CEM News and Press, ClearBridge MLP and Midstream Fund Inc. From 11/01/22

Summary While U.S. utilities dominated top contributors in the quarter, utilities in Europe suffered from growing fear of sector intervention amid several economic and political uncertainties. The U.S. Inflation Reduction Act was announced in August and has become a major tailwind...

Summary The third quarter was dominated by central banks’ efforts to fight inflation through tightening monetary policy; as the Fed and other central banks continued to raise rates, bond yields rose across the globe. The U.S. Inflation Reduction Act was announced in August ...

Summary Several long-standing biopharmaceutical holdings drove performance. An unprecedented set of global challenges makes it more important than ever to own cash-generative businesses with strong balance sheets that can take advantage of dislocations in the market and the econom...

Summary Even with oil prices lower in the quarter, energy prices remain stubbornly high and will likely remain in a tight supply and demand balance even if economies slow down meaningfully. This backdrop will continue to support the pipelines over the medium term as energy produce...

Summary A rebound for several disruptors in the consumer discretionary sector offset weakness in health care, enabling the Strategy to outperform through a short-lived rally and subsequent drawdown. We initiated two new positions in rapidly growing disruptors whose valuations have...

Summary Markets declined during the third quarter as investors became convinced that monetary authorities would drive global economies into recession. The Strategy outperformed its benchmark due to its tilt towards “real economy” cyclical sectors, rather than defensi...

Summary International markets faced headwinds as slowing economic growth and hawkish monetary policy by central banks stoked investor fears of a possible global recession. The Strategy outperformed its benchmark, as high-quality stocks in the materials and industrials sectors over...

Summary The lower rates and looser monetary policy that helped propel growth to its zenith are evaporating, setting the stage for value to cement its leadership in this new market cycle. Market movements are increasingly driving sentiment and outlooks, which is evident in the over...

Summary The combination of extremely depressed stocks and improving fundamentals is a powerfully bullish combination for long-term value investors. Despite being at all-time historical lows, the market is pricing financials and energy stocks as if they have the greatest earnings r...

Summary Having suffered through a sharp decline in earnings multiples, small cap growth stocks held up well in a volatile quarter marked by a sharp upward ratcheting of interest rates. The Strategy underperformed its benchmark, primarily due to weakness among health care holdings ...