Legg Mason has launched its first affiliated branded active exchange traded fund strategy to help investors target quality growth companies with consistent and sustainable returns.
Legg Mason partnered with ClearBridge Investments to launch the ClearBridge All Cap Growth ETF (NasdaqGM: CACG). CACG has a 0.53% expense ratio.
The active ETF is managed by the ClearBridge team, including Peter Bourbeau, Margaret Vitrano, Richard Freeman, and Evan Bauman.
CACG tries to achieve long-term capital appreciation by investing in a diversified portfolio of large, medium and small capitalization stocks that have the potential for above-average long-term earnings and cash flow growth, according to a prospectus sheet.
“We are pleased to now be able to offer our clients this strategy in two forms – the SMA and now ETF,” Terrence Murphy, Chief Executive Officer of ClearBridge Investments, said in a note. “ClearBridge All Cap Growth actively invests in a diverse portfolio of stocks – ranging from large to medium and small capitalizations – providing investors with exposure to equities with potential for long-term earnings and cash flow growth.”
The ClearBridge team will utilize a bottom-up investment process to find inefficiently priced companies with strong fundamentals, incentive-driven management teams, dominant positions in niche markets and goods and services that are in high customer demand. The management team will also scrutinize companies with a range of growth opportunities while evaluating the company’s business model, financial structure and management acumen.
ClearBridge also includes different selection criteria for the separate asset categories. For instance, large company growth stocks will include those that exhibit superior balance sheets, exceptional management teams and long-term, consistent operating histories. Small- and mid-sized company growth stocks are screened for rapid earnings growth potential, unrecognized values, industry leadership and management teams that have a significant ownership stake.
Current top holdings include UnitedHealth Group 5.0%, Comcast Corp 4.5%, Biogen 3.4%, Amazon.com 3.0% and Allergan 2.1%.
For more information on new fund products, visit our new ETFs category.