LBLCF - ClearBridge Canadian Equity Strategy Q2 2024 Commentary

2024-07-12 06:55:00 ET

Summary

• ClearBridge is a leading global asset manager committed to active management. Research-based stock selection guides our investment approach, with our strategies reflecting the highest-conviction ideas of our portfolio managers.
• Canadian equities suffered losses for the quarter, weighed down by weakness across interest-rate-sensitive sectors and a lack of AI-related catalysts that proved too much for strength in cyclicals and consumer staples to overcome.
• The Strategy performed in line with the benchmark, supported by solid contributions in materials and staples that offset headwinds in IT and industrials.
• Trading activity was robust with five new holdings and additions to attractively priced defensive/interest-rate-sensitive positions as well as out-of-favor cyclical and growth names. With myriad risks to the economic outlook, overall positioning remained more defensive than usual.

By Garey J. Aitken, CFA, & Timothy W. Caulfield, CFA

Market Overview

Following a strong first quarter and new all-time highs reached in the middle of the second, the S&P/TSX Composite Total Return Index ('TRI') slipped in June to finish the period down 0.5%. Canadian equity performance continues to pale in comparison to the U.S., underperforming the S&P 500 TRI's advance of 4.3% (5.3% in Canadian dollars). For context, the U.S. equity juggernaut, driven by mega cap information technology ('IT') and related growth stocks, has now outpaced the S&P/TSX Composite TRI in the past six consecutive quarters....

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