CLEARBRIDGE DIVIDEND STRATEGY FUND
Schedule of investments (unaudited) | September 30, 2022 |
(Percentages shown based on Fund net assets)
SECURITY | SHARES | VALUE | ||||||
COMMON STOCKS - 98.9% | ||||||||
COMMUNICATION SERVICES - 5.5% | ||||||||
Diversified Telecommunication Services - 1.5% | ||||||||
Verizon Communications Inc. | 2,463,296 | $ | 93,531,349 | |||||
|
| |||||||
Entertainment - 1.9% | ||||||||
Walt Disney Co. | 1,280,670 | 120,805,601 | * | |||||
|
| |||||||
Media - 2.1% | ||||||||
Comcast Corp., Class A Shares | 4,593,520 | 134,727,942 | ||||||
|
| |||||||
TOTAL COMMUNICATION SERVICES | 349,064,892 | |||||||
|
| |||||||
CONSUMER DISCRETIONARY - 2.8% | ||||||||
Automobiles - 0.5% | ||||||||
General Motors Co. | 1,101,500 | 35,347,135 | ||||||
|
| |||||||
Specialty Retail - 2.3% | ||||||||
Home Depot Inc. | 518,470 | 143,066,612 | ||||||
|
| |||||||
TOTAL CONSUMER DISCRETIONARY | 178,413,747 | |||||||
|
| |||||||
CONSUMER STAPLES - 8.8% | ||||||||
Beverages - 2.2% | ||||||||
Coca-Cola Co. | 2,507,040 | 140,444,381 | ||||||
|
| |||||||
Food Products - 4.3% | ||||||||
Mondelez International Inc., Class A Shares | 2,438,710 | 133,714,469 | ||||||
Nestle SA, ADR | 1,267,340 | 136,378,457 | ||||||
|
| |||||||
Total Food Products | 270,092,926 | |||||||
|
| |||||||
Household Products - 2.3% | ||||||||
Procter & Gamble Co. | 1,158,940 | 146,316,175 | ||||||
|
| |||||||
TOTAL CONSUMER STAPLES | 556,853,482 | |||||||
|
| |||||||
ENERGY - 9.2% | ||||||||
Oil, Gas & Consumable Fuels - 9.2% | ||||||||
Chesapeake Energy Corp. | 682,050 | 64,255,930 | ||||||
Enbridge Inc. | 4,911,633 | 182,221,584 | ||||||
EQT Corp. | 1,508,910 | 61,488,083 | ||||||
Pioneer Natural Resources Co. | 382,720 | 82,870,362 | ||||||
Williams Cos. Inc. | 6,671,400 | 191,002,182 | ||||||
|
| |||||||
TOTAL ENERGY | 581,838,141 | |||||||
|
| |||||||
FINANCIALS - 14.8% | ||||||||
Banks - 6.0% | ||||||||
Bank of America Corp. | 4,669,750 | 141,026,450 | ||||||
JPMorgan Chase & Co. | 834,110 | 87,164,495 | ||||||
PNC Financial Services Group Inc. | 570,490 | 85,242,616 | ||||||
US Bancorp | 1,614,700 | 65,104,704 | ||||||
|
| |||||||
Total Banks | 378,538,265 | |||||||
|
|
See Notes to Schedule of Investments.
ClearBridge Dividend Strategy Fund 2022 Quarterly Report |
1 |
CLEARBRIDGE DIVIDEND STRATEGY FUND
Schedule of investments (unaudited) (cont’d) | September 30, 2022 |
(Percentages shown based on Fund net assets)
SECURITY | SHARES | VALUE | ||||||
Capital Markets - 1.1% | ||||||||
Blackstone Inc. | 859,200 | $ | 71,915,040 | |||||
|
| |||||||
Diversified Financial Services - 2.5% | ||||||||
Apollo Global Management Inc. | 3,355,054 | 156,010,011 | ||||||
|
| |||||||
Insurance - 5.2% | ||||||||
American International Group Inc. | 1,910,600 | 90,715,288 | ||||||
MetLife Inc. | 1,753,015 | 106,548,251 | ||||||
Travelers Cos. Inc. | 844,260 | 129,340,632 | ||||||
|
| |||||||
Total Insurance | 326,604,171 | |||||||
|
| |||||||
TOTAL FINANCIALS | 933,067,487 | |||||||
|
| |||||||
HEALTH CARE - 12.6% | ||||||||
Health Care Equipment & Supplies - 2.2% | ||||||||
Becton Dickinson and Co. | 623,950 | 139,034,779 | ||||||
|
| |||||||
Health Care Providers & Services - 2.9% | ||||||||
UnitedHealth Group Inc. | 361,830 | 182,738,623 | ||||||
|
| |||||||
Pharmaceuticals - 7.5% | ||||||||
Johnson & Johnson | 901,307 | 147,237,512 | ||||||
Merck & Co. Inc. | 1,761,290 | 151,682,295 | ||||||
Pfizer Inc. | 2,566,050 | 112,290,348 | ||||||
Zoetis Inc. | 391,850 | 58,107,436 | ||||||
|
| |||||||
Total Pharmaceuticals | 469,317,591 | |||||||
|
| |||||||
TOTAL HEALTH CARE | 791,090,993 | |||||||
|
| |||||||
INDUSTRIALS - 11.5% | ||||||||
Aerospace & Defense - 5.0% | ||||||||
Northrop Grumman Corp. | 227,500 | 106,997,800 | ||||||
Raytheon Technologies Corp. | 2,522,580 | 206,498,399 | ||||||
|
| |||||||
Total Aerospace & Defense | 313,496,199 | |||||||
|
| |||||||
Air Freight & Logistics - 2.0% | ||||||||
United Parcel Service Inc., Class B Shares | 801,100 | 129,409,694 | ||||||
|
| |||||||
Commercial Services & Supplies - 2.1% | ||||||||
Waste Management Inc. | 807,940 | 129,440,068 | ||||||
|
| |||||||
Machinery - 0.4% | ||||||||
Otis Worldwide Corp. | 437,990 | 27,943,762 | ||||||
|
| |||||||
Road & Rail - 2.0% | ||||||||
Union Pacific Corp. | 639,470 | 124,581,545 | ||||||
|
| |||||||
TOTAL INDUSTRIALS | 724,871,268 | |||||||
|
| |||||||
INFORMATION TECHNOLOGY - 19.8% | ||||||||
Communications Equipment - 1.4% | ||||||||
Cisco Systems Inc. | 2,162,720 | 86,508,800 | ||||||
|
|
See Notes to Schedule of Investments.
2 | ClearBridge Dividend Strategy Fund 2022 Quarterly Report |
CLEARBRIDGE DIVIDEND STRATEGY FUND
Schedule of investments (unaudited) (cont’d) | September 30, 2022 |
(Percentages shown based on Fund net assets)
SECURITY | SHARES | VALUE | ||||||
IT Services - 3.7% | ||||||||
Mastercard Inc., Class A Shares | 369,360 | $ | 105,023,822 | |||||
Visa Inc., Class A Shares | 718,530 | 127,646,855 | ||||||
|
| |||||||
Total IT Services | 232,670,677 | |||||||
|
| |||||||
Semiconductors & Semiconductor Equipment - 3.0% | ||||||||
Broadcom Inc. | 185,570 | 82,394,936 | ||||||
Intel Corp. | 2,329,390 | 60,028,380 | ||||||
Texas Instruments Inc. | 314,340 | 48,653,545 | ||||||
|
| |||||||
Total Semiconductors & Semiconductor Equipment | 191,076,861 | |||||||
|
| |||||||
Software - 7.3% | ||||||||
Microsoft Corp. | 1,280,150 | 298,146,935 | ||||||
Oracle Corp. | 1,506,130 | 91,979,359 | ||||||
SAP SE | 862,200 | 70,265,134 | (a) | |||||
|
| |||||||
Total Software | 460,391,428 | |||||||
|
| |||||||
Technology Hardware, Storage & Peripherals - 4.4% | ||||||||
Apple Inc. | 1,984,592 | 274,270,614 | ||||||
|
| |||||||
TOTAL INFORMATION TECHNOLOGY | 1,244,918,380 | |||||||
|
| |||||||
MATERIALS - 7.6% | ||||||||
Chemicals - 4.8% | ||||||||
Linde PLC | 622,820 | 167,906,044 | ||||||
PPG Industries Inc. | 1,187,040 | 131,393,457 | ||||||
|
| |||||||
Total Chemicals | 299,299,501 | |||||||
|
| |||||||
Construction Materials - 2.2% | ||||||||
Vulcan Materials Co. | 886,390 | 139,792,567 | ||||||
|
| |||||||
Metals & Mining - 0.6% | ||||||||
Freeport-McMoRan Inc. | 1,464,850 | 40,034,351 | ||||||
|
| |||||||
TOTAL MATERIALS | 479,126,419 | |||||||
|
| |||||||
REAL ESTATE - 2.3% | ||||||||
Equity Real Estate Investment Trusts (REITs) - 2.3% | ||||||||
American Tower Corp. | 483,630 | 103,835,361 | ||||||
Boston Properties Inc. | 519,520 | 38,948,414 | ||||||
|
| |||||||
TOTAL REAL ESTATE | 142,783,775 | |||||||
|
| |||||||
UTILITIES - 4.0% | ||||||||
Electric Utilities - 1.3% | ||||||||
Edison International | 1,483,236 | 83,921,493 | ||||||
|
|
See Notes to Schedule of Investments.
ClearBridge Dividend Strategy Fund 2022 Quarterly Report |
3 |
CLEARBRIDGE DIVIDEND STRATEGY FUND
Schedule of investments (unaudited) (cont’d) | September 30, 2022 |
(Percentages shown based on Fund net assets)
SECURITY | SHARES | VALUE | ||||||||||||||
Multi-Utilities - 2.7% | ||||||||||||||||
Public Service Enterprise Group Inc. | 511,820 | $ | 28,779,639 | |||||||||||||
Sempra Energy | 922,210 | 138,276,167 | ||||||||||||||
|
| |||||||||||||||
Total Multi-Utilities | 167,055,806 | |||||||||||||||
|
| |||||||||||||||
TOTAL UTILITIES | 250,977,299 | |||||||||||||||
|
| |||||||||||||||
TOTAL COMMON STOCKS | 6,233,005,883 | |||||||||||||||
|
| |||||||||||||||
RATE | MATURITY DATE | FACE AMOUNT | ||||||||||||||
ASSET-BACKED SECURITIES - 0.0%†† | ||||||||||||||||
Finance America NIM Trust, 2004-1 A (Cost - $73,449) | 5.250 | % | 6/27/34 | $ | 73,417 | 1 | *(b)(c) | |||||||||
TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS |
| 6,233,005,884 | ||||||||||||||
|
| |||||||||||||||
SHARES | ||||||||||||||||
SHORT-TERM INVESTMENTS - 1.1% | ||||||||||||||||
JPMorgan 100% U.S. Treasury Securities Money Market Fund, Institutional Class | 2.482 | % | 53,761,777 | 53,761,777 | ||||||||||||
Western Asset Premier Institutional U.S. Treasury Reserves, Premium Shares | 2.615 | % | 13,440,444 | 13,440,444 | (d) | |||||||||||
|
| |||||||||||||||
TOTAL SHORT-TERM INVESTMENTS (Cost - $67,202,221) |
| 67,202,221 | ||||||||||||||
|
| |||||||||||||||
TOTAL INVESTMENTS - 100.0% (Cost - $4,059,721,723) |
| 6,300,208,105 | ||||||||||||||
Liabilities in Excess of Other Assets - (0.0)%†† | (1,558,743 | ) | ||||||||||||||
|
| |||||||||||||||
TOTAL NET ASSETS - 100.0% | $ | 6,298,649,362 | ||||||||||||||
|
|
†† | Represents less than 0.1%. |
* | Non-income producing security. |
(a) | Security is valued in good faith in accordance with procedures approved by the Board of Trustees (Note 1). |
(b) | Security is exempt from registration under Rule 144A of the Securities Act of 1933. This security may be resold in transactions that are exempt from registration, normally to qualified institutional buyers. This security has been deemed liquid pursuant to guidelines approved by the Board of Trustees. |
(c) | The coupon payment on this security is currently in default as of September 30, 2022. |
(d) | In this instance, as defined in the Investment Company Act of 1940, an “Affiliated Company” represents Fund ownership of at least 5% of the outstanding voting securities of an issuer, or a company which is under common ownership or control with the Fund. At September 30, 2022, the total market value of investments in Affiliated Companies was $13,440,444 and the cost was $13,440,444 (Note 2). |
Abbreviation(s) used in this schedule: |
ADR — American Depositary Receipts |
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.
4 | ClearBridge Dividend Strategy Fund 2022 Quarterly Report |
Notes to Schedule of Investments (unaudited)
1. Organization and significant accounting policies
ClearBridge Dividend Strategy 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. This may include using an independent third party pricing service to adjust the value of such securities to the latest indications of fair value at 4:00 p.m. (Eastern Time).
Pursuant to policies adopted by the Board of Trustees, the Fund’s manager has been designated as the valuation designee and is responsible for the oversight of the daily valuation process. The Fund’s manager is assisted by the Global Fund Valuation Committee (the “Valuation Committee”). The Valuation Committee is responsible for making fair value determinations, evaluating the effectiveness of the Fund’s pricing policies, and reporting to the Fund’s manager and 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.
5 |
Notes to Schedule of Investments (unaudited) (cont’d)
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.
6 |
Notes to Schedule of Investments (unaudited) (cont’d)
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 | ||||||||||||
Long-Term Investments†: | ||||||||||||||||
Common Stocks: | ||||||||||||||||
Information Technology | $ | 1,174,653,246 | $ | 70,265,134 | — | $ | 1,244,918,380 | |||||||||
Other Common Stocks | 4,988,087,503 | — | — | 4,988,087,503 | ||||||||||||
Asset-Backed Securities | — | 1 | — | 1 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Long-Term Investments | 6,162,740,749 | 70,265,135 | — | 6,233,005,884 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Short-Term Investments† | 67,202,221 | — | — | 67,202,221 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments | $ | 6,229,942,970 | $ | 70,265,135 | — | $ | 6,300,208,105 | |||||||||
|
|
|
|
|
|
|
|
* | As a result of the fair value pricing procedures for international equities utilized by the Fund, which account for events occurring after the close of the principal market of the security but prior to the calculation of the Fund’s net asset value, certain securities were classified as Level 2 within the fair value hierarchy. |
† | See Schedule of Investments for additional detailed categorizations. |
2. Transactions with affiliated company
As defined by the 1940 Act, an affiliated company is one in which the Fund owns 5% or more of the outstanding voting securities, or a company which is under common ownership or control with the Fund. The following company was considered an affiliated company for all or some portion of the period ended September 30, 2022. The following transactions were effected in such company for the period ended September 30, 2022.
Affiliate Value at December 31, 2021 | Purchased | Sold | Realized Gain (Loss) | Dividend Income | Net Increase (Decrease) in Unrealized Appreciation (Depreciation) | Affiliate Value at September 30, 2022 | ||||||||||||||||||||||||||||||
Cost | Shares | Cost | Shares | |||||||||||||||||||||||||||||||||
Western Asset Premier Institutional U.S. Treasury Reserves, Premium Shares | $ | 10,861,864 | $ | 111,973,687 | 111,973,687 | $ | 109,395,107 | 109,395,107 | — | $ | 86,904 | — | $ | 13,440,444 |
7 |