# EDGAR Filing Document

**Accession Number:** 0001176343
**File Stem:** 0001193125-23-043186
**Filing Date:** 2023-2
**Character Count:** 144954
**Document Hash:** 967578cecaf472c09f1cc7c176b6e71e
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-23-043186.hdr.sgml**: 20230221

**ACCESSION NUMBER**: 0001193125-23-043186

**CONFORMED SUBMISSION TYPE**: N-CSR

**PUBLIC DOCUMENT COUNT**: 12

**CONFORMED PERIOD OF REPORT**: 20221231

**FILED AS OF DATE**: 20230221

**DATE AS OF CHANGE**: 20230221

**EFFECTIVENESS DATE**: 20230221

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** LEGG MASON PARTNERS VARIABLE EQUITY TRUST
- **CENTRAL INDEX KEY:** 0001176343
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** MD

**FILING VALUES:**
- **FORM TYPE:** N-CSR
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-21128
- **FILM NUMBER:** 23646192

**BUSINESS ADDRESS:**
- **STREET 1:** LEGG MASON & CO., LLC
- **STREET 2:** 620 EIGHTH AVENUE, 49TH FLOOR
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10018
- **BUSINESS PHONE:** 1-877-721-1926

**MAIL ADDRESS:**
- **STREET 1:** LEGG MASON & CO., LLC
- **STREET 2:** 620 EIGHTH AVENUE, 49TH FLOOR
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10018

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Legg Mason Partners Variable Portfolios IV
- **DATE OF NAME CHANGE:** 20060501

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** SMITH BARNEY MULTIPLE DISCIPLINE TRUST
- **DATE OF NAME CHANGE:** 20021004

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** SMITH BARNEY MULTIPLE DISCIPLINE ACCOUNT TRUST
- **DATE OF NAME CHANGE:** 20020626

## Series and Classes Contracts Data

### ClearBridge Variable Aggressive Growth Portfolio (Series ID: S000016933)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000047115 | Class I      | QLMGOX          |
| C000047116 | Class II     | QLMGTX          |

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**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION** 

**Washington, D.C. 20549** 

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**FORM N-CSR** 

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**CERTIFIED SHAREHOLDER REPORT OF REGISTERED** 

**MANAGEMENT INVESTMENT COMPANIES** 

**Investment Company Act file number 811-21128** 

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## Legg Mason Partners Variable Equity Trust
**(Exact name of registrant as specified in charter)** 

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**620 Eighth Avenue, 47<sup>th</sup> Floor, New York, NY 10018** 

**(Address of principal executive offices) (Zip code)** 

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**Marc A. De Oliveira.** 

**Franklin Templeton** 

**100 First Stamford Place** 

**Stamford, CT 06902** 

**(Name and address of agent for service)** 

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**Registrant's telephone number, including area code: 877-6LM-FUND/656-3863** 

**Date of fiscal year end: December 31** 

**Date of reporting period: December 31, 2022** 

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ITEM 1. REPORT TO STOCKHOLDERS.

The **Annual** Report to Stockholders is filed herewith.

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![LOGO](g413090clearbridgelogo.jpg)

<u>Annual Report</u>   <u>December 31, 2022</u>

## CLEARBRIDGE

## VARIABLE AGGRESSIVE GROWTH PORTFOLIO

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![LOGO](g413090g57q58.jpg)

INVESTMENT PRODUCTS: NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE

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---

| | |
|:---|:---|
| **What's inside** | |
| [Letter from the president](#tx413090_1) | II |
| [Portfolio overview](#tx413090_2) | 1 |
| [Portfolio at a glance](#tx413090_3) | 7 |
| [Portfolio expenses](#tx413090_4) | 8 |
| [Portfolio performance](#tx413090_5) | 10 |
| [Schedule of investments](#tx413090_6) | 12 |
| [Statement of assets and liabilities](#tx413090_7) | 15 |
| [Statement of operations](#tx413090_8) | 16 |
| [Statements of changes in net assets](#tx413090_9) | 17 |
| [Financial highlights](#tx413090_10) | 18 |
| [Notes to financial statements](#tx413090_11) | 20 |
| [Report of independent registered public accounting firm](#tx413090_12) | 29 |
| [Additional information](#tx413090_13) | 30 |
| [Important tax information](#tx413090_14) | 36 |

---

**Portfolio objective** 

The Portfolio seeks capital appreciation.

Letter from the president

![LOGO](g413090janetrust_photo.jpg)

**Dear Shareholder,** 

We are pleased to provide the annual report of ClearBridge Variable Aggressive Growth Portfolio for the twelve-month reporting period ended December 31, 2022. Please read on for a detailed look at prevailing economic and market conditions during the Portfolio's reporting period and to learn how those conditions have affected Portfolio performance.

As always, we remain committed to providing you with excellent service and a full spectrum of investment choices. We also remain committed to supplementing the support you receive from your financial advisor. One way we accomplish this is through our website, www.franklintempleton.com. Here you can gain immediate access to market and investment information, including:

• Market insights and commentaries from our portfolio managers and

• A host of educational resources.

We look forward to helping you meet your financial goals.

Sincerely,

![LOGO](g413090g12u83.jpg)

Jane Trust, CFA

President and Chief Executive Officer

January 31, 2023

II ClearBridge Variable Aggressive Growth Portfolio

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Portfolio overview

**Q. What is the Portfolio's investment strategy?** 

**A.** The Portfolio seeks capital appreciation. The Portfolio invests primarily in common stocks of companies that we believe are experiencing, or will experience, growth in earnings that exceeds the average rate of earnings growth of the companies which comprise the S&P 500 Indexi. The Portfolio may invest in the securities of large, well-known companies offering prospects of long-term earnings growth. However, because higher earnings growth rates are often achieved by small to medium capitalization companies, a significant portion of the Portfolio's assets may be invested in the securities of such companies. The Portfolio may invest up to 25% of its net assets (at the time of investment) in equity securities of foreign issuers.

We emphasize individual security selection while diversifying the Portfolio's investments across industries, which may help to reduce risk. We focus primarily, but not exclusively, on emerging growth companies that have passed their "start-up" phase and show positive earnings and the prospect of achieving significant profit gains in the two to three years after the Portfolio acquires their stocks.

**Q. What were the overall market conditions during the Portfolio's reporting period?** 

**A.** Equity markets took a defensive shift during the twelve-month reporting period ended December 31, 2022, resulting in a 18.11% decline for the S&P 500 Index. The benchmark Russell 3000 Growth Indexii returned -28.97% for the period, trailing the 7.54% decline for the Russell 1000 Value Indexiii. Within the benchmark, rising interest rates created headwinds for stocks in the communication services (-48.62%), consumer discretionary (-41.43%) and information technology ("IT") (-30.37%) sectors investing to generate profits far into the future. The energy sector (+49.40%), which has a minimal weighting in the benchmark, was the clear winner amid elevated oil and gas prices and an ongoing energy crisis in Europe, while more defensive areas also outperformed the benchmark, including consumer staples (-4.60%) and health care (-14.39%), as did industrials (-10.88%).

Rising inflation prompted the Federal Reserve Board (the "Fed") to take on a more hawkish stance, accelerating the tapering of asset purchases and increasing rate hike projections. This drove equities, in particular higher-growth companies, to sell off entering 2022.

Russia's invasion of Ukraine in February further disrupted global supply chains and reduced global commodity reserves due to the sanctions levied on Russia, the world's eleventh largest economy. The conflict increased the probability of a recession in Europe, which investors feared could spread to other developed economies. Oil and gas prices spiked, lifting the energy sector and driving further inflation. The yield for the ten-year Treasury note rose from 1.63% to 2.33% in the first quarter of 2022.

The second quarter brought more of the same, with persistent inflation prompting central banks to take more hawkish stances. The Fed raised the federal funds rate by 50 basis points in May and 75 basis points in June. These hikes jarred financial markets,

ClearBridge Variable Aggressive Growth Portfolio 2022 Annual Report 1

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Portfolio overview (cont'd)

significantly compressing equity multiples. Defensive sectors led the market, along with the energy sector, while mega cap growth stocks sold off. Concerns over companies' ability to maintain current margins increased, as did the probability of a "hard landing" for the economy. The yield for the ten-year Treasury note rose to 3.01%.

A bear market rally followed in July, with investors bidding up growth stocks in particular in the hopes a policy-engineered recession would spur a reversal in Fed policy. Such hopes were disappointed in August when candid statements by Fed Chair Powell signaled the Fed's intent to continue raising rates beyond previous targets, regardless of the economic consequences. Higher bond yields — the yield for the ten-year Treasury note rose to 3.83% in the third quarter of 2022 — helped strengthen the U.S. dollar, reducing overseas revenues for multinational companies.

Emerging evidence of a slowing economy, which might prompt an early Fed pivot from its tightening regime, along with some better-than-expected earnings, helped equities to close out the period. After edging up above 4%, the yield for the ten-year Treasury note ended the period at 3.88%, up over 200 basis points for the reporting period, as the Fed signaled a higher-for-longer future for interest rates and a recession became the base case for 2023.

**Q. How did we respond to these changing market conditions?** 

**A.** The Portfolio outperformed through varying market conditions during a volatile year. We attribute these results to the balance we have sought to achieve through active portfolio repositioning throughout the period.

The additions of disruptor Airbnb, an online platform for alternative lodging, and global spirits marketer Diageo expanded our relatively low exposure to consumer discretionary and consumer staples within the Portfolio with industry leaders in their respective businesses.

The additions have improved the Portfolio's overall growth profile while maintaining high active share with a low correlation to the mega cap heavy Russell 3000 Growth Index. An ongoing focus on valuation as well as cash flow positive businesses and those with a visible path to profitability have also supported downside capture through a volatile period of normalization from the COVID-19 pandemic.

2 ClearBridge Variable Aggressive Growth Portfolio 2022 Annual Report

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**Performance review** 

For the twelve months ended December 31, 2022, Class I shares of ClearBridge Variable Aggressive Growth Portfolio<sup>1</sup> returned -26.42%. The Portfolio's unmanaged benchmark, the Russell 3000 Growth Index, returned -28.97% for the same period. The Lipper Variable Multi-Cap Core Funds Category Average<sup>iv</sup> returned -17.75% over the same time frame.

---

| | | |
|:---|:---|:---|
| **Performance Snapshot** as of December 31, 2022<br> (unaudited) | **Performance Snapshot** as of December 31, 2022<br> (unaudited) | **Performance Snapshot** as of December 31, 2022<br> (unaudited) |
|  | 6 months | 12 months |
| ClearBridge Variable Aggressive Growth Portfolio: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class I | -0.72% | -26.42% |
| &nbsp;&nbsp;&nbsp;&nbsp; Class II | -0.78% | -26.59% |
| Russell 3000 Growth Index | -1.13% | -28.97% |
| Lipper Variable Multi-Cap Core Funds Category Average | 2.97% | -17.75% |

---

**The performance shown represents past performance. Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown above. Principal value and investment returns will fluctuate and investors' shares, when redeemed, may be worth more or less than their original cost.** 

**All share class returns assume the reinvestment of all distributions at net asset value and the deduction of all Portfolio expenses. Performance figures for periods shorter than one year represent cumulative figures and are not annualized.** 

**Portfolio performance figures reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.** 

 **Total Annual Operating Expenses** (unaudited)

**As of the Portfolio's current prospectus dated May 1, 2022, the gross total annual fund operating expense ratios for Class I and Class II shares were 0.80% and 1.08%, respectively.** 

**Actual expenses may be higher. For example, expenses may be higher than those shown if average net assets decrease. Net assets are more likely to decrease and Portfolio expense ratios are more likely to increase when markets are volatile.** 

**Q. What were the leading contributors to performance?** 

**A.** On an absolute basis, the Portfolio's positions in one of eight sectors in which it was invested (out of eleven sectors in total) contributed positively to performance for the period, the health care sector.

Relative to the benchmark, overall stock selection contributed to performance. In particular, stock selection in the communication services and health care sectors were the primary drivers of returns. In addition, an overweight allocation to the health care sector, an

<sup>1</sup> The Portfolio is an underlying investment option of various variable annuity and variable life insurance products. The Portfolio's performance returns do not reflect the deduction of expenses imposed in connection with investing in variable annuity or variable life insurance contracts, such as administrative fees, account charges and surrender charges, which, if reflected, would reduce the performance of the Portfolio. **Past performance is no guarantee of future results.** 

ClearBridge Variable Aggressive Growth Portfolio 2022 Annual Report 3

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Portfolio overview (cont'd)

underweight to the consumer discretionary sector and stock selection in the materials sectors had positive impacts on performance.

In terms of individual Portfolio holdings, leading contributors to performance for the period included positions in Vertex Pharmaceuticals, UnitedHealth Group, Biogen and AbbVie in the health care sector and Twitter in the communication services sector.

**Q. What were the leading detractors from performance?** 

**A.** Relative to the benchmark, the Portfolio's overall sector allocation had a negative impact on performance for the reporting period. In particular, an overweight to the communication services sector, an underweight to the consumer staples sector and stock selection in the industrials sector hurt performance.

In terms of individual Portfolio holdings, leading detractors from performance for the reporting period included positions in Wolfspeed, CrowdStrike Holdings and Seagate Technology in the IT sector as well as Meta Platforms and Comcast in the communication services sector.

**Q. Were there any significant changes to the Portfolio during the reporting period?** 

**A.** Over the course of the period, we established four new positions that remained in the Portfolio at period end, Snowflake in the IT sector, Diageo in the consumer staples sector, Airbnb in the consumer discretionary sector and Doximity in the health care sector.

In an effort to concentrate the Portfolio in our highest conviction ideas with the best long-term growth profiles, we also closed eight positions. The largest sales included Twitter in the communication services sector, Cerence in the IT sector, Medtronic and 10X Genomics in the health care sector and Pentair in the industrials sector.

Thank you for your investment in the ClearBridge Variable Aggressive Growth Portfolio. As always, we appreciate that you have chosen us to manage your assets, and we remain focused on achieving the Portfolio's investment goals.

Sincerely,

Aram Green

Portfolio Manager

ClearBridge Investments, LLC

4 ClearBridge Variable Aggressive Growth Portfolio 2022 Annual Report

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![LOGO](g413090g55v61.jpg)

Evan Bauman

Portfolio Manager

ClearBridge Investments, LLC

January 18, 2023

*RISKS: Equity securities are subject to price and market fluctuations. The Portfolio may invest a significant portion of its assets in small- and mid-cap companies, which may be more volatile than investments in large-cap companies. The Portfolio may focus its investments in certain companies, industries or market sectors, increasing its vulnerability to market volatility. Investing in foreign securities is subject to certain risks not associated with domestic investing, such as currency fluctuations and changes in social, political and economic conditions, which could increase volatility. These risks are magnified in emerging markets. Emerging market countries tend to have economic, political and legal systems that are less developed and are less stable than those of more developed countries. Please see the Portfolio's prospectus for a more complete discussion of these and other risks and the Portfolio's investment strategies.* 

Portfolio holdings and breakdowns are as of December 31, 2022 and are subject to change and may not be representative of the portfolio managers' current or future investments. The Portfolio's top ten holdings (as a percentage of net assets) as of December 31, 2022 were: UnitedHealth Group Inc. (8.8%), Broadcom Inc. (8.6%), Vertex Pharmaceuticals Inc. (8.1%), Comcast Corp. (6.1%), TE Connectivity Ltd. (6.0%), Autodesk Inc. (4.9%), L3Harris Technologies Inc. (4.5%), Wolfspeed Inc. (4.2%), Johnson Controls International PLC (3.8%) and Biogen Inc. (3.7%). Please refer to pages 12 through 14 for a list and percentage breakdown of the Portfolio's holdings.

The mention of sector breakdowns is for informational purposes only and should not be construed as a recommendation to purchase or sell any securities. The information provided regarding such sectors is not a sufficient basis upon which to make an investment decision. Investors seeking financial advice regarding the appropriateness of investing in any securities or investment strategies discussed should consult their financial professional. The Portfolio's top five sector holdings (as a percentage of net assets) as of December 31, 2022 were: information technology (34.7%), health care (31.1%), communication services (15.7%), industrials (8.8%) and consumer discretionary (3.6%). The Portfolio's composition is subject to change at any time.

All investments are subject to risk including the possible loss of principal. Past performance is no guarantee of future results. All index performance reflects no deduction for fees, expenses or taxes. Please note that an investor cannot invest directly in an index.

The information provided is not intended to be a forecast of future events, a guarantee of future results or investment advice. Views expressed may differ from those of the firm as a whole.

ClearBridge Variable Aggressive Growth Portfolio 2022 Annual Report 5

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Portfolio overview (cont'd)

<sup>i</sup> The S&P 500 Index is an unmanaged index of the stocks of 500 leading companies, and is generally representative of the performance of larger companies in the U.S.

<sup>ii</sup> The Russell 3000 Growth Index measures the performance of the broad growth segment of the U.S. equity universe. It includes those Russell 3000 Index companies with higher price-to-book ratios and higher forecasted growth values. (A price-to-book ratio is the price of a stock compared to the difference between a company's assets and liabilities.) The Russell 3000 Index measures the performance of the 3,000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the U.S. equity market. 

<sup>iii</sup> The Russell 1000 Value Index measures the performance of the large-cap value segment of the U.S. equity universe. It includes those Russell 1000 Index companies with lower price-to-book ratios and lower expected growth values.

<sup>iv</sup> Lipper, Inc., a wholly-owned subsidiary of Refinitiv, provides independent insight on global collective investments. Returns are based on the period ended December 31, 2022, including the reinvestment of all distributions, including returns of capital, if any, calculated among the 100 funds for the six-month period and among the 98 funds for the twelve-month period in the Portfolio's Lipper category. 

6 ClearBridge Variable Aggressive Growth Portfolio 2022 Annual Report

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Portfolio at a glance<sup>†</sup> (unaudited)

**Investment breakdown** (%) as a percent of total investments

![LOGO](g413090g00a10.jpg)

† The bar graph above represents the composition of the Portfolio's investments as of December 31, 2022 and
December 31, 2021. The Portfolio is actively managed. As a result, the composition of the Portfolio's investments is subject to change at any time.

ClearBridge Variable Aggressive Growth Portfolio 2022 Annual Report 7

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Portfolio expenses (unaudited)

**Example** 

As a shareholder of the Portfolio, you may incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees; service and/or distribution (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Portfolio and to compare these costs with the ongoing costs of investing in other funds.

This example is based on an investment of $1,000 invested on July 1, 2022 and held for the six months ended December 31, 2022.

**Actual expenses** 

The table below titled "Based on actual total return" provides information about actual account values and actual expenses. You may use the information provided in this table, together with the amount you invested, to estimate the expenses that you paid over the period. To estimate the expenses you paid on your account, divide your ending account value by $1,000 (for example, an $8,600 ending account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled "Expenses Paid During the Period".

**Hypothetical example for comparison purposes** 

The table below titled "Based on hypothetical total return" provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio and an assumed rate of return of 5.00% per year before expenses, which is not the Portfolio's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use the information provided in this table to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare the 5.00% hypothetical example relating to the Portfolio with the 5.00% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table below are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.

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| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| <br> &nbsp;&nbsp;&nbsp;&nbsp;**Based on actual total return<sup>1</sup>**  | <br> &nbsp;&nbsp;&nbsp;&nbsp;**Based on actual total return<sup>1</sup>**  | <br> &nbsp;&nbsp;&nbsp;&nbsp;**Based on actual total return<sup>1</sup>**  | <br> &nbsp;&nbsp;&nbsp;&nbsp;**Based on actual total return<sup>1</sup>**  | <br> &nbsp;&nbsp;&nbsp;&nbsp;**Based on actual total return<sup>1</sup>**  | <br> &nbsp;&nbsp;&nbsp;&nbsp;**Based on actual total return<sup>1</sup>**  | <br> **Based on hypothetical total return<sup>1</sup>**  | <br> **Based on hypothetical total return<sup>1</sup>**  | <br> **Based on hypothetical total return<sup>1</sup>**  | <br> **Based on hypothetical total return<sup>1</sup>**  | <br> **Based on hypothetical total return<sup>1</sup>**  | <br> **Based on hypothetical total return<sup>1</sup>**  |
|  | Actual<br>Total Return<sup>2</sup> | Beginning<br>Account<br>Value | Ending<br>Account<br>Value | Annualized<br>Expense<br>Ratio | Expenses<br>Paid<br>During<br>the<br>Period<sup>3</sup> |  | Hypothetical<br>Annualized<br>Total Return | Beginning<br> Account<br>Value | Ending<br>Account<br>Value | Annualized<br>Expense<br>Ratio | Expenses<br>Paid<br>During<br>the<br>Period<sup>3</sup> |
| &nbsp;&nbsp;&nbsp;Class I | -0.72% | $1000.00 | $992.80 | 0.75% | $3.77 | Class I | 5.00% | $1000.00 | $1021.42 | 0.75% | $3.82 |
| &nbsp;&nbsp;&nbsp;Class II | -0.78 | 1000.00 | 992.20 | 1.00 | 5.02 | Class II | 5.00 | 1000.00 | 1020.16 | 1.00 | 5.09 |

---

8 ClearBridge Variable Aggressive Growth Portfolio 2022 Annual Report

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<sup>1</sup> For the six months ended December 31, 2022.

<sup>2</sup> Assumes the reinvestment of all distributions, including returns of capital, if any, at net asset value. Total return is not annualized, as it may not be representative of the total return for the year. Total returns do not reflect expenses associated with separate accounts such as administrative fees, account charges and surrender charges, which, if reflected, would reduce the total returns. Performance figures may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower. Past performance is no guarantee of future results. 

<sup>3</sup> Expenses (net of compensating balance arrangements, fee waivers and/or expense reimbursements) are equal to each class' respective annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year (184), then divided by 365. 

ClearBridge Variable Aggressive Growth Portfolio 2022 Annual Report 9

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Portfolio performance (unaudited)

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| | | |
|:---|:---|:---|
| **Average annual total returns<sup>1</sup>** | | |
|  | Class I | Class II |
| Twelve Months Ended 12/31/22 | -26.42% | -26.59% |
| Five Years Ended 12/31/22 | 1.89 | 1.64 |
| Ten Years Ended 12/31/22 | 8.49 | 8.22 |

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| | |
|:---|:---|
| **Cumulative total returns<sup>1</sup>** | |
| Class I (12/31/12 through 12/31/22) | 125.95% |
| Class II (12/31/12 through 12/31/22) | 120.39 |

---

**All figures represent past performance and are not a guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. The returns shown do not reflect expenses associated with separate accounts such as administrative fees, account charges and surrender charges, which, if reflected, would reduce the total returns.** 

**Performance figures may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower.** 

<sup>1</sup> Assumes the reinvestment of all distributions, including returns of capital, if any, at net asset value.

10 ClearBridge Variable Aggressive Growth Portfolio 2022 Annual Report

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**Historical performance** 

**Value of $10,000 invested in** 

Class I Shares of ClearBridge Variable Aggressive Growth Portfolio vs. Russell 3000 Growth Index† — December 2012—December 2022

![LOGO](g413090g00a14.jpg)

**All figures represent past performance and are not a guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. The returns shown do not reflect expenses associated with separate accounts such as administrative fees, account charges and surrender charges, which, if reflected, would reduce the total returns. Performance figures may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower.** 

† Hypothetical illustration of $10,000 invested in Class I shares of ClearBridge Variable Aggressive Growth Portfolio
on December 31, 2012, assuming the reinvestment of all distributions, including returns of capital, if any, at net asset value through December 31, 2022. The hypothetical illustration also assumes a $10,000 investment in the Russell 3000
Growth Index. The Russell 3000 Growth Index (the "Index") measures the performance of the broad growth segment of the U.S. equity universe. It includes those Russell 3000 Index companies with higher price-to-book ratios and higher forecasted growth values. The Index is unmanaged and is not subject to the same management and trading expenses as a fund. Please note that an investor cannot invest directly
in an index. The performance of the Portfolio's other class may be greater or less than the Class I shares' performance indicated on this chart, depending on whether greater or lesser fees were incurred by shareholders investing in
the other class.

ClearBridge Variable Aggressive Growth Portfolio 2022 Annual Report 11

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Schedule of investments

December 31, 2022

**ClearBridge Variable Aggressive Growth Portfolio** 

(Percentages shown based on Portfolio net assets)

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| | | | |
|:---|:---|:---|:---|
| Security | Shares | Value |  |
| **Common Stocks — 98.8%** |  |  |  |
| **Communication Services — 15.7%** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Entertainment — 5.6%* |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Liberty Media Corp.-Liberty Formula One, Class C Shares | 25556 | $1527738 | \* |
| &nbsp;&nbsp;&nbsp;&nbsp; Madison Square Garden Entertainment Corp. | 32871 | 1478209 | \* |
| &nbsp;&nbsp;&nbsp;&nbsp; Madison Square Garden Sports Corp. | 23864 | 4374987 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Warner Bros. Discovery Inc. | 93428 | 885697 | \* |
| &nbsp;&nbsp;&nbsp;&nbsp; World Wrestling Entertainment Inc., Class A Shares | 10301 | 705825 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Entertainment* |  | *8972456* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Interactive Media & Services — 1.8%* |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Match Group Inc. | 41844 | 1736107 | \* |
| &nbsp;&nbsp;&nbsp;&nbsp; Meta Platforms Inc., Class A Shares | 9234 | 1111220 | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Interactive Media & Services* |  | *2847327* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Media — 8.3%* |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; AMC Networks Inc., Class A Shares | 36727 | 575512 | \* |
| &nbsp;&nbsp;&nbsp;&nbsp; Comcast Corp., Class A Shares | 279551 | 9775899 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Liberty Broadband Corp., Class A Shares | 6225 | 472166 | \* |
| &nbsp;&nbsp;&nbsp;&nbsp; Liberty Broadband Corp., Class C Shares | 12131 | 925231 | \* |
| &nbsp;&nbsp;&nbsp;&nbsp; Liberty Media Corp.-Liberty SiriusXM, Class C Shares | 40134 | 1570443 | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Media* |  | *13319251* | |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Communication Services** |  | **25139034** |  |
| **Consumer Discretionary — 3.6%** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Hotels, Restaurants & Leisure — 1.2%* |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Airbnb Inc., Class A Shares | 22400 | *1915200* | \* |
| &nbsp;&nbsp;&nbsp;&nbsp; *Internet & Direct Marketing Retail — 2.4%* |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Etsy Inc. | 32182 | *3854760* | \* |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Consumer Discretionary** |  | **5769960** |  |
| **Consumer Staples — 1.6%** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Beverages — 1.6%* |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Diageo PLC, ADR | 14173 | *2525487* | |
| **Financials — 1.7%** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Capital Markets — 1.7%* |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cohen & Steers Inc. | 41106 | *2653803* | |
| **Health Care — 31.1%** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Biotechnology — 16.7%* |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; AbbVie Inc. | 24595 | 3974798 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Biogen Inc. | 21378 | 5919996 | \* |
| &nbsp;&nbsp;&nbsp;&nbsp; Ionis Pharmaceuticals Inc. | 59698 | 2254793 | \* |

---

See Notes to Financial Statements.

12 ClearBridge Variable Aggressive Growth Portfolio 2022 Annual Report

------

**ClearBridge Variable Aggressive Growth Portfolio** 

(Percentages shown based on Portfolio net assets)

---

| | | | |
|:---|:---|:---|:---|
| Security | Shares | Value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Biotechnology — continued* |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Ultragenyx Pharmaceutical Inc. | 34333 | $1590648 | \* |
| &nbsp;&nbsp;&nbsp;&nbsp; Vertex Pharmaceuticals Inc. | 44987 | 12991346 | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Biotechnology* |  | *26731581* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Health Care Equipment & Supplies — 2.0%* |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Insulet Corp. | 10671 | *3141435* | ** \* |
| &nbsp;&nbsp;&nbsp;&nbsp; *Health Care Providers & Services — 9.4%* |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Guardant Health Inc. | 31564 | 858541 | \* |
| &nbsp;&nbsp;&nbsp;&nbsp; UnitedHealth Group Inc. | 26612 | 14109150 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Health Care Providers & Services* |  | *14967691* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Health Care Technology — 1.1%* |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Doximity Inc., Class A Shares | 54789 | *1838719* | ** \* |
| &nbsp;&nbsp;&nbsp;&nbsp; *Life Sciences Tools & Services — 1.9%* |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Charles River Laboratories International Inc. | 13612 | *2966055* | ** \* |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Health Care** |  | **49645481** |  |
| **Industrials — 8.8%** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Aerospace & Defense — 4.5%* |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; L3Harris Technologies Inc. | 34339 | *7149723* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Building Products — 3.8%* |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Johnson Controls International PLC | 94862 | *6071168* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Road & Rail — 0.5%* |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Lyft Inc., Class A Shares | 72640 | *800493* | ** \* |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Industrials** |  | **14021384** |  |
| **Information Technology — 34.7%** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Electronic Equipment, Instruments & Components — 6.0%* |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; TE Connectivity Ltd. | 83878 | *9629195* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *IT Services — 1.6%* |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Snowflake Inc., Class A Shares | 17645 | *2532763* | ** \* |
| &nbsp;&nbsp;&nbsp;&nbsp; *Semiconductors & Semiconductor Equipment — 12.9%* |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Broadcom Inc. | 24719 | 13821136 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Wolfspeed Inc. | 97826 | 6753907 | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Semiconductors & Semiconductor Equipment* |  | *20575043* | |
| &nbsp;&nbsp;&nbsp;&nbsp; *Software — 11.5%* |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Autodesk Inc. | 41580 | 7770055 | \* |
| &nbsp;&nbsp;&nbsp;&nbsp; CrowdStrike Holdings Inc., Class A Shares | 37643 | 3963431 | \* |
| &nbsp;&nbsp;&nbsp;&nbsp; DocuSign Inc. | 31416 | 1741075 | \* |
| &nbsp;&nbsp;&nbsp;&nbsp; Dolby Laboratories Inc., Class A Shares | 10251 | 723105 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; HubSpot Inc. | 14615 | 4225635 | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Software* |  | *18423301* | |

---

See Notes to Financial Statements.

ClearBridge Variable Aggressive Growth Portfolio 2022 Annual Report 13

------

Schedule of investments (cont'd)

December 31, 2022

**ClearBridge Variable Aggressive Growth Portfolio** 

(Percentages shown based on Portfolio net assets)

---

| | | | |
|:---|:---|:---|:---|
| Security |  | Shares | Value |
| &nbsp;&nbsp;&nbsp;&nbsp; *Technology Hardware, Storage & Peripherals — 2.7%* |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Seagate Technology Holdings PLC |  | 66081 | $3476521 |
| &nbsp;&nbsp;&nbsp;&nbsp; Western Digital Corp. |  | 26765 | 844436 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Total Technology Hardware, Storage & Peripherals* |  |  | *4320957* |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Information Technology** |  |  | **55481259** |
| **Materials — 1.6%** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Metals & Mining — 1.6%* |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Freeport-McMoRan Inc. |  | 69296 | **2633248** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Investments before Short-Term Investments (Cost — $93,456,622)** |  |  | **157869656** |
|  | Rate |  |  |
| **Short-Term Investments — 1.2%** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; JPMorgan 100% U.S. Treasury Securities Money Market Fund, Institutional Class | 3.845% | 1601310 | 1601310 |
| &nbsp;&nbsp;&nbsp;&nbsp; Western Asset Premier Institutional U.S. Treasury Reserves, Premium Shares | 4.024% | 400328 | 400328 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Short-Term Investments (Cost — $2,001,638)** |  |  | **2001638** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Investments — 100.0% (Cost — $95,458,260)** |  |  | **159871294** |
| &nbsp;&nbsp;&nbsp;&nbsp; Liabilities in Excess of Other Assets — (0.0)%†† |  |  | (42735 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Net Assets — 100.0%** |  |  | $**159828559** |

---

---

| | |
|:---|:---|
| †† | Represents less than 0.1%.  |

---

<sup>\*</sup> Non-income producing security.

(a) Rate shown is one-day yield as of the end of the reporting period.

(b) In this instance, as defined in the Investment Company Act of 1940, an "Affiliated Company" represents Portfolio
ownership of at least 5% of the outstanding voting securities of an issuer, or a company which is under common ownership or control with the Portfolio. At December 31, 2022, the total market value of investments in Affiliated Companies was
$400,328 and the cost was $400,328 (Note 8).

---

| | |
|:---|:---|
| **Abbreviation(s) used in this schedule:** | **Abbreviation(s) used in this schedule:** |
| ADR | — American Depositary Receipt |

---

See Notes to Financial Statements.

14 ClearBridge Variable Aggressive Growth Portfolio 2022 Annual Report

------

Statement of assets and liabilities

December 31, 2022

---

| | | |
|:---|:---|:---|
| **Assets:** | | |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments in unaffiliated securities, at value (Cost — $95,057,932) | $159470966 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments in affiliated securities, at value (Cost — $400,328) | 400328 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable for Portfolio shares sold | 87396 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends receivable from unaffiliated investments | 84246 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends receivable from affiliated investments | 1246 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses | 863 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total Assets*** | ***160045045*** | **** |
| **Liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investment management fee payable | 103941 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Payable for Portfolio shares repurchased | 42885 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Fund accounting fees payable | 22682 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Shareholder reports payable | 16487 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Service and/or distribution fees payable | 15945 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Trustees' fees payable | 3758 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses | 10788 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total Liabilities*** | ***216486*** | **** |
| **Total Net Assets** | $**159828559** |  |
| **Net Assets:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Par value (Note 7) | $106 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Paid-in capital in excess of par value | 88187315 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributable earnings (loss) | 71641138 |  |
| **Total Net Assets** | $**159828559** |  |
| **Net Assets:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class I | $86440525 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class II | $73388034 |  |
| **Shares Outstanding:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class I | 5656025 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class II | 4949224 |  |
| **Net Asset Value:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class I | $15.28 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class II | $14.83 |  |

---

See Notes to Financial Statements.

ClearBridge Variable Aggressive Growth Portfolio 2022 Annual Report 15

------

Statement of operations

For the Year Ended December 31, 2022

---

| | | |
|:---|:---|:---|
| **Investment Income:** | | |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends from unaffiliated investments | $2485873 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends from affiliated investments | 7468 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total Investment Income*** | ***2493341*** | **** |
| **Expenses:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investment management fee (Note 2) | 1670042 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Service and/or distribution fees (Notes 2 and 5) | 310178 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Fund accounting fees | 68748 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Audit and tax fees | 30132 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Legal fees | 20077 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Trustees' fees | 19302 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Transfer agent fees (Note 5) | 4492 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Commitment fees (Note 9) | 1499 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest expense | 86 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Shareholder reports | (42608) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Miscellaneous expenses | 6026 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total Expenses*** | ***2087974*** | **** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Fee waivers and/or expense reimbursements (Notes 2 and 5) | (412) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Net Expenses*** | ***2087562*** | **** |
| **Net Investment Income** | **405779** |  |
| **Realized and Unrealized Gain (Loss)on Investments (Notes 1 and 3):** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Net Realized Gain From Unaffiliated Investment Transactions*** | ***24563087*** | **** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Change in Net Unrealized Appreciation (Depreciation) From Unaffiliated Investments*** | ***(96817598)*** | **** |
| **Net Loss on Investments** | **(72254511)** |  |
| **Decrease in Net Assets From Operations** | $**(71848732)** |  |

---

See Notes to Financial Statements.

16 ClearBridge Variable Aggressive Growth Portfolio 2022 Annual Report

------

Statements of changes in net assets

---

| | | | | |
|:---|:---|:---|:---|:---|
| For the Years Ended December 31, | 2022 |  | 2021 |  |
| **Operations:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income | $405779 |  | $1272 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized gain | 24563087 |  | 551912182 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Change in net unrealized appreciation (depreciation) | (96817598) |  | (458439950) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Increase (Decrease) in Net Assets From Operations*** | ***(71848732)*** | **** | ***93473504*** | **** |
| **Distributions to Shareholders From (Notes 1 and 6):** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total distributable earnings | (24338156) |  | (81588163) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Decrease in Net Assets From Distributions to Shareholders*** | ***(24338156)*** | **** | ***(81588163)*** | **** |
| **Portfolio Share Transactions (Note 7):** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net proceeds from sale of shares | 17331043 |  | 26579489 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestment of distributions | 24338156 |  | 81588163 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cost of shares repurchased | (73009076) |  | (89552839) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Shares redeemed in-kind (Note 10) |  |  | (632436375) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Decrease in Net Assets From Portfolio Share Transactions*** | ***(31339877)*** | **** | ***(613821562)*** | **** |
|  ***Decrease in Net Assets*** | ***(127526765)*** | **** | ***(601936221)*** | **** |
| **Net Assets:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Beginning of year | 287355324 |  | 889291545 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; **End of year** | $**159828559** |  | $**287355324** |  |

---

See Notes to Financial Statements.

ClearBridge Variable Aggressive Growth Portfolio 2022 Annual Report 17

------

Financial highlights

---

| | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** |  |
| Class I Shares<sup>1</sup> | 2022 | 2022 |  | 2021 | 2021 |  | 2020 | 2020 |  | 2019 | 2019 |  | 2018 | 2018 |  |
| **Net asset value, beginning of year** |  | $24.07 |  |  | $30.04 |  |  | $28.10 |  |  | $23.09 |  |  | $27.18 |  |
| **Income (loss) from operations:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income |  | 0.06 |  |  | 0.04 |  |  | 0.23 |  |  | 0.20 |  |  | 0.21 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) |  | (6.38) |  |  | 2.88 |  |  | 4.66 |  |  | 5.56 |  |  | (2.35) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total income (loss) from operations*** | **** | ***(6.32)*** | **** | **** | ***2.92*** | **** | **** | ***4.89*** | **** | **** | ***5.76*** | **** | **** | ***(2.14)*** | **** |
| **Less distributions from:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income |  | (0.09) |  |  | (0.05) |  |  | (0.23) |  |  | (0.26) |  |  | (0.17) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized gains |  | (2.38) |  |  | (8.84) |  |  | (2.72) |  |  | (0.49) |  |  | (1.78) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total distributions*** | **** | ***(2.47)*** | **** | **** | ***(8.89)*** | **** | **** | ***(2.95)*** | **** | **** | ***(0.75)*** | **** | **** | ***(1.95)*** | **** |
| **Net asset value, end of year** |  | $15.28 |  |  | $24.07 |  |  | $30.04 |  |  | $28.10 |  |  | $23.09 |  |
|  ***Total return<sup>2</sup>***  | **** | ***(26.42)*** | *%*** | **** | ***10.30*** | *%*** | **** | ***18.02*** | *%*** | **** | ***25.07*** | *%*** | **** | ***(8.34)*** | *%*** |
| **Net assets, end of year (000s)** |  | $86441 |  |  | $123139 |  |  | $663125 |  |  | $639452 |  |  | $633954 |  |
| **Ratios to average net assets:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Gross expenses |  | 0.80 | % |  | 0.80 | % |  | 0.80 | % |  | 0.79 | % |  | 0.79 | % |
| &nbsp;&nbsp;&nbsp;&nbsp; Net expenses<sup>3</sup>  |  | 0.80 | <sup>4</sup> |  | 0.80 | <sup>4</sup> |  | 0.79 | <sup>4</sup> |  | 0.79 | <sup>4</sup> |  | 0.79 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income |  | 0.33 |  |  | 0.12 |  |  | 0.83 |  |  | 0.78 |  |  | 0.75 |  |
| **Portfolio turnover rate** |  | **15** | **%** |  | **17** | **%<sup>5</sup>** |  | **11** | **%** |  | **3** | **%<sup>5</sup>** |  | **0** | **%** |

---

<sup>1</sup> Per share amounts have been calculated using the average shares method. 

<sup>2</sup> Performance figures may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower. Total returns do not reflect expenses associated with separate accounts such as administrative fees, account charges and surrender charges which, if reflected, would reduce the total return for all periods shown. Past performance is no guarantee of future results. 

<sup>3</sup> As a result of an expense limitation arrangement, the ratio of total annual fund operating expenses, other than interest, brokerage commissions, taxes, extraordinary expenses and acquired fund fees and expenses, to average net assets of Class I shares did not exceed 0.90%. This expense limitation arrangement cannot be terminated prior to December 31, 2024 without the Board of Trustees' consent. In addition, the manager has agreed to waive the Portfolio's management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund. 

<sup>4</sup> Reflects fee waivers and/or expense reimbursements.

<sup>5</sup> Excludes securities delivered as a result of a redemption in-kind.

See Notes to Financial Statements.

18 ClearBridge Variable Aggressive Growth Portfolio 2022 Annual Report

------

---

| | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** | **For a share of each class of beneficial interest outstanding throughout each year ended December 31:** |  |
| Class II Shares<sup>1</sup> | 2022 | 2022 |  | 2021 | 2021 |  | 2020 | 2020 |  | 2019 | 2019 |  | 2018 | 2018 |  |
| **Net asset value, beginning of year** |  | $23.39 |  |  | $29.49 |  |  | $27.64 |  |  | $22.73 |  |  | $26.78 |  |
| **Income (loss) from operations:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) |  | 0.01 |  |  | (0.06) |  |  | 0.16 |  |  | 0.14 |  |  | 0.14 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss) |  | (6.19) |  |  | 2.85 |  |  | 4.57 |  |  | 5.46 |  |  | (2.31) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total income (loss) from operations*** | **** | ***(6.18)*** | **** | **** | ***2.79*** | **** | **** | ***4.73*** | **** | **** | ***5.60*** | **** | **** | ***(2.17)*** | **** |
| **Less distributions from:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income |  |  |  |  | (0.05) |  |  | (0.16) |  |  | (0.20) |  |  | (0.10) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized gains |  | (2.38) |  |  | (8.84) |  |  | (2.72) |  |  | (0.49) |  |  | (1.78) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Total distributions*** | **** | ***(2.38)*** | **** | **** | ***(8.89)*** | **** | **** | ***(2.88)*** | **** | **** | ***(0.69)*** | **** | **** | ***(1.88)*** | **** |
| **Net asset value, end of year** |  | $14.83 |  |  | $23.39 |  |  | $29.49 |  |  | $27.64 |  |  | $22.73 |  |
|  ***Total return<sup>2</sup>***  | **** | ***(26.59)*** | *%*** | **** | ***10.04*** | *%*** | **** | ***17.73*** | *%*** | **** | ***24.75*** | *%*** | **** | ***(8.57)*** | *%*** |
| **Net assets, end of year (000s)** |  | $73388 |  |  | $164216 |  |  | $226166 |  |  | $204384 |  |  | $164438 |  |
| **Ratios to average net assets:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Gross expenses |  | 1.05 | % |  | 1.08 | % |  | 1.05 | % |  | 1.04 | % |  | 1.04 | % |
| &nbsp;&nbsp;&nbsp;&nbsp; Net expenses<sup>3</sup>  |  | 1.05 | <sup>4</sup> |  | 1.08 | <sup>4</sup> |  | 1.05 | <sup>4</sup> |  | 1.04 | <sup>4</sup> |  | 1.04 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) |  | 0.06 |  |  | (0.19) |  |  | 0.59 |  |  | 0.54 |  |  | 0.51 |  |
| **Portfolio turnover rate** |  | **15** | **%** |  | **17** | **%<sup>5</sup>** |  | **11** | **%** |  | **3** | **%<sup>5</sup>** |  | **0** | **%** |

---

<sup>1</sup> Per share amounts have been calculated using the average shares method. 

<sup>2</sup> Performance figures may reflect compensating balance arrangements, fee waivers and/or expense reimbursements. In the absence of compensating balance arrangements, fee waivers and/or expense reimbursements, the total return would have been lower. Total returns do not reflect expenses associated with separate accounts such as administrative fees, account charges and surrender charges which, if reflected, would reduce the total return for all periods shown. Past performance is no guarantee of future results. 

<sup>3</sup> As a result of an expense limitation arrangement, the ratio of total annual fund operating expenses, other than interest, brokerage commissions, taxes, extraordinary expenses and acquired fund fees and expenses, to average net assets of Class II shares did not exceed 1.15%. This expense limitation arrangement cannot be terminated prior to December 31, 2024 without the Board of Trustees' consent. In addition, the manager has agreed to waive the Portfolio's management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund. 

<sup>4</sup> Reflects fee waivers and/or expense reimbursements.

<sup>5</sup> Excludes securities delivered as a result of a redemption in-kind.

See Notes to Financial Statements.

ClearBridge Variable Aggressive Growth Portfolio 2022 Annual Report 19

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Notes to financial statements

**1. Organization and significant accounting policies** 

ClearBridge Variable Aggressive Growth Portfolio (the "Portfolio") is a separate diversified investment series of Legg Mason Partners Variable 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.

Shares of the Portfolio may only be purchased or redeemed through variable annuity contracts and variable life insurance policies offered by the separate accounts of participating insurance companies or through eligible pension or other qualified plans.

The Portfolio follows the accounting and reporting guidance in Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 946, *Financial Services – Investment Companies* ("ASC 946"). The following are significant accounting policies consistently followed by the Portfolio and are in conformity with U.S. generally accepted accounting principles ("GAAP"), including, but not limited to, ASC 946. Estimates and assumptions are required to be made regarding assets, liabilities and changes in net assets resulting from operations when financial statements are prepared. Changes in the economic environment, financial markets and any other parameters used in determining these estimates could cause actual results to differ. Subsequent events have been evaluated through the date the financial statements were issued.

**(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 typically 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. Investments in open-end funds are valued at the closing net asset value per share of each fund on the day of valuation. When the Portfolio holds securities or other assets that are denominated in a foreign currency, the Portfolio 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 Portfolio calculates its net asset value, the Portfolio values these securities as determined in accordance with procedures approved by the Portfolio's Board of Trustees.

Pursuant to policies adopted by the Board of Trustees, the Portfolio's manager has been designated as the valuation designee and is responsible for the oversight of the daily

20 ClearBridge Variable Aggressive Growth Portfolio 2022 Annual Report

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valuation process. The Portfolio's manager is assisted by the Global Fund Valuation Committee (the "Valuation Committee"). The Valuation Committee is responsible for making fair value determinations, evaluating the effectiveness of the Portfolio's pricing policies, and reporting to the Portfolio's manager and the Board of Trustees. When determining the reliability of third party pricing information for investments owned by the Portfolio, 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 issuer's 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 Portfolio 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.

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 — unadjusted 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 Portfolio's own assumptions in determining the fair
value of investments)

ClearBridge Variable Aggressive Growth Portfolio 2022 Annual Report 21

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Notes to financial statements (cont'd)

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 Portfolio's assets carried at fair value:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **ASSETS** | | | |
| Description | Quoted Prices<br>(Level 1) | Other Significant<br>Observable Inputs<br>(Level 2) | Significant<br>Unobservable<br>Inputs<br>(Level 3) | Total |
| Common Stocks† | $157869656 |  |  | $157869656 |
| Short-Term Investments† | 2001638 |  |  | 2001638 |
| **Total Investments** | $**159871294** | **—** | **—** | $**159871294** |

---

† See Schedule of Investments for additional detailed categorizations.

**(b) Foreign investment risks.** The Portfolio's 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 may 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 Portfolio. Foreign investments may also subject the Portfolio 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.

**(c) Security transactions and investment income.** Security transactions are accounted for on a trade date basis. Interest income (including interest income from payment-in-kind securities), adjusted for amortization of premium and accretion of discount, is recorded on the accrual basis. Dividend income is recorded on the ex-dividend date for dividends received in cash and/or securities. Foreign dividend income is recorded on the ex-dividend date or as soon as practicable after the Portfolio determines the existence of a dividend declaration after exercising reasonable due diligence. The cost of investments sold is determined by use of the specific identification method. To the extent any issuer defaults or a credit event occurs that impacts the issuer, the Portfolio may halt any additional interest income accruals and consider the realizability of interest accrued up to the date of default or credit event.

**(d) Distributions to shareholders.** Distributions from net investment income and distributions of net realized gains, if any, are declared at least annually. Distributions to shareholders of the Portfolio are recorded on the ex-dividend date and are determined in accordance with income tax regulations, which may differ from GAAP.

**(e) Share class accounting.** Investment income, common expenses and realized/ unrealized gains (losses) on investments are allocated to the various classes of the Portfolio on the basis of daily net assets of each class. Fees relating to a specific class are charged directly to that share class.

22 ClearBridge Variable Aggressive Growth Portfolio 2022 Annual Report

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**(f) Compensating balance arrangements.** The Portfolio has an arrangement with its custodian bank whereby a portion of the custodian's fees are paid indirectly by credits earned on the Portfolio's cash on deposit with the bank.

**(g) Federal and other taxes.** It is the Portfolio's policy to comply with the federal income and excise tax requirements of the Internal Revenue Code of 1986 (the "Code"), as amended, applicable to regulated investment companies. Accordingly, the Portfolio intends to distribute its taxable income and net realized gains, if any, to shareholders in accordance with timing requirements imposed by the Code. Therefore, no federal or state income tax provision is required in the Portfolio's financial statements.

Management has analyzed the Portfolio's tax positions taken on income tax returns for all open tax years and has concluded that as of December 31, 2022, no provision for income tax is required in the Portfolio's financial statements. The Portfolio's federal and state income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue.

**(h) Reclassification.** GAAP requires that certain components of net assets be reclassified to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset value per share. During the current year, the Portfolio had no reclassifications.

**2. Investment management agreement and other transactions with affiliates** 

Legg Mason Partners Fund Advisor, LLC ("LMPFA") is the Portfolio's investment manager and ClearBridge Investments, LLC ("ClearBridge") is the Portfolio's subadviser. Western Asset Management Company, LLC ("Western Asset") manages the portion of the Portfolio's cash and short-term instruments allocated to it. LMPFA, ClearBridge and Western Asset are indirect, wholly-owned subsidiaries of Franklin Resources, Inc. ("Franklin Resources").

Under the investment management agreement, the Portfolio pays an investment management fee, calculated daily and paid monthly, in accordance with the following breakpoint schedule:

---

| | |
|:---|:---|
| Average Daily Net Assets | Annual Rate |
| First $1 billion | 0.750% |
| Next $1 billion | 0.725 |
| Next $3 billion | 0.700 |
| Next $5 billion | 0.675 |
| Over $10 billion | 0.650 |

---

LMPFA provides administrative and certain oversight services to the Portfolio. LMPFA delegates to the subadviser the day-to-day portfolio management of the Portfolio, except for the management of the portion of the Portfolio's cash and short-term instruments allocated to Western Asset. For its services, LMPFA pays ClearBridge a fee monthly, at an annual rate equal to 70% of the net management fee it receives from the Portfolio. For Western Asset's services to the Portfolio, LMPFA pays Western Asset monthly 0.02% of the portion of the Portfolio's average daily net assets that are allocated to Western Asset by LMPFA.

ClearBridge Variable Aggressive Growth Portfolio 2022 Annual Report 23

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Notes to financial statements (cont'd)

As a result of expense limitation arrangements between the Portfolio and LMPFA, the ratio of total annual fund operating expenses, other than interest, brokerage commissions, taxes, extraordinary expenses and acquired fund fees and expenses, to average net assets of Class I and Class II shares did not exceed 0.90% and 1.15%, respectively. These expense limitation arrangements cannot be terminated prior to December 31, 2024 without the Board of Trustees' consent. In addition, the manager has agreed to waive the Portfolio's management fee to an extent sufficient to offset the net management fee payable in connection with any investment in an affiliated money market fund (the "affiliated money market fund waiver"). The affiliated money market fund waiver is not subject to the recapture provision discussed below.

During the year ended December 31, 2022, fees waived and/or expenses reimbursed amounted to $412, all of which was an affiliated money market fund waiver.

LMPFA is permitted to recapture amounts waived and/or reimbursed to a class during the same fiscal year if the class' total annual fund operating expenses have fallen to a level below the expense limitation ("expense cap") in effect at the time the fees were earned or the expenses incurred. In no case will LMPFA recapture any amount that would result, on any particular business day of the Portfolio, in the class' total annual fund operating expenses exceeding the expense cap or any other lower limit then in effect.

Franklin Templeton Investor Services, LLC ("Investor Services") serves as the Portfolio's shareholder servicing agent and acts as the Portfolio's transfer agent and dividend-paying agent. Investor Services is an indirect, wholly-owned subsidiary of Franklin Resources. Franklin Distributors, LLC ("Franklin Distributors") serves as the Portfolio's sole and exclusive distributor. Franklin Distributors is an indirect, wholly-owned broker-dealer subsidiary of Franklin Resources.

All officers and one Trustee of the Trust are employees of Franklin Resources or its affiliates and do not receive compensation from the Trust.

**3. Investments** 

During the year ended December 31, 2022, the aggregate cost of purchases and proceeds from sales of investments (excluding short-term investments) were as follows:

---

| | |
|:---|:---|
| Purchases | $32114445 |
| Sales | 87469725 |

---

At December 31, 2022, the aggregate cost of investments and the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Cost | Gross<br>Unrealized<br>Appreciation | Gross<br>Unrealized<br>Depreciation | Net<br>Unrealized<br>Appreciation |
| Securities | $96161517 | $89112894 | $(25403117) | $63709777 |

---

**4. Derivative instruments and hedging activities** 

During the year ended December 31, 2022, the Portfolio did not invest in derivative instruments.

24 ClearBridge Variable Aggressive Growth Portfolio 2022 Annual Report

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**5. Class specific expenses, waivers and/or expense reimbursements** 

The Portfolio has adopted a Rule 12b-1 shareholder services and distribution plan and under that plan the Portfolio pays service and/or distribution fees with respect to its Class II shares calculated at the annual rate of 0.25% of the average daily net assets of the class. Service and/or distribution fees are accrued daily and paid monthly.

For the year ended December 31, 2022, class specific expenses were as follows:

---

| | | |
|:---|:---|:---|
| | Service and/or<br>Distribution Fees | Transfer Agent<br>Fees |
| Class I |  | $2569 |
| Class II | $310178 | 1923 |
| **Total** | $**310178** | $**4492** |

---

For the year ended December 31, 2022, waivers and/or expense reimbursements by class were as follows:

---

| | |
|:---|:---|
| | Waivers/Expense<br>Reimbursements |
| Class I | $182 |
| Class II | 230 |
| **Total** | $**412** |

---

**6. Distributions to shareholders by class** 

---

| | | |
|:---|:---|:---|
| | Year Ended<br>December 31, 2022 | Year Ended<br>December 31, 2021 |
| **Net Investment Income:** |  |  |
| Class I | $450007 | $211385 |
| Class II |  | 288616 |
| **Total** | $**450007** | $**500001** |
| **Net Realized Gains:** |  |  |
| Class I | $12059509 | $34366194 |
| Class II | 11828640 | 46721968 |
| **Total** | $**23888149** | $**81088162** |

---

**7. Shares of beneficial interest** 

At December 31, 2022, the Trust had an unlimited number of shares of beneficial interest authorized with a par value of $0.00001 per share. The Portfolio has the ability to issue multiple classes of shares. Each class of shares represents an identical interest and has the same rights, except that each class bears certain direct expenses, including those specifically related to the distribution of its shares.

ClearBridge Variable Aggressive Growth Portfolio 2022 Annual Report 25

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Notes to financial statements (cont'd)

Transactions in shares of each class were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Year Ended<br>December 31, 2022 | Year Ended<br>December 31, 2022 | Year Ended<br>December 31, 2021 | Year Ended<br>December 31, 2021 |
| | Shares | Amount | Shares | Amount |
| **Class I** |  |  |  |  |
| Shares sold | 252295 | $4862244 | 136347 | $4301864 |
| Shares issued on reinvestment | 784746 | 12509516 | 1410631 | 34577579 |
| Shares repurchased | (496301) | (9363091) | (1661160) | (53752444) |
| Shares redeemed in-kind |  |  | (16842410) | (560852239) |
| **Net increase (decrease)** | **540740** | $**8008669** | **(16956592)** | $**(575725240)** |
| **Class II** |  |  |  |  |
| Shares sold | 683720 | $12468799 | 700873 | $22277625 |
| Shares issued on reinvestment | 762080 | 11828640 | 1971157 | 47010584 |
| Shares repurchased | (3517073) | (63645985) | (1128790) | (35800395) |
| Shares redeemed in-kind |  |  | (2191127) | (71584136) |
| **Net decrease** | **(2071273)** | $**(39348546)** | **(647887)** | $**(38096322)** |

---

**8. Transactions with affiliated company** 

As defined by the 1940 Act, an affiliated company is one in which the Portfolio owns 5% or more of the outstanding voting securities, or a company which is under common ownership or control with the Portfolio. The following company was considered an affiliated company for all or some portion of the year ended December 31, 2022. The following transactions were effected in such company for the year ended December 31, 2022.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Affiliate<br>Value at<br>December 31,<br>2021 | Purchased | Purchased | Sold | Sold |
| | Affiliate<br>Value at<br>December 31,<br>2021 | Cost | Shares | Proceeds | Shares |
| Western Asset Premier Institutional U.S. Treasury Reserves, Premium Shares | $420884 | $8230995 | 8230995 | $8251551 | 8251551 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| (cont'd) | Realized<br>Gain (Loss) | Dividend<br>Income | Net Increase<br>(Decrease) in<br>Unrealized<br>Appreciation<br>(Depreciation) | Affiliate<br>Value at<br>December 31,<br>2022 |
| Western Asset Premier Institutional U.S. Treasury Reserves, Premium Shares |  | $7468 |  | $400328 |

---

**9. Redemption facility** 

On February 4, 2022, the Portfolio, together with other U.S. registered and foreign investment funds (collectively, the "Borrowers") managed by Franklin Resources or its affiliates, became a borrower in a joint syndicated senior unsecured credit facility totaling $2.675 billion (the "Global Credit Facility"). The Global Credit Facility provides a source of

26 ClearBridge Variable Aggressive Growth Portfolio 2022 Annual Report

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funds to the Borrowers for temporary and emergency purposes, including the ability to meet future unanticipated or unusually large redemption requests. Unless renewed, the Global Credit Facility will terminate on February 2, 2024.

Under the terms of the Global Credit Facility, the Portfolio shall, in addition to interest charged on any borrowings made by the Portfolio and other costs incurred by the Portfolio, pay its share of fees and expenses incurred in connection with the implementation and maintenance of the Global Credit Facility, based upon its relative share of the aggregate net assets of all the Borrowers, including an annual commitment fee of 0.15% based upon the unused portion of the Global Credit Facility. These fees are reflected in the Statement of Operations. The Portfolio did not utilize the Global Credit Facility during the year ended December 31, 2022.

**10. Redemptions in-kind** 

The Portfolio may make payment for Portfolio shares redeemed wholly or in part by distributing portfolio securities to shareholders. For the year ended December 31, 2022, the Portfolio had no redemptions in-kind. For the year ended December 31, 2021, the Portfolio had redemptions in-kind with total proceeds in the amount of $632,436,375. The net realized gain on these redemptions in-kind amounted to $476,536,679, which was not realized for tax purposes.

**11. Income tax information and distributions to shareholders** 

The tax character of distributions paid during the fiscal years ended December 31, was as follows:

---

| | | |
|:---|:---|:---|
| | 2022 | 2021 |
| **Distributions paid from:** |  |  |
| Ordinary income | $725411 | $22563430 |
| Net long-term capital gains | 23612745 | 59024733 |
| **Total distributions paid** | $**24338156** | $**81588163** |

---

As of December 31, 2022, the components of distributable earnings (loss) on a tax basis were as follows:

---

| | |
|:---|:---|
| Undistributed ordinary income — net | $66842 |
| Undistributed long-term capital gains — net | 7884907 |
| Total undistributed earnings | $7951749 |
| Other book/tax temporary differences<sup>(a)</sup> | (20388) |
| Unrealized appreciation (depreciation)<sup>(b)</sup> | 63709777 |
| **Total distributable earnings (loss) — net** | $**71641138** |

---

<sup>(a)</sup> Other book/tax temporary differences are attributable to the book/tax differences in the timing of the deductibility of various expenses.

<sup>(b)</sup> The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable to the tax deferral of losses on wash sales.

**12. Recent accounting pronouncements** 

In June 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2022-03, *Fair Value Measurement (Topic 820) – Fair Value*

ClearBridge Variable Aggressive Growth Portfolio 2022 Annual Report 27

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Notes to financial statements (cont'd)

*Measurement of Equity Securities Subject to Contractual Sale Restrictions*. The amendments in the ASU clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, should not be considered in measuring fair value. The ASU is effective for interim and annual reporting periods beginning after December 15, 2023, with the option of early adoption. Management has reviewed the requirements and believes that the adoption of the ASU will not have a material impact on the financial statements.

\*\*\*

In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-04, *Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting*. In January 2021, the FASB issued ASU No. 2021-01, with further amendments to Topic 848. The amendments in the ASUs provide optional temporary accounting recognition and financial reporting relief from the effect of certain types of contract modifications due to the planned discontinuation of the LIBOR and other interbank-offered based reference rates as of the end of 2021 and 2023. The ASUs are effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2022. Management has reviewed the requirements and believes the adoption of these ASUs will not have a material impact on the financial statements.

**13. Other matters** 

The outbreak of the respiratory illness COVID-19 (commonly referred to as "coronavirus") has continued to rapidly spread around the world, causing considerable uncertainty for the global economy and financial markets. The ultimate economic fallout from the pandemic, and the long-term impact on economies, markets, industries and individual issuers, are not known. The COVID-19 pandemic could adversely affect the value and liquidity of the Portfolio's investments, impair the Portfolio's ability to satisfy redemption requests, and negatively impact the Portfolio's performance. In addition, the outbreak of COVID-19, and measures taken to mitigate its effects, could result in disruptions to the services provided to the Portfolio by its service providers.

\*\*\*

On February 24, 2022, Russia engaged in military actions in the sovereign territory of Ukraine. The current political and financial uncertainty surrounding Russia and Ukraine may increase market volatility and the economic risk of investing in securities in these countries and may also cause uncertainty for the global economy and broader financial markets. The ultimate fallout and long-term impact from these events are not known. The Portfolio will continue to assess the impact on valuations and liquidity and will take any potential actions needed in accordance with procedures approved by the Board of Trustees.

28 ClearBridge Variable Aggressive Growth Portfolio 2022 Annual Report

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Report of independent registered public accounting firm

**To the Board of Trustees of Legg Mason Partners Variable Equity Trust and** 

**Shareholders of ClearBridge Variable Aggressive Growth Portfolio** 

**Opinion on the Financial Statements** 

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of ClearBridge Variable Aggressive Growth Portfolio (one of the portfolios constituting Legg Mason Partners Variable Equity Trust, referred to hereafter as the "Portfolio") as of December 31, 2022, the related statement of operations for the year ended December 31, 2022, the statement of changes in net assets for each of the two years in the period ended December 31, 2022, including the related notes, and the financial highlights for each of the five years in the period ended December 31, 2022 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Portfolio as of December 31, 2022, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended December 31, 2022 and the financial highlights for each of the five years in the period ended December 31, 2022 in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion** 

These financial statements are the responsibility of the Portfolio's management. Our responsibility is to express an opinion on the Portfolio's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Portfolio in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2022 by correspondence with the custodian. We believe that our audits provide a reasonable basis for our opinion.

/s/PricewaterhouseCoopers LLP

Baltimore, Maryland

February 13, 2023

We have served as the auditor of one or more investment companies in the Franklin Templeton Group of Funds since 1948.

ClearBridge Variable Aggressive Growth Portfolio 2022 Annual Report 29

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Additional information (unaudited)

**Information about Trustees and Officers** 

The business and affairs of ClearBridge Variable Aggressive Growth Portfolio (the "Portfolio") are conducted by management under the supervision and subject to the direction of its Board of Trustees. The business address of each Trustee is c/o Jane Trust, Franklin Templeton, 100 International Drive, 11th Floor, Baltimore, Maryland 21202.

Information pertaining to the Trustees and officers of the Portfolio is set forth below. The Statement of Additional Information includes additional information about Trustees and is available, without charge, upon request by calling the Portfolio at 877-6LM-FUND/656-3863.

---

| | |
|:---|:---|
| **Independent Trustees<sup>†</sup>** |  |
| **Paul R. Ades** |  |
| Year of birth | 1940 |
| Position(s) with Trust | Trustee |
| Term of office<sup>1</sup> and length of time served<sup>2</sup> | Since 1983 |
| Principal occupation(s) during the past five years | Paul R. Ades, PLLC (law firm) (since 2000) |
| Number of funds in fund complex overseen by Trustee | 57 |
| Other board memberships held by Trustee during the past five years |  |
| **Andrew L. Breech** | **Andrew L. Breech** |
| Year of birth | 1952 |
| Position(s) with Trust | Trustee |
| Term of office<sup>1</sup> and length of time served<sup>2</sup> | Since 1991 |
| Principal occupation(s) during the past five years | President, Dealer Operating Control Service, Inc. (automotive retail management) (since 1985) |
| Number of funds in fund complex overseen by Trustee | 57 |
| Other board memberships held by Trustee during the past five years |  |
| **Althea L. Duersten** |  |
| Year of birth | 1951 |
| Position(s) with Trust | Trustee and Chair of the Board |
| Term of office<sup>1</sup> and length of time served<sup>2</sup> | Since 2014 (Chair of the Board since 2021) |
| Principal occupation(s) during the past five years | Retired (since 2011); formerly, Chief Investment Officer, North America, JPMorgan Chase (investment bank) and member of JPMorgan Executive Committee (2007 to 2011) |
| Number of funds in fund complex overseen by Trustee | 57 |
| Other board memberships held by Trustee during the past five years | Formerly, Non-Executive Director, Rokos Capital Management LLP (2019 to 2020) |

---

30 ClearBridge Variable Aggressive Growth Portfolio

------

---

| | |
|:---|:---|
| **Independent Trustees<sup>†</sup> (cont'd)** |  |
| **Stephen R. Gross** |  |
| Year of birth | 1947 |
| Position(s) with Trust | Trustee |
| Term of office<sup>1</sup> and length of time served<sup>2</sup> | Since 1986 |
| Principal occupation(s) during the past five years | Chairman Emeritus (since 2011) and formerly, Chairman, HLB Gross Collins, P.C. (accounting and consulting firm) (1979 to 2011); Executive Director of Business Builders Team, LLC (since 2005); Principal, Gross Consulting Group, LLC (since 2011); CEO, Gross Capital Partners, LLC (since 2014); CEO, Trusted CFO Solutions, LLC (since 2011) |
| Number of funds in fund complex overseen by Trustee | 57 |
| Other board memberships held by Trustee during the past five years |  |
| **Susan M. Heilbron** |  |
| Year of birth | 1945 |
| Position(s) with Trust | Trustee |
| Term of office<sup>1</sup> and length of time served<sup>2</sup> | Since 1991 |
| Principal occupation(s) during the past five years | Retired; formerly, President, Lacey & Heilbron (communications consulting) (1990 to 2002); General Counsel and Executive Vice President, The Trump Organization (1986 to 1990); Senior Vice President, New York State Urban Development Corporation (1984 to 1986); Associate, Cravath, Swaine & Moore LLP (1980 to 1984 and 1977 to 1979) |
| Number of funds in fund complex overseen by Trustee | 57 |
| Other board memberships held by Trustee during the past five years |  |
| **Arnold L. Lehman** |  |
| Year of birth | 1944 |
| Position(s) with Trust | Trustee |
| Term of office<sup>1</sup> and length of time served<sup>2</sup> | Since 1982 |
| Principal occupation(s) during the past five years | Senior Advisor, Phillips (auction house) (since 2015); formerly, Fellow, Ford Foundation (2015 to 2016); Director of the Brooklyn Museum (1997 to 2015) |
| Number of funds in fund complex overseen by Trustee | 57 |
| Other board memberships held by Trustee during the past five years | Trustee of American Federation of Arts (since 2002) |

---

ClearBridge Variable Aggressive Growth Portfolio 31

------

Additional information (unaudited) (cont'd)

**Information about Trustees and Officers** 

---

| | |
|:---|:---|
| **Independent Trustees<sup>†</sup> (cont'd)** |  |
| **Robin J. W. Masters** |  |
| Year of birth | 1955 |
| Position(s) with Trust | Trustee |
| Term of office<sup>1</sup> and length of time served<sup>2</sup> | Since 2002 |
| Principal occupation(s) during the past five years | Retired; formerly, Chief Investment Officer of ACE Limited (insurance) (1986 to 2000) |
| Number of funds in fund complex overseen by Trustee | 57 |
| Other board memberships held by Trustee during the past five years | Director of HSBC Managed Portfolios Limited and HSBC Specialist Funds Limited (since 2020); formerly, Director of Cheyne Capital International Limited (investment advisory firm) (2005 to 2020); Director/ Trustee of Legg Mason Institutional Funds plc, Western Asset Fixed Income Funds plc and Western Asset Debt Securities Fund plc. (2007 to 2011) |
| **Ken Miller** |  |
| Year of birth | 1942 |
| Position(s) with Trust | Trustee |
| Term of office<sup>1</sup> and length of time served<sup>2</sup> | Since 1983 |
| Principal occupation(s) during the past five years | Retired; formerly, President, Young Stuff Apparel Group, Inc. (apparel manufacturer), division of Li & Fung (1963 to 2012) |
| Number of funds in fund complex overseen by Trustee | 57 |
| Other board memberships held by Trustee during the past five years |  |
| **G. Peter O'Brien** |  |
| Year of birth | 1945 |
| Position(s) with Trust | Trustee |
| Term of office<sup>1</sup> and length of time served<sup>2</sup> | Since 1999 |
| Principal occupation(s) during the past five years | Retired, Trustee Emeritus of Colgate University (since 2005); Board Member, Hill House, Inc. (residential home care) (since 1999); formerly, Board Member, Bridges School (pre-school) (2006 to 2017); Managing Director, Equity Capital Markets Group of Merrill Lynch & Co. (1971 to 1999) |
| Number of funds in fund complex overseen by Trustee | Trustee of Legg Mason funds consisting of 57 portfolios; Director/Trustee of the Royce Family of Funds consisting of 16 portfolios |
| Other board memberships held by Trustee during the past five years | Formerly, Director of TICC Capital Corp. (2003 to 2017) |

---

32 ClearBridge Variable Aggressive Growth Portfolio

------

---

| | |
|:---|:---|
| **Independent Trustees<sup>†</sup> (cont'd)** |  |
| **Thomas F. Schlafly** |  |
| Year of birth | 1948 |
| Position(s) with Trust | Trustee |
| Term of office<sup>1</sup> and length of time served<sup>2</sup> | Since 1983 |
| Principal occupation(s) during the past five years | Chairman, The Saint Louis Brewery, LLC (brewery) (since 2012); formerly, President, The Saint Louis Brewery, Inc. (1989 to 2012); Senior Counsel (since 2017) and formerly, Partner (2009 to 2016), Thompson Coburn LLP (law firm) |
| Number of funds in fund complex overseen by Trustee | 57 |
| Other board memberships held by Trustee during the past five years<br>| Director, CNB St. Louis Bank (since 2020); formerly, Director, Citizens National Bank of Greater St. Louis (2006 to 2020) |
| **Interested Trustee and Officer** |  |
| **Jane Trust, CFA<sup>3</sup>** |  |
| Year of birth | 1962 |
| Position(s) with Trust | Trustee, President and Chief Executive Officer |
| Term of office<sup>1</sup> and length of time served<sup>2</sup> | Since 2015 |
| Principal occupation(s) during the past five years | Senior Vice President, Fund Board Management, Franklin Templeton (since 2020); Officer and/or Trustee/Director of 127 funds associated with LMPFA or its affiliates (since 2015); President and Chief Executive Officer of LMPFA (since 2015); formerly, Senior Managing Director (2018 to 2020) and Managing Director (2016 to 2018) of Legg Mason & Co., LLC ("Legg Mason & Co."); Senior Vice President of LMPFA (2015) |
| Number of funds in fund complex overseen by Trustee | 127 |
| Other board memberships held by Trustee during the past five years<br>|  |
| **Additional Officers** |  |
| **Ted P. Becker**<br> Franklin Templeton<br> 280 Park Avenue, 8th Floor, New York, NY 10017 | **Ted P. Becker**<br> Franklin Templeton<br> 280 Park Avenue, 8th Floor, New York, NY 10017 |
| Year of birth | 1951 |
| Position(s) with Trust | Chief Compliance Officer |
| Term of office<sup>1</sup> and length of time served<sup>2</sup> | Since 2007 |
| Principal occupation(s) during the past five years | Vice President, Global Compliance of Franklin Templeton (since 2020); Chief Compliance Officer of LMPFA (since 2006); Chief Compliance Officer of certain funds associated with Legg Mason & Co. or its affiliates (since 2006); formerly, Director of Global Compliance at Legg Mason, Inc. (2006 to 2020); Managing Director of Compliance of Legg Mason & Co. (2005 to 2020) |

---

ClearBridge Variable Aggressive Growth Portfolio 33

------

Additional information (unaudited) (cont'd)

**Information about Trustees and Officers** 

---

| | |
|:---|:---|
| **Additional Officers (cont'd)** |  |
| **Susan Kerr**<br> Franklin Templeton<br> 280 Park Avenue, 8th Floor, New York, NY 10017 |  |
| Year of birth | 1949 |
| Position(s) with Trust | Chief Anti-Money Laundering Compliance Officer |
| Term of office<sup>1</sup> and length of time served<sup>2</sup> | Since 2013 |
| Principal occupation(s) during the past five years | Senior Compliance Analyst, Franklin Templeton (since 2020); Chief Anti-Money Laundering Compliance Officer of certain funds associated with Legg Mason & Co. or its affiliates (since 2013) and Anti-Money Laundering Compliance Officer (since 2012), Senior Compliance Officer (since 2011) and Assistant Vice President (since 2010) of Franklin Distributors, LLC; formerly, Assistant Vice President of Legg Mason & Co. (2010 to 2020) |
| **Marc A. De Oliveira**<br> Franklin Templeton<br> 100 First Stamford Place, 6th Floor, Stamford, CT 06902 |  |
| Year of birth | 1971 |
| Position(s) with Trust | Secretary and Chief Legal Officer |
| Term of office<sup>1</sup> and length of time served<sup>2</sup> | Since 2020 |
| Principal occupation(s) during the past five years | Associate General Counsel of Franklin Templeton (since 2020); Assistant Secretary of certain funds associated with Legg Mason & Co. or its affiliates (since 2006); formerly, Managing Director (2016 to 2020) and Associate General Counsel of Legg Mason & Co. (2005 to 2020) |
| **Thomas C. Mandia**<br> Franklin Templeton<br> 100 First Stamford Place, 6th Floor, Stamford, CT 06902 |  |
| Year of birth | 1962 |
| Position(s) with Trust | Senior Vice President |
| Term of office<sup>1</sup> and length of time served<sup>2</sup> | Since 2020 |
| Principal occupation(s) during the past five years | Senior Associate General Counsel of Franklin Templeton (since 2020); Secretary of LMPFA (since 2006); Assistant Secretary of certain funds associated with Legg Mason & Co. or its affiliates (since 2006); Secretary of LM Asset Services, LLC ("LMAS") (since 2002) and Legg Mason Fund Asset Management, Inc. ("LMFAM") (since 2013) (formerly registered investment advisers); formerly, Managing Director and Deputy General Counsel of Legg Mason & Co. (2005 to 2020) |

---

34 ClearBridge Variable Aggressive Growth Portfolio

------

---

| | |
|:---|:---|
| **Additional Officers (cont'd)** |  |
| **Christopher Berarducci**<br> Franklin Templeton<br> 280 Prak Avenue, 8th Floor, New York, NY 10017  | **Christopher Berarducci**<br> Franklin Templeton<br> 280 Prak Avenue, 8th Floor, New York, NY 10017  |
| Year of birth | 1974 |
| Position(s) with Trust | Treasurer and Principal Financial Officer |
| Term of office<sup>1</sup> and length of time served<sup>2</sup> | Since 2014 and 2019 |
| Principal occupation(s) during the past five years | Vice President, Fund Administration and Reporting, Franklin Templeton (since 2020); Treasurer (since 2010) and Principal Financial Officer (since 2019) of certain funds associated with Legg Mason & Co. or its affiliates; formerly, Managing Director (2020), Director (2015 to 2020), and Vice President (2011 to 2015) of Legg Mason & Co. |
| **Jeanne M. Kelly**<br> Franklin Templeton<br> 280 Park Avenue, 8th Floor, New York, NY 10017 | **Jeanne M. Kelly**<br> Franklin Templeton<br> 280 Park Avenue, 8th Floor, New York, NY 10017 |
| Year of birth | 1951 |
| Position(s) with Trust | Senior Vice President |
| Term of office<sup>1</sup> and length of time served<sup>2</sup> | Since 2007 |
| Principal occupation(s) during the past five years | U.S. Fund Board Team Manager, Franklin Templeton (since 2020); Senior Vice President of certain funds associated with Legg Mason & Co. or its affiliates (since 2007); Senior Vice President of LMPFA (since 2006); President and Chief Executive Officer of LMAS and LMFAM (since 2015); formerly, Managing Director of Legg Mason & Co. (2005 to 2020); Senior Vice President of LMFAM (2013 to 2015) |

---

† Trustees who are not "interested persons" of the Portfolio within the meaning of Section 2(a)(19) of the
Investment Company Act of 1940, as amended (the "1940 Act").

<sup>1</sup> Each Trustee and officer serves until his or her respective successor has been duly elected and qualified or until his or her earlier death, resignation, retirement or removal.

<sup>2</sup> Indicates the earliest year in which the Trustee became a board member for a fund in the Legg Mason fund complex or the officer took such office.

<sup>3</sup> Ms. Trust is an "interested person" of the Portfolio, as defined in the 1940 Act, because of her position with LMPFA and/or certain of its affiliates.

ClearBridge Variable Aggressive Growth Portfolio 35

------

Important tax information (unaudited)

By mid-February, tax information related to a shareholder's proportionate share of distributions paid during the preceding calendar year will be received, if applicable. Please also refer to www.franklintempleton.com for per share tax information related to any distributions paid during the preceding calendar year. Shareholders are advised to consult with their tax advisors for further information on the treatment of these amounts on their tax returns.

The following tax information for the Portfolio is required to be furnished to shareholders with respect to income earned and distributions paid during its fiscal year.

The Portfolio hereby reports the following amounts, or if subsequently determined to be different, the maximum allowable amounts, for the fiscal year ended December 31, 2022:

---

| | | |
|:---|:---|:---|
| | **Pursuant to:** | **Amount Reported** |
| Long-Term Capital Gain Dividends Distributed§ | 852(b)(3)(C) | $23612745 |
| Income Eligible for Dividends Received Deduction (DRD)§ | 854(b)(1)(A) | $1835953 |

---

36 ClearBridge Variable Aggressive Growth Portfolio

------

ClearBridge

Variable Aggressive Growth Portfolio

**Trustees** 

Paul R. Ades

Andrew L. Breech

Althea L. Duersten

*Chair*

Stephen R. Gross

Susan M. Heilbron

Arnold L. Lehman

Robin J. W. Masters

Ken Miller

G. Peter O'Brien

Thomas F. Schlafly

Jane Trust

**Investment manager** 

Legg Mason Partners Fund Advisor, LLC

**Subadviser** 

ClearBridge Investments, LLC

**Distributor** 

Franklin Distributors, LLC

**Custodian** 

The Bank of New York Mellon

**Transfer agent** 

Franklin Templeton Investor

Services, LLC

3344 Quality Drive

Rancho Cordova, CA 95670-7313

**Independent registered public accounting firm** 

PricewaterhouseCoopers LLP

Baltimore, MD

**ClearBridge Variable Aggressive Growth Portfolio** 

The Portfolio is a separate investment series of Legg Mason Partners Variable Equity Trust, a Maryland statutory trust.

ClearBridge Variable Aggressive Growth Portfolio

Legg Mason Funds

620 Eighth Avenue, 47th Floor

New York, NY 10018

The Portfolio files its complete schedule of portfolio holdings with the Securities and Exchange Commission ("SEC") for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Portfolio's Forms N-PORT are available on the SEC's website at www.sec.gov. To obtain information on Form N-PORT, shareholders can call the Portfolio at 877-6LMFUND/ 656-3863.

Information on how the Portfolio voted proxies relating to portfolio securities during the prior 12-month period ended June 30th of each year and a description of the policies and procedures that the Portfolio uses to determine how to vote proxies related to portfolio transactions are available (1) without charge, upon request, by calling the Portfolio at 877-6LM-FUND/656- 3863, (2) at www.franklintempleton.com and (3) on the SEC's website at www.sec.gov.

This report is submitted for the general information of the shareholders of ClearBridge Variable Aggressive Growth

Portfolio. This report is not authorized for distribution to prospective investors in the Portfolio unless preceded or

accompanied by a current prospectus.

**Investors should consider the Portfolio's investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other important information about the Portfolio. Please read the prospectus carefully before investing.** 

www.franklintempleton.com

<sup>©</sup> 2023 Franklin Distributors, LLC, Member FINRA/SIPC. All rights reserved.

------

Legg Mason Funds Privacy and Security Notice

**Your Privacy Is Our Priority** 

Franklin Templeton\* is committed to safeguarding your personal information. This notice is designed to provide you with a summary of the non-public personal information Franklin Templeton may collect and maintain about current or former individual investors; our policy regarding the use of that information; and the measures we take to safeguard the information. We do not sell individual investors' non-public personal information to anyone and only share it as described in this notice.

**Information We Collect** 

When you invest with us, you provide us with your non-public personal information. We collect and use this information to service your accounts and respond to your requests. The non-public personal information we may collect falls into the following categories:

• Information we receive from you or your financial intermediary on applications or other forms, whether we receive the form
in writing or electronically. For example, this information may include your name, address, tax identification number, birth date, investment selection, beneficiary information, and your personal bank account information and/or email address if you
have provided that information.

• Information about your transactions and account history with us, or with other companies that are part of Franklin
Templeton, including transactions you request on our website or in our app. This category also includes your communications to us concerning your investments.

• Information we receive from third parties (for example, to update your address if you move, obtain or verify your email
address or obtain additional information to verify your identity).

• Information collected from you online, such as your IP address or device ID and data gathered from your browsing activity
and location. (For example, we may use cookies to collect device and browser information so our website recognizes your online preferences and device information.) Our website contains more information about cookies and similar technologies and ways
you may limit them.

• Other general information that we may obtain about you such as demographic information.

**Disclosure Policy** 

To better service your accounts and process transactions or services you requested, we may share non-public personal information with other Franklin Templeton companies. From time to time we may also send you information about products/services offered by other Franklin Templeton companies although we will not share your non-public personal information with these companies without first offering you the opportunity to prevent that sharing.

We will only share non-public personal information with outside parties in the limited circumstances permitted by law. For example, this includes situations where we need to share information with companies who work on our behalf to service or maintain your account or process transactions you requested, when the disclosure is to companies assisting us with our own marketing efforts, when the disclosure is to a party representing you, or when required by law (for example, in response to legal process). Additionally, we will ensure that any outside

&nbsp;&nbsp;&nbsp;**NOT PART OF THE ANNUAL REPORT**

------

Legg Mason Funds Privacy and Security Notice (cont'd)

companies working on our behalf, or with whom we have joint marketing agreements, are under contractual obligations to protect the confidentiality of your information, and to use it only to provide the services we asked them to perform.

**Confidentiality and Security** 

Our employees are required to follow procedures with respect to maintaining the confidentiality of our investors' non-public personal information. Additionally, we maintain physical, electronic and procedural safeguards to protect the information. This includes performing ongoing evaluations of our systems containing investor information and making changes when appropriate.

At all times, you may view our current privacy notice on our website at franklintempleton.com or contact us for a copy at (800) 632-2301.

\*For purposes of this privacy notice Franklin Templeton shall refer to the following entities:

Fiduciary Trust International of the South (FTIOS), as custodian for individual retirement plans Franklin Advisers, Inc.

Franklin Distributors, LLC, including as program manager of the Franklin Templeton 529 College Savings Plan and the NJBEST 529 College Savings Plan

Franklin Mutual Advisers, LLC

Franklin, Templeton and Mutual Series Funds

Franklin Templeton Institutional, LLC

Franklin Templeton Investments Corp., Canada

Franklin Templeton Investments Management, Limited UK

Franklin Templeton Portfolio Advisors, Inc.

Legg Mason Funds serviced by Franklin Templeton Investor Services, LLC

Templeton Asset Management, Limited

Templeton Global Advisors, Limited

Templeton Investment Counsel, LLC

If you are a customer of other Franklin Templeton affiliates and you receive notices from them, you will need to read those notices separately.

&nbsp;&nbsp;&nbsp;**NOT PART OF THE ANNUAL REPORT**

------

www.franklintempleton.com

<sup>©</sup> 2023 Franklin Distributors, LLC, Member FINRA/SIPC. All rights reserved.

**FDXX010541 2/23 SR23-4599** 

------

ITEM 2. CODE OF ETHICS.

The registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

The Board of Trustees of the registrant has determined that Stephen R. Gross possesses the technical attributes identified in Instruction 2(b) of Item 3 to Form N-CSR to qualify as an "audit committee financial expert," and has designated Stephen R. Gross as the Audit Committee's financial expert. Stephen R. Gross is an "independent" Trustees pursuant to paragraph (a)(2) of Item 3 to Form N-CSR.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) <u>Audit Fees</u>. The aggregate fees billed in the last two fiscal years ending December 31, 2021 and December 31, 2022 (the "Reporting Periods") for professional services rendered by the Registrant's principal accountant (the "Auditor") for the audit of the Registrant's annual financial statements, or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $379,280 in December 31, 2021 and $349,206 in December 31, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) <u>Audit-Related Fees</u>. The aggregate fees billed in the Reporting Period for assurance and related services by the Auditor that are reasonably related to the performance of the Registrant's financial statements were $0 in December 31, 2021 and $0 in December 31, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Tax Fees</u>. The aggregate fees billed in the Reporting Periods for professional services rendered by the Auditor for tax compliance, tax advice and tax planning ("Tax Services") were $159,250 in December 31, 2021 and $149,250 in December 31, 2022. These services consisted of (i) review or preparation of U.S. federal, state, local and excise tax returns; (ii) U.S. federal, state and local tax planning, advice and assistance regarding statutory, regulatory or administrative developments, and (iii) tax advice regarding tax qualification matters and/or treatment of various financial instruments held or proposed to be acquired or held.

There were no fees billed for tax services by the Auditors to service affiliates during the Reporting Periods that required pre-approval by the Audit Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) <u>All Other Fees</u>. The aggregate fees billed in the Reporting Periods for products and services provided by the Auditor, other than the services reported in paragraphs (a) through (c) for the Item 4 for the Legg Mason Partners Variable Equity Trust., were $0 in December 31, 2021 and $0 in December 31, 2022.

All Other Fees. There were no other non-audit services rendered by the Auditor to Legg Mason Partners Fund Advisors, LLC ("LMPFA"), and any entity controlling, controlled by or under common control with LMPFA that provided ongoing services to Legg Mason Partners Variable Equity Trust requiring pre-approval by the Audit Committee in the Reporting Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Audit Committee's pre–approval policies and procedures described in paragraph (c) (7) of Rule 2-01 of Regulation S-X.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Charter for the Audit Committee (the "Committee") of the Board of each registered investment company (the "Fund") advised by LMPFA or one of their affiliates (each, an "Adviser") requires that the Committee shall approve (a) all audit and permissible non-audit services to be provided to the Fund and (b) all permissible non-audit services to be provided by the Fund's independent auditors to the Adviser and any Covered Service Providers if the engagement relates directly to the operations and financial reporting of the Fund. The Committee may implement policies and procedures by which such services are approved other than by the full Committee.

------

The Committee shall not approve non-audit services that the Committee believes may impair the independence of the auditors. As of the date of the approval of this Audit Committee Charter, permissible non-audit services include any professional services (including tax services), that are not prohibited services as described below, provided to the Fund by the independent auditors, other than those provided to the Fund in connection with an audit or a review of the financial statements of the Fund. Permissible non-audit services may not include: (i) bookkeeping or other services related to the accounting records or financial statements of the Fund; (ii) financial information systems design and implementation; (iii) appraisal or valuation services, fairness opinions or contribution-in-kind reports; (iv) actuarial services; (v) internal audit outsourcing services; (vi) management functions or human resources; (vii) broker or dealer, investment adviser or investment banking services; (viii) legal services and expert services unrelated to the audit; and (ix) any other service the Public Company Accounting Oversight Board determines, by regulation, is impermissible.

Pre-approval by the Committee of any permissible non-audit services is not required so long as: (i) the aggregate amount of all such permissible non-audit services provided to the Fund, the Adviser and any service providers controlling, controlled by or under common control with the Adviser that provide ongoing services to the Fund ("Covered Service Providers") constitutes not more than 5% of the total amount of revenues paid to the independent auditors during the fiscal year in which the permissible non-audit services are provided to (a) the Fund, (b) the Adviser and (c) any entity controlling, controlled by or under common control with the Adviser that provides ongoing services to the Fund during the fiscal year in which the services are provided that would have to be approved by the Committee; (ii) the permissible non-audit services were not recognized by the Fund at the time of the engagement to be non-audit services; and (iii) such services are promptly brought to the attention of the Committee and approved by the Committee (or its delegate(s)) prior to the completion of the audit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) None of the services described in paragraphs (b) through (d) of this Item were performed in reliance on paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Non-audit fees billed by the Auditor for services rendered to Legg Mason Partners Variable Equity Trust, LMPFA and any entity controlling, controlled by, or under common control with LMPFA that provides ongoing services to Legg Mason Partners Variable Equity Trust during the reporting period were $1,558,348 in December 31, 2021 and $785,604 in December 31, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Yes. Legg Mason Partners Variable Equity Trust's Audit Committee has considered whether the provision of non-audit services that were rendered to Service Affiliates, which were not pre-approved (not requiring pre-approval), is compatible with maintaining the Accountant's independence. All services provided by the Auditor to the Legg Mason Partners Variable Equity Trust or to Service Affiliates, which were required to be pre-approved, were pre-approved as required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Not applicable.

------

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) *The independent board members are acting as the registrant's audit committee as specified in Section 3(a)(58)(B) of the Exchange Act*.The Audit Committee consists of the following Board members:

Paul R. Ades

Andrew L. Breech

Althea L. Duersten

Stephen R. Gross

Susan M. Heilbron

Arnold L. Lehman

Robin J. W. Masters

Ken Miller

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. Peter O'Brien

Thomas F. Schlafly

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Not applicable

ITEM 6. SCHEDULE OF INVESTMENTS.

Included herein under Item 1.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not applicable.

---

| | |
|:---|:---|
| ITEM 10. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.  |

---

Not applicable.

ITEM 11. CONTROLS AND PROCEDURES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The registrant's principal executive officer and principal financial officer have concluded that the
registrant's 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the period covered by this report that have materially affected, or are likely to materially affect the registrant's internal control over financial reporting.

------

ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 13. EXHIBITS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) (1) Code of Ethics attached hereto.

[Exhibit 99.CODE ETH](d413090dex99code.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) (2) Certifications pursuant to section 302 of the Sarbanes-Oxley Act of 2002 attached hereto.

[Exhibit 99.CERT](d413090dex99cert.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 attached hereto.

[Exhibit 99.906CERT](d413090dex99906cert.htm)

------

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, there unto duly authorized.

---

| | |
|:---|:---|
| **Legg Mason Partners Variable Equity Trust** | **Legg Mason Partners Variable Equity Trust** |
| By: | /s/ Jane Trust |
|  | Jane Trust |
|  | Chief Executive Officer |
| Date: | February 16, 2023 |

---

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/ Jane Trust |
|  | Jane Trust |
|  | Chief Executive Officer |
| Date: | February 16, 2023 |
| By: | /s/ Christopher Berarducci |
|  | Christopher Berarducci |
|  | Principal Financial Officer |
| Date: | February 16, 2023 |

---

## Ex-99.Code

**Code of Conduct for Principal Executive and Financial Officers (SOX)** 

**Covered Officers and Purpose of the Code** 

The Funds' code of ethics (the "Code") for investment companies within the Legg Mason family of mutual funds (each a "Fund," and collectively, the "Funds") applies to each Fund's Principal Executive Officer, Principal Financial Officer, and Controller (the "Covered Officers") for the purpose of promoting:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• honest and ethical conduct, including ethical handling of actual or apparent conflicts of interest between
personal and professional relationships;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• full, fair, accurate, timely and understandable disclosure in reports and documents a registrant files with, or
submits to, the Securities and Exchange Commission ("SEC") and in other public communications made by the Funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• compliance with applicable laws and governmental rules and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• prompt internal reporting of Code violations to appropriate persons identified in the Code; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• accountability for adherence to the Code.

Each Covered Officer should adhere to a high standard of business ethics and should be sensitive to situations that may give rise to actual as well as apparent conflicts of interest.

**Covered Officers Should Ethically Handle Actual and Apparent Conflicts of Interest** 

A "conflict of interest" occurs when a Covered Officer's private interest interferes with the interests of, or his or her service to, a Fund. For example, a conflict of interest would arise if a Covered Officer, or a member of his or her family, receives improper personal benefits as a result of his or her position with a Fund.

Certain conflicts of interest arise out of the relationships between Covered Officers and a Fund and already are subject to conflict of interest provisions in the Investment Company Act of 1940 ("Investment Company Act") and the Investment Advisers Act of 1940 ("Investment Advisers Act"). For example, Covered Officers may not individually engage in certain transactions (such as the purchase or sale of securities or other property) with a Fund because of their status as "affiliated persons" of the Fund. The Funds' and the investment advisers' compliance programs and procedures are designed to prevent, or identify and correct, violations of these provisions. This Code does not, and is not intended to, repeat or replace these programs and procedures, and such conflicts fall outside of the parameters of this Code.

Although typically not presenting an opportunity for improper personal benefit, conflicts arise from, or as a result of, the contractual relationship between a Fund and an investment adviser of which Covered Officers are also officers or employees. As a result, this Code recognizes Covered Officers will, in the normal course of their duties (whether formally for a Fund or for the adviser, or for both), be involved in establishing policies and

------

implementing decisions that will have different effects on the adviser and the Funds. The participation of Covered Officers in such activities is inherent in the contractual relationship between a Fund and an adviser and is consistent with the performance by Covered Officers of their duties as officers of the Funds. Thus, if performed in conformity with the provisions of the Investment Company Act and the Investment Advisers Act, such activities will be deemed to have been handled ethically. In addition, it is recognized by the Funds' Boards of Directors/Trustees ("Boards") that Covered Officers may also be officers or employees of one or more other investment companies covered by this or other codes and that such service, by itself does not give rise to a conflict of interest.

Other conflicts of interest are covered by the Code, even if such conflicts of interest are not subject to provisions in the Investment Company Act and the Investment Advisers Act. The following list provides examples of conflicts of interest under the Code, but Covered Officers should keep in mind these examples are not exhaustive. The overarching principle is that the personal interest of a Covered Officer should not be placed improperly before the interest of a Fund.

Each Covered Officer must:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• not use his or her personal influence or personal relationships improperly to influence investment decisions or
financial reporting by a Fund;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• not cause a Fund to take action, or fail to take action, for the individual personal benefit of the Covered
Officer rather than the benefit the Fund; and,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• not use material non-public knowledge of portfolio transactions made or
contemplated for the Trust to trade personally or cause others to trade personally in contemplation of the market effect of such transactions.

There are some actual or potential conflict of interest situations that, if material, should always be discussed with the Chief Compliance Officer ("CCO") or designate that has been appointed by the Board of the Funds. Examples of these include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• service as a director on the board of any public company (other than the Funds or their investment advisers or
any affiliated person thereof);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the receipt of any non-nominal gifts (i.e., in excess of $100);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the receipt of any entertainment from any company with which a Fund has current or prospective business dealings
unless such entertainment is business-related, reasonable in cost, appropriate as to time and place, and not so frequent as to raise any question of impropriety;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any ownership interest in, or any consulting or employment relationship with, any of the Funds' service
providers (other than their investment advisers, or principal underwriter, or any affiliated person thereof);

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a direct or indirect financial interest in commissions, transaction charges or spreads paid by a Fund for
effecting portfolio transactions or for selling or redeeming shares other than an interest arising from the Covered Officer's employment, such as compensation or equity ownership.

**Disclosure and Compliance** 

Each Covered Officer should:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• familiarize him or herself with the disclosure requirements generally applicable to the Funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• not knowingly misrepresent, or cause others to misrepresent, facts about a Fund to others, whether within or
outside the Fund, including to the Fund's Directors/Trustees and auditors, and to governmental regulators and self-regulatory organizations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to the extent appropriate within his or her area of responsibility, consult with other officers and employees of
the Funds and the advisers with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents the Funds file with, or submit to, the SEC and in other public communications made by the Funds.

It is the responsibility of each Covered Officer to promote compliance with the standards and restrictions imposed by applicable laws, rules and regulations.

**Reporting and Accountability** 

Each Covered Officer must:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• upon adoption of the Code (or thereafter as applicable, upon becoming a Covered Officer), affirm in writing to
the Board that he or she has received, read, and understands the Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• annually thereafter affirm to the Board that he or she has complied with the requirements of the Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• not retaliate against any other Covered Officer or any employee of the Funds or their advisers or any affiliated
persons thereof or service providers of the Funds for reports of potential violations that are made in good faith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• notify the CCO promptly if he or she knows of any violation of this Code, of which failure to do so is itself a
violation; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• report at least annually, if necessary, any employment position, including officer or directorships, held by the
Covered Officer or any immediate family member of a Covered Officer with affiliated persons of or Service Providers to the Funds.

The CCO is responsible for applying this Code to specific situations in which questions are presented and has the authority to interpret this Code in any particular situation. However, approvals or waivers sought by a Covered Officer will be considered by the Compliance Committee or Audit Committee, (the "Committee") responsible for oversight of the Fund's code of ethics under Rule 17j-1 under the Investment Company Act. If a Covered Officer seeking an approval or waiver sits on the Committee, the Covered Person shall recuse him or herself from any such deliberations. Any approval or waiver granted by the Committee will be reported promptly to the Chair of the Audit Committees of the Funds.

The Funds will follow these procedures in investigating and enforcing this Code:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the CCO will take all appropriate action to investigate any potential violations reported to him, which actions
may include the use of internal or external counsel, accountants or other personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if, after such investigation, the CCO believes that no violation has occurred, the CCO is not required to take
any further action;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any matter that the CCO believes is a violation will be reported to the Committee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if the Committee concurs that a violation has occurred, it will inform the Board, which will consider appropriate
action, which may include review of, and appropriate modifications to, applicable policies and procedures; notification to appropriate personnel of the investment adviser or its board; or a recommendation to dismiss the Covered Officer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Committee will be responsible for granting waivers, as appropriate; and,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any changes to or waivers of this Code will, to the extent required, be disclosed as provided by SEC rules.

**Other Policies and Procedures** 

This Code shall be the sole code of ethics adopted by the Funds for purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms applicable to registered investment companies thereunder. Insofar as other policies or procedures of the Funds, the Funds' advisers, principal underwriter, or other service providers govern or purport to govern the behavior or activities of Covered Officers subject to this Code, they are superseded by this Code to the extent they overlap or conflict with the provisions of this Code. The Funds' and their investment advisers' and principal underwriter's codes of ethics under Rule 17j-1 under the Investment Company Act are separate requirements applying to Covered Officers and others, and are not part of this Code.

------

**Confidentiality** 

All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the appropriate Board and Fund counsel, and the board of Directors/Trustees and fund counsel of any other investment company for whom a Covered Officer serves in a similar capacity.

**Annual Report** 

No less than annually, the CCO shall provide the Board with a written report describing any issues having arisen since the prior year's report.

**Internal Use** 

This Code is intended solely for the internal use by the Funds and does not constitute an admission by or on behalf of any Fund, as to any fact, circumstance or legal consideration.

## Ex-99.Cert

CERTIFICATIONS PURSUANT TO SECTION 302

EX-99.CERT

**<u>CERTIFICATIONS</u>**

I, Jane Trust, certify that:

1. I have reviewed this report on Form N-CSR of **Legg Mason Partners Variable Equity Trust**;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report,
fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the
periods presented in this report;

4. The registrant's other certifying officers and I are responsible for establishing and maintaining
disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be
designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is
being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Designed such internal control over financial reporting, or caused such internal control over financial
reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting
principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this
report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Disclosed in this report any change in the registrant's internal control over financial reporting that
occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officers and I have disclosed to the registrant's auditors and the
audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) All significant deficiencies and material weaknesses in the design or operation of internal control over
financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Any fraud, whether or not material, that involves management or other employees who have a significant role in
the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: February 16, 2023 | /s/ Jane Trust |
|  | Jane Trust |
|  | Chief Executive Officer |

---

------

**<u>CERTIFICATIONS</u>**

I, Christopher Berarducci, certify that:

1. I have reviewed this report on Form N-CSR of **Legg Mason Partners Variable Equity Trust**;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial information included in this report, and the financial statements on which
the financial information is based, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the
registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officers and I are responsible for establishing and maintaining
disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be
designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is
being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Designed such internal control over financial reporting, or caused such internal control over financial
reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting
principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this
report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Disclosed in this report any change in the registrant's internal control over financial reporting that
occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officers and I have disclosed to the registrant's auditors and the
audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) All significant deficiencies and material weaknesses in the design or operation of internal control over
financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Any fraud, whether or not material, that involves management or other employees who have a significant role in
the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: February 16, 2023 | /s/ Christopher Berarducci |
|  | Christopher Berarducci |
|  | Principal Financial Officer |

---

## Exhibit 99.906

CERTIFICATIONS PURSUANT TO SECTION 906

EX-99.906CERT

**CERTIFICATION** 

**Jane Trust,** Chief Executive Officer, and **Christopher Berarducci,** Principal Financial Officer of **Legg Mason Partners Variable Equity Trust** (the "Registrant"), each certify to the best of their knowledge that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Registrant's periodic report on Form N-CSR for the period ended December 31, 2022 (the "Form N-CSR") fully complies with the requirements of section 15(d) of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

---

| | |
|:---|:---|
| **Chief Executive Officer** | **Principal Financial Officer** |
| Legg Mason Partners Variable Equity Trust | Legg Mason Partners Variable Equity Trust |
| /s/ Jane Trust | /s/ Christopher Berarducci |
| Jane Trust | Christopher Berarducci |
| Date: February 16, 2023 | Date: February 16, 2023 |

---

This certification is being furnished to the Securities and Exchange Commission solely pursuant to 18 U.S.C. § 1350 and is not being filed as part of the Form N-CSR with the Commission.