2024-02-03 11:00:00 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 markets rallied as disinflationary data and the prospect of interest rate cuts helped to renew investors’ hopes that an economic soft landing could be achieved.
- The Strategy outperformed its benchmark, as stock selection in the industrials sector overcame weakness in our IT holdings.
- We continue to pursue sustainability enablers and promoters benefiting from long-term mega trends, balanced by undervalued reformers generating outsize returns to fund their business transformations.
By Grace Su & Jean Yu, CFA
Sustainability Improvers Rise in Broadening Rally
market Overview
Global markets surged in the fourth quarter, as disinflationary data, renewed hopes of an economic soft landing and declining bond yields in the U.S. and Europe overcame concerns over renewed hostilities in the Middle East and continued economic challenges in China. The benchmark MSCI World Value Index returned 9.3% for the quarter. A dovish policy pivot by the Federal Reserve helped to spur growth stocks ahead of value stocks, with the MSCI World Growth Index returning 13.3% versus the 9.3% return of the MSCI World Value Index.
While a fourth-quarter rally in the U.S. and Europe was driven by the belief that the central banks are done with raising rates and an easing cycle will be forthcoming, Asia Ex Japan was the top performing region in the benchmark thanks to strong returns in sectors leveraged to economic re-acceleration. Japanese stocks also continued their upward trajectory, though fears over a strengthening yen capped the rally. Lastly, performance in the U.K. was mixed, as strong performance in domestically-oriented stocks was offset by underperformance in more global sectors such as energy and health care....
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For further details see:
ClearBridge Global Value Improvers Strategy Q4 2023 Portfolio Manager Commentary