CLEARBRIDGE VARIABLE MID CAP PORTFOLIO
Schedule of investments (unaudited) | March 31, 2024 | |
(Percentages shown based on Portfolio net assets) |
SECURITY |
SHARES | VALUE | ||||||
COMMON STOCKS - 97.9% | ||||||||
COMMUNICATION SERVICES - 4.2% | ||||||||
Entertainment - 2.8% |
||||||||
Endeavor Group Holdings Inc., Class A Shares |
191,000 | $ | 4,914,430 | |||||
Live Nation Entertainment Inc. |
27,100 | 2,866,367 | * | |||||
|
|
|||||||
Total Entertainment |
7,780,797 | |||||||
|
|
|||||||
Interactive Media & Services - 1.4% |
||||||||
Pinterest Inc., Class A Shares |
113,900 | 3,948,913 | * | |||||
|
|
|||||||
TOTAL COMMUNICATION SERVICES |
11,729,710 | |||||||
|
|
|||||||
CONSUMER DISCRETIONARY - 7.5% | ||||||||
Automobile Components - 1.5% |
||||||||
Aptiv PLC |
52,900 | 4,213,485 | * | |||||
|
|
|||||||
Broadline Retail - 0.9% |
||||||||
Etsy Inc. |
33,500 | 2,302,120 | * | |||||
|
|
|||||||
Diversified Consumer Services - 1.0% |
||||||||
Service Corp. International |
36,900 | 2,738,349 | ||||||
|
|
|||||||
Hotels, Restaurants & Leisure - 1.7% |
||||||||
Expedia Group Inc. |
34,500 | 4,752,375 | * | |||||
|
|
|||||||
Specialty Retail - 2.4% |
||||||||
Five Below Inc. |
14,400 | 2,611,872 | * | |||||
Ross Stores Inc. |
27,600 | 4,050,576 | ||||||
|
|
|||||||
Total Specialty Retail |
6,662,448 | |||||||
|
|
|||||||
TOTAL CONSUMER DISCRETIONARY |
20,668,777 | |||||||
|
|
|||||||
CONSUMER STAPLES - 7.4% | ||||||||
Consumer Staples Distribution & Retail - 5.5% |
||||||||
Caseys General Stores Inc. |
20,300 | 6,464,535 | ||||||
Performance Food Group Co. |
115,800 | 8,643,312 | * | |||||
|
|
|||||||
Total Consumer Staples Distribution & Retail |
15,107,847 | |||||||
|
|
|||||||
Personal Care Products - 1.9% |
||||||||
Coty Inc., Class A Shares |
446,700 | 5,342,532 | * | |||||
|
|
|||||||
TOTAL CONSUMER STAPLES |
20,450,379 | |||||||
|
|
|||||||
ENERGY - 5.7% | ||||||||
Energy Equipment & Services - 2.5% |
||||||||
Baker Hughes Co. |
125,400 | 4,200,900 | ||||||
Noble Corp. PLC |
57,600 | 2,793,024 | ||||||
|
|
|||||||
Total Energy Equipment & Services |
6,993,924 | |||||||
|
|
|||||||
Oil, Gas & Consumable Fuels - 3.2% |
||||||||
Coterra Energy Inc. |
103,900 | 2,896,732 | ||||||
|
|
See Notes to Schedule of Investments.
ClearBridge Variable Mid Cap Portfolio 2024 Quarterly Report |
1 |
CLEARBRIDGE VARIABLE MID CAP PORTFOLIO
Schedule of investments (unaudited) (contd) | March 31, 2024 | |
(Percentages shown based on Portfolio net assets) |
SECURITY |
SHARES | VALUE | ||||||
Oil, Gas & Consumable Fuels - continued |
||||||||
Diamondback Energy Inc. |
11,200 | $ | 2,219,504 | |||||
EQT Corp. |
100,000 | 3,707,000 | ||||||
|
|
|||||||
Total Oil, Gas & Consumable Fuels |
8,823,236 | |||||||
|
|
|||||||
TOTAL ENERGY |
15,817,160 | |||||||
|
|
|||||||
FINANCIALS - 12.6% | ||||||||
Banks - 2.3% |
||||||||
Fifth Third Bancorp |
60,100 | 2,236,321 | ||||||
PNC Financial Services Group Inc. |
13,900 | 2,246,240 | ||||||
US Bancorp |
45,700 | 2,042,790 | ||||||
|
|
|||||||
Total Banks |
6,525,351 | |||||||
|
|
|||||||
Capital Markets - 5.1% |
||||||||
Blue Owl Capital Inc. |
218,100 | 4,113,366 | ||||||
Houlihan Lokey Inc. |
32,800 | 4,204,632 | ||||||
KKR & Co. Inc. |
19,600 | 1,971,368 | ||||||
Raymond James Financial Inc. |
29,100 | 3,737,022 | ||||||
|
|
|||||||
Total Capital Markets |
14,026,388 | |||||||
|
|
|||||||
Insurance - 5.2% |
||||||||
Arch Capital Group Ltd. |
71,000 | 6,563,240 | * | |||||
Everest Group Ltd. |
3,400 | 1,351,500 | ||||||
Hartford Financial Services Group Inc. |
62,700 | 6,461,235 | ||||||
|
|
|||||||
Total Insurance |
14,375,975 | |||||||
|
|
|||||||
TOTAL FINANCIALS |
34,927,714 | |||||||
|
|
|||||||
HEALTH CARE - 11.1% | ||||||||
Biotechnology - 0.7% |
||||||||
Argenx SE, ADR |
5,200 | 2,047,344 | * | |||||
|
|
|||||||
Health Care Equipment & Supplies - 2.9% |
||||||||
IDEXX Laboratories Inc. |
2,500 | 1,349,825 | * | |||||
STERIS PLC |
17,200 | 3,866,904 | ||||||
Teleflex Inc. |
12,300 | 2,781,891 | ||||||
|
|
|||||||
Total Health Care Equipment & Supplies |
7,998,620 | |||||||
|
|
|||||||
Life Sciences Tools & Services - 7.5% |
||||||||
Avantor Inc. |
289,900 | 7,412,743 | * | |||||
|
|
|||||||
Bio-Techne Corp. |
41,200 | 2,900,068 | ||||||
ICON PLC |
30,900 | 10,380,855 | * | |||||
|
|
|||||||
Total Life Sciences Tools & Services |
20,693,666 | |||||||
|
|
|||||||
TOTAL HEALTH CARE |
30,739,630 | |||||||
|
|
|||||||
INDUSTRIALS - 19.3% | ||||||||
Aerospace & Defense - 1.6% |
||||||||
CAE Inc. |
214,500 | 4,427,280 | * | |||||
|
|
See Notes to Schedule of Investments.
2 |
ClearBridge Variable Mid Cap Portfolio 2024 Quarterly Report |
CLEARBRIDGE VARIABLE MID CAP PORTFOLIO
Schedule of investments (unaudited) (contd) | March 31, 2024 | |
(Percentages shown based on Portfolio net assets) |
SECURITY |
SHARES | VALUE | ||||||
Building Products - 1.7% |
||||||||
Resideo Technologies Inc. |
209,600 | $ | 4,699,232 | * | ||||
|
|
|||||||
Commercial Services & Supplies - 2.3% |
||||||||
Clean Harbors Inc. |
31,700 | 6,381,527 | * | |||||
|
|
|||||||
Construction & Engineering - 4.5% |
||||||||
API Group Corp. |
123,100 | 4,834,137 | * | |||||
WillScot Mobile Mini Holdings Corp. |
164,700 | 7,658,550 | * | |||||
|
|
|||||||
Total Construction & Engineering |
12,492,687 | |||||||
|
|
|||||||
Electrical Equipment - 6.6% |
||||||||
Atkore Inc. |
28,900 | 5,501,404 | ||||||
Regal Rexnord Corp. |
46,700 | 8,410,670 | ||||||
Vertiv Holdings Co., Class A Shares |
52,900 | 4,320,343 | ||||||
|
|
|||||||
Total Electrical Equipment |
18,232,417 | |||||||
|
|
|||||||
Machinery - 1.6% |
||||||||
ATS Corp. |
127,200 | 4,289,184 | * | |||||
|
|
|||||||
Trading Companies & Distributors - 1.0% |
||||||||
Ferguson PLC |
13,200 | 2,883,276 | ||||||
|
|
|||||||
TOTAL INDUSTRIALS |
53,405,603 | |||||||
|
|
|||||||
INFORMATION TECHNOLOGY - 14.0% | ||||||||
Electronic Equipment, Instruments & Components - 3.8% |
||||||||
Keysight Technologies Inc. |
32,000 | 5,004,160 | * | |||||
Teledyne Technologies Inc. |
12,700 | 5,452,364 | * | |||||
|
|
|||||||
Total Electronic Equipment, Instruments & Components |
10,456,524 | |||||||
|
|
|||||||
Semiconductors & Semiconductor Equipment - 3.8% |
||||||||
Entegris Inc. |
19,000 | 2,670,260 | ||||||
Marvell Technology Inc. |
110,000 | 7,796,800 | ||||||
|
|
|||||||
Total Semiconductors & Semiconductor Equipment |
10,467,060 | |||||||
|
|
|||||||
Software - 6.4% |
||||||||
AppLovin Corp., Class A Shares |
20,000 | 1,384,400 | * | |||||
Aspen Technology Inc. |
13,500 | 2,879,280 | * | |||||
Bentley Systems Inc., Class B Shares |
39,500 | 2,062,690 | ||||||
Freshworks Inc., Class A Shares |
178,000 | 3,241,380 | * | |||||
NCR Voyix Corp. |
189,200 | 2,389,596 | * | |||||
PTC Inc. |
14,900 | 2,815,206 | * | |||||
Workiva Inc. |
36,500 | 3,095,200 | * | |||||
|
|
|||||||
Total Software |
17,867,752 | |||||||
|
|
|||||||
TOTAL INFORMATION TECHNOLOGY |
38,791,336 | |||||||
|
|
See Notes to Schedule of Investments.
ClearBridge Variable Mid Cap Portfolio 2024 Quarterly Report |
3 |
CLEARBRIDGE VARIABLE MID CAP PORTFOLIO
Schedule of investments (unaudited) (contd) | March 31, 2024 | |
(Percentages shown based on Portfolio net assets) |
SECURITY |
SHARES | VALUE | ||||||||||
MATERIALS - 6.4% | ||||||||||||
Chemicals - 4.4% |
||||||||||||
Ashland Inc. |
78,100 | $ | 7,604,597 | |||||||||
Eastman Chemical Co. |
46,400 | 4,650,208 | ||||||||||
|
|
|||||||||||
Total Chemicals |
12,254,805 | |||||||||||
|
|
|||||||||||
Containers & Packaging - 2.0% |
||||||||||||
Crown Holdings Inc. |
70,700 | 5,603,682 | ||||||||||
|
|
|||||||||||
TOTAL MATERIALS |
17,858,487 | |||||||||||
|
|
|||||||||||
REAL ESTATE - 6.1% | ||||||||||||
Office REITs - 2.1% |
||||||||||||
Alexandria Real Estate Equities Inc. |
45,200 | 5,826,732 | ||||||||||
|
|
|||||||||||
Real Estate Management & Development - 1.6% |
||||||||||||
CoStar Group Inc. |
46,800 | 4,520,880 | * | |||||||||
|
|
|||||||||||
Residential REITs - 1.4% |
||||||||||||
Sun Communities Inc. |
29,500 | 3,793,110 | ||||||||||
|
|
|||||||||||
Retail REITs - 1.0% |
||||||||||||
NNN REIT Inc. |
64,000 | 2,735,360 | ||||||||||
|
|
|||||||||||
TOTAL REAL ESTATE |
16,876,082 | |||||||||||
|
|
|||||||||||
UTILITIES - 3.6% | ||||||||||||
Electric Utilities - 2.5% |
||||||||||||
Eversource Energy |
45,800 | 2,737,466 | ||||||||||
PPL Corp. |
150,300 | 4,137,759 | ||||||||||
|
|
|||||||||||
Total Electric Utilities |
6,875,225 | |||||||||||
|
|
|||||||||||
Multi-Utilities - 1.1% |
||||||||||||
DTE Energy Co. |
28,600 | 3,207,204 | ||||||||||
|
|
|||||||||||
TOTAL UTILITIES |
10,082,429 | |||||||||||
|
|
|||||||||||
TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS (Cost - $195,232,548) |
271,347,307 | |||||||||||
|
|
|||||||||||
RATE | ||||||||||||
SHORT-TERM INVESTMENTS - 2.1% | ||||||||||||
JPMorgan 100% U.S. Treasury Securities Money Market Fund, Institutional Class |
5.155 | % | 2,848,653 | 2,848,653 | (a) | |||||||
Western Asset Premier Institutional U.S. Treasury Reserves, |
||||||||||||
Premium Shares |
5.242 | % | 2,848,653 | 2,848,653 | (a)(b) | |||||||
TOTAL SHORT-TERM INVESTMENTS |
5,697,306 | |||||||||||
|
|
|||||||||||
TOTAL INVESTMENTS - 100.0% |
277,044,613 | |||||||||||
|
|
|||||||||||
Other Assets in Excess of Liabilities - 0.0% |
2,245 | |||||||||||
|
|
|||||||||||
TOTAL NET ASSETS - 100.0% |
$ | 277,046,858 | ||||||||||
|
|
See Notes to Schedule of Investments.
4 |
ClearBridge Variable Mid Cap Portfolio 2024 Quarterly Report |
CLEARBRIDGE VARIABLE MID CAP PORTFOLIO
Schedule of investments (unaudited) (contd) | March 31, 2024 | |
(Percentages shown based on Portfolio net assets) |
| Represents less than 0.1%. |
* | Non-income producing security. |
(a) | Rate shown is one-day yield as of the end of the reporting period. |
(b) | In this instance, as defined in the Investment Company Act of 1940, an Affiliated Company represents Portfolio 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 Portfolio. At March 31, 2024, the total market value of investments in Affiliated Companies was $2,848,653 and the cost was $2,848,653 (Note 2). |
Abbreviation(s) used in this schedule:
ADR American Depositary Receipts |
REIT Real Estate Investment Trust |
This Schedule of Investments is unaudited and is intended to provide information about the Portfolios investments as of the date of the schedule. Other information regarding the Portfolio is available in the Portfolios most recent annual or semi-annual shareholder report.
See Notes to Schedule of Investments.
ClearBridge Variable Mid Cap Portfolio 2024 Quarterly Report |
5 |
Notes to Schedule of Investments (unaudited)
1. Organization and significant accounting policies
ClearBridge Variable Mid Cap 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.
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 Portfolio follows the accounting and reporting guidance in Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services Investment Companies (ASC 946). The following are significant accounting policies consistently followed by the Portfolio and are in conformity with U.S. generally accepted accounting principles (GAAP), including, but not limited to, ASC 946.
(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 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 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 Portfolios Board of Trustees.
Pursuant to policies adopted by the Board of Trustees, the Portfolios manager has been designated as the valuation designee and is responsible for the oversight of the daily valuation process. The Portfolios manager is assisted by the Global Fund Valuation Committee (the Valuation Committee). The Valuation Committee is responsible for making
6 |
ClearBridge Variable Mid Cap Portfolio 2024 Quarterly Report |
Notes to Schedule of Investments (unaudited) (continued)
fair value determinations, evaluating the effectiveness of the Portfolios pricing policies, and reporting to the Portfolios manager and 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 issuers 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 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 approach uses valuation techniques to discount estimated future cash flows to present value.
ClearBridge Variable Mid Cap Portfolio 2024 Quarterly Report |
7 |
Notes to Schedule of Investments (unaudited) (continued)
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 Portfolios 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 Portfolios 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 |
$ | 271,347,307 | | | $ | 271,347,307 | ||||||||||
Short-Term Investments | 5,697,306 | | | 5,697,306 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Investments |
$ | 277,044,613 | | | $ | 277,044,613 | ||||||||||
|
|
|
|
|
|
|
|
| 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 Portfolio owns 5% or more of the outstanding voting securities, or a company which is under common ownership or control with the Portfolio. The following company was considered an affiliated company for all or some portion of the period ended March 31, 2024. The following transactions were effected in such company for the period ended March 31, 2024.
Purchased | Sold | |||||||||||||||||||||||||||||||||||
|
Affiliate Value at December 31, 2023 |
Cost | Shares | Proceeds | Shares | Realized Gain (Loss) |
Dividend Income |
Net Increase (Decrease) in Unrealized Appreciation (Depreciation) |
Affiliate Value at March 31, 2024 |
|||||||||||||||||||||||||||
Western Asset Premier Institutional U.S. Treasury Reserves, Premium Shares |
$ | 3,689,707 | $ | 3,945,123 | 3,945,123 | $ | 4,786,177 | 4,786,177 | | $ | 52,021 | | $ | 2,848,653 |
8 |
ClearBridge Variable Mid Cap Portfolio 2024 Quarterly Report |