OLYMY - ClearBridge International Growth ACWI Ex-U.S. Strategy Q1 2025 Commentary

2025-04-13 23:50:00 ET

Summary

• During the first quarter, the ClearBridge International Growth ACWI Ex-US Strategy outperformed its MSCI ACWI Ex-U.S. Index benchmark.
• The Strategy outperformed in a value-dominated market environment, supported by strength among communication services and bank holdings that offset weakness in health care and industrials.
• In a sharp reversal, international equities broadly outperformed the U.S. in the quarter, boosted by plans for increased fiscal spending in Europe and greater economic policy latitude.
• Multiple drivers are coalescing to support an extended period of strength for international markets, with the potential for easing regulation and increased investments around defense and technological competitiveness being two areas that could drive further improvement.

By Elisa Mazen, Michael Testorf, CFA, & Pawel Wroblewski, CFA

Broadening Participation Supports Outperformance

Market Overview

Led by a sharp revival in Europe, international equities delivered strong gains in the first quarter as increasing policy uncertainty in the U.S. spurred investors to look overseas for more predictable returns. The benchmark MSCI All Country World Ex-U.S. Index advanced 5.23%, outperforming its U.S. counterpart, the S&P 500 Index (SPX)(SP500), by over 950 basis points in a reversal of global leadership. The MSCI Emerging Markets Index added 2.93%, boosted by a rebound in China....

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