UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number
811-06444
Legg Mason Partners Equity Trust
(Exact name of registrant as specified in charter)
620 Eighth Avenue, 49
th
Floor, New York, NY 10018
(Address of principal executive offices) (Zip code)
Robert I. Frenkel,
Esq.
Legg Mason & Co., LLC
100 First Stamford Place
Stamford, CT 06902
(Name and address of agent for service)
Registrants telephone number, including area code: 1-877-721-1926
Date of
fiscal year end:
October 31
Date of reporting period:
January 31, 2013
ITEM 1.
|
SCHEDULE OF INVESTMENTS.
|
LEGG MASON PARTNERS EQUITY TRUST
CLEARBRIDGE INTERNATIONAL ALL CAP OPPORTUNITY FUND
FORM N-Q
JANUARY 31, 2013
CLEARBRIDGE INTERNATIONAL ALL CAP OPPORTUNITY FUND
|
|
|
Schedule of Investments (unaudited)
|
|
January 31, 2013
|
|
|
|
|
|
|
|
|
|
SECURITY
|
|
SHARES
|
|
|
VALUE
|
|
COMMON STOCKS - 97.7%
|
|
|
|
|
|
|
|
|
CONSUMER DISCRETIONARY - 15.0%
|
|
|
|
|
|
|
|
|
Auto Components - 1.0%
|
|
|
|
|
|
|
|
|
Bridgestone Corp.
|
|
|
91,236
|
|
|
$
|
2,387,531
|
|
|
|
|
|
|
|
|
|
|
Automobiles - 1.1%
|
|
|
|
|
|
|
|
|
Daimler AG, Registered Shares
|
|
|
45,080
|
|
|
|
2,624,364
|
|
|
|
|
|
|
|
|
|
|
Hotels, Restaurants & Leisure - 1.9%
|
|
|
|
|
|
|
|
|
Carnival PLC
|
|
|
108,900
|
|
|
|
4,423,242
|
|
|
|
|
|
|
|
|
|
|
Household Durables - 3.3%
|
|
|
|
|
|
|
|
|
Corporacion GEO SA de CV, Series B Shares
|
|
|
1,326,830
|
|
|
|
1,554,887
|
*
|
Electrolux AB
|
|
|
135,020
|
|
|
|
3,567,772
|
|
Techtronic Industries Co., Ltd.
|
|
|
1,274,770
|
|
|
|
2,583,927
|
|
|
|
|
|
|
|
|
|
|
Total Household Durables
|
|
|
|
|
|
|
7,706,586
|
|
|
|
|
|
|
|
|
|
|
Internet & Catalog Retail - 1.1%
|
|
|
|
|
|
|
|
|
Dena Co., Ltd.
|
|
|
81,002
|
|
|
|
2,561,734
|
|
|
|
|
|
|
|
|
|
|
Media - 2.6%
|
|
|
|
|
|
|
|
|
Publicis Groupe SA
|
|
|
52,440
|
|
|
|
3,435,905
|
|
WPP PLC
|
|
|
163,400
|
|
|
|
2,569,496
|
|
|
|
|
|
|
|
|
|
|
Total Media
|
|
|
|
|
|
|
6,005,401
|
|
|
|
|
|
|
|
|
|
|
Multiline Retail - 1.5%
|
|
|
|
|
|
|
|
|
Myer Holdings Ltd.
|
|
|
1,401,428
|
|
|
|
3,638,907
|
|
|
|
|
|
|
|
|
|
|
Specialty Retail - 1.4%
|
|
|
|
|
|
|
|
|
Esprit Holdings Ltd.
|
|
|
1,015,772
|
|
|
|
1,414,542
|
|
JUMBO SA
|
|
|
17,270
|
|
|
|
150,075
|
*
|
Tom Tailor Holding AG
|
|
|
70,850
|
|
|
|
1,666,187
|
|
|
|
|
|
|
|
|
|
|
Total Specialty Retail
|
|
|
|
|
|
|
3,230,804
|
|
|
|
|
|
|
|
|
|
|
Textiles, Apparel & Luxury Goods - 1.1%
|
|
|
|
|
|
|
|
|
Anta Sports Products Ltd.
|
|
|
1,487,350
|
|
|
|
1,390,423
|
|
Xtep International Holdings Ltd.
|
|
|
2,878,890
|
|
|
|
1,232,421
|
|
|
|
|
|
|
|
|
|
|
Total Textiles, Apparel & Luxury Goods
|
|
|
|
|
|
|
2,622,844
|
|
|
|
|
|
|
|
|
|
|
TOTAL CONSUMER DISCRETIONARY
|
|
|
|
|
|
|
35,201,413
|
|
|
|
|
|
|
|
|
|
|
CONSUMER STAPLES - 8.7%
|
|
|
|
|
|
|
|
|
Beverages - 2.5%
|
|
|
|
|
|
|
|
|
Anheuser-Busch InBev NV, Strip VVPR
|
|
|
72,800
|
|
|
|
0
|
*
(a)(b)(c)
|
C&C Group PLC
|
|
|
890,314
|
|
|
|
5,826,750
|
|
|
|
|
|
|
|
|
|
|
Total Beverages
|
|
|
|
|
|
|
5,826,750
|
|
|
|
|
|
|
|
|
|
|
Food Products - 6.2%
|
|
|
|
|
|
|
|
|
Aryzta AG
|
|
|
81,140
|
|
|
|
4,560,531
|
*
|
Asian Citrus Holdings Ltd.
|
|
|
2,052,480
|
|
|
|
931,574
|
|
CSM
|
|
|
127,030
|
|
|
|
2,942,533
|
|
Koninklijke Wessanen NV
|
|
|
402,870
|
|
|
|
1,266,345
|
|
Marine Harvest ASA
|
|
|
4,811,230
|
|
|
|
4,817,483
|
*
|
|
|
|
|
|
|
|
|
|
Total Food Products
|
|
|
|
|
|
|
14,518,466
|
|
|
|
|
|
|
|
|
|
|
TOTAL CONSUMER STAPLES
|
|
|
|
|
|
|
20,345,216
|
|
|
|
|
|
|
|
|
|
|
ENERGY - 4.2%
|
|
|
|
|
|
|
|
|
Energy Equipment & Services - 0.8%
|
|
|
|
|
|
|
|
|
Lamprell PLC
|
|
|
986,950
|
|
|
|
2,019,240
|
|
|
|
|
|
|
|
|
|
|
Oil, Gas & Consumable Fuels - 3.4%
|
|
|
|
|
|
|
|
|
Cairn Energy PLC
|
|
|
430,261
|
|
|
|
1,958,471
|
*
|
Canadian Natural Resources Ltd.
|
|
|
116,660
|
|
|
|
3,522,959
|
|
Total SA
|
|
|
45,184
|
|
|
|
2,449,740
|
|
|
|
|
|
|
|
|
|
|
Total Oil, Gas & Consumable Fuels
|
|
|
|
|
|
|
7,931,170
|
|
|
|
|
|
|
|
|
|
|
TOTAL ENERGY
|
|
|
|
|
|
|
9,950,410
|
|
|
|
|
|
|
|
|
|
|
See
Notes to Schedule of Investments.
1
CLEARBRIDGE INTERNATIONAL ALL CAP OPPORTUNITY FUND
|
|
|
Schedule of Investments (unaudited) (contd)
|
|
January 31, 2013
|
|
|
|
|
|
|
|
|
|
SECURITY
|
|
SHARES
|
|
|
VALUE
|
|
FINANCIALS - 22.5%
|
|
|
|
|
|
|
|
|
Capital Markets - 5.3%
|
|
|
|
|
|
|
|
|
F&C Asset Management PLC
|
|
|
2,636,424
|
|
|
$
|
4,411,344
|
|
Man Group PLC
|
|
|
2,305,240
|
|
|
|
3,233,830
|
|
UBS AG, Registered Shares
|
|
|
271,981
|
|
|
|
4,716,070
|
*
|
|
|
|
|
|
|
|
|
|
Total Capital Markets
|
|
|
|
|
|
|
12,361,244
|
|
|
|
|
|
|
|
|
|
|
Commercial Banks - 8.4%
|
|
|
|
|
|
|
|
|
Banco Santander SA
|
|
|
339,251
|
|
|
|
2,846,266
|
|
Barclays PLC
|
|
|
1,296,468
|
|
|
|
6,189,157
|
|
Erste Bank der Oesterreichischen Sparkassen AG
|
|
|
90,580
|
|
|
|
3,048,297
|
*
|
HSBC Holdings PLC
|
|
|
245,880
|
|
|
|
2,794,884
|
|
Lloyds TSB Group PLC
|
|
|
5,884,510
|
|
|
|
4,821,342
|
*
|
|
|
|
|
|
|
|
|
|
Total Commercial Banks
|
|
|
|
|
|
|
19,699,946
|
|
|
|
|
|
|
|
|
|
|
Diversified Financial Services - 0.6%
|
|
|
|
|
|
|
|
|
Eurazeo
|
|
|
24,654
|
|
|
|
1,301,517
|
|
|
|
|
|
|
|
|
|
|
Insurance - 6.8%
|
|
|
|
|
|
|
|
|
AXA SA
|
|
|
296,396
|
|
|
|
5,489,374
|
|
Direct Line Insurance Group PLC
|
|
|
1,280,300
|
|
|
|
4,526,109
|
*
|
Muenchener Rueckversicherungs-Gesellschaft AG (MunichRe), Registered Shares
|
|
|
16,970
|
|
|
|
3,118,719
|
|
Royal & Sun Alliance Insurance Group PLC
|
|
|
1,317,931
|
|
|
|
2,752,844
|
|
|
|
|
|
|
|
|
|
|
Total Insurance
|
|
|
|
|
|
|
15,887,046
|
|
|
|
|
|
|
|
|
|
|
Real Estate Management & Development - 1.4%
|
|
|
|
|
|
|
|
|
GAGFAH SA
|
|
|
271,500
|
|
|
|
3,321,473
|
*
|
|
|
|
|
|
|
|
|
|
TOTAL FINANCIALS
|
|
|
|
|
|
|
52,571,226
|
|
|
|
|
|
|
|
|
|
|
HEALTH CARE - 6.2%
|
|
|
|
|
|
|
|
|
Health Care Providers & Services - 3.0%
|
|
|
|
|
|
|
|
|
Celesio AG
|
|
|
121,580
|
|
|
|
2,208,789
|
|
Rhoen-Klinikum AG
|
|
|
221,840
|
|
|
|
4,656,777
|
|
|
|
|
|
|
|
|
|
|
Total Health Care Providers & Services
|
|
|
|
|
|
|
6,865,566
|
|
|
|
|
|
|
|
|
|
|
Pharmaceuticals - 3.2%
|
|
|
|
|
|
|
|
|
Bayer AG, Registered Shares
|
|
|
24,560
|
|
|
|
2,423,703
|
|
H. Lundbeck A/S
|
|
|
109,330
|
|
|
|
1,729,080
|
|
Teva Pharmaceutical Industries Ltd., ADR
|
|
|
89,140
|
|
|
|
3,386,429
|
|
|
|
|
|
|
|
|
|
|
Total Pharmaceuticals
|
|
|
|
|
|
|
7,539,212
|
|
|
|
|
|
|
|
|
|
|
TOTAL HEALTH CARE
|
|
|
|
|
|
|
14,404,778
|
|
|
|
|
|
|
|
|
|
|
INDUSTRIALS - 22.9%
|
|
|
|
|
|
|
|
|
Aerospace & Defense - 2.6%
|
|
|
|
|
|
|
|
|
Qinetiq Group PLC
|
|
|
1,059,300
|
|
|
|
3,158,494
|
|
Safran SA
|
|
|
64,960
|
|
|
|
2,982,576
|
|
|
|
|
|
|
|
|
|
|
Total Aerospace & Defense
|
|
|
|
|
|
|
6,141,070
|
|
|
|
|
|
|
|
|
|
|
Airlines - 1.5%
|
|
|
|
|
|
|
|
|
easyJet PLC
|
|
|
243,877
|
|
|
|
3,601,005
|
|
|
|
|
|
|
|
|
|
|
Building Products - 0.8%
|
|
|
|
|
|
|
|
|
Noritz Corp.
|
|
|
98,040
|
|
|
|
1,758,277
|
|
|
|
|
|
|
|
|
|
|
Commercial Services & Supplies - 5.7%
|
|
|
|
|
|
|
|
|
Mitie Group PLC
|
|
|
554,110
|
|
|
|
2,477,389
|
|
Newalta Corp.
|
|
|
251,500
|
|
|
|
4,047,098
|
|
Shanks Group PLC
|
|
|
2,005,880
|
|
|
|
2,918,866
|
|
Séché Environnement
|
|
|
95,000
|
|
|
|
3,815,556
|
|
|
|
|
|
|
|
|
|
|
Total Commercial Services & Supplies
|
|
|
|
|
|
|
13,258,909
|
|
|
|
|
|
|
|
|
|
|
Electrical Equipment - 2.7%
|
|
|
|
|
|
|
|
|
Bekaert NV
|
|
|
48,460
|
|
|
|
1,459,751
|
|
Dongfang Electric Corp. Ltd., Class H Shares
|
|
|
1,165,960
|
|
|
|
2,270,160
|
|
See
Notes to Schedule of Investments.
2
CLEARBRIDGE INTERNATIONAL ALL CAP OPPORTUNITY FUND
|
|
|
Schedule of Investments (unaudited) (contd)
|
|
January 31, 2013
|
|
|
|
|
|
|
|
|
|
SECURITY
|
|
SHARES
|
|
|
VALUE
|
|
Saft Groupe SA
|
|
|
95,600
|
|
|
$
|
2,587,029
|
|
|
|
|
|
|
|
|
|
|
Total Electrical Equipment
|
|
|
|
|
|
|
6,316,940
|
|
|
|
|
|
|
|
|
|
|
Industrial Conglomerates - 2.1%
|
|
|
|
|
|
|
|
|
Orkla ASA
|
|
|
267,480
|
|
|
|
2,360,017
|
|
Rheinmetall AG
|
|
|
46,610
|
|
|
|
2,481,487
|
|
|
|
|
|
|
|
|
|
|
Total Industrial Conglomerates
|
|
|
|
|
|
|
4,841,504
|
|
|
|
|
|
|
|
|
|
|
Machinery - 0.5%
|
|
|
|
|
|
|
|
|
Krones AG
|
|
|
19,950
|
|
|
|
1,239,146
|
|
|
|
|
|
|
|
|
|
|
Marine - 1.5%
|
|
|
|
|
|
|
|
|
Baltic Trading Ltd.
|
|
|
343,100
|
|
|
|
1,108,213
|
|
Diana Shipping Inc.
|
|
|
162,630
|
|
|
|
1,418,134
|
*
|
Genco Shipping & Trading Ltd.
|
|
|
322,460
|
|
|
|
1,077,016
|
*
|
|
|
|
|
|
|
|
|
|
Total Marine
|
|
|
|
|
|
|
3,603,363
|
|
|
|
|
|
|
|
|
|
|
Professional Services - 3.8%
|
|
|
|
|
|
|
|
|
Adecco SA
|
|
|
69,580
|
|
|
|
3,998,719
|
*
|
Teleperformance
|
|
|
124,450
|
|
|
|
4,962,048
|
|
|
|
|
|
|
|
|
|
|
Total Professional Services
|
|
|
|
|
|
|
8,960,767
|
|
|
|
|
|
|
|
|
|
|
Transportation Infrastructure - 1.7%
|
|
|
|
|
|
|
|
|
Yuexiu Transport Infrastructure Ltd.
|
|
|
4,636,050
|
|
|
|
2,564,491
|
|
Zhejiang Expressway Co., Ltd., Class H Shares
|
|
|
1,495,080
|
|
|
|
1,330,177
|
|
|
|
|
|
|
|
|
|
|
Total Transportation Infrastructure
|
|
|
|
|
|
|
3,894,668
|
|
|
|
|
|
|
|
|
|
|
TOTAL INDUSTRIALS
|
|
|
|
|
|
|
53,615,649
|
|
|
|
|
|
|
|
|
|
|
INFORMATION TECHNOLOGY - 8.3%
|
|
|
|
|
|
|
|
|
Communications Equipment - 1.9%
|
|
|
|
|
|
|
|
|
Telefonaktiebolaget LM Ericsson, Class B Shares
|
|
|
382,090
|
|
|
|
4,447,205
|
|
|
|
|
|
|
|
|
|
|
Electronic Equipment, Instruments & Components - 0.8%
|
|
|
|
|
|
|
|
|
Nippon Electric Glass Co., Ltd.
|
|
|
381,900
|
|
|
|
1,837,563
|
|
|
|
|
|
|
|
|
|
|
IT Services - 5.1%
|
|
|
|
|
|
|
|
|
Accenture PLC, Class A Shares
|
|
|
49,880
|
|
|
|
3,585,873
|
|
Amadeus IT Holding SA, Class A Shares
|
|
|
55,170
|
|
|
|
1,383,960
|
|
Indra Sistemas SA
|
|
|
333,970
|
|
|
|
4,366,412
|
|
Travelsky Technology Ltd., Class H Shares
|
|
|
4,076,170
|
|
|
|
2,522,838
|
|
|
|
|
|
|
|
|
|
|
Total IT Services
|
|
|
|
|
|
|
11,859,083
|
|
|
|
|
|
|
|
|
|
|
Software - 0.5%
|
|
|
|
|
|
|
|
|
Square Enix Co., Ltd.
|
|
|
94,069
|
|
|
|
1,167,569
|
|
|
|
|
|
|
|
|
|
|
TOTAL INFORMATION TECHNOLOGY
|
|
|
|
|
|
|
19,311,420
|
|
|
|
|
|
|
|
|
|
|
MATERIALS - 9.9%
|
|
|
|
|
|
|
|
|
Chemicals - 3.0%
|
|
|
|
|
|
|
|
|
Akzo Nobel NV
|
|
|
68,774
|
|
|
|
4,705,489
|
|
Borregaard ASA
|
|
|
274,390
|
|
|
|
1,215,515
|
*
|
Wacker Chemie AG
|
|
|
14,960
|
|
|
|
1,065,198
|
|
|
|
|
|
|
|
|
|
|
Total Chemicals
|
|
|
|
|
|
|
6,986,202
|
|
|
|
|
|
|
|
|
|
|
Construction Materials - 1.9%
|
|
|
|
|
|
|
|
|
HeidelbergCement AG
|
|
|
68,850
|
|
|
|
4,336,750
|
|
|
|
|
|
|
|
|
|
|
Containers & Packaging - 1.3%
|
|
|
|
|
|
|
|
|
Rexam PLC
|
|
|
419,868
|
|
|
|
3,119,792
|
|
|
|
|
|
|
|
|
|
|
Metals & Mining - 3.7%
|
|
|
|
|
|
|
|
|
Angang New Steel Co., Ltd.
|
|
|
1,978,010
|
|
|
|
1,466,534
|
*
|
APERAM
|
|
|
76,870
|
|
|
|
1,115,238
|
|
Eramet
|
|
|
9,100
|
|
|
|
1,291,201
|
|
Pan American Silver Corp.
|
|
|
121,760
|
|
|
|
2,126,588
|
|
See
Notes to Schedule of Investments.
3
CLEARBRIDGE INTERNATIONAL ALL CAP OPPORTUNITY FUND
|
|
|
Schedule of Investments (unaudited) (contd)
|
|
January 31, 2013
|
|
|
|
|
|
|
|
|
|
SECURITY
|
|
SHARES
|
|
|
VALUE
|
|
Voestalpine AG
|
|
|
73,080
|
|
|
$
|
2,676,181
|
|
|
|
|
|
|
|
|
|
|
Total Metals & Mining
|
|
|
|
|
|
|
8,675,742
|
|
|
|
|
|
|
|
|
|
|
TOTAL MATERIALS
|
|
|
|
|
|
|
23,118,486
|
|
|
|
|
|
|
|
|
|
|
TOTAL COMMON STOCKS
(Cost - $194,970,826)
|
|
|
|
|
|
|
228,518,598
|
|
|
|
|
|
|
|
|
|
|
PREFERRED STOCKS - 1.2%
|
|
|
|
|
|
|
|
|
FINANCIALS - 1.1%
|
|
|
|
|
|
|
|
|
Commercial Banks - 1.1%
|
|
|
|
|
|
|
|
|
Itau Unibanco Banco Multiple SA, ADR
|
|
|
142,080
|
|
|
|
2,448,039
|
|
|
|
|
|
|
|
|
|
|
MATERIALS - 0.1%
|
|
|
|
|
|
|
|
|
Containers & Packaging - 0.1%
|
|
|
|
|
|
|
|
|
Rexam PLC, Class B Shares
|
|
|
466,520
|
|
|
|
332,955
|
*
(a)
|
|
|
|
|
|
|
|
|
|
TOTAL PREFERRED STOCKS
(Cost - $2,324,735)
|
|
|
|
|
|
|
2,780,994
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPIRATION
DATE
|
|
|
RIGHTS
|
|
|
|
|
RIGHTS - 0.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
Banco Santander SA
(Cost - $69,022)
|
|
|
2/5/13
|
|
|
|
339,251
|
|
|
|
69,421
|
*
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS
(Cost - $197,364,583)
|
|
|
|
|
|
|
|
|
|
|
231,369,013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RATE
|
|
|
MATURITY
DATE
|
|
|
FACE
AMOUNT
|
|
|
|
|
SHORT-TERM INVESTMENTS - 1.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repurchase Agreements - 1.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest in $155,753,000 joint tri-party repurchase agreement dated 1/31/13 with Deutsche Bank Securities Inc.; Proceeds at
maturity - $3,514,016; (Fully collateralized by various U.S. government agency obligations, 0.375% to 1.250% due 12/21/15 to 9/28/16; Market value - $3,584,288)
(Cost - $3,514,000)
|
|
|
0.160
|
%
|
|
|
2/1/13
|
|
|
$
|
3,514,000
|
|
|
|
3,514,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL INVESTMENTS - 100.4 %
(Cost - $200,878,583#)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
234,883,013
|
|
Liabilities in Excess of Other Assets - (0.4)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(861,575
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL NET ASSETS - 100.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
234,021,438
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
Non-income producing security.
|
(a)
|
Security is valued in good faith in accordance with procedures approved by the Board of Trustees (See Note 1).
|
(c)
|
Value is less than $1.
|
#
|
Aggregate cost for federal income tax purposes is substantially the same.
|
|
|
|
Abbreviations used in this schedule:
|
|
|
ADR
|
|
American Depositary Receipts
|
Strip VVPR
|
|
Verminderde Voorheffing Précompte Réduit (Belgium dividend coupon)
|
See
Notes to Schedule of Investments.
4
CLEARBRIDGE INTERNATIONAL ALL CAP OPPORTUNITY FUND
|
|
|
Schedule of Investments (unaudited) (contd)
|
|
January 31, 2013
|
|
|
|
|
|
Summary of Investments by Country**
|
|
|
|
United Kingdom
|
|
|
21.6
|
%
|
France
|
|
|
12.1
|
|
Germany
|
|
|
11.0
|
|
Switzerland
|
|
|
5.7
|
|
China
|
|
|
5.3
|
|
Japan
|
|
|
4.1
|
|
Canada
|
|
|
4.1
|
|
Ireland
|
|
|
4.0
|
|
Netherlands
|
|
|
3.8
|
|
Spain
|
|
|
3.7
|
|
Norway
|
|
|
3.6
|
|
Sweden
|
|
|
3.4
|
|
Austria
|
|
|
2.4
|
|
Luxembourg
|
|
|
1.9
|
|
Hong Kong
|
|
|
1.7
|
|
Australia
|
|
|
1.5
|
|
Israel
|
|
|
1.4
|
|
Jersey
|
|
|
1.1
|
|
Marshall Islands
|
|
|
1.1
|
|
Brazil
|
|
|
1.0
|
|
Isle of Man
|
|
|
0.9
|
|
Denmark
|
|
|
0.7
|
|
Mexico
|
|
|
0.7
|
|
Belgium
|
|
|
0.6
|
|
Cayman Islands
|
|
|
0.5
|
|
United States
|
|
|
0.5
|
|
Greece
|
|
|
0.1
|
|
Short - Term Investments
|
|
|
1.5
|
|
|
|
|
|
|
100.0
|
%
|
|
|
**
|
As a percentage of total investments. Please note that Fund holdings are as of January 31, 2013 and are subject to change.
|
See
Notes to Schedule of Investments.
5
Notes to Schedule of Investments (unaudited)
1. Organization and Significant Accounting Policies
ClearBridge International All Cap Opportunity Fund (formerly Legg Mason Global Currents International All Cap Oppurtunity Fund) (the Fund) is a separate diversified investment series of Legg
Mason Partners 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.
The following are significant accounting policies consistently followed by the Fund and are in conformity with U.S. generally accepted accounting
principles (GAAP).
(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 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. Short-term fixed income securities that will mature in 60 days or less are valued at amortized cost, unless it is determined that using this method would not reflect an investments fair value. When the Fund holds securities
or other assets that are denominated in a foreign currency, the Fund 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 Fund calculates its net asset value, the Fund values these securities as determined in accordance with procedures approved by the Funds Board of Trustees.
The Board of Trustees is responsible for the valuation process and has delegated the supervision of the daily valuation process to the Legg Mason North
American Fund Valuation Committee (the Valuation Committee). The Valuation Committee, pursuant to the policies adopted by the Board of Trustees, is responsible for making fair value determinations, evaluating the effectiveness of the
Funds pricing policies, and reporting to the Board of Trustees. When determining the reliability of third party pricing information for investments owned by the Fund, 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 Fund 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.
6
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 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 Funds 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 Funds
assets carried at fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
DESCRIPTION
|
|
QUOTED PRICES
(LEVEL 1)
|
|
|
OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2)
|
|
|
SIGNIFICANT
UNOBSERVABLE
INPUTS
(LEVEL
3)
|
|
|
TOTAL
|
|
Long-term investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stocks:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer staples
|
|
$
|
20,345,216
|
|
|
|
|
|
|
$
|
0
|
*
|
|
$
|
20,345,216
|
|
Other common stocks
|
|
|
208,173,382
|
|
|
|
|
|
|
|
|
|
|
|
208,173,382
|
|
Preferred stocks:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financials
|
|
|
2,448,039
|
|
|
|
|
|
|
|
|
|
|
|
2,448,039
|
|
Materials
|
|
|
|
|
|
$
|
332,955
|
|
|
|
|
|
|
|
332,955
|
|
Rights
|
|
|
|
|
|
|
69,421
|
|
|
|
|
|
|
|
69,421
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total long-term investments
|
|
$
|
230,966,637
|
|
|
$
|
402,376
|
|
|
$
|
0
|
*
|
|
$
|
231,369,013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term investments
|
|
|
|
|
|
$
|
3,514,000
|
|
|
|
|
|
|
$
|
3,514,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total investments
|
|
$
|
230,966,637
|
|
|
$
|
3,916,376
|
|
|
$
|
0
|
*
|
|
$
|
234,883,013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Schedule of Investments for additional detailed categorizations.
|
(b) Repurchase
agreements.
The Fund may enter into repurchase agreements with institutions that its investment adviser has determined are creditworthy. Each repurchase agreement is recorded at cost. Under the terms of a typical repurchase agreement, the Fund
acquires a debt security subject to an obligation of the seller to repurchase, and of the Fund to resell, the security at an agreed-upon price and time, thereby determining the yield during the Funds holding period. When entering into
repurchase agreements, it is the Funds policy that its custodian or a third party custodian, acting on the Funds behalf, take possession of the underlying collateral securities, the market value of which, at all times, at least equals
the principal amount of the repurchase transaction, including accrued interest. To the extent that any repurchase transaction maturity exceeds one business day, the value of the collateral is marked-to-market and measured against the value of the
agreement in an effort to ensure the adequacy of the collateral. If the counterparty defaults, the Fund generally has the right to use the collateral to satisfy the terms of the repurchase transaction. However, if the market value of the collateral
declines during the period in which the Fund seeks to assert its rights or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of the collateral by the Fund may be delayed or limited.
(c) Foreign currency translation.
Investment securities and other assets and liabilities denominated in foreign currencies are translated into
U.S. dollar amounts based upon prevailing exchange rates on the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts based upon
prevailing exchange rates on the respective dates of such transactions.
Foreign security and currency transactions may involve certain
considerations and risks not typically associated with those of U.S. dollar denominated transactions as a result of, among other factors, the possibility of lower levels of governmental supervision and regulation of foreign securities markets and
the possibility of political or economic instability.
7
Notes to Schedule of Investments (unaudited) (continued)
(d) Foreign investment risks.
The Funds investments in foreign
securities may involve risks not present in domestic investments. Since securities may be denominated in foreign currencies, may require settlement in foreign currencies or pay interest or dividends in foreign currencies, changes in the relationship
of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Fund. Foreign investments may also subject the Fund to foreign government exchange restrictions, expropriation, taxation or
other political, social or economic developments, all of which affect the market and/or credit risk of the investments.
(e)
|
Security transactions.
Security transactions are accounted for on a trade date basis.
|
2. Investments
At January 31, 2013, the aggregate gross unrealized appreciation and
depreciation of investments for federal income tax purposes were substantially as follows:
|
|
|
|
|
Gross unrealized appreciation
|
|
$
|
42,897,777
|
|
Gross unrealized depreciation
|
|
|
(8,893,347
|
)
|
|
|
|
|
|
Net unrealized appreciation
|
|
$
|
34,004,430
|
|
|
|
|
|
|
3. Derivative instruments and hedging activities
GAAP requires enhanced disclosure about an entitys derivative and hedging activities.
During the period ended
January 31, 2013, the Fund did not invest in any derivative instruments.
8
ITEM 2.
|
CONTROLS AND PROCEDURES.
|
|
(a)
|
The registrants principal executive officer and principal financial officer have concluded that the registrants disclosure controls and procedures (as
defined in Rule 30a- 3(c) under the Investment Company Act of 1940, as amended (the 1940 Act)) are effective as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on
their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the 1940 Act and 15d-15(b) under the Securities Exchange Act of 1934.
|
|
(b)
|
There were no changes in the registrants internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the
registrants last fiscal quarter that have materially affected, or are likely to materially affect the registrants internal control over financial reporting.
|
Certifications
pursuant to Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
|
|
|
Legg Mason Partners Equity Trust
|
|
|
By
|
|
/
S
/ R. J
AY
G
ERKEN
|
|
|
R. Jay Gerken
|
|
|
Chief Executive Officer
|
|
|
Date:
|
|
March 26, 2013
|
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report
has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
|
|
|
By
|
|
/
S
/ R. J
AY
G
ERKEN
|
|
|
R. Jay Gerken
|
|
|
Chief Executive Officer
|
|
|
Date:
|
|
March 26, 2013
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By
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/
S
/ R
ICHARD
F.
S
ENNETT
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Richard F. Sennett
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Principal Financial Officer
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Date:
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March 26, 2013
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