CA - ClearBridge Global Infrastructure Income Strategy Q1 2024 Portfolio Manager Commentary

2024-04-26 10:10:00 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.
• Infrastructure assets trailed global equities in the first quarter amid a robust rally for equities, although March saw a reversal as cyclical strength and a slight sentiment shift for utilities helped infrastructure outperform.
• We have been increasing our cyclical exposure through additions in U.S. rails as a restocking cycle should lift rail volumes while adding selectively to towers and renewables on weakness we believe is transitory.
• We remain constructive on, and selective with, U.S. utilities, where the energy transition and data center growth remain long-term positive drivers.

By Daniel Chu, CFA, Charles Hamieh, Shane Hurst & Nick Langley

Select Cyclical Exposure Looking More Interesting - Market Overview

Infrastructure assets trailed global equities in the first quarter amid a robust rally for equities, in many ways a continuation of the bull market begun in late 2023 as softening inflation and resilient economic growth have spurred risk-on sentiment. Defensive asset classes such as infrastructure outperformed equities in March, however, as cyclical sectors such as energy infrastructure did well and utilities began to get some credit for some of their long-term drivers, such as surging demand for electricity from AI-powering data centers....

For further details see: