FSV - ClearBridge Canadian Small Cap Q2 2024 Commentary

2024-07-16 09:00:00 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.
• The Strategy delivered solid absolute returns during the quarter and outperformed the benchmark.
• Stock selection in financials, information technology and industrials and an overweight in utilities were the primary drivers of relative performance.
• We were active in the quarter, adding three new names, trimming into strength in energy and materials and taking advantage of overreactions to the downside in industrials.

By Garey J. Aitken, CFA & Michael Richmond, CFA

Cyclical Contributions Highlight Solid Results - Market Overview

The second quarter of 2024 finally brought a shift in central bank policy, albeit at a more measured pace than was expected at the start of the year. At its June meeting, the Bank of Canada cut its key policy rate for the first time since embarking on its tightening cycle in March 2022. The rate cut was nominally a response to easing inflation in Canada, but it comes as cracks are showing in the Canadian economy. Employment, housing and capital formation all suggest a loosening in aggregate demand that is consistent with softer inflation....

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