Dividend Strategy Fact Card - ClearBridge Investments

STRATEGY OVERVIEW First Quarter 2024

Dividend Strategy

Strategy Overview Primarily large cap strategy focused on dividend income

Benchmark: S&P 500 Index

Strategy Inception: September 2008

Strategy AUM: $29.3B

Holdings Range: 40-60 1

Objective: Grow capital via attractive dividend yields and powerful compounding, while protecting in volatile markets3

Investment Philosophy A diversified portfolio of robust dividend growers provides attractive income characteristics and the potential for longterm capital appreciation.

Performance A dividend focus has led to competitive returns over multiple time periods.

Portfolio Management Team

John Baldi Managing Director, Portfolio Manager, 26 years experience

Michael Clarfeld CFA Managing Director, Portfolio Manager, 24 years experience

Peter Vanderlee CFA Managing Director, Portfolio Manager, 25 years experience

Fundamental Research Platform A shared research platform consisting of

experienced analysts who support portfolio management Coverage for sector analysts includes the top 300-400 existing holdings and 100-150 opportunistic ideas

Average Annual Total Returns (%)2

Composite (Gross of Fees) Composite (Net of Fees) S&P 500 Index

1 Qtr 7.8 7.6 10.6

1 Year 3 Years 5 Years 7 Years 10 Years

22.3

11.7

13.1

12.7

11.7

21.6

11.0

12.4

12.0

11.0

29.9

11.5

15.0

14.1

13.0

Sector Weightings1,2

Financials Information Technology

17.3 13.2

15.3

Consumer Staples Health Care Energy Materials Industrials

Communication Services Utilities

Real Estate Consumer Discretionary

Cash

11.1 6.0

10.3 12.4

8.9 3.9

8.8 2.4

7.7 8.8

7.7 9.0

4.9 2.2

4.7 2.3

2.6 10.3

0.7 0.0

0%

5%

10% 15% 20%

25%

Representative Portfolio S&P 500 Index

29.6 30% 35%

Investment Process

? Maintain a strong focus on current income and income growth

? Identify global champions in secularly attractive industries with growing markets, low disintermediation and favorable competitive dynamics

? Avoid sectors and companies with high risk of disintermediation, political risk, unquantifiable financial risk and undue balance sheet risk

Portfolio Characteristics & Risk Statistics1,2

Characteristics

Representative Portfolio

S&P 500 Index

P/E Ratio (trailing 12 mos.)

22.6

26.1

P/E Ratio (forward 12 mos.)

18.1

22.0

Price/Book

5.6

6.9

EPS Growth Next 3-5 Years (%)

11.0

13.8

Weighted Median Market Cap ($ bn)

129.4

224.7

Weighted Average Market Cap ($ bn)

400.7

778.5

ROE

23.2

24.5

Dividend Yield

2.2

1.4

Turnover (trailing 12 mos.)

22.6

--

10 Year Risk Statistics (Net) Standard Deviation (%) Sharpe Ratio Tracking Error (%) R2 Alpha (%) Beta

Composite 13.95 0.72 4.40 0.92 -0.51 0.88

S&P 500 Index 15.16 0.79 -----

Top 10 Holdings1

Security Microsoft Corp Apollo Global Management Inc JPMorgan Chase & Co Comcast Corp Williams Cos Inc/The Sempra Becton Dickinson & Co Linde PLC Travelers Cos Inc/The Enbridge Inc Total Total Number of Holdings

% of Total Representative Portfolio

5.64 3.52 3.42 3.20 3.06 2.93 2.88 2.75 2.72 2.62 32.73

55

1 Source: FactSet. Representative portfolio characteristics, holdings, sector weightings and market capitalization are based on a representative portfolio and are subject to change at any time. Holdings, sector weightings, market capitalization and portfolio characteristics of individual client portfolios may differ, sometimes significantly, from those shown. This information does not constitute, and should not be construed as, investment advice or recommendations with respect to the securities and sectors listed.

2 Past performance is no guarantee of future results. Please see GIPS endnotes. Performance is preliminary and subject to change. Performance returns less than one year are not annualized.

3 There is no guarantee that the Portfolio's objective will be met.

P/E ratios are weighted harmonic average.

Price/Book is weighted average.

Performance source: Internal. Benchmark

source: Standard & Poor's. Neither ClearBridge

Investments LLC nor its information providers

are responsible for any damages or losses

arising from any use of this information. ClearBridge Investments, LLC claims compliance with the Global Investment Performance Standards (GIPS?) and has prepared and presented this report in compliance with the GIPS standards. ClearBridge Investments, LLC ("ClearBridge") is a wholly owned indirect subsidiary of Franklin Resources, Inc. ("Franklin"). In July 2020 Legg Mason, Inc., its parent company, was purchased by Franklin. The investment advisory business now known as ClearBridge was registered in September 2005 to facilitate Legg Mason's acquisition of substantially all the equity asset management businesses known as Citigroup Asset Management. These former businesses serve as the foundation of ClearBridge and its claim of GIPS compliance for institutional accounts through predecessor firms, effective as of January 1997. In June 2008, ClearBridge combined this business with its retail business to form a single GIPS firm. As of April 1, 2013, January 1, 2016 and May 1, 2020, ClearBridge affiliates, Global Currents

Investment Management, LLC, ClearBridge, LLC and ClearBridge Investments Limited (f/k/a RARE Infrastructure Limited) have become part of the ClearBridge GIPS firm. The ClearBridge Dividend Strategy composite invests in large and mid cap U.S. equities across a wide variety of industries and sectors. The portfolio managers seek dividend income, growth of dividend income and long-term capital appreciation. Investments may also be made in targeted investments in preferred stock, convertible bonds and REITS. Results are calculated in U.S. dollars. The S&P 500? Index is a broad-based measurement of changes in stock market conditions based on the average performance of 500 widely held common stocks. To receive a complete list and description of ClearBridge composites and/or a presentation that adheres to the GIPS standards, please contact ClearBridge Institutional Marketing. Past performance is no guarantee of future results.

ClearBridge Investments 620 Eighth Ave., NewYork, NY 10018 | 800 691 6960



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