Data through February 29, 2016

ClearBridge Appreciation A
Morningstar Analyst Rating 03-25-15

Ticker
SHAPX

Status
Open

Yield
1.0%

Total Assets
$5,194 mil

Mstar Category
Large Blend
Investment Style
Equity
Stock %

Historical Profile
Return Average
Risk
Below Avg
Rating
Above Avg

95%

90%

95%

97%

96%

95%

97%

94%

Manager Change

20.5 Partial Manager Change

18.0
15.0 Growth of $10,000
12.5 Investment Values of

Morningstar Pillars

Process
Performance
People
Parent
Price

Positive
Positive
Positive
Neutral
Positive

10.0
7.0

Performance Quartile
(within Category)

Morningstar Analyst Rating

Morningstar evaluates mutual funds based on five key pillars, which

its analysts believe lead to funds that are more likely to outperform
over the long term on a risk-adjusted basis.
Analyst Rating Spectrum

Pillar Spectrum

Positive

Negative

Neutral

Performance 02-29-16
2012
2013
2014
2015
2016
Trailing

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Total

5.03
10.78
10.13
0.88
0.73

0.07
-0.98
2.26
4.00
0.00

-12.91
6.53
4.64
0.84
-6.05

11.58
-1.18
9.71
4.67
.

15.48
29.28
10.73
1.43
.

Total
Return%

+/-

-5.47
0.48
-4.84
9.32
9.35
6.85
5.58

1.12
1.40
1.35
-1.43
-0.78
0.41
0.52

3 Mo
6 Mo
1 Yr
3 Yr Avg
5 Yr Avg
10 Yr Avg
15 Yr Avg

Tax Analysis Tax-Adj Rtn%

3 Yr (estimated)
5 Yr (estimated)
10 Yr (estimated)

5.88
7.12
4.98

+/- Russ
1000

%Rank
Cat

Growth of
$10,000

1.65
2.51
2.37
-1.11
-0.57
0.36
0.26

13
8
8
46
33
9
16

9,453
10,048
9,516
13,065
15,635
19,397
22,580

%Rank Cat Tax-Cost Rat %Rank Cat

62
49
32

1.21
0.87
1.16

40
38
68

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

02-16

History

14.42
4.15
-0.76
-2.12
0.51
3.64
72
0.07
0.79
0.93
0.96
40
3,571

15.47
14.58
-1.21
-0.88
0.96
13.62
46
0.13
0.89
0.96
0.61
53
3,621

15.24
8.14
2.65
2.37
0.88
7.26
27
0.13
1.37
0.95
0.88
33
3,817

10.35
-28.98
8.02
8.62
0.89
-29.87
5
0.13
0.47
0.95
0.85
45
3,785

12.36
21.31
-5.15
-7.12
1.84
19.47
85
0.19
0.00
0.99
1.24
39
2,518

13.71
12.48
-2.58
-3.62
1.56
10.92
72
0.19
0.00
1.07
1.42
20
2,740

13.82
2.14
0.03
0.64
1.33
0.81
16
0.18
0.00
1.05
1.30
21
2,778

15.70
15.48
-0.52
-0.94
1.53
13.95
46
0.21
0.05
1.06
1.28
27
2,613

19.35
29.28
-3.11
-3.83
1.16
28.12
76
0.18
0.74
1.06
1.15
19
2,826

20.51
10.73
-2.96
-2.51
0.95
9.78
61
0.18
0.73
1.02
1.04
16
3,521

19.86
1.43
0.05
0.51
0.99
0.44
19
0.20
0.75
1.00
0.96
10
3,694

19.04
-4.13
0.96
1.28
0.00
-4.13
16
0.00
0.00
.
.
.
3,385

NAV
Total Return %
+/+/-Russ 1000
Income Return %
Capital Return %
Total Rtn % Rank Cat
Income $
Capital Gains $
Expense Ratio %
Income Ratio %
Turnover Rate %
Net Assets $mil

Portfolio Analysis 12-31-15

Rating and Risk

Time
Period

1 Yr
3 Yr
5 Yr
10 Yr
Incept

Load-Adj
Return %

Morningstar
Rtn vs Cat

Morningstar
Risk vs Cat

-10.31
7.18
8.06
6.22
9.98

-Avg
Avg
+Avg

-Avg
-Avg
Low

Other Measures

Alpha
Beta
R-Squared
Standard Deviation
Mean
Sharpe Ratio

Morningstar
Risk-Adj Rating

Standard Index

Best Fit Index

-0.9
0.95
98

-0.8
0.95
99

10.54
9.32
0.89

Potential Capital Gain Exposure: 45% of assets

Morningstars Take by David Kathman, CFA 03-25-15

factors or temporary stock-specific reasons. A good
example is Apple AAPL, the top holding as of Dec. 31,
2014. The managers like Apple for its impressive
growth and market share in tablets and smartphones,
but the stock has become expensive enough that
theyve been trimming it, so that its now an
underweight position relative to the S&P 500.
This focus on valuation and downside protection
has helped the fund hold up well in down markets
such as those of 2008 and 2011. But it has tended to
lag in rallies, especially those led by low-quality
stocks. Thats a pretty good description of the bull
market that began in 2009, and it helps explain why
the funds five-year returns dont look very impressive
relative to the large-blend Morningstar Category or the
S&P 500. It looks much better over the longer term,
with top-quartile 10- and 15-year returns and less
volatility than its average peer. On top of that, its
relatively cheap. All in all, this is a solid core fund for
cautious investors.

Address:

Minimum Purchase:
Min Auto Inv Plan:
Sales Fees:
Management Fee:
Actual Fees:
Expense Projections:
Income Distribution:

Web Address:
Inception:
Advisor:
Subadvisor:

Legg Mason Partners Equity Trust

New York, NY 10041
877-721-1926
http://www.leggmason.com/
03-10-70
Legg Mason Partners Fund Advisor, LLC
ClearBridge Investments, LLC

NTF Plans:

Fidelity Retail-NTF

$1000
Add: $50
IRA: $250
$50
Add: $50
5.75%L,
0.75% mx./0.50% mn.
Mgt:0.56%
Dist:0.25%
3Yr:$869
5Yr:$1085 10Yr:$1706
Semi-Annually

2015 Morningstar, Inc. All rights reserved. The information herein is not represented or warranted to be accurate, correct, complete or
timely. Past performance is no guarantee of future results. Access updated reports at mfb.morningstar.com. To order reprints, call 312-696-6100.

Share change since 09-15 Total Stocks:90 Sector

Walt Disney Co
Apple Inc
Comcast Corp Class A
Travelers Companies Inc
Home Depot Inc
PPG Industries Inc
Microsoft Corp
Berkshire Hathaway Inc C
Exxon Mobil Corporation
Johnson & Johnson
CVS Health Corp
JPMorgan Chase & Co
Merck & Co Inc
General Electric Co
Wal-Mart Stores Inc
Wells Fargo & Co
UnitedHealth Group Inc
Pfizer Inc
Honeywell International
Visa Inc Class A
Current Investment Style
Value Blnd Growth
Market Cap
Large Mid Small

Downside protection is the name of the game for

ClearBridge Appreciation.
Managers Scott Glasser and Michael Kagan have
run this fund together since early 2010, but they use
the same basic strategy that former skipper Hersh
Cohen used on the fund for more than 30 years before
that, including nearly a decade when Glasser served as
Cohens comanager. That strategy is focused on risk
control and downside protection, with the ultimate
goal being returns that can modestly beat the S&P 500
with significantly less risk. Glasser and Kagan want to
own stocks where the reward/risk ratio (likely upside
potential versus downside potential) is at least 3 to 1.
The managers typically avoid big sector bets, and
the portfolio consists almost entirely of large-cap
stocks, primarily big, blue-chip companies with
dominant market positions, healthy balance sheets,
and proven, shareholder-oriented management teams.
Within that universe, the managers like to see solid
earnings growth, but they also want to hold stocks that
are not too expensive, usually because of cyclical

EQ

Fund
Investment Values of

Giant
Large
Mid
Small
Micro
Avg $mil:
112,555

Value Measures

Price/Earnings
17.17
Price/Book
2.67
Price/Sales
1.84
Price/Cash Flow 11.38
Dividend Yield % 2.22
Growth Measures

Long-Term Erngs
Book Value
Sales
Cash Flow
Historical Erngs
Profitability

9.40
6.35
5.48
3.88
7.91
%

Return on Equity 20.90

Return on Assets 7.06
Net Margin
12.76

Cnsmr Cyc
Technology
Comm Svs
Finan Svs
Cnsmr Cyc
Basic Mat
Technology
Finan Svs
Energy
Hlth care
Hlth care
Finan Svs
Hlth care
Industrl
Cnsmr Def
Finan Svs
Hlth care
Hlth care
Industrl
Finan Svs
%

68.6
27.8
3.6
0.0
0.0

Sector
Weightings

h
r
t
y
u

PE Tot Ret% % Assets

17.9
10.3
17.8
9.9
23.3
18.8
36.2
13.8
20.8
19.2
21.1
9.4
32.1
18.8
14.2
11.4
19.8
26.7
16.8
26.4
% of
Stocks

Cyclical 32.62
BasicMat 4.14
CnsmrCyc 9.57
FinanSvs 18.48
Real Est 0.43

-9.10
-7.65
2.75
-4.73
-6.15
-1.95
-7.64
2.40
3.76
3.15
-0.18
-14.07
-4.94
-3.64
8.22
-13.00
1.24
-7.16
-1.57
-6.47

3.80
3.40
3.17
2.88
2.78
2.77
2.62
2.50
2.33
2.21
2.17
1.96
1.87
1.84
1.72
1.69
1.65
1.60
1.56
1.48

Rel

3 Year
High Low

.
. 5 4
. 15 10
. 18 15
. 2 0

j Sensitive 41.03
.
i CommSrvs 7.01
. 7 5
Rel Category
5.95
o Energy
. 11 6
1.19 p Industrl 10.61
. 13 10
1.31 a Technlgy 17.46
. 17 14
1.46
Defensive26.36
k
.
1.60
. 10 7
1.02 s CnsmrDef 7.36
d Hlthcare 18.56
. 19 13
Rel Category f Utilities 0.44
. 1 0
0.91
1.20
1.88 Composition - Net
Cash
6.4
0.57
Stocks 93.6
0.44
Bonds
0.0
Other
0.0
Rel Category
1.09
Foreign 1.8
(% of Stock)
0.92
1.00

Mutual Funds