2024-07-24 10:00:00 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.
- Global equities rose in in the second quarter, as positive earnings, stabilizing inflation and the first interest rate cuts in the cycle overcame increased political uncertainty from global elections.
- The Strategy outperformed its benchmark, as strong stock selection in our industrials and health care holdings overcame detractors in the financials sector.
- Eliminating waste and pollution, circulating products and materials and regenerating nature are three basic principles at the heart of the circular economy that align with ClearBridge’s fundamental ESG framework.
By Grace Su & Jean Yu, CFA, PhD
Improvers Outperform on AI Demand
Market Overview
Global equities rose in the second quarter, with the MSCI World Index returning 2.63%, as largely positive corporate earnings, signs of stabilizing inflation and the first rate cuts from central banks in Europe and Canada overcome increased political uncertainty from a number of elections worldwide. Continued investor enthusiasm for AI-related companies helped drive strong performance in growth stocks, with the MSCI World Growth Index returning 6.35%, while the benchmark MSCI World Value Index declined 1.20%. As a result, growth extended its year-to-date lead versus value to over 1,100 basis points.
The U.K. proved the best-performing region in the benchmark, overcoming a mid-quarter pullback due to increased uncertainty spurred by the call for early elections, as reports showed a stabilizing GDP, a steady increase in consumer confidence and a continued easing of inflation indicators. Asia Ex Japan also saw positive overall performance as China, which has struggled with weaker domestic consumption and issues in its real estate market, also saw positive performance due to a pickup in export data. Japan, the best-performing market in the first quarter, delivered the weakest regional performance as investors took pause after a strong run-up and a weakening of the yen....
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For further details see:
ClearBridge Global Value Improvers Strategy Q2 2024 Commentary