FRANKLIN U.S. LARGE CAP EQUITY FUND
Schedule of investments (unaudited) | August 31, 2022 |
(Percentages shown based on Fund net assets)
SECURITY | SHARES | VALUE | ||||||
COMMON STOCKS - 97.9% | ||||||||
COMMUNICATION SERVICES - 6.2% | ||||||||
Entertainment - 0.4% | ||||||||
Electronic Arts Inc. | 6,000 | $ | 761,220 | |||||
|
| |||||||
Interactive Media & Services - 5.1% | ||||||||
Alphabet Inc., Class A Shares | 38,700 | 4,188,114 | * | |||||
Alphabet Inc., Class C Shares | 36,000 | 3,929,400 | * | |||||
Meta Platforms Inc., Class A Shares | 11,000 | 1,792,230 | * | |||||
|
| |||||||
Total Interactive Media & Services | 9,909,744 | |||||||
|
| |||||||
Media - 0.7% | ||||||||
Comcast Corp., Class A Shares | 25,000 | 904,750 | ||||||
Nexstar Media Group Inc., Class A Shares | 3,000 | 573,960 | ||||||
|
| |||||||
Total Media | 1,478,710 | |||||||
|
| |||||||
TOTAL COMMUNICATION SERVICES | 12,149,674 | |||||||
|
| |||||||
CONSUMER DISCRETIONARY - 11.1% | ||||||||
Automobiles - 2.5% | ||||||||
Ford Motor Co. | 100,964 | 1,538,692 | ||||||
Harley-Davidson Inc. | 24,707 | 952,949 | ||||||
Tesla Inc. | 8,802 | 2,425,919 | * | |||||
|
| |||||||
Total Automobiles | 4,917,560 | |||||||
|
| |||||||
Hotels, Restaurants & Leisure - 1.5% | ||||||||
Airbnb Inc., Class A Shares | 3,726 | 421,485 | * | |||||
Booking Holdings Inc. | 576 | 1,080,467 | * | |||||
Expedia Group Inc. | 5,462 | 560,674 | * | |||||
MGM Resorts International | 21,109 | 688,998 | ||||||
Penn National Gaming Inc. | 8,692 | 271,451 | * | |||||
|
| |||||||
Total Hotels, Restaurants & Leisure | 3,023,075 | |||||||
|
| |||||||
Household Durables - 1.2% | ||||||||
PulteGroup Inc. | 33,276 | 1,353,002 | ||||||
Toll Brothers Inc. | 23,716 | 1,038,524 | ||||||
|
| |||||||
Total Household Durables | 2,391,526 | |||||||
|
| |||||||
Internet & Direct Marketing Retail - 2.9% | ||||||||
Amazon.com Inc. | 38,000 | 4,817,260 | * | |||||
eBay Inc. | 16,761 | 739,663 | ||||||
|
| |||||||
Total Internet & Direct Marketing Retail | 5,556,923 | |||||||
|
| |||||||
Multiline Retail - 0.3% | ||||||||
Nordstrom Inc. | 34,566 | 591,424 | ||||||
|
| |||||||
Specialty Retail - 2.3% | ||||||||
AutoZone Inc. | 400 | 847,684 | * | |||||
Dick’s Sporting Goods Inc. | 10,000 | 1,063,700 |
See Notes to Schedule of Investments.
Franklin U.S. Large Cap Equity Fund 2022 Quarterly Report |
1 |
FRANKLIN U.S. LARGE CAP EQUITY FUND
Schedule of investments (unaudited) (cont’d) | August 31, 2022 |
(Percentages shown based on Fund net assets)
SECURITY | SHARES | VALUE | ||||||
Specialty Retail - (continued) | ||||||||
Home Depot Inc. | 5,589 | $ | 1,611,979 | |||||
Ulta Beauty Inc. | 2,100 | 881,727 | * | |||||
|
| |||||||
Total Specialty Retail | 4,405,090 | |||||||
|
| |||||||
Textiles, Apparel & Luxury Goods - 0.4% | ||||||||
NIKE Inc., Class B Shares | 7,000 | 745,150 | ||||||
|
| |||||||
TOTAL CONSUMER DISCRETIONARY | 21,630,748 | |||||||
|
| |||||||
CONSUMER STAPLES - 5.3% | ||||||||
Beverages - 0.6% | ||||||||
Molson Coors Beverage Co., Class B Shares | 21,000 | 1,085,070 | ||||||
|
| |||||||
Food & Staples Retailing - 1.4% | ||||||||
Albertsons Cos. Inc., Class A Shares | 39,536 | 1,087,635 | ||||||
Costco Wholesale Corp. | 994 | 518,967 | ||||||
Kroger Co. | 24,788 | 1,188,337 | ||||||
|
| |||||||
Total Food & Staples Retailing | 2,794,939 | |||||||
|
| |||||||
Food Products - 2.5% | ||||||||
Darling Ingredients Inc. | 16,131 | 1,226,924 | * | |||||
Flowers Foods Inc. | 34,566 | 943,652 | ||||||
Hershey Co. | 9,237 | 2,075,277 | ||||||
Tyson Foods Inc., Class A Shares | 7,682 | 579,069 | ||||||
|
| |||||||
Total Food Products | 4,824,922 | |||||||
|
| |||||||
Household Products - 0.6% | ||||||||
Procter & Gamble Co. | 7,920 | 1,092,485 | ||||||
|
| |||||||
Personal Products - 0.2% | ||||||||
Coty Inc., Class A Shares | 60,714 | 455,962 | * | |||||
|
| |||||||
TOTAL CONSUMER STAPLES | 10,253,378 | |||||||
|
| |||||||
ENERGY - 5.1% | ||||||||
Oil, Gas & Consumable Fuels - 5.1% | ||||||||
APA Corp. | 30,725 | 1,201,655 | ||||||
Devon Energy Corp. | 19,000 | 1,341,780 | ||||||
Diamondback Energy Inc. | 5,000 | 666,400 | ||||||
Exxon Mobil Corp. | 42,247 | 4,038,390 | ||||||
Marathon Oil Corp. | 51,146 | 1,308,826 | ||||||
Valero Energy Corp. | 11,173 | 1,308,582 | ||||||
|
| |||||||
TOTAL ENERGY | 9,865,633 | |||||||
|
| |||||||
FINANCIALS - 8.9% | ||||||||
Banks - 3.2% | ||||||||
Associated Banc-Corp. | 39,697 | 795,528 | ||||||
Bank of America Corp. | 5,085 | 170,907 | ||||||
Citizens Financial Group Inc. | 30,172 | 1,106,709 |
See Notes to Schedule of Investments.
2 | Franklin U.S. Large Cap Equity Fund 2022 Quarterly Report |
FRANKLIN U.S. LARGE CAP EQUITY FUND
Schedule of investments (unaudited) (cont’d) | August 31, 2022 |
(Percentages shown based on Fund net assets)
SECURITY | SHARES | VALUE | ||||||
Banks - (continued) | ||||||||
JPMorgan Chase & Co. | 7,451 | $ | 847,402 | |||||
Wells Fargo & Co. | 39,482 | 1,725,758 | ||||||
Zions Bancorp NA | 28,264 | 1,555,368 | ||||||
|
| |||||||
Total Banks | 6,201,672 | |||||||
|
| |||||||
Capital Markets - 1.1% | ||||||||
Bank of New York Mellon Corp. | 14,898 | 618,714 | ||||||
BGC Partners Inc., Class A Shares | 208,586 | 838,516 | ||||||
Virtu Financial Inc., Class A Shares | 32,646 | 749,552 | ||||||
|
| |||||||
Total Capital Markets | 2,206,782 | |||||||
|
| |||||||
Consumer Finance - 1.4% | ||||||||
Ally Financial Inc. | 19,284 | 640,229 | ||||||
Bread Financial Holdings Inc. | 11,173 | 429,378 | ||||||
Discover Financial Services | 16,000 | 1,607,840 | ||||||
|
| |||||||
Total Consumer Finance | 2,677,447 | |||||||
|
| |||||||
Diversified Financial Services - 1.7% | ||||||||
Apollo Global Management Inc. | 13,535 | 752,275 | ||||||
Berkshire Hathaway Inc., Class B Shares | 5,016 | 1,408,493 | * | |||||
Equitable Holdings Inc. | 38,407 | 1,142,608 | ||||||
|
| |||||||
Total Diversified Financial Services | 3,303,376 | |||||||
|
| |||||||
Insurance - 1.2% | ||||||||
American Financial Group Inc. | 5,462 | 697,388 | ||||||
American International Group Inc. | 14,898 | 770,972 | ||||||
Everest Re Group Ltd. | 3,000 | 807,150 | ||||||
|
| |||||||
Total Insurance | 2,275,510 | |||||||
|
| |||||||
Thrifts & Mortgage Finance - 0.3% | ||||||||
MGIC Investment Corp. | 49,664 | 709,699 | ||||||
|
| |||||||
TOTAL FINANCIALS | 17,374,486 | |||||||
|
| |||||||
HEALTH CARE - 15.0% | ||||||||
Biotechnology - 1.8% | ||||||||
Alkermes PLC | 32,000 | 757,440 | * | |||||
BioMarin Pharmaceutical Inc. | 6,207 | 553,664 | * | |||||
Exelixis Inc. | 45,000 | 798,300 | * | |||||
Vertex Pharmaceuticals Inc. | 5,000 | 1,408,800 | * | |||||
|
| |||||||
Total Biotechnology | 3,518,204 | |||||||
|
| |||||||
Health Care Equipment & Supplies - 0.4% | ||||||||
QuidelOrtho Corp. | 8,550 | 677,673 | * | |||||
|
| |||||||
Health Care Providers & Services - 6.6% | ||||||||
Elevance Health Inc. | 4,224 | 2,049,105 | ||||||
Henry Schein Inc. | 13,000 | 954,330 | * | |||||
McKesson Corp. | 3,728 | 1,368,176 |
See Notes to Schedule of Investments.
Franklin U.S. Large Cap Equity Fund 2022 Quarterly Report |
3 |
FRANKLIN U.S. LARGE CAP EQUITY FUND
Schedule of investments (unaudited) (cont’d) | August 31, 2022 |
(Percentages shown based on Fund net assets)
SECURITY | SHARES | VALUE | ||||||
Health Care Providers & Services - (continued) | ||||||||
Molina Healthcare Inc. | 8,112 | $ | 2,736,745 | * | ||||
Premier Inc., Class A Shares | 28,928 | 1,019,423 | ||||||
UnitedHealth Group Inc. | 9,202 | 4,778,875 | ||||||
|
| |||||||
Total Health Care Providers & Services | 12,906,654 | |||||||
|
| |||||||
Health Care Technology - 0.6% | ||||||||
Veeva Systems Inc., Class A Shares | 5,519 | 1,100,047 | * | |||||
|
| |||||||
Life Sciences Tools & Services - 0.4% | ||||||||
Agilent Technologies Inc. | 6,000 | 769,500 | ||||||
|
| |||||||
Pharmaceuticals - 5.2% | ||||||||
Bristol-Myers Squibb Co. | 13,919 | 938,280 | ||||||
Jazz Pharmaceuticals PLC | 6,000 | 931,320 | * | |||||
Johnson & Johnson | 10,000 | 1,613,400 | ||||||
Merck & Co. Inc. | 27,891 | 2,380,776 | ||||||
Perrigo Co. PLC | 15,000 | 561,300 | ||||||
Pfizer Inc. | 58,666 | 2,653,463 | ||||||
Viatris Inc. | 115,220 | 1,100,351 | ||||||
|
| |||||||
Total Pharmaceuticals | 10,178,890 | |||||||
|
| |||||||
TOTAL HEALTH CARE | 29,150,968 | |||||||
|
| |||||||
INDUSTRIALS - 8.1% | ||||||||
Aerospace & Defense - 0.6% | ||||||||
Lockheed Martin Corp. | 3,000 | 1,260,330 | ||||||
|
| |||||||
Air Freight & Logistics - 0.8% | ||||||||
United Parcel Service Inc., Class B Shares | 8,158 | 1,586,813 | ||||||
|
| |||||||
Building Products - 1.6% | ||||||||
AO Smith Corp. | 12,290 | 693,770 | ||||||
Carlisle Cos. Inc. | 4,000 | 1,182,640 | ||||||
Owens Corning | 15,000 | 1,225,950 | ||||||
|
| |||||||
Total Building Products | 3,102,360 | |||||||
|
| |||||||
Commercial Services & Supplies - 0.5% | ||||||||
CoreCivic Inc. | 96,228 | 917,053 | * | |||||
|
| |||||||
Construction & Engineering - 0.4% | ||||||||
EMCOR Group Inc. | 6,207 | 738,136 | ||||||
|
| |||||||
Electrical Equipment - 0.8% | ||||||||
Acuity Brands Inc. | 4,966 | 814,077 | ||||||
Emerson Electric Co. | 9,237 | 755,032 | ||||||
|
| |||||||
Total Electrical Equipment | 1,569,109 | |||||||
|
| |||||||
Machinery - 2.5% | ||||||||
Crane Holdings Co. | 11,522 | 1,087,216 | ||||||
Cummins Inc. | 8,580 | 1,847,874 |
See Notes to Schedule of Investments.
4 | Franklin U.S. Large Cap Equity Fund 2022 Quarterly Report |
FRANKLIN U.S. LARGE CAP EQUITY FUND
Schedule of investments (unaudited) (cont’d) | August 31, 2022 |
(Percentages shown based on Fund net assets)
SECURITY | SHARES | VALUE | ||||||
Machinery - (continued) | ||||||||
Fortive Corp. | 12,290 | $ | 778,326 | |||||
Snap-on Inc. | 4,993 | 1,087,775 | ||||||
|
| |||||||
Total Machinery | 4,801,191 | |||||||
|
| |||||||
Professional Services - 0.6% | ||||||||
ManpowerGroup Inc. | 6,053 | 443,806 | ||||||
Robert Half International Inc. | 9,314 | 716,898 | ||||||
|
| |||||||
Total Professional Services | 1,160,704 | |||||||
|
| |||||||
Road & Rail - 0.3% | ||||||||
CSX Corp. | 19,204 | 607,807 | ||||||
|
| |||||||
TOTAL INDUSTRIALS | 15,743,503 | |||||||
|
| |||||||
INFORMATION TECHNOLOGY - 27.3% | ||||||||
Communications Equipment - 1.1% | ||||||||
Arista Networks Inc. | 11,522 | 1,381,257 | * | |||||
Cisco Systems Inc. | 17,118 | 765,517 | ||||||
|
| |||||||
Total Communications Equipment | 2,146,774 | |||||||
|
| |||||||
Electronic Equipment, Instruments & Components - 0.3% | ||||||||
Avnet Inc. | 15,478 | 679,329 | ||||||
|
| |||||||
IT Services - 2.3% | ||||||||
Accenture PLC, Class A Shares | 6,206 | 1,790,183 | ||||||
Amdocs Ltd. | 8,000 | 683,760 | ||||||
Mastercard Inc., Class A Shares | 3,806 | 1,234,552 | ||||||
Visa Inc., Class A Shares | 3,864 | 767,815 | ||||||
|
| |||||||
Total IT Services | 4,476,310 | |||||||
|
| |||||||
Semiconductors & Semiconductor Equipment - 5.2% | ||||||||
Advanced Micro Devices Inc. | 11,000 | 933,570 | * | |||||
Applied Materials Inc. | 18,474 | 1,737,849 | ||||||
Lam Research Corp. | 3,744 | 1,639,535 | ||||||
NVIDIA Corp. | 13,535 | 2,042,973 | ||||||
QUALCOMM Inc. | 15,363 | 2,032,064 | ||||||
Texas Instruments Inc. | 10,000 | 1,652,100 | ||||||
|
| |||||||
Total Semiconductors & Semiconductor Equipment | 10,038,091 | |||||||
|
| |||||||
Software - 11.0% | ||||||||
Adobe Inc. | 6,240 | 2,330,266 | * | |||||
CrowdStrike Holdings Inc., Class A Shares | 7,451 | 1,360,627 | * | |||||
Dolby Laboratories Inc., Class A Shares | 9,314 | 682,157 | ||||||
Dropbox Inc., Class A Shares | 65,767 | 1,406,756 | * | |||||
Fortinet Inc. | 25,000 | 1,217,250 | * | |||||
Manhattan Associates Inc. | 10,370 | 1,464,866 | * | |||||
Microsoft Corp. | 38,000 | 9,935,860 | ||||||
Qualys Inc. | 8,154 | 1,238,593 | * |
See Notes to Schedule of Investments.
Franklin U.S. Large Cap Equity Fund 2022 Quarterly Report |
5 |
FRANKLIN U.S. LARGE CAP EQUITY FUND
Schedule of investments (unaudited) (cont’d) | August 31, 2022 |
(Percentages shown based on Fund net assets)
SECURITY | SHARES | VALUE | ||||||
Software - (continued) | ||||||||
Teradata Corp. | 15,275 | $ | 502,547 | * | ||||
Trade Desk Inc., Class A Shares | 15,478 | 970,471 | * | |||||
Varonis Systems Inc. | 12,290 | 336,132 | * | |||||
|
| |||||||
Total Software | 21,445,525 | |||||||
|
| |||||||
Technology Hardware, Storage & Peripherals - 7.4% | ||||||||
Apple Inc. | 88,000 | 13,835,360 | ||||||
Xerox Holdings Corp. | 28,709 | 477,144 | ||||||
|
| |||||||
Total Technology Hardware, Storage & Peripherals | 14,312,504 | |||||||
|
| |||||||
TOTAL INFORMATION TECHNOLOGY | 53,098,533 | |||||||
|
| |||||||
MATERIALS - 3.3% | ||||||||
Chemicals - 1.6% | ||||||||
CF Industries Holdings Inc. | 13,919 | 1,440,060 | ||||||
Huntsman Corp. | 59,534 | 1,668,142 | ||||||
|
| |||||||
Total Chemicals | 3,108,202 | |||||||
|
| |||||||
Containers & Packaging - 0.6% | ||||||||
International Paper Co. | 28,164 | 1,172,186 | ||||||
|
| |||||||
Metals & Mining - 1.1% | ||||||||
Steel Dynamics Inc. | 26,140 | 2,110,021 | ||||||
|
| |||||||
TOTAL MATERIALS | 6,390,409 | |||||||
|
| |||||||
REAL ESTATE - 3.6% | ||||||||
Equity Real Estate Investment Trusts (REITs) - 2.2% | ||||||||
Gaming and Leisure Properties Inc. | 12,909 | 623,117 | ||||||
Host Hotels & Resorts Inc. | 64,561 | 1,147,249 | ||||||
Lamar Advertising Co., Class A Shares | 16,911 | 1,587,774 | ||||||
Weyerhaeuser Co. | 26,885 | 918,392 | ||||||
|
| |||||||
Total Equity Real Estate Investment Trusts (REITs) | 4,276,532 | |||||||
|
| |||||||
Real Estate Management & Development - 1.4% | ||||||||
CBRE Group Inc., Class A Shares | 18,597 | 1,468,419 | * | |||||
Jones Lang LaSalle Inc. | 6,894 | 1,192,662 | * | |||||
|
| |||||||
Total Real Estate Management & Development | 2,661,081 | |||||||
|
| |||||||
TOTAL REAL ESTATE | 6,937,613 | |||||||
|
| |||||||
UTILITIES - 4.0% | ||||||||
Electric Utilities - 2.5% | ||||||||
IDACORP Inc. | 6,000 | 655,440 | ||||||
NRG Energy Inc. | 22,349 | 922,567 | ||||||
Pinnacle West Capital Corp. | 12,000 | 904,200 | ||||||
Portland General Electric Co. | 25,460 | 1,315,518 | ||||||
PPL Corp. | 34,516 | 1,003,725 | ||||||
|
| |||||||
Total Electric Utilities | 4,801,450 | |||||||
|
|
See Notes to Schedule of Investments.
6 | Franklin U.S. Large Cap Equity Fund 2022 Quarterly Report |
FRANKLIN U.S. LARGE CAP EQUITY FUND
Schedule of investments (unaudited) (cont’d) | August 31, 2022 |
(Percentages shown based on Fund net assets)
SECURITY | SHARES | VALUE | ||||||||||
Gas Utilities - 0.4% | ||||||||||||
National Fuel Gas Co. | 11,522 | $ | 821,173 | |||||||||
|
| |||||||||||
Independent Power and Renewable Electricity Producers - 0.5% |
| |||||||||||
Vistra Corp. | 38,407 | 950,573 | ||||||||||
|
| |||||||||||
Multi-Utilities - 0.6% | ||||||||||||
Consolidated Edison Inc. | 11,522 | 1,126,161 | ||||||||||
|
| |||||||||||
TOTAL UTILITIES | 7,699,357 | |||||||||||
|
| |||||||||||
TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS (Cost - $174,195,513) |
| 190,294,302 | ||||||||||
|
| |||||||||||
RATE | ||||||||||||
SHORT-TERM INVESTMENTS - 0.7% | ||||||||||||
Invesco Treasury Portfolio, Institutional Class (Cost - $1,417,579) | 2.160 | % | 1,417,579 | 1,417,579 | ||||||||
|
| |||||||||||
TOTAL INVESTMENTS - 98.6% (Cost - $175,613,092) | 191,711,881 | |||||||||||
Other Assets in Excess of Liabilities - 1.4% | 2,687,257 | |||||||||||
|
| |||||||||||
TOTAL NET ASSETS - 100.0% | $ | 194,399,138 | ||||||||||
|
|
* | Non-income producing security. |
This Schedule of Investments is unaudited and is intended to provide information about the Fund’s investments as of the date of the schedule. Other information regarding the Fund is available in the Fund’s most recent annual or semi-annual shareholder report.
See Notes to Schedule of Investments.
Franklin U.S. Large Cap Equity Fund 2022 Quarterly Report |
7 |
Notes to Schedule of Investments (unaudited)
1. Organization and significant accounting policies
Franklin U.S. Large Cap Equity Fund (the “Fund”) is a separate diversified investment series of Legg Mason Partners Investment 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”).
(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 (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 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.
8 |
Notes to Schedule of Investments (unaudited) (continued)
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.
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 – unadjusted 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.
9 |
Notes to Schedule of Investments (unaudited) (continued)
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† | $ | 190,294,302 | — | — | $ | 190,294,302 | ||||||||||
Short-Term Investments† | 1,417,579 | — | — | 1,417,579 | ||||||||||||
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Total Investments | $ | 191,711,881 | — | — | $ | 191,711,881 | ||||||||||
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† | See Schedule of Investments for additional detailed categorizations. |
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