Legg Mason Partners Variable Equity Trust N-CSRS Certified semi-annual shareholder report (management investment company)

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 811-21128

Legg Mason Partners Variable Equity Trust

(Exact name of registrant as specified in charter)

620 Eighth Avenue, 49^th Floor, New York, NY 10018

(Address of principal executive offices) (Zip code)

Robert I. Frenkel, Esq.

Legg Mason & Co., LLC

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: December 31

Date of reporting period: June 30, 2017

ITEM 1. REPORT TO STOCKHOLDERS.

The Semi-Annual Report to Stockholders is filed herewith.

Semi-Annual Report June 30, 2017

QS LEGG MASON

DYNAMIC MULTI-STRATEGY VIT PORTFOLIO

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

What’s inside
Letter from the president	II
Investment commentary	III
Portfolio at a glance	1
Portfolio expenses	3
Schedule of investments	5
Statement of assets and liabilities	7
Statement of operations	8
Statements of changes in net assets	9
Financial highlights	10
Notes to financial statements	12

Portfolio objectives

The Portfolio seeks the highest total return (that is, a combination of income and long-term capital appreciation) over time consistent with its asset mix. The Portfolio will seek to reduce volatility as a secondary objective.

Letter from the president

Dear Shareholder,

We are pleased to provide the semi-annual report of QS Legg Mason Dynamic Multi-Strategy VIT Portfolio for the six-month reporting period ended June 30, 2017. Please read on for Portfolio performance information and a detailed look at prevailing economic and market conditions during the Portfolio’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:

• 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,

Jane Trust, CFA

President and Chief Executive Officer

July 28, 2017

II QS Legg Mason Dynamic Multi-Strategy VIT Portfolio

Investment commentary

Economic review

The pace of U.S. economic activity fluctuated during the six months ended June 30, 2017 (the “reporting period”). Looking back, the U.S. Department of Commerce reported that fourth quarter 2016 U.S. gross domestic product (“GDP”)ⁱ growth was a revised 1.8%. GDP growth then decelerated to revised 1.2% during the first quarter of 2017. Finally, the U.S. Department of Commerce’s initial estimate for second quarter 2017 GDP growth — released after the reporting period ended — was 2.6%. The acceleration in growth reflected a smaller decrease in private inventory investment, an acceleration in personal consumption expenditures and an upturn in federal government spending.

Job growth in the U.S. was solid overall and a tailwind for the economy during the reporting period. When the reporting period ended on June 30, 2017, the unemployment rate was 4.4%, as reported by the U.S. Department of Labor. The percentage of longer-term unemployed moderately declined over the period. In June 2017, 24.3% of Americans looking for a job had been out of work for more than six months, versus 24.4% when the period began.

Turning to the global economy, in its July 2017 World Economic Outlook Update, the International Monetary Fund (“IMF”)ⁱⁱ said, “The pickup in global growth anticipated in the April World Economic Outlook remains on track, with global output projected to grow by 3.5 percent in 2017 and 3.6 percent in 2018. The unchanged global growth projections mask somewhat different contributions at the country level. U.S. growth projections are lower than in April, primarily reflecting the assumption that fiscal policy will be less expansionary going forward than previously anticipated. Growth has been revised up for Japan and especially the euro area, where positive surprises to activity in late 2016 and early 2017 point to solid momentum. China’s growth projections have also been revised up, reflecting a strong first quarter of 2017 and expectations of continued fiscal support.” From a regional perspective, the IMF estimates 2017 growth in the Eurozone will be 1.9%, versus 1.8% in 2016. Japan’s economy is expected to expand 1.3% in 2017, compared to 1.0% in 2016. Elsewhere, the IMF projects that overall growth in emerging market countries will accelerate to 4.6% in 2017, versus 4.3% in 2016.

QS Legg Mason Dynamic Multi-Strategy VIT Portfolio III

Investment commentary (cont’d)

Market review

Q. How did the Federal Reserve Board (the “Fed”)ⁱⁱⁱ respond to the economic environment?

A. Looking back, after an extended period of maintaining the federal funds rate^iv at a historically low range between zero and 0.25%, the Fed increased the rate at its meeting on December 16, 2015. This marked the first rate hike since 2006. In particular, the U.S. central bank raised the federal funds rate to a range between 0.25% and 0.50%. The Fed then kept rates on hold at each meeting prior to its meeting in mid-December 2016. On December 14, 2016, the Fed raised rates to a range between 0.50% and 0.75%.

After holding rates steady at its meeting that concluded on February 1, 2017, the Fed raised rates to a range between 0.75% and 1.00% at its meeting that ended on March 15, 2017. Finally, at its meeting that concluded on June 14, 2017, the Fed raised rates to a range between 1.00% and 1.25%. The Fed also said that it planned to reduce its balance sheet, saying, “The Committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasury securities at auction. The Committee currently expects to begin implementing a balance sheet normalization program this year, provided that the economy evolves broadly as anticipated.”

Q. What actions did international central banks take during the reporting period?

A. Central banks outside the U.S. largely maintained their accommodative monetary policy stances during the reporting period.

Looking back, in March 2015, before the beginning of the reporting period, the European Central Bank (“ECB”)^v announced that it would start a €60 billion-per-month bond buying program that was expected to run until September 2016. In December 2015, the ECB extended its monthly bond buying program until at least March 2017. In March 2016, the ECB announced that it would increase its bond purchasing program to €80 billion-per-month. It also lowered its deposit rate to -0.4% and its main interest rate to 0%. Finally, in December 2016 — the ECB again extended its bond buying program until December 2017. From April 2017 through December 2017, the ECB will purchase €60 billion-per-month of bonds. Since that time, the ECB has remained on hold in terms of monetary policy. In other developed countries, in August 2016 the Bank of England^vi lowered interest rates from 0.50% to 0.25%, a new record low and rates remained constant during the reporting period. After holding rates steady at 0.10% for more than five years, in January 2016 the Bank of Japan^vii announced that it cut the rate on current accounts that commercial banks hold with it to -0.10% and kept rates on hold during the reporting period. Elsewhere, the People’s Bank of China^viii kept rates steady at 4.35% during the reporting period.

Q. What factors impacted the U.S. stock market during the reporting period?

A. While there were periods of volatility, the U.S. stock market rose sharply and posted strong results during the reporting period as a whole. The market rallied over the first two months of the period and reached several new all-time highs. This was driven by expectations for improving economic growth, an increase in fiscal spending and a rollback for certain government regulations under President Donald Trump’s administration.

IV QS Legg Mason Dynamic Multi-Strategy VIT Portfolio

After largely treading water in March 2017, the market again rallied from April through June 2017, as first quarter 2017 corporate profits were generally better than expected. All told, for the six months ended June 30, 2017, the S&P 500 Index^ix gained 9.34%.

Looking at the U.S. stock market more closely, large-cap stocks, as measured by the Russell 1000 Index^x, generated the strongest returns, as they gained 9.27% over the reporting period. In contrast, small-cap stocks, as measured by the Russell 2000 Index^xi, generated the weakest results, returning 4.99%, whereas mid-cap stocks, as measured by the Russell Midcap Index^xii, returned 7.99%. From an investment style perspective, growth and value stocks, as measured by the Russell 3000 Growth^xiii and Russell 3000 Value^xiv Indices, returned 13.69% and 4.32%, respectively, during the six months ended June 30, 2017.

Q. How did the international stock market perform during the reporting period?

A. As was the case in the U.S., international equities rallied sharply during the reporting period. Developed market equities, as measured by the MSCI EAFE Index^xv, rose during all six months of the reporting period. All told, the MSCI EAFE Index returned 13.81% for the six months ended June 30, 2017. These strong results were driven by solid investor demand, continued monetary policy accommodation and less concern over U.S. protectionism trade policies. Emerging market equities performed even better, with the MSCI Emerging Markets Index^xvi generating a 18.43% return over the reporting period.

Q. Did Treasury yields trend higher or lower during the reporting period?

A. Treasury yields moved sharply higher after the November 2016 U.S. presidential elections given expectations for improving growth and higher inflation. While they subsequently fell from their peak in mid-March 2017, all told short-term Treasury yields moved higher during the six months ended June 30, 2017. In contrast, long-term Treasury yields edged lower over the reporting period as a whole. Two-year Treasury yields began the reporting period at 1.20% and ended the period at 1.38%. Their low for the period of 1.12% occurred on February 24, 2017, and their peak of 1.40% took place on March 13 and March 14, 2017. Ten-year Treasury yields began the reporting period at 2.45% and ended the period at 2.31%. Their low of 2.14% occurred on both June 6 and June 26, 2017, and their peak of 2.62% occurred on March 13, 2017.

Q. What factors impacted the spread sectors (non-Treasuries) during the reporting period?

A. The spread sectors posted mixed results during the reporting period. Performance fluctuated with investor sentiment given signs of generally modest global growth, questions regarding future Fed monetary policy, the aforementioned U.S. elections and several geopolitical issues. The broad U.S. bond market, as measured by the Bloomberg Barclays U.S. Aggregate Index^xvii, returned 2.27% during the six months ended June 30, 2017. Within the U.S. bond market, lower rated corporate bonds generated the best returns during the reporting period.

Q. How did the high-yield bond market perform over the reporting period?

A. The U.S. high-yield bond market, as measured by the Bloomberg Barclays U.S. Corporate High Yield — 2% Issuer Cap Index^xviii, gained 4.92% for the six months ended June 30, 2017. The high-yield market began the reporting period on a positive note, as it

QS Legg Mason Dynamic Multi-Strategy VIT Portfolio V

Investment commentary (cont’d)

rallied sharply over the first two months of the period. This was driven by robust demand from investors looking to generate incremental yield in the low interest rate environment. After moving slightly lower in March 2017 given falling oil prices and overall weak demand, the high-yield market again rallied from April through June 2017.

Q. How did the emerging market debt asset class perform over the reporting period?

A. The JPMorgan Emerging Markets Bond Index Global^xix returned 6.20% during the six months ended June 30, 2017. The asset class posted positive results during the first five months of the reporting period. This was triggered by overall strong investor demand, less concern over a significant shift in U.S. trade policy and a weakening U.S. dollar. The asset class then modestly declined in June 2017.

Performance review

For the six months ended June 30, 2017, Class I shares of QS Legg Mason Dynamic Multi-Strategy VIT Portfolio¹ returned 6.78%. The Portfolio’s unmanaged benchmarks, the Bloomberg Barclays U.S. Aggregate Index and the Russell 3000 Index^xx, and the Composite Index^xxi returned 2.27%, 8.93% and 7.82%, respectively, for the same period. The Lipper Variable Mixed-Asset Target Allocation Growth Funds Category Average² returned 7.70% over the same time frame.

Performance Snapshot as of June 30, 2017 (unaudited)
	6 months
QS Legg Mason Dynamic Multi-Strategy VIT Portfolio1:
Class I		6.78	%
Class II		6.62	%
Bloomberg Barclays U.S. Aggregate Index		2.27	%
Russell 3000 Index		8.93	%
Composite Index		7.82	%
Lipper Variable Mixed-Asset Target Allocation Growth Funds Category Average2		7.70	%

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.

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 Portfolio expenses. Performance figures for periods shorter than one year represent cumulative figures and are not annualized.

Portfolio 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 Portfolio’s current prospectus dated May 1, 2017, the gross total annual fund operating expense ratios for Class I and Class II shares were 1.10% and 1.35%, respectively.

¹  The Portfolio is an underlying investment option of various variable annuity and variable life insurance products. The Portfolio’s performance returns do not reflect the deduction of expenses imposed in connection with investing in variable annuity or variable life insurance contracts, such as administrative fees, account charges and surrender charges, which, if reflected, would reduce the performance of the Portfolio. Past performance is no guarantee of future results.

²  Lipper, Inc., a wholly-owned subsidiary of Reuters, provides independent insight on global collective investments. Returns are based on the six-month period ended June 30, 2017, including the reinvestment of all distributions, including returns of capital, if any, calculated among the 227 funds in the Portfolio’s Lipper category.

† Includes fees and expenses of the underlying funds in which the Portfolio invests.

VI QS Legg Mason Dynamic Multi-Strategy VIT Portfolio

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 Portfolio expense ratios are more likely to increase when markets are volatile.

As a result of expense limitation arrangements, the ratio of total annual fund operating expenses, other than interest, brokerage, taxes and extraordinary expenses, to average net assets will not exceed 1.05% for Class I shares and 1.30% for Class II shares. Acquired fund fees and expenses are subject to these arrangements. These expense limitation arrangements cannot be terminated prior to December 31, 2018 without the Board of Trustees’ consent.

The manager is permitted to recapture amounts waived and/or reimbursed to a class during the same fiscal year if the class’ total annual 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 the manager recapture any amount that would result, on any particular business day of the Portfolio, in the class’ total annual operating expenses exceeding the expense cap or any other lower limit then in effect.

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

Sincerely,

Jane Trust, CFA

President and Chief Executive Officer

July 28, 2017

RISKS: Equity securities are subject to price and market fluctuations. International investments are subject to special risks including currency fluctuations, as well as social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. Fixed-income securities are subject to interest rate, credit, inflation and reinvestment risks. As interest rates rise, the value of fixed-income securities falls. There are additional risks and other expenses associated with investing in other mutual funds rather than directly in portfolio securities. In addition to the Portfolio’s operating expenses, you will indirectly bear the operating expenses of the underlying funds. Each underlying fund may engage in active and frequent trading, resulting in higher portfolio turnover and transaction costs. Certain of the underlying funds may engage in short selling, which is a speculative strategy that involves special risks. Unlike the possible loss on a security that is purchased, there is no limit on the amount of loss on an appreciating security that is sold short. The model used to manage the Portfolio’s assets provides no assurance that the recommended allocation will either maximize returns or minimize risks. Derivatives, such as options and futures, can be illiquid, may disproportionately increase losses, and have a potentially large impact on Portfolio performance. Please see the Portfolio’s prospectus for a more complete discussion of these and other risks and the Portfolio’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.

The information provided is not intended to be a forecast of future events, a guarantee of future results or investment advice. Views expressed may differ from those of the firm as a whole. Forecasts and predictions are inherently limited and should not be relied upon as an indication of actual or future performance.

QS Legg Mason Dynamic Multi-Strategy VIT Portfolio VII

Investment commentary (cont’d)

ⁱ  Gross domestic product (“GDP”) is the market value of all final goods and services produced within a country in a given period of time.

ⁱⁱ  The International Monetary Fund (“IMF”) is an organization of 189 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.

ⁱⁱⁱ  The Federal Reserve Board (the “Fed”) is responsible for the formulation of U.S. policies designed to promote economic growth, full employment, stable prices and a sustainable pattern of international trade and payments.

^iv  The federal funds rate is the rate charged by one depository institution on an overnight sale of immediately available funds (balances at the Federal Reserve) to another depository institution; the rate may vary from depository institution to depository institution and from day to day.

^v  The European Central Bank (“ECB”) is responsible for the monetary system of the European Union and the euro currency.

^vi  The Bank of England (“BoE”), formally the Governor and Company of the BoE, is the central bank of the United Kingdom. The BoE’s purpose is to maintain monetary and financial stability.

^vii  The Bank of Japan is the central bank of Japan. The bank is responsible for issuing and handling currency and treasury securities, implementing monetary policy, maintaining the stability of the Japanese financial system and the yen currency.

^viii  The People’s Bank of China is the central bank of the People’s Republic of China with the power to carry out monetary policy and regulate financial institutions in mainland China.

^ix  The S&P 500 Index is an unmanaged index of 500 stocks and is generally representative of the performance of larger companies in the U.S.

^x  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 92% of the U.S. market.

^xi  The Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000 is a subset of the Russell 3000 Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2,000 of the smallest securities based on a combination of their market cap and current index membership.

^xii  The Russell Midcap Index measures the performance of the mid-cap segment of the U.S. equity universe. The Russell Midcap is a subset of the Russell 1000 Index. It includes approximately 800 of the smallest securities based on a combination of their market cap and current index membership. The Russell Midcap represents approximately 31% of the total market capitalization of the Russell 1000 companies.

^xiii  The Russell 3000 Growth Index measures the performance of the broad growth segment of the U.S. equity universe. It includes those Russell 3000 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.)

^xiv  The Russell 3000 Value Index measures the performance of the broad value segment of the U.S. equity value universe. It includes those Russell 3000 Index companies with lower price-to-book ratios and lower forecasted growth values.

^xv  The MSCI EAFE Index is a free float-adjusted market capitalization index designed to measure developed market equity performance, excluding the U.S. and Canada.

^xvi  The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets.

^xvii  The Bloomberg Barclays U.S. Aggregate Index is a broad-based bond index comprised of government, corporate, mortgage- and asset-backed issues, rated investment grade or higher, and having at least one year to maturity.

^xviii The Bloomberg Barclays U.S. Corporate High Yield — 2% Issuer Cap Index is an index of the 2% Issuer Cap component of the Bloomberg Barclays U.S. Corporate High Yield Index, which covers the U.S. dollar-denominated, non-investment grade, fixed-rate, taxable corporate bond market.

^xix  The JPMorgan Emerging Markets Bond Index Global (“EMBI Global”) tracks total returns for U.S. dollar-denominated debt instruments issued by emerging market sovereign and quasi-sovereign entities: Brady bonds, loans, Eurobonds and local market instruments.

^xx  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.

^xxi  The Composite Index reflects the blended rate of return of the following underlying indices: 50% Russell 1000 Index, 10% Russell 2000 Index, 10% MSCI All Country World Index Ex-U.S. (“MSCI ACWI Ex-U.S.”), 15% Bloomberg Barclays Global Aggregate ex-USD Index and 15% Bloomberg Barclays U.S. Aggregate Index. The MSCI All-Country World Index ex-U.S. (“MSCI ACWI ex-U.S.”) is a market-capitalization-weighted index that is designed to measure performance of stocks throughout the world, with the exception of U.S.-based companies. The MSCI ACWI Ex-U.S. includes both developed and emerging markets. The Bloomberg Barclays Global Aggregate ex-USD Index tracks an international basket of government, corporate, agency and mortgage-related bonds.

VIII QS Legg Mason Dynamic Multi-Strategy VIT Portfolio

Portfolio at a glance (unaudited)

QS Legg Mason Dynamic Multi-Strategy VIT Portfolio Breakdown† (%) as of — June 30, 2017

As a Percentage of Total Long-Term Investments

% of Total Long-Term Investments		Top 5 Sectors
	18.8 Legg Mason Partners Equity Trust — QS U.S. Large Cap Equity Fund, Class IS Shares	Information Technology Financials Consumer Discretionary Health Care Industrials
	14.0 Legg Mason Global Asset Management Trust — Legg Mason BW Global Opportunities Bond Fund, Class IS Shares	Sovereign Bonds Corporate Bonds & Notes U.S. Government & Agency Obligations Collateralized Mortgage Obligations Municipal Bonds
	14.0 Western Asset Funds, Inc. — Western Asset Core Bond Fund, Class IS Shares	Mortgage-Backed Securities Government Investment Grade Corporate Bonds Asset-Backed Securities Emerging Market
	13.1 Legg Mason Global Asset Management Trust — Legg Mason BW Diversified Large Cap Value Fund, Class IS Shares	Financials Information Technology Health Care Industrials Consumer Discretionary
	8.9 Legg Mason Partners Equity Trust — ClearBridge Appreciation Fund, Class IS Shares	Information Technology Health Care Financials Consumer Discretionary Industrials
	8.1 Legg Mason Partners Equity Trust — ClearBridge Aggressive Growth Fund, Class IS Shares	Health Care Information Technology Consumer Discretionary Energy Industrials
	6.9 Legg Mason Global Asset Management Trust — QS International Equity Fund, Class IS Shares	Financials Industrials Consumer Discretionary Health Care Consumer Staples

† Subject to change at any time.

QS Legg Mason Dynamic Multi-Strategy VIT Portfolio 2017 Semi-Annual Report 1

Portfolio at a glance (unaudited) (cont’d)

QS Legg Mason Dynamic Multi-Strategy VIT Portfolio Breakdown† (%) as of — June 30, 2017

% of Total Long-Term Investments		Top 5 Sectors
	4.4 The Royce Fund — Royce Small/Mid-Cap Premier Fund, Investment Class Shares	Consumer Discretionary Industrials Materials Financials Information Technology
	4.4 Legg Mason Global Asset Management Trust — QS U.S. Small Capitalization Equity Fund, Class IS Shares	Financials Information Technology Consumer Discretionary Health Care Industrials
	2.8 Legg Mason Partners Equity Trust — ClearBridge International Value Fund, Class IS Shares	Financials Materials Industrials Consumer Discretionary Information Technology
	1.0 Vanguard Index Funds — Vanguard Total International Bond ETF	Japan France Germany Italy United Kingdom
	1.0 Legg Mason Partners Equity Trust — ClearBridge Small Cap Fund, Class I Shares	Financials Information Technology Industrials Consumer Discretionary Health Care
	0.9 iShares Trust — iShares Core U.S. Aggregate Bond	Treasury MBS Pass-Through Industrial Financial Institutions Agency
	0.5 iShares Trust — iShares Russell 1000 Value Index Fund	Financials Health Care Energy Consumer Staples Industrials
	0.3 iShares Trust — iShares MSCI EAFE Index Fund	Financials Industrials Consumer Discretionary Consumer Staples Health Care
	0.3 iShares Trust — iShares Russell 1000 Growth Index Fund	Information Technology Consumer Discretionary Health Care Industrials Consumer Staples
	0.1 iShares Trust — iShares Russell 2000 Index Fund	Financials Information Technology Health Care Industrials Consumer Discretionary
	0.5 Purchased Options

† Subject to change at any time.

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Portfolio expenses (unaudited)

Example

As a shareholder of the Portfolio, you may incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees; service and/or distribution (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Portfolio 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 January 1, 2017 and held for the six months ended June 30, 2017.

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 Portfolio’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 Portfolio and other funds. To do so, compare the 5.00% hypothetical example relating to the Portfolio 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. 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  Return2			Beginning Account Value		Ending Account Value		Annualized Expense Ratio3			Expenses Paid During the Period4			Hypothetical Annualized Total Return			Beginning Account Value		Ending Account Value		Annualized Expense Ratio3			Expenses Paid During the Period4
Class I		6.78	%	$	1,000.00	$	1,067.80		0.40	%	$	2.05	Class I		5.00	%	$	1,000.00	$	1,022.81		0.40	%	$	2.01
Class II		6.62			1,000.00		1,066.20		0.65			3.33	Class II		5.00			1,000.00		1,021.57		0.65			3.26

QS Legg Mason Dynamic Multi-Strategy VIT Portfolio 2017 Semi-Annual Report 3

Portfolio expenses (unaudited) (cont’d)

¹ For the six months ended June 30, 2017.

² Assumes the reinvestment of all distributions, including returns of capital, if any, at net asset value. Total return is not annualized, as it may not be representative of the total return for the year. Total returns do not reflect expenses associated with separate accounts such as administrative fees, account charges and surrender charges, which, if reflected, would reduce the total returns. 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 These expense ratios do not include fees and expenses of the Underlying Funds in which the Portfolio invests.

⁴ 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 (181), then divided by 365.

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Schedules of investments (unaudited)

June 30, 2017

QS Legg Mason Dynamic Multi-Strategy VIT Portfolio

Description			Shares		Value
Investments in Underlying Funds — 99.4%
iShares Trust:
iShares Core U.S. Aggregate Bond				122,196	$	13,381,684
iShares MSCI EAFE Index Fund				66,624		4,343,885
iShares Russell 1000 Growth Index Fund				36,476		4,341,373
iShares Russell 1000 Value Index Fund				60,737		7,071,609
iShares Russell 2000 Index Fund				5,925		834,951
Legg Mason Global Asset Management Trust:
Legg Mason BW Diversified Large Cap Value Fund, Class IS Shares				9,685,361		195,160,018	(a)
Legg Mason BW Global Opportunities Bond Fund, Class IS Shares				18,866,406		207,530,470	(a)
QS International Equity Fund, Class IS Shares				6,315,463		102,057,881	(a)
QS U.S. Small Capitalization Equity Fund, Class IS Shares				4,822,315		65,872,823	(a)
Legg Mason Partners Equity Trust:
ClearBridge Aggressive Growth Fund, Class IS Shares				532,677		120,592,827	(a)
ClearBridge Appreciation Fund, Class IS Shares				5,853,319		132,460,606	(a)
ClearBridge International Value Fund, Class IS Shares				3,676,487		41,029,598	(a)
ClearBridge Small Cap Fund, Class l Shares				243,084		14,633,668	(a)
QS U.S. Large Cap Equity Fund, Class IS Shares				15,252,867		278,822,402	(a)
The Royce Fund — Royce Small/Mid-Cap Premier Fund, Investment Class Shares				4,270,413		66,105,987	(a)(b)
Vanguard Index Funds — Vanguard Total International Bond ETF				286,345		15,565,714
Western Asset Funds, Inc. — Western Asset Core Bond Fund, Class IS Shares				16,495,631		207,515,041	(a)
Total Investments in Underlying Funds (Cost — $1,279,362,381)						1,477,320,537
	Expiration Date		Contracts
Purchased Options — 0.5%
Exchange-Traded Purchased Options — 0.5%
S&P 500 Index, Put @ $1,900.00		6/15/18		294		802,620
S&P 500 Index, Put @ $1,925.00		6/15/18		49		147,000
S&P 500 Index, Put @ $1,950.00		6/15/18		299		965,770
S&P 500 Index, Put @ $1,950.00		12/21/18		40		224,000
S&P 500 Index, Put @ $1,975.00		6/15/18		50		175,000
S&P 500 Index, Put @ $1,975.00		12/21/18		40		233,880
S&P 500 Index, Put @ $2,000.00		6/15/18		296		1,124,800
S&P 500 Index, Put @ $2,000.00		12/21/18		41		260,760

See Notes to Financial Statements.

QS Legg Mason Dynamic Multi-Strategy VIT Portfolio 2017 Semi-Annual Report 5

Schedules of investments (unaudited) (cont’d)

June 30, 2017

QS Legg Mason Dynamic Multi-Strategy VIT Portfolio

Description	Expiration Date			Contracts		Value
Exchange-Traded Purchased Options — continued
S&P 500 Index, Put @ $2,025.00		6/15/18			51	$	209,100
S&P 500 Index, Put @ $2,025.00		12/21/18			41		276,340
S&P 500 Index, Put @ $2,050.00		6/15/18			298		1,311,200
S&P 500 Index, Put @ $2,050.00		12/21/18			41		294,380
S&P 500 Index, Put @ $2,075.00		6/15/18			50		237,500
S&P 500 Index, Put @ $2,075.00		12/21/18			41		313,240
S&P 500 Index, Put @ $2,100.00		12/21/18			40		320,800
S&P 500 Index, Put @ $2,125.00		12/21/18			40		346,000
Total Purchased Options (Cost — $11,177,880)							7,242,390
Total Investments before Short-Term Investments (Cost — $1,290,540,261)							1,484,562,927
	Rate			Shares
Short-Term Investments — 0.2%
State Street Institutional U.S. Government Money Market Fund, Premier Class (Cost — $2,918,639)		0.935	%		2,918,639		2,918,639
Total Investments — 100.1% (Cost — $1,293,458,900#)							1,487,481,566
Liabilities in Excess of Other Assets — (0.1)%							(1,192,916	)
Total Net Assets — 100.0%						$	1,486,288,650

^(a)  Underlying Funds are affiliated with Legg Mason, Inc. and more information about the Underlying Funds is available at www.leggmason.com/mutualfunds.

^(b)  Prior to May 1, 2017, the Fund was known as Royce Heritage Fund.

# Aggregate cost for federal income tax purposes is substantially the same.

See Notes to Financial Statements.

6 QS Legg Mason Dynamic Multi-Strategy VIT Portfolio 2017 Semi-Annual Report

Statement of assets and liabilities (unaudited)

June 30, 2017

Assets:
Investments in affiliated Underlying Funds, at cost	$	1,238,254,464
Investments in unaffiliated Underlying Funds and investments, at cost		55,204,436
Investments in affiliated Underlying Funds, at value		1,431,781,321
Investments in unaffiliated Underlying Funds and investments, at value		55,700,245
Cash		3,068
Receivable for Portfolio shares sold		196,490
Interest receivable		1,447
Prepaid expenses		4,544
Total Assets		1,487,687,115
Liabilities:
Payable for Portfolio shares repurchased		803,363
Investment management fee payable		454,716
Trustees’ fees payable		13,807
Service and/or distribution fees payable		9,913
Accrued expenses		116,666
Total Liabilities		1,398,465
Total Net Assets	$	1,486,288,650
Net Assets:
Par value (Note 7)	$	1,184
Paid-in capital in excess of par value		1,451,531,981
Undistributed net investment income		649,803
Accumulated net realized loss on Underlying Funds, investments and capital gain distributions from Underlying Funds		(159,916,984)
Net unrealized appreciation on Underlying Funds and investments		194,022,666
Total Net Assets	$	1,486,288,650
Net Assets:
Class I		$1,438,412,122
Class II		$47,876,528
Shares Outstanding:
Class I		114,597,205
Class II		3,828,617
Net Asset Value:
Class I		$12.55
Class II		$12.50

See Notes to Financial Statements.

QS Legg Mason Dynamic Multi-Strategy VIT Portfolio 2017 Semi-Annual Report 7

Statement of operations (unaudited)

For the Six Months Ended June 30, 2017

Investment Income:
Income distributions from affiliated Underlying Funds	$	3,402,465
Income distributions from unaffiliated Underlying Funds		324,188
Interest		13,156
Total Investment Income		3,739,809
Expenses:
Investment management fee (Note 2)		3,362,844
Fund accounting fees		70,418
Service and/or distribution fees (Notes 2 and 5)		61,125
Trustees’ fees		50,101
Shareholder reports		42,263
Legal fees		24,452
Audit and tax fees		18,229
Insurance		13,268
Custody fees		11,731
Interest expense		753
Transfer agent fees (Note 5)		542
Miscellaneous expenses		3,392
Total Expenses		3,659,118
Less: Fee waivers and/or expense reimbursements (Notes 2 and 5)		(641,896)
Net Expenses		3,017,222
Net Investment Income		722,587
Realized and Unrealized Gain (Loss) on Underlying Funds, Investments and Capital Gain Distributions From Affiliated Underlying Funds (Notes 1, 3 and 4):
Net Realized Gain (Loss) From:
Sale of affiliated Underlying Funds		5,835,445
Sale of unaffiliated Underlying Funds and investments		(12,166,388)
Capital gain distributions from affiliated Underlying Funds		342,187
Net Realized Loss		(5,988,756)
Change in Net Unrealized Appreciation (Depreciation) From:
Affiliated Underlying Funds		101,759,570
Unaffiliated Underlying Funds and investments		3,046,840
Change in Net Unrealized Appreciation (Depreciation)		104,806,410
Net Gain on Underlying Funds, Investments and Capital Gain Distributions From Affiliated Underlying Funds		98,817,654
Increase in Net Assets From Operations	$	99,540,241

See Notes to Financial Statements.

8 QS Legg Mason Dynamic Multi-Strategy VIT Portfolio 2017 Semi-Annual Report

Statements of changes in net assets

For the Six Months Ended June 30, 2017 (unaudited) and the Year Ended December 31, 2016	2017		2016
Operations:
Net investment income	$	722,587	$	14,637,812
Net realized loss		(5,988,756)		(118,107,046)
Change in net unrealized appreciation (depreciation)		104,806,410		100,977,527
Increase (Decrease) in Net Assets From Operations		99,540,241		(2,491,707)
Distributions to Shareholders From (Notes 1 and 6):
Net investment income		(830,065)		(17,750,196)
Net realized gains		—		(35,127,483)
Decrease in Net Assets From Distributions to Shareholders		(830,065)		(52,877,679)
Portfolio Share Transactions (Note 7):
Net proceeds from sale of shares		55,860,037		337,958,510
Reinvestment of distributions		830,065		52,877,678
Cost of shares repurchased		(161,824,539)		(653,767,877)
Decrease in Net Assets From Portfolio Share Transactions		(105,134,437)		(262,931,689)
Decrease in Net Assets		(6,424,261)		(318,301,075)
Net Assets:
Beginning of period		1,492,712,911		1,811,013,986
End of period*	$	1,486,288,650	$	1,492,712,911
*Includes undistributed net investment income of:		$649,803		$757,281

See Notes to Financial Statements.

QS Legg Mason Dynamic Multi-Strategy VIT Portfolio 2017 Semi-Annual Report 9

Financial highlights

For a share of each class of beneficial interest outstanding throughout each year ended December 31, unless otherwise noted:
Class I Shares1	20172			2016			2015			2014			2013			2012
Net asset value, beginning of period		$11.76			$12.15			$13.10			$12.61			$10.77			$9.87
Income (loss) from operations:
Net investment income		0.01			0.10			0.14			0.18			0.15			0.33	3
Net realized and unrealized gain (loss)		0.79			(0.13)			(0.82)			0.66			1.83			0.71
Total income (loss) from operations		0.80			(0.03)			(0.68)			0.84			1.98			1.04
Less distributions from:
Net investment income		(0.01)			(0.14)			(0.13)			(0.20)			(0.12)			(0.14)
Net realized gains		—			(0.22)			(0.14)			(0.15)			(0.02)			(0.00)	4
Total distributions		(0.01)			(0.36)			(0.27)			(0.35)			(0.14)			(0.14)
Net asset value, end of period		$12.55			$11.76			$12.15			$13.10			$12.61			$10.77
Total return5		6.78	%		(0.20)	%		(5.26)	%		6.69	%		18.37	%		10.56	%
Net assets, end of period (000s)		$1,438,412			$1,442,819			$1,750,869			$1,482,417			$986,544			$198,555
Ratios to average net assets:
Gross expenses6		0.48	%7		0.48	%		0.48	%		0.49	%		0.51	%		0.82	%
Net expenses6,8,9		0.40	7		0.42			0.41			0.39			0.38			0.40
Net investment income		0.11	7		0.84			1.10			1.42			1.22			3.14	3
Portfolio turnover rate		0	%10		30	%11		115	%11		2	%		3	%		35	%

¹ Per share amounts have been calculated using the average shares method.

² For the six months ended June 30, 2017 (unaudited).

³ Net investment income includes short-term capital gain distributions from Underlying Funds.

⁴ Amount represents less than $0.005 per share.

⁵ 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. Total returns do not reflect expenses associated with separate accounts such as administrative fees, account charges and surrender charges which, if reflected, would reduce the total return for all periods shown. Past performance is no guarantee of future results. Total returns for periods of less than one year are not annualized.

⁶ Does not include fees and expenses of the Underlying Funds in which the Portfolio invests.

⁷ Annualized.

⁸ As a result of an expense limitation arrangement, effective September 1, 2015, the ratio of total annual fund operating expenses, other than interest, brokerage, taxes and extraordinary expenses, to average net assets of Class I shares did not exceed 1.05%. This expense limitation arrangement cannot be terminated prior to December 31, 2018 without the Board of Trustees’ consent. Prior to September 1, 2015, the expense limitation was 1.10%.

⁹ Reflects fee waivers and/or expense reimbursements.

¹⁰ Amount represents less than 0.05%.

¹¹ Excludes the value of securities received in lieu of cash proceeds from the sale of Underlying Funds and the subsequent sale of those securities.

See Notes to Financial Statements.

10 QS Legg Mason Dynamic Multi-Strategy VIT Portfolio 2017 Semi-Annual Report

For a share of each class of beneficial interest outstanding throughout each year ended December 31, unless otherwise noted:
Class II Shares1	20172			2016			2015			2014			2013			2012
Net asset value, beginning of period		$11.73			$12.12			$13.06			$12.58			$10.75			$9.87
Income (loss) from operations:
Net investment income (loss)		(0.01)			0.07			0.11			0.14			0.09			0.49	3
Net realized and unrealized gain (loss)		0.79			(0.13)			(0.81)			0.66			1.86			0.52
Total income (loss) from operations		0.78			(0.06)			(0.70)			0.80			1.95			1.01
Less distributions from:
Net investment income		(0.01)			(0.11)			(0.10)			(0.17)			(0.10)			(0.13)
Net realized gains		—			(0.22)			(0.14)			(0.15)			(0.02)			(0.00)	4
Total distributions		(0.01)			(0.33)			(0.24)			(0.32)			(0.12)			(0.13)
Net asset value, end of period		$12.50			$11.73			$12.12			$13.06			$12.58			$10.75
Total return5		6.62	%		(0.47)	%		(5.44)	%		6.37	%		18.12	%		10.29	%
Net assets, end of period (000s)		$47,877			$49,894			$60,145			$57,449			$45,855			$12,706
Ratios to average net assets:
Gross expenses6		0.73	%7		0.73	%		0.73	%		0.76	%		0.79	%		1.03	%
Net expenses6,8,9		0.65	7		0.67			0.66			0.64			0.63			0.59
Net investment income (loss)		(0.15)	7		0.63			0.84			1.07			0.73			4.61	3
Portfolio turnover rate		0	%10		30	%11		115	%11		2	%		3	%		35	%

¹ Per share amounts have been calculated using the average shares method.

² For the six months ended June 30, 2017 (unaudited).

³ Net investment income includes short-term capital gain distributions from Underlying Funds.

⁴ Amount represents less than $0.005 per share.

⁵ 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. Total returns do not reflect expenses associated with separate accounts such as administrative fees, account charges and surrender charges which, if reflected, would reduce the total return for all periods shown. Past performance is no guarantee of future results. Total returns for periods of less than one year are not annualized.

⁶ Does not include fees and expenses of the Underlying Funds in which the Portfolio invests.

⁷ Annualized.

⁸ As a result of an expense limitation arrangement, effective September 1, 2015, the ratio of total annual fund operating expenses, other than interest, brokerage, taxes and extraordinary expenses, to average net assets of Class II shares did not exceed 1.30%. This expense limitation arrangement cannot be terminated prior to December 31, 2018 without the Board of Trustees’ consent. Prior to September 1, 2015, the expense limitation was 1.35%.

⁹ Reflects fee waivers and/or expense reimbursements.

¹⁰ Amount represents less than 0.05%.

¹¹ Excludes the value of securities received in lieu of cash proceeds from the sale of Underlying Funds and the subsequent sale of those securities.

See Notes to Financial Statements.

QS Legg Mason Dynamic Multi-Strategy VIT Portfolio 2017 Semi-Annual Report 11

Notes to financial statements (unaudited)

1. Organization and significant accounting policies

QS Legg Mason Dynamic Multi-Strategy VIT Portfolio (the “Portfolio”) is a separate diversified investment series of Legg Mason Partners Variable 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 Portfolio invests in other mutual funds (“Underlying Funds”) which are affiliated with Legg Mason, Inc. (“Legg Mason”) or exchange-traded funds (“ETFs”) that are based on an index and managed by unaffiliated investment advisers. The financial statements and financial highlights for the Underlying Funds are presented in a separate shareholder report for each respective Underlying Fund.

Shares of the Portfolio may only be purchased or redeemed through variable annuity contracts and variable life insurance policies offered by the separate accounts of participating insurance companies or through eligible pension or other qualified plans.

The following are significant accounting policies consistently followed by the Portfolio 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. Investments in the Underlying Funds, excluding ETFs, are valued at the closing net asset value per share of each Underlying Fund on the day of 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 fair valuation techniques and methodologies. The independent third party pricing services 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. Short-term fixed income securities that will mature in 60 days or less are valued at amortized cost, unless it is determined that using this method would not reflect an investment’s fair value. 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 Portfolio holds securities or other assets that are denominated in a foreign currency, the Portfolio 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

12 QS Legg Mason Dynamic Multi-Strategy VIT Portfolio 2017 Semi-Annual Report

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 Portfolio calculates its net asset value, the Portfolio values these securities as determined in accordance with procedures approved by the Portfolio’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 Legg Mason North Atlantic Fund Valuation Committee (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 effectiveness of the Portfolio’s pricing policies, and reporting to the Board of Trustees. When determining the reliability of third party pricing information for investments owned by the Portfolio, 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. Additionally, if the closing net asset value per share for an Underlying Fund is not available on the day of valuation, the Valuation Committee may adjust the Underlying Fund’s last available net asset value per share to account for significant events that have occurred subsequent to the Underlying Fund’s last net asset value per share calculation but prior to the day of valuation.

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 Portfolio 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

QS Legg Mason Dynamic Multi-Strategy VIT Portfolio 2017 Semi-Annual Report 13

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

approach uses valuation techniques to discount estimated future cash flows to present value.

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 Portfolio’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 Portfolio’s assets carried at fair value:

ASSETS
Description	Quoted Prices (Level 1)		Other Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Long-term investments†:
Investments in Underlying Funds	$	1,477,320,537		—		—	$	1,477,320,537
Purchased options		4,141,730	$	3,100,660		—		7,242,390
Total long-term investments	$	1,481,462,267	$	3,100,660		—	$	1,484,562,927
Short-term investments†		2,918,639		—		—		2,918,639
Total investments	$	1,484,380,906	$	3,100,660		—	$	1,487,481,566

† See Schedule of Investments for additional detailed categorizations.

(b) Fund of funds risk. Your cost of investing in the Portfolio, as a fund of funds, may be higher than the cost of investing in a mutual fund that only invests directly in individual securities. An Underlying Fund may change its investment objective or policies without the Portfolio’s approval, which could force the Portfolio to withdraw its investments from such Underlying Fund at a time that is unfavorable to the Portfolio. In addition, one Underlying Fund may buy the same securities that another Underlying Fund sells. Therefore, the Portfolio would indirectly bear the costs of these trades without accomplishing any investment purpose.

(c) Purchased options. When the Portfolio purchases an option, an amount equal to the premium paid by the Portfolio is recorded as an investment on the Statement of Assets and Liabilities, the value of which is marked-to-market to reflect the current market value of the option purchased. If the purchased option expires, the Portfolio realizes a loss equal to the amount of premium paid. When an instrument is purchased or sold through the exercise of an option, the related premium paid is added to the basis of the instrument acquired or

14 QS Legg Mason Dynamic Multi-Strategy VIT Portfolio 2017 Semi-Annual Report

deducted from the proceeds of the instrument sold. The risk associated with purchasing put and call options is limited to the premium paid.

(d) Security transactions and investment income. Security transactions are accounted for on a trade date basis. Net investment income distributions, if any, from the Underlying Funds are recorded on the ex-dividend date as investment income. Interest income is recorded on an accrual basis. Short-term and long-term capital gain distributions, if any, from the Underlying Funds are recorded on the ex-dividend date as realized gains. The cost of investments sold is determined by use of the specific identification method.

(e) 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 Portfolio are recorded on the ex-dividend date and are determined in accordance with income tax regulations, which may differ from GAAP.

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

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

(h) Federal and other taxes. It is the Portfolio’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 Portfolio 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 Portfolio’s financial statements.

Management has analyzed the Portfolio’s tax positions taken on income tax returns for all open tax years and has concluded that as of December 31, 2016, no provision for income tax is required in the Portfolio’s financial statements. The Portfolio’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.

(i) 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 Portfolio’s investment manager. QS Investors, LLC (“QS Investors”), the subadviser to the Portfolio, is responsible for the implementation of the Portfolio’s overall asset allocation and the Dynamic Risk Management strategy. Western Asset Management Company (“Western Asset”), the Portfolio’s other

QS Legg Mason Dynamic Multi-Strategy VIT Portfolio 2017 Semi-Annual Report 15

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

subadviser, is responsible for the Portfolio’s Event Risk Management Strategy and manages the portion of the Portfolio’s cash and short-term instruments allocated to it. LMPFA, QS Investors and Western Asset are wholly-owned subsidiaries of Legg Mason, Inc. (“Legg Mason”).

Under the investment management agreement, the Portfolio pays an investment management fee, calculated daily and paid monthly, at an annual rate of 0.45% of the Portfolio’s average daily net assets.

LMPFA provides administrative and certain oversight services to the Portfolio. LMPFA delegates to the subadvisers the day-to-day portfolio management of the Portfolio, except for the management of the portion of the cash and short-term instruments allocated to Western Asset.

As a result of expense limitation arrangements between the Portfolio and LMPFA, the ratio of total annual fund operating expenses, other than interest, brokerage, taxes and extraordinary expenses, to average net assets of Class I and Class II shares did not exceed 1.05% and 1.30%, respectively. Acquired fund fees and expenses are subject to these arrangements. These expense limitation arrangements cannot be terminated prior to December 31, 2018 without the Board of Trustees’ consent.

LMPFA is permitted to recapture amounts waived and/or reimbursed to a class during the same fiscal year if the class’ total annual 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 Portfolio, in the class’ total annual operating expenses exceeding the expense cap or any other lower limit then in effect.

During the six months ended June 30, 2017, fees waived and/or expenses reimbursed amounted to $641,896.

Legg Mason Investor Services, LLC, a wholly-owned broker-dealer subsidiary of Legg Mason, serves as the Portfolio’s sole and exclusive distributor.

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

3. Investments

During the six months ended June 30, 2017, the aggregate cost of purchases and proceeds from sales of investments (excluding short-term investments) were as follows:

Purchases	$	3,744,652
Sales		115,290,000

16 QS Legg Mason Dynamic Multi-Strategy VIT Portfolio 2017 Semi-Annual Report

At June 30, 2017, the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:

Gross unrealized appreciation	$	198,004,320
Gross unrealized depreciation		(3,981,654)
Net unrealized appreciation	$	194,022,666

4. Derivative instruments and hedging activities

Below is a table, grouped by derivative type, that provides information about the fair value and the location of derivatives within the Statement of Assets and Liabilities at June 30, 2017.

ASSET DERIVATIVES1
	Equity Risk
Purchased options2	$	7,242,390

¹ Generally, the balance sheet location for asset derivatives is receivables/net unrealized appreciation (depreciation) and for liability derivatives is payables/net unrealized appreciation (depreciation).

² Market value of purchased options is reported in Investments in unaffiliated Underlying Funds and investments, at value in the Statement of Assets and Liabilities.

The following tables provide information about the effect of derivatives and hedging activities on the Portfolio’s Statement of Operations for the six months ended June 30, 2017. The first table provides additional detail about the amounts and sources of gains (losses) realized on derivatives during the period. The second table provides additional information about the change in unrealized appreciation (depreciation) resulting from the Portfolio’s derivatives and hedging activities during the period.

AMOUNT OF REALIZED GAIN (LOSS) ON DERIVATIVES RECOGNIZED
	Equity Risk
Purchased options1	$	(12,166,388)

¹ Net realized gain (loss) from purchased options is reported in net realized gain (loss) from sale of unaffiliated Underlying Funds and investments in the Statement of Operations.

CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED
	Equity Risk
Purchased options1	$	1,533,682

¹ The change in unrealized appreciation (depreciation) from purchased options is reported in the change in net unrealized appreciation (depreciation) from unaffiliated Underlying Funds and investments in the Statement of Operations.

During the six months ended June 30, 2017, the volume of derivative activity for the Portfolio was as follows:

	Average Market Value
Purchased options	$	7,488,877

QS Legg Mason Dynamic Multi-Strategy VIT Portfolio 2017 Semi-Annual Report 17

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

The following table presents by financial instrument, the Portfolio’s derivative assets net of the related collateral received by the Portfolio at June 30, 2017:

	Gross Amount of Derivative Assets in the Statement of Assets and Liabilities1		Collateral Received		Net Amount
Purchased options2	$	7,242,390		—	$	7,242,390

¹ Absent an event of default or early termination, derivative assets and liabilities are presented gross and not offset in the Statement of Assets and Liabilities.

² Market value of purchased options is reported in Investments in unaffiliated Underlying Funds and investments, at value in the Statement of Assets and Liabilities.

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

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

For the six months ended June 30, 2017, class specific expenses were as follows:

	Service and/or Distribution Fees		Transfer Agent Fees
Class I		—	$	493
Class II	$	61,125		49
Total	$	61,125	$	542

For the six months ended June 30, 2017, waivers and/or expense reimbursements by class were as follows:

	Waivers/Expense Reimbursements
Class I	$	620,979
Class II		20,917
Total	$	641,896

6. Distributions to shareholders by class

	Six Months Ended June 30, 2017		Year Ended December 31, 2016
Net Investment Income:
Class I	$	803,150	$	17,286,831
Class II		26,915		463,365
Total	$	830,065	$	17,750,196
Net Realized Gains:
Class I		—	$	34,031,972
Class II		—		1,095,511
Total		—	$	35,127,483

18 QS Legg Mason Dynamic Multi-Strategy VIT Portfolio 2017 Semi-Annual Report

7. Shares of beneficial interest

At June 30, 2017, the Trust had an unlimited number of shares of beneficial interest authorized with a par value of $0.00001 per share. The Portfolio 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 June 30, 2017				Year Ended December 31, 2016
	Shares		Amount		Shares		Amount
Class I
Shares sold		4,533,217	$	55,216,748		28,010,010	$	331,515,496
Shares issued on reinvestment		63,843		803,150		4,327,875		51,318,803
Shares repurchased		(12,722,901)		(155,955,273)		(53,727,292)		(637,333,952)
Net decrease		(8,125,841)	$	(99,935,375)		(21,389,407)	$	(254,499,653)
Class II
Shares sold		52,929	$	643,289		547,466	$	6,443,014
Shares issued on reinvestment		2,147		26,915		131,787		1,558,875
Shares repurchased		(480,947)		(5,869,266)		(1,387,970)		(16,433,925)
Net decrease		(425,871)	$	(5,199,062)		(708,717)	$	(8,432,036)

8. Transactions with affiliated Underlying Funds

As defined by the 1940 Act, an affiliated company is one in which the Portfolio owns 5% or more of the outstanding voting securities, or a company which is under common ownership or control. Legg Mason through sub-advisory agreements with its wholly owned subsidiaries, also provides investment management services to certain of the Underlying Funds held by the Portfolio. Based on the Portfolio’s relative ownership, the following Underlying Funds were considered affiliated companies for all or some portion of the six months ended June 30, 2017. The following transactions were effected in shares of such Underlying Funds for the six months ended June 30, 2017.

	Affiliate Value at December 31, 2016		Purchased				Sold				Realized Gain (Loss) from Sale of Affiliated Underlying Funds		Income Distributions from Affiliated Underlying Funds		Capital Gain Distributions from Affiliated Underlying Funds		Net Increase (Decrease) in Unrealized Appreciation (Depreciation)		Affiliate Value at June 30, 2017
Underlying Funds			Cost		Shares		Cost		Shares
Legg Mason Global Asset Management Trust — Legg Mason BW Diversified Large Cap Value Fund, Class IS Shares	$	202,260,011		—		—	$	19,814,124		1,056,010	$	980,876		—		—	$	12,714,130	$	195,160,018
Legg Mason Global Asset Management Trust — Legg Mason BW Global Opportunities Bond Fund, Class IS Shares		197,821,311	$	1,005,992		92,593		9,559,410		909,900		285,590	$	1,005,992		—		18,262,577		207,530,470

QS Legg Mason Dynamic Multi-Strategy VIT Portfolio 2017 Semi-Annual Report 19

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

	Affiliate Value at December 31, 2016		Purchased				Sold				Realized Gain (Loss) from Sale of Affiliated Underlying Funds		Income Distributions from Affiliated Underlying Funds		Capital Gain Distributions from Affiliated Underlying Funds		Net Increase (Decrease) in Unrealized Appreciation (Depreciation)		Affiliate Value at June 30, 2017
Underlying Funds			Cost		Shares		Cost		Shares
Legg Mason Global Asset Management Trust — QS International Equity Fund, Class IS Shares	$	97,999,097		—		—	$	9,638,605		649,647	$	626,395		—		—	$	13,697,389	$	102,057,881
Legg Mason Global Asset Management Trust — QS U.S. Small Capitalization Equity Fund, Class IS Shares		71,622,258	$	340,148		24,595		6,677,513		484,157		(72,513)		—	$	340,148		587,930		65,872,823
Legg Mason Partners Equity Trust —ClearBridge Aggressive Growth Fund, Class IS Shares		121,383,039		—		—		10,245,331		47,881		559,669		—		—		9,455,119		120,592,827
Legg Mason Partners Equity Trust —ClearBridge Appreciation Fund, Class IS Shares		132,987,211		—		—		10,878,914		515,800		541,086		—		—		10,352,309		132,460,606
Legg Mason Partners Equity Trust —ClearBridge International Value Fund, Class IS Shares		40,305,781		—		—		4,830,555		457,439		129,445		—		—		5,554,373		41,029,598
Legg Mason Partners Equity Trust —ClearBridge Small Cap Fund, Class I Shares		15,616,181		2,039		34		1,684,167		33,636		285,833		—		2,039		699,614		14,633,668
Legg Mason Partners Equity Trust — QS U.S. Large Cap Equity Fund, Class IS Shares		283,283,217		—		—		27,322,629		1,659,564		2,267,371		—		—		22,861,813		278,822,402
The Royce Fund —Royce Small/Mid-Cap Premier Fund, Investment Class Shares(a)		68,033,313		—		—		5,551,855		376,671		178,145		—		—		3,624,529		66,105,987
Western Asset Funds, Inc. — Western Asset Core Bond Fund, Class IS Shares		204,420,235		2,396,473		191,739		3,251,452		261,767		53,548	$	2,396,473		—		3,949,787		207,515,041
	$	1,435,731,654	$	3,744,652			$	109,454,555			$	5,835,445	$	3,402,465	$	342,187	$	101,759,570	$	1,431,781,321

^(a)  Prior to May 1, 2017, the Fund was known as Royce Heritage Fund.

9. Deferred capital losses

As of December 31, 2016, the Portfolio had deferred capital losses of $123,062,169, which have no expiration date, that will be available to offset future taxable capital gains.

10. Recent accounting pronouncement

In October 2016, the U.S. Securities and Exchange Commission adopted new rules and amended existing rules (together, the “final rules”) intended to modernize the reporting and disclosure of information by registered investment companies. In part, the final rules amend Regulation S-X and require standardized, enhanced disclosure about derivatives in investment company financial statements, as well as other amendments. The compliance date for the amendments to Regulation S-X is August 1, 2017. Management is currently evaluating the impact that the adoption of the amendments to Regulation S-X will have on the Portfolio’s financial statements and related disclosures.

20 QS Legg Mason Dynamic Multi-Strategy VIT Portfolio 2017 Semi-Annual Report

QS Legg Mason

Dynamic Multi-Strategy VIT Portfolio

Trustees

Paul R. Ades

Andrew L. Breech

Dwight B. Crane

Althea L. Duersten

Frank G. Hubbard

Howard J. Johnson

Chairman

Jerome H. Miller

Ken Miller

John J. Murphy

Thomas F. Schlafly

Jane Trust

Investment manager

Legg Mason Partners Fund Advisor, LLC

Subadvisers

QS Investors, LLC Western Asset Management Company

Distributor

Legg Mason Investor Services, LLC

Custodian

State Street Bank and Trust Company

Transfer agent

BNY Mellon Investment Servicing (US) Inc.

4400 Computer Drive

Westborough, MA 01581

Independent registered public accounting firm

KPMG LLP

345 Park Avenue

New York, NY 10154

QS Legg Mason Dynamic Multi-Strategy VIT Portfolio

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

QS Legg Mason Dynamic Multi-Strategy VIT Portfolio

Legg Mason Funds

620 Eighth Avenue, 49^th Floor

New York, NY 10018

The Portfolio files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The Portfolio’s Forms N-Q are available on the SEC’s website at www.sec.gov. The Portfolio’s Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C., and information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. To obtain information on Form N-Q, shareholders can call the Portfolio at 1-877-721-1926

Information on how the Portfolio 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 Portfolio uses to determine how to vote proxies related to portfolio transactions are available (1) without charge, upon request, by calling the Portfolio at 1-877-721-1926, (2) at www.leggmason.com/variablefunds and (3) on the SEC’s website at www.sec.gov.

This report is submitted for the general information of the shareholders of QS Legg Mason Dynamic Multi-Strategy VIT Portfolio. This report is not authorized for distribution to prospective investors in the Portfolio unless preceded or accompanied by a current prospectus.

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

www.leggmason.com

© 2017 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 and certain closed-end funds managed or sub-advised by Legg Mason or its affiliates. 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;

• 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 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 marketing services solely for the Funds;

• The Funds’ representatives such as legal counsel, accountants and auditors; and

• 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 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, or if you have questions about the Funds’ privacy practices, 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.

NOT PART OF THE SEMI-ANNUAL REPORT

www.leggmason.com

© 2017 Legg Mason Investor Services, LLC Member FINRA, SIPC

LMFX014837 8/17 SR17-3127

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 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. 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 Variable Equity Trust

By:	/s/ Jane Trust
	Jane Trust
	Chief Executive Officer
Date:	August 15, 2017

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:	August 15, 2017
By:	/s/ Richard F. Sennett
	Richard F. Sennett
	Principal Financial Officer
Date:	August 15, 2017