562  * 

VMware Inc., Class A Shares

    1,585,461       250,328,437  * 

Workday Inc., Class A Shares

    965,347       220,794,166  * 

Total Software

            3,711,758,829   

Technology Hardware, Storage & Peripherals — 4.4%

               

Apple Inc.

    6,512,383       811,508,046  

Total Information Technology

            7,517,464,457  
Materials — 1.3%                

Chemicals — 1.3%

               

Ecolab Inc.

    1,138,404       244,847,932  

 

 

See Notes to Financial Statements.

 

ClearBridge Large Cap Growth Fund 2021 Semi-Annual Report  

 

   5   


Schedule of investments (unaudited) (cont’d)

May 31, 2021

 

ClearBridge Large Cap Growth Fund

 

Security          Shares     Value  
Real Estate — 1.6%                        

Equity Real Estate Investment Trusts (REITs) — 1.6%

                       

Equinix Inc.

            400,525     $ 295,074,778  

Total Investments before Short-Term Investments (Cost — $10,044,631,647)

                    18,420,468,459  
     Rate                
Short-Term Investments — 1.7%                        

JPMorgan 100% U.S. Treasury Securities Money Market Fund, Institutional Class

    0.006%       257,279,306       257,279,306  

Western Asset Premier Institutional U.S. Treasury Reserves, Premium Shares

    0.010%       64,319,826       64,319,826  (a)  

Total Short-Term Investments (Cost — $321,599,132)

                    321,599,132  

Total Investments — 100.1% (Cost — $10,366,230,779)

                    18,742,067,591  

Liabilities in Excess of Other Assets — (0.1)%

                    (15,940,177

Total Net Assets — 100.0%

                  $ 18,726,127,414  

 

*

Non-income producing security.

 

(a) 

In this instance, as defined in the Investment Company Act of 1940, an “Affiliated Company” represents Fund ownership of at least 5% of the outstanding voting securities of an issuer, or a company which is under common ownership or control with the Fund. At May 31, 2021, the total market value of investments in Affiliated Companies was $64,319,826 and the cost was $64,319,826 (Note 8).

 

Abbreviation(s) used in this schedule:

  ADR — American Depositary Receipts

 

 

 

See Notes to Financial Statements.

 

 

   6   

   ClearBridge Large Cap Growth Fund 2021 Semi-Annual Report


Statement of assets and liabilities (unaudited)

May 31, 2021

 

Assets:         

Investments in unaffiliated securities, at value (Cost — $10,301,910,953)

   $ 18,677,747,765  

Investments in affiliated securities, at value (Cost — $64,319,826)

     64,319,826  

Dividends and interest receivable

     15,096,479  

Receivable for Fund shares sold

     14,560,825  

Prepaid expenses

     213,622  

Total Assets

     18,771,938,517  
Liabilities:         

Payable for Fund shares repurchased

     32,432,267  

Investment management fee payable

     9,358,177  

Transfer agent fees payable

     2,412,334  

Service and/or distribution fees payable

     1,174,235  

Trustees’ fees payable

     181,213  

Accrued expenses

     252,877  

Total Liabilities

     45,811,103  
Total Net Assets    $ 18,726,127,414  
Net Assets:         

Par value (Note 7)

   $ 2,681  

Paid-in capital in excess of par value

     9,471,300,506  

Total distributable earnings (loss)

     9,254,824,227  
Total Net Assets    $ 18,726,127,414  

 

See Notes to Financial Statements.

 

ClearBridge Large Cap Growth Fund 2021 Semi-Annual Report  

 

   7 


Statement of assets and liabilities (unaudited) (cont’d)

May 31, 2021

 

Net Assets:         

Class A

     $3,175,586,770  

Class C

     $530,200,777  

Class R

     $149,777,369  

Class I

     $10,218,511,010  

Class IS

     $3,891,677,350  

Class O

     $760,374,138  
Shares Outstanding:         

Class A

     49,508,720  

Class C

     10,918,248  

Class R

     2,468,636  

Class I

     141,096,612  

Class IS

     53,655,261  

Class O

     10,486,396  
Net Asset Value:         

Class A (and redemption price)

     $64.14  

Class C*

     $48.56  

Class R (and redemption price)

     $60.67  

Class I (and redemption price)

     $72.42  

Class IS (and redemption price)

     $72.53  

Class O (and redemption price)

     $72.51  
Maximum Public Offering Price Per Share:         

Class A (based on maximum initial sales charge of 5.75%)

     $68.05  

 

*

Redemption price per share is NAV of Class C shares reduced by a 1.00% CDSC if shares are redeemed within one year from purchase payment (Note 2).

 

See Notes to Financial Statements.

 

 

   8   

   ClearBridge Large Cap Growth Fund 2021 Semi-Annual Report


Statement of operations (unaudited)

For the Six Months Ended May 31, 2021

 

Investment Income:         

Dividends

   $ 67,423,795  

Interest from unaffiliated investments

     5,490  

Interest from affiliated investments

     2,292  

Less: Foreign taxes withheld

     (660,892)  

Total Investment Income

     66,770,685  
Expenses:         

Investment management fee (Note 2)

     54,741,564  

Transfer agent fees (Note 5)

     8,401,836  

Service and/or distribution fees (Notes 2 and 5)

     6,809,793  

Trustees’ fees

     487,906  

Registration fees

     189,748  

Legal fees

     150,389  

Fund accounting fees

     119,106  

Shareholder reports

     100,407  

Insurance

     83,237  

Custody fees

     56,893  

Audit and tax fees

     21,017  

Miscellaneous expenses

     22,977  

Total Expenses

     71,184,873  

Less: Fee waivers and/or expense reimbursements (Notes 2 and 5)

     (4,108)  

Net Expenses

     71,180,765  
Net Investment Loss      (4,410,080)  
Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions (Notes 1 and 3):         

Net Realized Gain (Loss) From:

        

Investment transactions in unaffiliated securities

     899,474,678  

Foreign currency transactions

     (985)  

Net Realized Gain

     899,473,693  

Change in Net Unrealized Appreciation (Depreciation) From Unaffiliated Investments

     793,038,301  
Net Gain on Investments and Foreign Currency Transactions      1,692,511,994  
Increase in Net Assets From Operations    $ 1,688,101,914  

 

See Notes to Financial Statements.

 

ClearBridge Large Cap Growth Fund 2021 Semi-Annual Report  

 

   9   


Statements of changes in net assets

 

For the Six Months Ended May 31, 2021 (unaudited)
and the Year Ended November 30, 2020
   2021      2020  
Operations:                  

Net investment income (loss)

   $ (4,410,080)      $ 9,183,509  

Net realized gain

     899,473,693        1,108,173,894  

Change in net unrealized appreciation (depreciation)

     793,038,301        3,463,328,806  

Increase in Net Assets From Operations

     1,688,101,914        4,580,686,209  
Distributions to Shareholders From (Notes 1 and 6):                  

Total distributable earnings

     (1,019,011,178)        (741,475,495)  

Decrease in Net Assets From Distributions to Shareholders

     (1,019,011,178)        (741,475,495)  
Fund Share Transactions (Note 7):                  

Net proceeds from sale of shares

     2,206,740,835        5,048,068,710  

Reinvestment of distributions

     781,001,029        561,592,897  

Cost of shares repurchased

     (3,182,384,534)        (6,544,786,864)  

Shares redeemed in-kind (Note 9)

     (13,397,852)        (174,914,078)  

Decrease in Net Assets From Fund Share Transactions

     (208,040,522)        (1,110,039,335)  

Increase in Net Assets

     461,050,214        2,729,171,379  
Net Assets:                  

Beginning of period

     18,265,077,200        15,535,905,821  

End of period

   $ 18,726,127,414      $ 18,265,077,200  

 

See Notes to Financial Statements.

 

 

  10  

   ClearBridge Large Cap Growth Fund 2021 Semi-Annual Report


Financial highlights

 

  For a share of each class of beneficial interest outstanding throughout each year ended November 30,
  unless otherwise noted:
 
Class A Shares1   20212     2020     2019     2018     2017     2016  
Net asset value, beginning of period     $62.25       $50.13       $44.22       $41.91       $34.46       $33.78  
Income (loss) from operations:            

Net investment income (loss)

    (0.08)       (0.09)       0.07       0.01       0.02       0.07  

Net realized and unrealized gain

    5.68       14.71       7.40       4.09       8.14       1.57  

Total income from operations

    5.60       14.62       7.47       4.10       8.16       1.64  
Less distributions from:            

Net investment income

          (0.07)       (0.00) 3       (0.00) 3       (0.03)       (0.01)  

Net realized gains

    (3.71)       (2.43)       (1.56)       (1.79)       (0.68)       (0.95)  

Total distributions

    (3.71)       (2.50)       (1.56)       (1.79)       (0.71)       (0.96)  
Net asset value, end of period     $64.14       $62.25       $50.13       $44.22       $41.91       $34.46  

Total return4

    9.45     30.62     17.70     10.25     24.14     5.02
Net assets, end of period (millions)     $3,176       $2,968       $2,326       $1,865       $1,794       $1,253  
Ratios to average net assets:            

Gross expenses

    0.99 %5      1.00     1.02     1.04     1.11     1.15

Net expenses6,7

    0.99 5       1.00       1.02       1.04       1.08       1.09  

Net investment income (loss)

    (0.27) 5       (0.17)       0.14       0.03       0.05       0.22  
Portfolio turnover rate     8 %8       23 %8       25 %8       20 %9       24     13

 

1 

Per share amounts have been calculated using the average shares method.

 

2 

For the six months ended May 31, 2021 (unaudited).

 

3 

Amount represents less than $0.005 per share.

 

4 

Performance figures, exclusive of sales charges, may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower. Past performance is no guarantee of future results. Total returns for periods of less than one year are not annualized.

 

5 

Annualized.

 

6 

As a result of an expense limitation arrangement, effective March 31, 2016, the ratio of total annual fund operating expenses, other than interest, brokerage, taxes, extraordinary expenses and acquired fund fees and expenses, to average net assets of Class A shares did not exceed 1.10%. This expense limitation arrangement cannot be terminated prior to December 31, 2022 without the Board of Trustees’ consent. In addition, the manager has agreed to waive the Fund’s management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund. Prior to March 31, 2016, as a result of an expense limitation arrangement, the ratio of total annual fund operating expenses to average net assets of Class A shares did not exceed 1.15%.

 

7 

Reflects fee waivers and/or expense reimbursements.

 

8 

Excludes securities delivered as a result of a redemption in-kind.

 

9 

Excludes securities received as a result of a contribution in-kind.

 

See Notes to Financial Statements.

 

ClearBridge Large Cap Growth Fund 2021 Semi-Annual Report  

 

  11  


Financial highlights (cont’d)

 

  For a share of each class of beneficial interest outstanding throughout each year ended November 30,
  unless otherwise noted:
 
Class C Shares1   20212     2020     2019     2018     2017     2016  
Net asset value, beginning of period     $48.18       $39.54       $35.47       $34.19       $28.42       $28.22  
Income (loss) from operations:            

Net investment loss

    (0.23)       (0.35)       (0.19)       (0.23)       (0.21)       (0.14)  

Net realized and unrealized gain

    4.32       11.42       5.82       3.30       6.66       1.29  

Total income from operations

    4.09       11.07       5.63       3.07       6.45       1.15  
Less distributions from:            

Net realized gains

    (3.71)       (2.43)       (1.56)       (1.79)       (0.68)       (0.95)  

Total distributions

    (3.71)       (2.43)       (1.56)       (1.79)       (0.68)       (0.95)  
Net asset value, end of period     $48.56       $48.18       $39.54       $35.47       $34.19       $28.42  

Total return3

    9.06     29.73     16.84     9.51     23.22     4.26
Net assets, end of period (millions)     $530       $534       $446       $553       $515       $384  
Ratios to average net assets:            

Gross expenses

    1.71 %4      1.71     1.72     1.73     1.84     1.88

Net expenses5,6

    1.71 4       1.71       1.72       1.73       1.81       1.82  

Net investment loss

    (0.98) 4       (0.88)       (0.53)       (0.66)       (0.68)       (0.51)  
Portfolio turnover rate     8 %7       23 %7       25 %7       20 %8       24     13

 

1 

Per share amounts have been calculated using the average shares method.

 

2 

For the six months ended May 31, 2021 (unaudited).

 

3 

Performance figures, exclusive of CDSC, may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower. Past performance is no guarantee of future results. Total returns for periods of less than one year are not annualized.

 

4 

Annualized.

 

5 

As a result of an expense limitation arrangement, the ratio of total annual fund operating expenses, other than interest, brokerage, taxes, extraordinary expenses and acquired fund fees and expenses, to average net assets of Class C shares did not exceed 1.90%. This expense limitation arrangement cannot be terminated prior to December 31, 2022 without the Board of Trustees’ consent. In addition, the manager has agreed to waive the Fund’s management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund.

 

6

Reflects fee waivers and/or expense reimbursements.

 

7 

Excludes securities delivered as a result of a redemption in-kind.

 

8 

Excludes securities received as a result of a contribution in-kind.

 

See Notes to Financial Statements.

 

 

  12  

   ClearBridge Large Cap Growth Fund 2021 Semi-Annual Report


  For a share of each class of beneficial interest outstanding throughout each year ended November 30,
  unless otherwise noted:
 
Class R Shares1   20212     2020     2019     2018     2017     2016  
Net asset value, beginning of period     $59.17       $47.84       $42.40       $40.37       $33.31       $32.76  
Income (loss) from operations:            

Net investment loss

    (0.17)       (0.24)       (0.07)       (0.11)       (0.09)       (0.01)  

Net realized and unrealized gain

    5.38       14.00       7.07       3.93       7.85       1.51  

Total income from operations

    5.21       13.76       7.00       3.82       7.76       1.50  
Less distributions from:            

Net investment income

                            (0.02)        

Net realized gains

    (3.71)       (2.43)       (1.56)       (1.79)       (0.68)       (0.95)  

Total distributions

    (3.71)       (2.43)       (1.56)       (1.79)       (0.70)       (0.95)  
Net asset value, end of period     $60.67       $59.17       $47.84       $42.40       $40.37       $33.31  

Total return3

    9.27     30.22     17.34     9.93     23.77     4.75
Net assets, end of period (000s)     $149,777       $148,767       $139,214       $126,653       $95,961       $38,823  
Ratios to average net assets:            

Gross expenses

    1.31 %4       1.31     1.33     1.35     1.42     1.43

Net expenses5

    1.31 4,6       1.31 6       1.33       1.35 6       1.38 6       1.37 6  

Net investment loss

    (0.58) 4       (0.48)       (0.16)       (0.27)       (0.24)       (0.05)  
Portfolio turnover rate     8 %7       23 %7       25 %7       20 %8       24     13

 

1 

Per share amounts have been calculated using the average shares method.

 

2 

For the six months ended May 31, 2021 (unaudited).

 

3 

Performance figures may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower. Past performance is no guarantee of future results. Total returns for periods of less than one year are not annualized.

 

4 

Annualized.

 

5 

As a result of an expense limitation arrangement, the ratio of total annual fund operating expenses, other than interest, brokerage, taxes, extraordinary expenses and acquired fund fees and expenses, to average net assets of Class R shares did not exceed 1.40%. This expense limitation arrangement cannot be terminated prior to December 31, 2022 without the Board of Trustees’ consent. In addition, the manager has agreed to waive the Fund’s management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund.

 

6

Reflects fee waivers and/or expense reimbursements.

 

7 

Excludes securities delivered as a result of a redemption in-kind.

 

8 

Excludes securities received as a result of a contribution in-kind.

 

See Notes to Financial Statements.

 

ClearBridge Large Cap Growth Fund 2021 Semi-Annual Report  

 

  13  


Financial highlights (cont’d)

 

  For a share of each class of beneficial interest outstanding throughout each year ended November 30,
  unless otherwise noted:
 
Class I Shares1   20212     2020     2019     2018     2017     2016  
Net asset value, beginning of period     $69.78       $55.85       $49.08       $46.30       $37.97       $37.11  
Income from operations:            

Net investment income

    0.00 3       0.06       0.21       0.16       0.15       0.20  

Net realized and unrealized gain

    6.40       16.49       8.25       4.52       8.98       1.71  

Total income from operations

    6.40       16.55       8.46       4.68       9.13       1.91  
Less distributions from:            

Net investment income

    (0.05)       (0.19)       (0.13)       (0.11)       (0.12)       (0.10)  

Net realized gains

    (3.71)       (2.43)       (1.56)       (1.79)       (0.68)       (0.95)  

Total distributions

    (3.76)       (2.62)       (1.69)       (1.90)       (0.80)       (1.05)  
Net asset value, end of period     $72.42       $69.78       $55.85       $49.08       $46.30       $37.97  

Total return4

    9.59     31.01     18.03     10.56     24.52     5.34
Net assets, end of period (millions)     $10,219       $10,140       $8,855       $6,376       $5,128       $2,128  
Ratios to average net assets:            

Gross expenses

    0.72 %5       0.72     0.74     0.75     0.83     0.84

Net expenses6

    0.72 5,7       0.72 7       0.74       0.75       0.78 7       0.78 7  

Net investment income

    0.01 5       0.11       0.42       0.33       0.35       0.54  
Portfolio turnover rate     8 %8       23 %8       25 %8       20 %9       24     13

 

1 

Per share amounts have been calculated using the average shares method.

 

2 

For the six months ended May 31, 2021 (unaudited).

 

3 

Amount represents less than $0.005 per share.

 

4

Performance figures may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower. Past performance is no guarantee of future results. Total returns for periods of less than one year are not annualized.

 

5

Annualized.

 

6

As a result of an expense limitation arrangement, the ratio of total annual fund operating expenses, other than interest, brokerage, taxes, extraordinary expenses and acquired fund fees and expenses, to average net assets of Class I shares did not exceed 0.80%. This expense limitation arrangement cannot be terminated prior to December 31, 2022 without the Board of Trustees’ consent. In addition, the manager has agreed to waive the Fund’s management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund.

 

7

Reflects fee waivers and/or expense reimbursements.

 

8

Excludes securities delivered as a result of a redemption in-kind.

 

9

Excludes securities received as a result of a contribution in-kind.

 

 

See Notes to Financial Statements.

 

 

  14  

   ClearBridge Large Cap Growth Fund 2021 Semi-Annual Report


 

For a share of each class of beneficial interest outstanding throughout each year ended November 30,
unless otherwise noted:
 
Class IS Shares1   20212     2020     2019     2018     2017     2016  
Net asset value, beginning of period     $69.91       $55.94       $49.16       $46.35       $38.00       $37.13  
Income from operations:            

Net investment income

    0.04       0.12       0.26       0.21       0.19       0.24  

Net realized and unrealized gain

    6.41       16.51       8.26       4.53       8.97       1.70  

Total income from operations

    6.45       16.63       8.52       4.74       9.16       1.94  
Less distributions from:            

Net investment income

    (0.12)       (0.23)       (0.18)       (0.14)       (0.13)       (0.12)  

Net realized gains

    (3.71)       (2.43)       (1.56)       (1.79)       (0.68)       (0.95)  

Total distributions

    (3.83)       (2.66)       (1.74)       (1.93)       (0.81)       (1.07)  
Net asset value, end of period     $72.53       $69.91       $55.94       $49.16       $46.35       $38.00  

Total return3

    9.65     31.14     18.15     10.69     24.61     5.42
Net assets, end of period (millions)     $3,892       $3,751       $3,171       $2,033       $1,265       $256  
Ratios to average net assets:            

Gross expenses

    0.61 %4      0.62     0.63     0.65     0.73     0.76

Net expenses5

    0.61 4,6       0.62 6       0.63       0.65       0.70 6       0.70 6  

Net investment income

    0.11 4       0.21       0.52       0.44       0.46       0.68  
Portfolio turnover rate     8 %7       23 %7       25 %7       20 %8       24     13

 

1

Per share amounts have been calculated using the average shares method.

 

2 

For the six months ended May 31, 2021 (unaudited).

 

3 

Performance figures may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower. Past performance is no guarantee of future results. Total returns for periods of less than one year are not annualized.

 

4 

Annualized.

 

5 

As a result of an expense limitation arrangement, the ratio of total annual fund operating expenses, other than interest, brokerage, taxes, extraordinary expenses and acquired fund fees and expenses, to average net assets of Class IS shares did not exceed 0.70%. In addition, the ratio of total annual fund operating expenses for Class IS shares did not exceed the ratio of total annual fund operating expenses for Class I shares. These expense limitation arrangements cannot be terminated prior to December 31, 2022 without the Board of Trustees’ consent. In addition, the manager has agreed to waive the Fund’s management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund.

 

6 

Reflects fee waivers and/or expense reimbursements.

 

7

Excludes securities delivered as a result of a redemption in-kind.

 

8

Excludes securities received as a result of a contribution in-kind.

 

See Notes to Financial Statements.

 

ClearBridge Large Cap Growth Fund 2021 Semi-Annual Report  

 

  15  


Financial highlights (cont’d)

 

  For a share of each class of beneficial interest outstanding throughout each year ended November 30,
  unless otherwise noted:
 
Class O Shares1   20212     2020     2019     2018     2017     2016  
Net asset value, beginning of period     $69.88       $55.92       $49.13       $46.34       $37.99       $37.12  
Income from operations:            

Net investment income

    0.02       0.09       0.25       0.18       0.16       0.21  

Net realized and unrealized gain

    6.41       16.51       8.25       4.52       8.99       1.72  

Total income from operations

    6.43       16.60       8.50       4.70       9.15       1.93  
Less distributions from:            

Net investment income

    (0.09)       (0.21)       (0.15)       (0.12)       (0.12)       (0.11)  

Net realized gains

    (3.71)       (2.43)       (1.56)       (1.79)       (0.68)       (0.95)  

Total distributions

    (3.80)       (2.64)       (1.71)       (1.91)       (0.80)       (1.06)  
Net asset value, end of period     $72.51       $69.88       $55.92       $49.13       $46.34       $37.99  

Total return3

    9.61     31.07     18.11     10.60     24.56     5.40
Net assets, end of period (millions)     $760       $724       $598       $546       $531       $457  
Ratios to average net assets:            

Gross expenses

    0.66 %4      0.67     0.68     0.70     0.78     0.82

Net expenses5

    0.66 4,6       0.67 6       0.68       0.70       0.74 6       0.74 6  

Net investment income

    0.07 4       0.16       0.49       0.36       0.38       0.57  
Portfolio turnover rate     8 %7       23 %7       25 %7       20 %8       24     13

 

1 

Per share amounts have been calculated using the average shares method.

 

2 

For the six months ended May 31, 2021 (unaudited).

 

3 

Performance figures may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower. Past performance is no guarantee of future results. Total returns for periods of less than one year are not annualized.

 

4

Annualized.

 

5 

As a result of an expense limitation arrangement, the ratio of total annual fund operating expenses, other than interest, brokerage, taxes, extraordinary expenses and acquired fund fees and expenses, to average net assets of Class O shares did not exceed 0.74%. This expense limitation arrangement cannot be terminated prior to December 31, 2022 without the Board of Trustees’ consent. In addition, the manager has agreed to waive the Fund’s management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund.

 

6 

Reflects fee waivers and/or expense reimbursements.

 

7 

Excludes securities delivered as a result of a redemption in-kind.

 

8 

Excludes securities received as a result of a contribution in-kind.

 

See Notes to Financial Statements.

 

 

  16  

   ClearBridge Large Cap Growth Fund 2021 Semi-Annual Report


Notes to financial statements (unaudited)

 

1. Organization and significant accounting policies

ClearBridge Large Cap Growth Fund (the “Fund”) is a separate diversified investment series of Legg Mason Partners Equity Trust (the “Trust”). The Trust, a Maryland statutory trust, is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company.

The following are significant accounting policies consistently followed by the Fund and are in conformity with U.S. generally accepted accounting principles (“GAAP”). Estimates and assumptions are required to be made regarding assets, liabilities and changes in net assets resulting from operations when financial statements are prepared. Changes in the economic environment, financial markets and any other parameters used in determining these estimates could cause actual results to differ. Subsequent events have been evaluated through the date the financial statements were issued.

(a) Investment valuation. Equity securities for which market quotations are available are valued at the last reported sales price or official closing price on the primary market or exchange on which they trade. The valuations for fixed income securities (which may include, but are not limited to, corporate, government, municipal, mortgage-backed, collateralized mortgage obligations and asset-backed securities) and certain derivative instruments are typically the prices supplied by independent third party pricing services, which may use market prices or broker/dealer quotations or a variety of valuation techniques and methodologies. The independent third party pricing services typically use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Investments in open-end funds are valued at the closing net asset value per share of each fund on the day of valuation. When the Fund holds securities or other assets that are denominated in a foreign currency, the Fund will normally use the currency exchange rates as of 4:00 p.m. (Eastern Time). If independent third party pricing services are unable to supply prices for a portfolio investment, or if the prices supplied are deemed by the manager to be unreliable, the market price may be determined by the manager using quotations from one or more broker/dealers or at the transaction price if the security has recently been purchased and no value has yet been obtained from a pricing service or pricing broker. When reliable prices are not readily available, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded, but before the Fund calculates its net asset value, the Fund values these securities as determined in accordance with procedures approved by the Fund’s Board of Trustees.

The Board of Trustees is responsible for the valuation process and has delegated the supervision of the daily valuation process to the Global Fund Valuation Committee (formerly known as Legg Mason North Atlantic Fund Valuation Committee prior to March 1, 2021) (the “Valuation Committee”). The Valuation Committee, pursuant to the policies adopted by the Board of Trustees, is responsible for making fair value determinations, evaluating the

 

ClearBridge Large Cap Growth Fund 2021 Semi-Annual Report  

 

  17  


Notes to financial statements (unaudited) (cont’d)

 

effectiveness of the Fund’s pricing policies, and reporting to the Board of Trustees. When determining the reliability of third party pricing information for investments owned by the Fund, the Valuation Committee, among other things, conducts due diligence reviews of pricing vendors, monitors the daily change in prices and reviews transactions among market participants.

The Valuation Committee will consider pricing methodologies it deems relevant and appropriate when making fair value determinations. Examples of possible methodologies include, but are not limited to, multiple of earnings; discount from market of a similar freely traded security; discounted cash-flow analysis; book value or a multiple thereof; risk premium/yield analysis; yield to maturity; and/or fundamental investment analysis. The Valuation Committee will also consider factors it deems relevant and appropriate in light of the facts and circumstances. Examples of possible factors include, but are not limited to, the type of security; the issuer’s financial statements; the purchase price of the security; the discount from market value of unrestricted securities of the same class at the time of purchase; analysts’ research and observations from financial institutions; information regarding any transactions or offers with respect to the security; the existence of merger proposals or tender offers affecting the security; the price and extent of public trading in similar securities of the issuer or comparable companies; and the existence of a shelf registration for restricted securities.

For each portfolio security that has been fair valued pursuant to the policies adopted by the Board of Trustees, the fair value price is compared against the last available and next available market quotations. The Valuation Committee reviews the results of such back testing monthly and fair valuation occurrences are reported to the Board of Trustees quarterly.

The Fund uses valuation techniques to measure fair value that are consistent with the market approach and/or income approach, depending on the type of security and the particular circumstance. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable securities. The income approach uses valuation techniques to discount estimated future cash flows to present value.

 

 

  18  

   ClearBridge Large Cap Growth Fund 2021 Semi-Annual Report


GAAP establishes a disclosure hierarchy that categorizes the inputs to valuation techniques used to value assets and liabilities at measurement date. These inputs are summarized in the three broad levels listed below:

 

 

Level 1 — quoted prices in active markets for identical investments

 

 

Level 2 — other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

 

 

Level 3 — significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used in valuing the Fund’s assets carried at fair value:

 

ASSETS  
Description  

Quoted Prices

(Level 1)

   

Other Significant

Observable Inputs

(Level 2)

   

Significant

Unobservable
Inputs

(Level 3)

    Total  
Common Stocks†   $ 18,420,468,459                 $ 18,420,468,459  
Short-Term Investments†     321,599,132                   321,599,132  
Total Investments   $ 18,742,067,591                 $ 18,742,067,591  

 

See Schedule of Investments for additional detailed categorizations.

(b) Foreign currency translation. Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts based upon prevailing exchange rates on the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts based upon prevailing exchange rates on the respective dates of such transactions.

The Fund does not isolate that portion of the results of operations resulting from fluctuations in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from sales of foreign currencies, including gains and losses on forward foreign currency contracts, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the values of assets and liabilities, other than investments in securities, on the date of valuation, resulting from changes in exchange rates.

 

ClearBridge Large Cap Growth Fund 2021 Semi-Annual Report  

 

  19  


Notes to financial statements (unaudited) (cont’d)

 

Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of U.S. dollar denominated transactions as a result of, among other factors, the possibility of lower levels of governmental supervision and regulation of foreign securities markets and the possibility of political or economic instability.

(c) Foreign investment risks. The Fund’s investments in foreign securities may involve risks not present in domestic investments. Since securities may be denominated in foreign currencies, may require settlement in foreign currencies or pay interest or dividends in foreign currencies, changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Fund. Foreign investments may also subject the Fund to foreign government exchange restrictions, expropriation, taxation or other political, social or economic developments, all of which affect the market and/or credit risk of the investments.

(d) Security transactions and investment income. Security transactions are accounted for on a trade date basis. Interest income (including interest income from payment-in-kind securities), adjusted for amortization of premium and accretion of discount, is recorded on the accrual basis. Dividend income is recorded on the ex-dividend date for dividends received in cash and/or securities. Foreign dividend income is recorded on the ex-dividend date or as soon as practicable after the Fund determines the existence of a dividend declaration after exercising reasonable due diligence. The cost of investments sold is determined by use of the specific identification method. To the extent any issuer defaults or a credit event occurs that impacts the issuer, the Fund may halt any additional interest income accruals and consider the realizability of interest accrued up to the date of default or credit event.

(e) REIT distributions. The character of distributions received from Real Estate Investment Trusts (‘‘REITs’’) held by the Fund is generally comprised of net investment income, capital gains, and return of capital. It is the policy of the Fund to estimate the character of distributions received from underlying REITs based on historical data provided by the REITs. After each calendar year end, REITs report the actual tax character of these distributions. Differences between the estimated and actual amounts reported by the REITs are reflected in the Fund’s records in the year in which they are reported by the REITs by adjusting related investment cost basis, capital gains and income, as necessary.

(f) Distributions to shareholders. Distributions from net investment income and distributions of net realized gains, if any, are declared at least annually. Distributions to shareholders of the Fund are recorded on the ex-dividend date and are determined in accordance with income tax regulations, which may differ from GAAP.

 

 

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   ClearBridge Large Cap Growth Fund 2021 Semi-Annual Report


(g) Share class accounting. Investment income, common expenses and realized/ unrealized gains (losses) on investments are allocated to the various classes of the Fund on the basis of daily net assets of each class. Fees relating to a specific class are charged directly to that share class.

(h) Compensating balance arrangements. The Fund has an arrangement with its custodian bank whereby a portion of the custodian’s fees is paid indirectly by credits earned on the Fund’s cash on deposit with the bank.

(i) Federal and other taxes. It is the Fund’s policy to comply with the federal income and excise tax requirements of the Internal Revenue Code of 1986 (the “Code”), as amended, applicable to regulated investment companies. Accordingly, the Fund intends to distribute its taxable income and net realized gains, if any, to shareholders in accordance with timing requirements imposed by the Code. Therefore, no federal or state income tax provision is required in the Fund’s financial statements.

Management has analyzed the Fund’s tax positions taken on income tax returns for all open tax years and has concluded that as of November 30, 2020, no provision for income tax is required in the Fund’s financial statements. The Fund’s federal and state income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue.

Under the applicable foreign tax laws, a withholding tax may be imposed on interest, dividends and capital gains at various rates.

(j) Reclassification. GAAP requires that certain components of net assets be reclassified to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset value per share.

2. Investment management agreement and other transactions with affiliates

Legg Mason Partners Fund Advisor, LLC (“LMPFA”) is the Fund’s investment manager and ClearBridge Investments, LLC (“ClearBridge”) is the Fund’s subadviser. Western Asset Management Company, LLC (“Western Asset”) manages the portion of the Fund’s cash and short-term instruments allocated to it. LMPFA, ClearBridge and Western Asset are indirect, wholly-owned subsidiaries of Franklin Resources, Inc. (“Franklin Resources”).

 

ClearBridge Large Cap Growth Fund 2021 Semi-Annual Report  

 

  21  


Notes to financial statements (unaudited) (cont’d)

 

Under the investment management agreement, the Fund pays an investment management fee, calculated daily and paid monthly, in accordance with the following breakpoint schedule:

 

Average Daily Net Assets      Annual Rate  
First $1 billion        0.700
Next $1 billion        0.680  
Next $3 billion        0.650  
Next $5 billion        0.600  
Over $10 billion        0.550  

LMPFA provides administrative and certain oversight services to the Fund. LMPFA delegates to the subadviser the day-to-day portfolio management of the Fund, except for the management of the portion of the Fund’s cash and short-term instruments allocated to Western Asset. For its services, LMPFA pays ClearBridge a fee monthly, at an annual rate equal to 70% of the net management fee it receives from the Fund. For Western Asset’s services to the Fund, LMPFA pays Western Asset monthly 0.02% of the portion of the Fund’s average daily net assets that are allocated to Western Asset by LMPFA.

As a result of expense limitation arrangements between the Fund and LMPFA, the ratio of total annual fund operating expenses, other than interest, brokerage, taxes, extraordinary expenses and acquired fund fees and expenses, to average net assets of Class A, Class C, Class R, Class I, Class IS and Class O shares did not exceed 1.10%, 1.90%, 1.40%, 0.80%, 0.70% and 0.74%, respectively. In addition, the ratio of total annual fund operating expenses for Class IS shares did not exceed the ratio of total annual fund operating expenses for Class I shares. These expense limitation arrangements cannot be terminated prior to December 31, 2022 without the Board of Trustees’ consent. In addition, the manager has agreed to waive the Fund’s management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund (the “affiliated money market fund waiver”). The affiliated money market fund waiver is not subject to the recapture provision discussed below.

During the six months ended May 31, 2021, fees waived and/or expenses reimbursed amounted to $4,108, which included an affiliated money market fund waiver of $4,090.

LMPFA is permitted to recapture amounts waived and/or reimbursed to a class during the same fiscal year if the class’ total annual fund operating expenses have fallen to a level below the expense limitation (“expense cap”) in effect at the time the fees were earned or the expenses incurred. In no case will LMPFA recapture any amount that would result, on any particular business day of the Fund, in the class’ total annual fund operating expenses exceeding the expense cap or any other lower limit then in effect.

 

 

  22  

   ClearBridge Large Cap Growth Fund 2021 Semi-Annual Report


Legg Mason Investor Services, LLC (“LMIS”) serves as the Fund’s sole and exclusive distributor. LMIS is an indirect, wholly-owned broker-dealer subsidiary of Franklin Resources. As of July 7, 2021, LMIS is renamed Franklin Distributors LLC.

There is a maximum initial sales charge of 5.75% for Class A shares. There is a contingent deferred sales charge (“CDSC”) of 1.00% on Class C shares, which applies if redemption occurs within 12 months from purchase payment. In certain cases, Class A shares have a 1.00% CDSC, which applies if redemption occurs within 18 months from purchase payment. This CDSC only applies to those purchases of Class A shares, which, when combined with current holdings of other shares of funds sold by LMIS, equal or exceed $1,000,000 in the aggregate. These purchases do not incur an initial sales charge.

For the six months ended May 31, 2021, sales charges retained by and CDSCs paid to LMIS and its affiliates, if any, were as follows:

 

              Class A      Class C  
Sales charges               $1,680,965         
CDSCs               2,771        $(26,289)  

All officers and one Trustee of the Trust are employees of Franklin Resources or its affiliates and do not receive compensation from the Trust.

3. Investments

During the six months ended May 31, 2021, the aggregate cost of purchases and proceeds from sales of investments (excluding short-term investments) were as follows:

 

Purchases        $1,432,477,882  
Sales        2,681,150,093

 

*

Excludes value of securities delivered as a result of redemptions in-kind totaling $13,307,646 (Note 9).

At May 31, 2021, the aggregate cost of investments and the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:

 

     Cost     Gross
Unrealized
Appreciation
    Gross
Unrealized
Depreciation
    Net
Unrealized
Appreciation
 
Securities   $ 10,366,230,779     $ 8,463,453,526     $ (87,616,714)     $ 8,375,836,812  

 

4. Derivative instruments and hedging activities

During the six months ended May 31, 2021, the Fund did not invest in derivative instruments.

 

ClearBridge Large Cap Growth Fund 2021 Semi-Annual Report  

 

  23  


Notes to financial statements (unaudited) (cont’d)

 

5. Class specific expenses, waivers and/or expense reimbursements

The Fund has adopted a Rule 12b-1 shareholder services and distribution plan and under that plan the Fund pays service and/or distribution fees with respect to its Class A, Class C and Class R shares calculated at the annual rate of 0.25%, 1.00% and 0.50% of the average daily net assets of each class, respectively. Service and/or distribution fees are accrued daily and paid monthly.

For the six months ended May 31, 2021, class specific expenses were as follows:

 

       

Service and/or

Distribution Fees

      

Transfer Agent

Fees

 
Class A      $ 3,798,108        $ 2,012,852  
Class C        2,640,923          267,713  
Class R        370,762          147,830  
Class I                 5,677,264  
Class IS                 103,806  
Class O                 192,371  
Total      $ 6,809,793        $ 8,401,836  

 

Amount shown is exclusive of expense reimbursements. For the six months ended May 31, 2021, the service and/or distribution fees reimbursed amounted to $18 for Class A shares.

For the six months ended May 31, 2021, waivers and/or expense reimbursements by class were as follows:

 

       

Waivers/Expense

Reimbursements

 
Class A      $ 685  
Class C        119  
Class R        33  
Class I        2,259  
Class IS        851  
Class O        161  
Total      $ 4,108  

6. Distributions to shareholders by class

 

        Six Months Ended
May 31, 2021
       Year Ended
November 30, 2020
 
Net Investment Income:                      
Class A               $ 3,349,565  
Class C                  
Class R                  
Class I      $ 7,250,807          29,299,641  
Class IS        6,353,701          13,119,845  
Class O        895,528          2,231,011  
Total      $ 14,500,036        $ 48,000,062  

 

 

  24  

   ClearBridge Large Cap Growth Fund 2021 Semi-Annual Report


       

Six Months
Ended

May 31, 2021

       Year Ended
November 30, 2020
 
Net Realized Gains:                      
Class A      $ 175,606,319        $ 112,597,987  
Class C        40,821,741          27,221,060  
Class R        9,329,210          7,020,586  
Class I        539,812,975          383,746,204  
Class IS        200,704,475          136,987,782  
Class O        38,236,422          25,901,814  
Total      $ 1,004,511,142        $ 693,475,433  

7. Shares of beneficial interest

At May 31, 2021, the Trust had an unlimited number of shares of beneficial interest authorized with a par value of $0.00001 per share. The Fund has the ability to issue multiple classes of shares. Each class of shares represents an identical interest and has the same rights, except that each class bears certain direct expenses, including those specifically related to the distribution of its shares.

Transactions in shares of each class were as follows:

 

     Six Months Ended
May 31, 2021
     Year Ended
November 30, 2020
 
      Shares      Amount      Shares      Amount  
Class A                                    
Shares sold      5,648,149      $ 345,107,806        12,260,955      $ 633,866,080  
Shares issued on reinvestment      2,597,930        154,758,681        2,094,408        100,887,595  
Shares repurchased      (6,406,424)        (391,836,896)        (13,095,598)        (674,664,860)  
Net increase      1,839,655      $ 108,029,591        1,259,765      $ 60,088,815  
Class C                                    
Shares sold      605,365      $ 28,005,722        2,707,478      $ 112,170,882  
Shares issued on reinvestment      759,357        34,353,296        598,058        22,445,117  
Shares repurchased      (1,540,338)        (71,682,450)        (3,492,002)        (139,173,432)  
Net decrease      (175,616)      $ (9,323,432)        (186,466)      $ (4,557,433)  
Class R                                    
Shares sold      231,619      $ 13,352,005        537,274      $ 25,770,048  
Shares issued on reinvestment      162,560        9,171,637        140,149        6,437,048  
Shares repurchased      (439,664)        (25,322,879)        (1,073,324)        (52,210,483)  
Net decrease      (45,485)      $ (2,799,237)        (395,901)      $ (20,003,387)  

 

ClearBridge Large Cap Growth Fund 2021 Semi-Annual Report  

 

  25  


Notes to financial statements (unaudited) (cont’d)

 

     Six Months Ended
May 31, 2021
     Year Ended
November 30, 2020
 
      Shares      Amount      Shares      Amount  
Class I                                    
Shares sold      18,549,916      $ 1,275,973,535        57,193,704      $ 3,162,099,950  
Shares issued on reinvestment      5,439,962        365,456,641        5,064,002        272,696,489  
Shares repurchased      (28,201,813)        (1,938,663,731)        (75,125,790)        (4,354,576,893)  
Shares redeemed in-kind                    (373,016)        (20,318,196)  
Net decrease      (4,211,935)      $ (297,233,555)        (13,241,100)      $ (940,098,650)  
Class IS                                    
Shares sold      7,877,544      $ 541,562,438        19,251,100      $ 1,102,482,083  
Shares issued on reinvestment      2,753,809        185,193,673        2,526,504        136,178,579  
Shares repurchased      (10,434,424)        (728,435,378)        (22,217,715)        (1,270,015,762)  
Shares redeemed in-kind      (199,665)        (13,397,852)        (2,588,007)        (154,595,882)  
Net decrease      (2,736)      $ (15,077,119)        (3,028,118)      $ (185,950,982)  
Class O                                    
Shares sold      39,916      $ 2,739,329        189,398      $ 11,679,667  
Shares issued on reinvestment      476,905        32,067,101        425,753        22,948,069  
Shares repurchased      (384,616)        (26,443,200)        (954,012)        (54,145,434)  
Net increase (decrease)      132,205      $ 8,363,230        (338,861)      $ (19,517,698)  

8. Transactions with affiliated company

As defined by the 1940 Act, an affiliated company is one in which the Fund owns 5% or more of the outstanding voting securities, or a company which is under common ownership or control with the Fund. The following company was considered an affiliated company for all or some portion of the six months ended May 31, 2021. The following transactions were effected in such company for the six months ended May 31, 2021.

 

     Affiliate
Value at
November 30,

2020
     Purchased      Sold  
      Cost      Shares      Cost      Shares  
Western Asset Premier Institutional U.S. Treasury Reserves, Premium Shares    $ 49,474,017      $ 406,610,749        406,610,749      $ 391,764,940        391,764,940  

 

(cont’d)  

Realized

Gain (Loss)

 

Interest

Income

   

Net Increase

(Decrease) in

Unrealized

Appreciation

(Depreciation)

  Affiliate
Value at
May 31,
2021
 
Western Asset Premier Institutional U.S. Treasury Reserves, Premium Shares     $ 2,292       $ 64,319,826  

 

 

  26  

   ClearBridge Large Cap Growth Fund 2021 Semi-Annual Report


9. Redemptions in-kind

The Fund may make payment for Fund shares redeemed wholly or in part by distributing portfolio securities to shareholders. For the six months ended May 31, 2021 and the year ended November 30, 2020, the Fund had redemptions in-kind with total proceeds in the amount of $13,397,852 and $174,914,078, respectively. The net realized gain on these redemptions in-kind amounted to $8,518,834 and $106,918,367 for the six months ended May 31, 2021 and the year ended November 30, 2020, respectively, which were not realized for tax purposes.

10. Recent accounting pronouncement

In March 2020, the Financial Accounting Standards Board issued Accounting Standards Update No. 2020-04, Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting (the “ASU”). The amendments in the ASU provide optional temporary financial reporting relief from the effect of certain types of contract modifications due to the planned discontinuation of the London Interbank Offered Rate and other interbank-offered based reference rates as of the end of 2021. The ASU is effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2022. Management has reviewed the requirements and believes the adoption of this ASU will not have a material impact on the financial statements.

11. Other matter

The outbreak of the respiratory illness COVID-19 (commonly referred to as “coronavirus”) has continued to rapidly spread around the world, causing considerable uncertainty for the global economy and financial markets. The ultimate economic fallout from the pandemic, and the long-term impact on economies, markets, industries and individual issuers, are not known. The COVID-19 pandemic could adversely affect the value and liquidity of the Fund’s investments, impair the Fund’s ability to satisfy redemption requests, and negatively impact the Fund’s performance. In addition, the outbreak of COVID-19, and measures taken to mitigate its effects, could result in disruptions to the services provided to the Fund by its service providers.

 

ClearBridge Large Cap Growth Fund 2021 Semi-Annual Report  

 

  27  


Additional shareholder information (unaudited)

 

Results of special meeting of shareholders

A special meeting of shareholders was held on June 15, 2021 for shareholders of record as of March 1, 2021 (the “Record Date”) to elect the Board of Trustees of the Trust.

Shareholders of the Fund and each other series of the Trust voted together as a single class to elect the Board.

Shareholders of the Trust voted as indicated below (vote totals are rounded to the nearest whole number). Effective July 1, 2021, the Board is composed of the following Trustees:

 

Trustee    For      Withheld  
Paul R. Ades      34,818,031,380        864,701,681  
Andrew L. Breech      34,891,912,353        790,820,707  
Althea L. Duersten      34,730,529,034        952,204,027  
Stephen R. Gross      34,874,507,049        808,226,012  
Susan M. Heilbron      34,856,171,717        826,561,344  
Howard J. Johnson      34,814,514,173        868,218,888  
Arnold L. Lehman      34,848,857,750        833,875,311  
Robin J.W. Masters      34,921,642,190        761,090,871  
Jerome H. Miller      34,813,954,150        868,778,910  
Ken Miller      34,616,366,023        1,066,367,039  
G. Peter O’Brien      34,889,564,576        793,168,485  
Thomas F. Schlafly      34,849,538,606        833,194,455  
Jane E. Trust      34,981,181,494        701,551,567  

The above Trustees have also been elected to serve as board members of other mutual funds within the Franklin Templeton fund complex.

 

 

  28  

   ClearBridge Large Cap Growth Fund


ClearBridge

Large Cap Growth Fund

 

Trustees*

Paul R. Ades

Andrew L. Breech

Althea L. Duersten**

Chair

Stephen R. Gross

Susan M. Heilbron

Howard J. Johnson

Arnold L. Lehman

Robin J. W. Masters

Jerome H. Miller

Ken Miller

G. Peter O’Brien

Thomas F. Schlafly

Jane Trust

 

 

*

During a June 15, 2021 special meeting of shareholders, a new group of Trustees were elected to oversee the mutual funds of Legg Mason Global Asset Management Trust, Legg Mason Partners Equity Trust and Legg Mason Partners Variable Equity Trust, effective July 1, 2021.

**

Effective January 1, 2021, Ms. Duersten became Chair.

 

Investment manager

Legg Mason Partners Fund Advisor, LLC

Subadviser

ClearBridge Investments, LLC

Distributor

Legg Mason Investor Services, LLC

Custodian

The Bank of New York Mellon

Transfer agent

BNY Mellon Investment Servicing (US) Inc.

4400 Computer Drive

Westborough, MA 01581

Independent registered public accounting firm

PricewaterhouseCoopers LLP

Baltimore, MD

 

ClearBridge Large Cap Growth Fund

The Fund is a separate investment series of Legg Mason Partners Equity Trust, a Maryland statutory trust.

ClearBridge Large Cap Growth Fund

Legg Mason Funds

620 Eighth Avenue, 47th Floor

New York, NY 10018

 

The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Forms N-PORT are available on the SEC’s website at www.sec.gov. To obtain information on Form N-PORT, shareholders can call the Fund at 1-877-721-1926.

Information on how the Fund voted proxies relating to portfolio securities during the prior 12-month period ended June 30th of each year and a description of the policies and procedures that the Fund uses to determine how to vote proxies related to portfolio transactions are available (1) without charge, upon request, by calling the Fund at 1-877-721-1926, (2) at www.leggmason.com/mutualfunds and (3) on the SEC’s website at www.sec.gov.

 

This report is submitted for the general information of the shareholders of ClearBridge Large Cap Growth Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by a current prospectus.

Investors should consider the Fund’s investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other important information about the Fund. Please read the prospectus carefully before investing.

www.leggmason.com

© 2021 Legg Mason Investor Services, LLC

Member FINRA, SIPC


Legg Mason Funds Privacy and Security Notice

 

Your Privacy and the Security of Your Personal Information is Very Important to the Legg Mason Funds

This Privacy and Security Notice (the “Privacy Notice”) addresses the Legg Mason Funds’ privacy and data protection practices with respect to nonpublic personal information the Funds receive. The Legg Mason Funds include any funds sold by the Funds’ distributor, Legg Mason Investor Services, LLC, as well as Legg Mason-sponsored closed-end funds. The provisions of this Privacy Notice apply to your information both while you are a shareholder and after you are no longer invested with the Funds.

The Type of Nonpublic Personal Information the Funds Collect About You

The Funds collect and maintain nonpublic personal information about you in connection with your shareholder account. Such information may include, but is not limited to:

 

 

Personal information included on applications or other forms;

 

 

Account balances, transactions, and mutual fund holdings and positions;

 

 

Bank account information, legal documents, and identity verification documentation;

 

 

Online account access user IDs, passwords, security challenge question responses; and

 

 

Information received from consumer reporting agencies regarding credit history and creditworthiness (such as the amount of an individual’s total debt, payment history, etc.).

How the Funds Use Nonpublic Personal Information About You

The Funds do not sell or share your nonpublic personal information with third parties or with affiliates for their marketing purposes, or with other financial institutions or affiliates for joint marketing purposes, unless you have authorized the Funds to do so. The Funds do not disclose any nonpublic personal information about you except as may be required to perform transactions or services you have authorized or as permitted or required by law.

The Funds may disclose information about you to:

 

 

Employees, agents, and affiliates on a “need to know” basis to enable the Funds to conduct ordinary business, or to comply with obligations to government regulators;

 

 

Service providers, including the Funds’ affiliates, who assist the Funds as part of the ordinary course of business (such as printing, mailing services, or processing or servicing your account with us) or otherwise perform services on the Funds’ behalf, including companies that may perform statistical analysis, market research and marketing services solely for the Funds;

 

 

Permit access to transfer, whether in the United States or countries outside of the United States to such Funds’ employees, agents and affiliates and service providers as required to enable the Funds to conduct ordinary business, or to comply with obligations to government regulators;

 

 

The Funds’ representatives such as legal counsel, accountants and auditors to enable the Funds to conduct ordinary business, or to comply with obligations to government regulators;

 

 

Fiduciaries or representatives acting on your behalf, such as an IRA custodian or trustee of a grantor trust.

 

NOT PART OF THE  SEMI-ANNUAL REPORT


Legg Mason Funds Privacy and Security Notice (cont’d)

 

Except as otherwise permitted by applicable law, companies acting on the Funds’ behalf, including those outside the United States, are contractually obligated to keep nonpublic personal information the Funds provide to them confidential and to use the information the Funds share only to provide the services the Funds ask them to perform. The Funds may disclose nonpublic personal information about you when necessary to enforce their rights or protect against fraud, or as permitted or required by applicable law, such as in connection with a law enforcement or regulatory request, subpoena, or similar legal process. In the event of a corporate action or in the event a Fund service provider changes, the Funds may be required to disclose your nonpublic personal information to third parties. While it is the Funds’ practice to obtain protections for disclosed information in these types of transactions, the Funds cannot guarantee their privacy policy will remain unchanged.

Keeping You Informed of the Funds’ Privacy and Security Practices

The Funds will notify you annually of their privacy policy as required by federal law. While the Funds reserve the right to modify this policy at any time they will notify you promptly if this privacy policy changes.

The Funds’ Security Practices

The Funds maintain appropriate physical, electronic and procedural safeguards designed to guard your nonpublic personal information. The Funds’ internal data security policies restrict access to your nonpublic personal information to authorized employees, who may use your nonpublic personal information for Fund business purposes only.

Although the Funds strive to protect your nonpublic personal information, they cannot ensure or warrant the security of any information you provide or transmit to them, and you do so at your own risk. In the event of a breach of the confidentiality or security of your nonpublic personal information, the Funds will attempt to notify you as necessary, so you can take appropriate protective steps. If you have consented to the Funds using electronic communications or electronic delivery of statements, they may notify you under such circumstances using the most current email address you have on record with them.

In order for the Funds to provide effective service to you, keeping your account information accurate is very important. If you believe that your account information is incomplete, not accurate or not current, if you have questions about the Funds’ privacy practices, or our use of your nonpublic personal information, write the Funds using the contact information on your account statements, email the Funds by clicking on the Contact Us section of the Funds’ website at www.leggmason.com, or contact the Fund at 1-877-721-1926.

Revised April 2018

Legg Mason California Consumer Privacy Act Policy

Although much of the personal information we collect is “nonpublic personal information” subject to federal law, residents of California may, in certain circumstances, have additional rights under the California Consumer Privacy Act (“CCPA”). For example, if you are a broker,

 

NOT PART OF THE  SEMI-ANNUAL REPORT


Legg Mason Funds Privacy and Security Notice (cont’d)

 

dealer, agent, fiduciary, or representative acting by or on behalf of, or for, the account of any other person(s) or household, or a financial advisor, or if you have otherwise provided personal information to us separate from the relationship we have with personal investors, the provisions of this Privacy Policy apply to your personal information (as defined by the CCPA).

 

 

In addition to the provisions of the Legg Mason Funds Security and Privacy Notice, you may have the right to know the categories and specific pieces of personal information we have collected about you.

 

 

You also have the right to request the deletion of the personal information collected or maintained by the Funds.

If you wish to exercise any of the rights you have in respect of your personal information, you should advise the Funds by contacting them as set forth below. The rights noted above are subject to our other legal and regulatory obligations and any exemptions under the CCPA. You may designate an authorized agent to make a rights request on your behalf, subject to the identification process described below. We do not discriminate based on requests for information related to our use of your personal information, and you have the right not to receive discriminatory treatment related to the exercise of your privacy rights.

We may request information from you in order to verify your identity or authority in making such a request. If you have appointed an authorized agent to make a request on your behalf, or you are an authorized agent making such a request (such as a power of attorney or other written permission), this process may include providing a password/passcode, a copy of government issued identification, affidavit or other applicable documentation, i.e. written permission. We may require you to verify your identity directly even when using an authorized agent, unless a power of attorney has been provided. We reserve the right to deny a request submitted by an agent if suitable and appropriate proof is not provided.

For the 12-month period prior to the date of this Privacy Policy, the Legg Mason Funds have not sold any of your personal information; nor do we have any plans to do so in the future.

Contact Information

Address: Data Privacy Officer, 100 International Dr., Baltimore, MD 21202

Email: DataProtectionOfficer@franklintempleton.com

Phone: 1-800-396-4748

Revised October 2020

 

 

NOT PART OF THE  SEMI-ANNUAL REPORT


 

www.leggmason.com

© 2021 Legg Mason Investor Services, LLC Member FINRA, SIPC

FD1520 7/21 SR21-4176


ITEM 2.

CODE OF ETHICS.

Not applicable.

 

ITEM 3.

AUDIT COMMITTEE FINANCIAL EXPERT.

Not applicable.

 

ITEM 4.

PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Not applicable.

 

ITEM 5.

AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable.

 

ITEM 6.

SCHEDULE OF INVESTMENTS.

Included herein under Item 1.

 

ITEM 7.

DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

 

ITEM 8.

PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

 

ITEM 9.

PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not applicable.

 

ITEM 10.

SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

Not applicable.

 

ITEM 11.

CONTROLS AND PROCEDURES.

 

  (a)

The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a- 3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the 1940 Act and 15d-15(b) under the Securities Exchange Act of 1934.

 

  (b)

There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are likely to materially affect the registrant’s internal control over financial reporting.


ITEM 12.

DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

 

ITEM 13.

EXHIBITS.

(a) (1) Not applicable.

Exhibit  99.CODE ETH

(a) (2)  Certifications pursuant to section 302 of the Sarbanes-Oxley Act of 2002 attached hereto.

Exhibit 99.CERT

(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 attached hereto.

Exhibit 99.906CERT

 


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this Report to be signed on its behalf by the undersigned, there unto duly authorized.

 

Legg Mason Partners Equity Trust
By:  

/s/ Jane Trust

  Jane Trust
  Chief Executive Officer

Date: July 22, 2021

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By:  

/s/ Jane Trust

  Jane Trust
  Chief Executive Officer

Date: July 22, 2021

 

By:  

/s/ Christopher Berarducci

  Christopher Berarducci
  Principal Financial Officer

Date: July 22, 2021

CERTIFICATIONS PURSUANT TO SECTION 302

EX-99.CERT

CERTIFICATIONS

I, Jane Trust, certify that:

 

1.

I have reviewed this report on Form N-CSR of Legg Mason Partners Equity Trust – ClearBridge Large Cap Growth Fund;

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

 

4.

The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 

  a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

  b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

  c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

 

  d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.

The registrant’s other certifying officers and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

  a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

 

  b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: July 22, 2021    /s/ Jane Trust
   Jane Trust
   Chief Executive Officer


CERTIFICATIONS

I, Christopher Berarducci, certify that:

 

1.

I have reviewed this report on Form N-CSR of Legg Mason Partners Equity Trust – ClearBridge Large Cap Growth Fund;

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.

Based on my knowledge, the financial information included in this report, and the financial statements on which the financial information is based, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

 

4.

The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 

  a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

  b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

  c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

 

  d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.

The registrant’s other certifying officers and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

  a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

 

  b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: July 22, 2021    /s/ Christopher Berarducci
   Christopher Berarducci
   Principal Financial Officer

 

CERTIFICATIONS PURSUANT TO SECTION 906

EX-99.906CERT

CERTIFICATION

Jane Trust, Chief Executive Officer, and Christopher Berarducci, Principal Financial Officer of Legg Mason Partners Equity Trust – ClearBridge Large Cap Growth Fund (the “Registrant”), each certify to the best of their knowledge that:

1. The Registrant’s periodic report on Form N-CSR for the period ended May 31, 2021 (the “Form N-CSR”) fully complies with the requirements of section 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

 

Chief Executive Officer                           Principal Financial Officer
Legg Mason Partners Equity Trust -      Legg Mason Partners Equity Trust -
ClearBridge Large Cap Growth Fund      ClearBridge Large Cap Growth Fund

/s/ Jane Trust

    

/s/ Christopher Berarducci

Jane Trust      Christopher Berarducci
Date: July 22, 2021      Date: July 22, 2021

This certification is being furnished to the Securities and Exchange Commission solely pursuant to 18 U.S.C. § 1350 and is not being filed as part of the Form N-CSR with the Commission.

 



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