Legg Mason’s new equity fund to invest in leaders in sustainability

By Toni Weeks

San Luis Obispo, Calif., Jan. 16 – Legg Mason Partners Equity Trust announced in an N-1A filing with the Securities and Exchange Commission its plans to offer a new equity fund that invests in companies that are leaders in sustainability and environmental, social and governance (ESG) criteria.

The ClearBridge Sustainability Leaders Fund will seek long-term capital growth by investing substantially all of its assets in common stocks and other equity securities that meet its financial, sustainability and ESG criteria. The fund may also invest in companies making substantial progress toward becoming a leader in sustainability and ESG policies.

According to the filing, leadership is associated with a company showing evidence of best practices of ESG policies within its given sector or industry.

The fund will not invest in companies that derive significant revenues from nuclear power generation or the manufacture of tobacco, alcohol, gaming products or weapons. In addition, it will avoid companies with significant direct involvement in extraction of fossil fuels and mining, instead seeking other attractive sustainable opportunities in the energy, industrials and materials sectors.

Derek Deutsch and Mary Jane McQuillen will be the portfolio managers.

The fund will offer class A, A2, C, F1, R, I and IS shares. The ticker symbols have not been set.

Class A and A2 shares will be subject to a maximum sales load of 5.75%, and class C shares are subject to a 1% maximum deferred sales load.

Including management fees of 0.65%, and taking into account a fee waiver agreement with the investment adviser, total annual fund operating expenses are expected to be 1.2% for class A and class F1 shares, 1.4% for class A2 shares, 1.95% for class C shares, 1.45% for class R shares, 0.85% for class I shares and 0.75% for class IS shares.

New York-based Legg Mason Fund Advisor, LLC will be the investment manager. ClearBridge Investments, LLC is the subadviser.

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