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Institutional Investor Advisor Individual Investor
Total AUM Avg. PM Years Experience Years Since Inception
$581.7M 24 16
As of December 31 2020

Strategy Average Annual Total Returns

(%, Gross of Fees)2
YTD 1 Year 3 Years 5 Years 7 Years 10 Years
ClearBridge Large Cap Value ESG SMA Composite 13.83 13.83 12.90 12.81 10.67 12.48
Russell 1000 Value Index 2.80 2.80 6.07 9.74 8.20 10.50
As of December 31 2020

Overview

The Large Cap Value ESG Strategy exploits market inefficiencies to identify strong businesses with positive ESG attributes trading at attractive valuations that it can hold for long time periods. 

Strategy Overview Pure style large cap value strategy utilizing ESG principles and a high conviction approach.
Benchmark Russell 1000 Value Index
Total Strategy AUM $581.7M
Holdings Range 50-601
Objective Long-term growth of capital3

Investment Philosophy

The Large Cap Value ESG Strategy seeks to construct a portfolio of high-quality franchises with resilient and durable businesses at attractive valuations, capable of generating superior risk-adjusted returns over the medium to long term, integrating ESG factors into the stock selection process.

Meet Our Managers

Robert Feitler

Portfolio Manager
26 Years experience
25 Years at ClearBridge

Dmitry Khaykin

Portfolio Manager
24 Years experience
17 Years at ClearBridge

Mary Jane McQuillen

ESG Head, Portfolio Manager
24 Years experience
24 Years at ClearBridge

Strategy Facts

High conviction, high active share approach drives portfolio that differs significantly from its benchmark.

The Strategy has followed the same consistent investment process since 1995.

Portfolio managers Robert Feitler and Dmitry Khaykin bring a long tenure of investment experience. 

Literature & Perspectives

Investment Process

  • Utilize an interactive, research-driven approach to generate investment ideas among underpriced large cap stocks possessing strong business franchises
  • Conduct analysis that integrates environmental, social and governance factors with fundamentals to identify companies with proven business models, sustainable competitive advantages, and attractive valuations in relation to cash flows and normalized earnings
  • Construct a portfolio of 50 to 60 stocks that balances concentration and diversification
  • Continuously monitor holdings to manage risk and exploit most attractive opportunities 

Performance

The integration of ESG factors with the Strategy's quality approach has enabled it to deliver competitive results over multiple time periods.

Average Annual Total Returns (%, Gross of Fees)2

YTD 1 Year 3 Years 5 Years 7 Years 10 Years
ClearBridge Large Cap Value ESG SMA Composite 13.83 13.83 12.90 12.81 10.67 12.48
Russell 1000 Value Index 2.80 2.80 6.07 9.74 8.20 10.50

Characteristics

A true long-term strategy with turnover that is significantly lower than its large value peers.

Sector Weights1,2

Representative Portfolio Russell 1000 Value Index
Financials 21.17 19.55
Industrials 17.80 13.43
Information Technology 12.55 9.66
Health Care 11.90 13.41
Communication Services 11.44 9.64
Consumer Staples 6.03 7.64
Utilities 5.85 5.46
Materials 5.51 4.77
Consumer Discretionary 2.10 7.65
Real Estate 2.09 4.42
Energy 1.02 4.36
Cash 2.54 0.00
Portfolio Characteristics1,2
Characteristics Representative Portfolio Russell 1000 Value Index
P/E Ratio (trailing 12 mos.) 23.3 22.3
P/E Ratio (forward 12 mos.) 21.3 19.7
Price/Book 4.6 3.5
EPS Growth Next 3-5 Years (%) 10.0 8.0
Weighted Median Market Cap ($ bn) 97.3 68.8
Weighted Average Market Cap ($ bn) 190.6 128.9
ROE 19.6 15.5
Dividend Yield 1.8 2.2
Turnover (trailing 12 mos.) 16.9 --
Risk Statistics1
10 Year Risk Statistics Composite Russell 1000 Value Index
Annualized Returns (10 Years) 12.48 10.50
Standard Deviation (%) 12.84 14.28
Sharpe Ratio 0.94 0.73
Tracking Error (%) 3.33 --
R2 0.95 --
Alpha (%) 2.92 --
Beta 0.88 --
Top 10 Holdings1
Characteristics % of Total Representative Portfolio
Bank of America Corp 3.87
JPMorgan Chase & Co 3.83
Charter Communications Inc 3.32
TE Connectivity Ltd 3.21
Honeywell International Inc 3.20
Comcast Corp 3.20
Air Products and Chemicals Inc 2.94
Edison International 2.93
Sempra Energy 2.92
American Express Co 2.86
Total 32.29
Total Number of Holdings 50
  • 1

    Source: FactSet. Representative portfolio characteristics, holdings, sector weightings and market cap are based on a representative portfolio and are subject to change at any time. Holdings, sector weightings, market cap and portfolio characteristics of individual client portfolios may differ, sometimes significantly, from those shown. This information does not constitute, and should not be construed as, investment advice or recommendations with respect to the securities and sectors listed.

  • 2

    Past performance is no guarantee of future results. See GIPS endnotes. Performance is preliminary and subject to change.

  • 3

    There is no guarantee that the Strategy's objective will be met.

  • P/E ratios are weighted harmonic average. Price/Book is weighted average.

  • Performance source: Internal. Benchmark source: Russell Investments. Frank Russell Company (“Russell”) is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes and/or Russell ratings or underlying data and no party may rely on any Russell Indexes and/or Russell ratings and/or underlying data contained in this communication. No further distribution of Russell Data is permitted without Russell’s express written consent. Russell does not promote, sponsor or endorse the content of this communication.

  • Annualized Returns  1 Yr (9/30/20) 3 Yrs (9/30/20) 5 Yrs (9/30/20) 10 Yrs (9/30/20)
    Net-of-fees  6.2% 7.1% 8.0% 9.0%
    Pure Gross 9.4% 10.3% 11.2% 12.2%
    Russell 1000 Value -5.0% 2.6% 7.7% 9.9%
  • ClearBridge Investments, LLC claims compliance with the Global Investment Performance Standards (GIPS®). ClearBridge Investments, LLC ("ClearBridge") is a wholly owned subsidiary of Legg Mason, Inc. ("Legg Mason").  The investment advisory business now known as ClearBridge was registered in September 2005 to facilitate Legg Mason's acquisition of substantially all the equity asset management businesses known as Citigroup Asset Management. These former businesses serve as the foundation of ClearBridge and its claim of GIPS compliance for institutional accounts through predecessor firms, effective as of January 1997.  In June 2008, ClearBridge combined this business with its retail business to form a single GIPS firm.  As of April 1, 2013 and January 1, 2016, ClearBridge's affiliates, Global Currents Investment Management, LLC, and ClearBridge, LLC, respectively, have become part of the ClearBridge GIPS firm. In July 2020 Legg Mason, Inc. was purchased by Franklin Resources Inc. The ClearBridge Large Cap Value ESG SMA composite managers actively integrate criteria inclusive of environmental, social and governance (ESG) issues into the portfolio construction of the strategy. Accounts within the composite seek long-term capital appreciation by investing in securities with favorable risk-adjusted return characteristics.  Investments are primarily made in large-capitalization U.S. companies but may also invest in mid-capitalization companies. Results calculated in U.S. dollars.  Pure gross returns shown do not reflect the deduction of "bundled" fees and are presented as supplemental information to net returns. The Russell 1000® Value Index measures the performance of the large-cap value segment of the U.S. equity universe.To receive a complete list and description of ClearBridge composites and/or a presentation that adheres to the GIPS standards, please contact ClearBridge Institutional Marketing.