BJ - ClearBridge Small Cap Growth Strategy Portfolio Manager Commentary Q4 2021

• 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.
• Strategy outperformance in the quarter and the year was driven by our health care exposure in an otherwise tough period for small caps in general and health care in particular.
• New issue activity was prolific in 2021, with nearly 400 IPOs pricing and over 600 SPACs listing, which benefits us as selective active managers targeting companies with product and service innovation, sound management and capital adequacy.
• Small cap growth stocks may well provide equity market leadership given valuations more in line with historic norms, earnings growth rates several times higher compared to larger caps and innovation centered in the asset class.

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