YLDE - ClearBridge International Value Strategy Q1 2025 Commentary

2025-04-22 07:20:00 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.
• International equities 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 meaningfully outperformed its benchmark in the first quarter, as strong stock selection within the financials and consumer staples helped to offset detractors within industrials.
• The impact of deglobalization is likely to be structurally higher inflation, lower profit margins and higher risk premiums. This provides a favorable backdrop for value sectors.

By Sean Bogda, CFA, Grace Su & Jean Yu, CFA

International Stocks Rise Amid Trade Turmoil

Market Overview

International equities 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. As a result, the core MSCI EAFE Index rose 6.86% while the S&P 500 Index ( SP500 , SPX ) and the more tech-heavy NASDAQ Composite ( COMP:IND ) declined 4.27% and 10.42%, respectively. The financials sector continued to rally to new highs, along with traditional defensives, which were less impacted by tariff threats, helping the MSCI EAFE Value Index (11.56%) handily outperform the MSCI EAFE Growth Index (2.13%), adding to its annual outperformance since 2022 (Exhibit 1)....

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