YLDE - ClearBridge Global Value Improvers Strategy Q1 2025 Commentary

2025-04-29 08:30:00 ET

Summary

• International value stocks rose during the first quarter despite the outbreak of trade wars, as a rotation out of U.S. technology and the prospect of greater fiscal stimulus in international markets helped bolster returns.
• The Strategy posted positive absolute returns but slightly trailed its benchmark as detractors in consumer staples overcame positive contributions from our energy holdings.
• Despite market noise, there remain many durable themes, such as the energy transition and artificial intelligence deployment, that we will look to add to opportunistically.

By Grace Su & Jean Yu, CFA, Ph.D.

Market Overview

Global value stocks rose during the first quarter despite the outbreak of trade wars, as a rotation out of U.S. technology and the prospect of greater fiscal stimulus in international markets helped bolster returns. The core MSCI World Index declined 1.79% while the S&P 500 Index and the more tech-heavy NASDAQ Composite declined 4.27% and 10.42%, respectively. Meanwhile, the financials sector continued to rally to new highs, along with traditional defensives, which were less impacted by tariff threats, helping the MSCI World Value Index (4.81%) handily outperform the MSCI World Growth Index (-7.75%) by over 1,200 basis points (Exhibit 1)....

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