YLDE - ClearBridge Global Value Improvers Strategy Q1 2024 Commentary

2024-04-28 11:40:00 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.
• Global markets generated positive returns due to optimism over a soft landing, improving economic data, the prospect of rate cuts and continued improvements in Japan.
• The Strategy outperformed its benchmark, as stock selection in the industrials and communication services sectors overcame weakness in our health care holdings.
• We will continue to monitor how ClearBridge portfolio companies and the market at large are navigating AI’s sustainability-related opportunities and risks.

By Grace Su & Jean Yu, CFA, PhD

Improvers Outpace Broader Value Gains

Market Overview

Global markets generated positive returns in the first quarter driven by optimism over an economic soft landing, improving economic data, the prospect of rate cuts in the U.S. and Europe and structural economic and corporate reforms in Japan. The MSCI World Index returned 8.88% for the quarter. Growth stocks outpaced value for the quarter with the MSCI World Growth Index returning 10.24% versus the 7.49% return of the MSCI World Value Index.

Gains were spurred by broadly positive economic data, particularly in manufacturing. Both European and U.S. manufacturing PMI entered expansionary territory, breaking a 16-month streak of contractions in the U.S., amid signs that inventory orders and better inventory management could turn into a growth tailwind, further bolstering their respective markets. Economic and manufacturing data in China continues to be lackluster but showed some signs of stabilization on positive export and travel data....

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