| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | - |
The ClearBridge International Growth ADR Strategy outperformed its MSCI EAFE benchmark in Q2 2026, driven by concentrated exposure to AI infrastructure beneficiaries across semiconductors, storage, networking, and optical equipment. The core thesis centers on generative AI evolving from a technology platform story into a global supply chain bottleneck story, where the scale of AI capital spending is overwhelming existing manufacturing capacity and creating pricing power for key suppliers. The portfolio initiated 15 new positions and exited 14, significantly increasing exposure to IT, industrials, and Japan while trimming financials. Japan has emerged as the highest-conviction opportunity, supported by governance reforms, emergence from deflation, and structural improvements in corporate profitability and shareholder returns. Key contributors included Tokyo Electron, ASML, Taiwan Semiconductor, and Prysmian, while detractors included BAE Systems, Brambles, and AstraZeneca. The managers see multiple structural drivers supporting international equities including attractive valuations versus the U.S., improving earnings growth as geopolitical tensions ease, and the global AI capital spending cycle. Looking ahead, they expect AI to evolve into a broader enterprise productivity theme across financial services, health care, and manufacturing.
International equities, particularly in Japan and AI infrastructure beneficiaries across Asia and Europe, offer compelling structural growth opportunities driven by supply chain bottlenecks, governance reforms, and the global AI capital spending cycle.
The managers see several structural drivers supporting international equities including continued attractive valuations versus the U.S., the potential for further U.S. dollar weakness, improving earnings growth as geopolitical tensions ease, and increasing flows toward international equities as broadening increases beyond U.S. mega caps. The biggest driver of this momentum is a global AI capital spending cycle benefiting companies across Japan, South Korea, Taiwan and parts of Europe. Japan has developed into the highest-conviction opportunity due to structural changes driving higher returns on equity. Looking ahead, the managers expect AI to evolve beyond today's infrastructure beneficiaries into a much broader enterprise productivity theme, creating significant productivity gains and new business models across financial services, health care, manufacturing and other industries.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jul 14 2026 | 2026 Q2 | 6920.T, 7741.T, 8035.T, 9984.T, ASM.AS, ASML, AZN, BA.L, BXB.AX, CLS, HLMA.L, IFX.DE, ISP.MI, NOKIA.HE, NWG.L, PRU.L, PRY.MI, STX, TSM, UBS | AI, Data centers, Governance, growth, international, Japan, semiconductors, technology | - | ClearBridge International Growth ADR Strategy capitalized on AI infrastructure supply chain bottlenecks in Q2 2026, with semiconductor equipment makers and optical networking suppliers driving outperformance. The portfolio aggressively repositioned toward Japan, now the highest-conviction opportunity given governance reforms and AI exposure. Fifteen new positions were initiated focused on areas where scarcity is creating pricing power across memory, analog chips, data storage, and data center connectivity. |
| Apr 13 2026 | 2026 Q1 | 4063.T, 4307.T, 5802.T, 6920.T, 7532.T, ASM, ASML, CHKP, EADSY, ENGI.PA, IX, MELI, REL.L, RIO, SAP, SHOP, SPOT, WDS.AX | AI, defense, energy, Geopolitical, growth, international, Japan, semiconductors | - | International growth strategy pivoted toward Japan and European infrastructure amid geopolitical volatility. Added five Japanese positions capitalizing on rising rates and governance reforms, plus energy security plays like Engie and Rio Tinto. Reduced software exposure due to AI disruption concerns while adding semiconductor equipment names. Growth valuations have compressed significantly, creating better setup for outperformance ahead. |
| Jan 15 2026 | 2025 Q4 | 0700.HK, 8035.T, AZN.L, CLS.TO, EL.PA, ENR1.DE, GALD.SW, HEI.DE, III.L, ITX.MC, LIN, NVO, NWG.L, RACE, ROG.SW, RYA.L, SE, SIE.DE, SONY, TT, UCG.MI | AI, Asia, banks, Europe, growth, international, Pharmaceuticals, value |
AZN LN NWG LN ROG SW HEI GR |
International growth strategy navigated value-dominated markets by selectively adding European banks and AI infrastructure plays while maintaining pharmaceutical exposure. Despite growth underperformance, the team sees compelling opportunities in Chinese innovation, defense spending trends, and data center beneficiaries. Forward outlook emphasizes earnings improvement as key catalyst for growth reassertion, with international valuations remaining attractive versus U.S. peers. |
| Oct 9 2025 | 2025 Q3 | 0700.HK, 1211.HK, 3064.T, 8035.T, ADYEN.AS, AEM, ALC, ARGX, ARM, BBVA, BVI.PA, CLS.TO, CPG.L, DOL.TO, DTE.DE, HDB, HSBA.L, KBC.BR, KOF, L.TO, LSEG.L, MELI, NVO, NVZMY, PRY.MI, REL.L, SAN, SAP, SFTBY, SIK.SW, SONY, SPOT, STMN.SW, TRI.TO, UCB.BR, VNA.DE | AI, banks, Biotechnology, China, Europe, growth, international, value |
UCB BB CLS CN |
International growth strategy repositioned banking exposure and expanded Canadian holdings during value-led quarter. Weakening dollar and stimulative policies in target regions create favorable backdrop for overseas companies. European biotechs delivered strong results while AI infrastructure and Chinese technology development provide compelling growth opportunities ahead. |
| Jul 9 2025 | 2025 Q2 | 8035.T, AEM, AIR.PA, ARGX, AZN, BAESY, CFRUY, CRH, EONGY, LVMUY, MHVYF, MUFG, NRI, NVO, PUBGY, SAF.PA, SMEGF, TCEHY, TKOMY, TSCDY, TSM | AI, defense, energy, Europe, growth, international, Japan |
7011 JP TSCO LN EOAN GR AEM CN MC FP |
International growth strategy performed in line with benchmark as European fiscal stimulus and defense spending commitments drove outperformance in industrials and defense holdings. Managers actively repositioned away from dollar-exposed names toward domestic European businesses, adding utilities, defense, and gold exposure while maintaining AI-related semiconductor positions. Health care faced regulatory headwinds. |
| Mar 31 2025 | 2025 Q1 | 1211.HK, 4091.T, 6273.T, 7011.T, 7733.T, 7936.T, AIR.PA, ARGX, BBVA, CP, DB1.DE, DTE.DE, ISP.MI, LLOY.L, NVO, NWG.L, SE, TT, UCB.BR, UCG.MI | banks, China, defense, Europe, growth, infrastructure, international, technology | - | International equities are experiencing a fundamental leadership shift with Europe and Asia outperforming the U.S. by over 1,100 basis points. The strategy capitalizes on defense spending increases, European banking sector recovery, and China's EV market expansion. Multiple structural catalysts including fiscal spending acceleration and regulatory easing support extended international outperformance after years of U.S. dominance. |
| Dec 31 2024 | 2024 Q4 | ACN, ARGX, ASML, AZN, CHKP, EDP.LS, ICON, ITX.MC, LSEG.L, MUFG, NVO, RMS.PA, SAP.DE, SE, SHOP.TO, SONY, SPOT, TSM | Europe, growth, international, Japan, Luxury, tariffs, Valuations | - | International growth strategy outperformed despite tariff concerns and European political turmoil. Strong stock selection in e-commerce and stable growers offset pharmaceutical weakness. Added luxury exposure via Hermes and repurchased Spotify. International markets priced for little progress versus elevated U.S. valuations, creating opportunity with multiple catalysts including potential tariff moderation and fiscal stimulus. |
| Sep 30 2024 | 2024 Q3 | 0992.HK, 1299.HK, 4091.T, 4543.T, 7936.T, 8035.T, 8766.T, ARGX, ASML, BN.PA, CPG.L, EL.PA, HLN.L, ICLR, ITX.MC, LSEG.L, NESN.SW, NVO, RTO.L, SAP, SPOT | China, cyclicals, growth, international, Japan, Stimulus, Value rotation |
4543.T 7936.T 8766.T 4091.T 0992.HK BN.PA |
ClearBridge's diversified growth strategy outperformed in Q3's value rotation, adding four Japanese positions while trimming China exposure. The manager upgraded the portfolio by selling declining growth names like Nestle for higher-growth opportunities like Danone. Despite weakness in secular growth leaders, they maintain conviction in AI, semiconductors and GLP-1 treatments while positioning for broadening market participation. |
| Jul 18 2024 | 2024 Q2 | 1299.HK, 2348.HK, 4568.T, 7733.T, 8035.T, ABB, ACN, ALC, ATLKY, AZN, BBVA, BVI.PA, CP, LYG, MC.PA, MELI, NICE, NVO, RACE, SE, TSM, UCB.BR, UL | Asia, banks, Europe, growth, healthcare, international, technology | - | ClearBridge's international growth strategy underperformed in Q2 as AI divergence between U.S. and international tech continued. Active repositioning included adding banks on weakness and trimming tech volatility. Healthcare exposure supported performance. Managers see ECB cuts and rising European/Japanese buybacks as catalysts, maintaining conviction in diversified growth approach across secular, structural, and emerging growth buckets. |
| Apr 15 2024 | 2024 Q1 | 0388.HK, 1299.HK, 8035.T, ASML, EDP.LS, IBE.MC, ITX.MC, MC.PA, MNDY, NESN.SW, NVO, PUB.PA, RACE, SAF.PA, SAND.ST, SAP, SE.PA, SONY, SU, TSM, ZEAL.CO | AI, Europe, growth, international, Japan, Luxury, Rate Cuts, semiconductors | - | International growth strategy outperformed on AI and diabesity themes, adding Ferrari, Schneider Electric, and Monday.com while trimming Hong Kong exposure. European equities trade at attractive two-thirds U.S. valuations with rate cuts ahead of Fed and improving credit flows. Japanese corporate reforms and semiconductor cycle recovery support positioning in technology and luxury consumer names. |
| Jan 13 2024 | 2023 Q4 | 0700.HK, 4911.T, 6098.T, 6273.T, 7741.T, 8035.T, 9449.T, ACN, ADYEN.AS, ASML, CLNX.MC, CRH, III.L, NVO, RELX, RTO.L, SAP, SEDG, SHOP.TO, TRI | AI, Europe, growth, international, Japan, semiconductors | - | International growth strategy outperformed in Q4 2023 as AI-related holdings gained recognition outside the U.S. Semiconductor equipment makers ASML and Tokyo Electron, enterprise software companies SAP and Accenture, and data-rich RELX and Thomson Reuters drove performance. Active portfolio management included three new positions and five exits. Outlook favors growth stocks in 2024 amid expected rate cuts and challenging macro conditions. |
| Oct 25 2023 | 2023 Q3 | 1299.HK, ADYEN.AS, AMS.PA, ARGX, ASML, AZN, BNP.PA, CPU.AX, DB1.DE, DSNKY, Gold, ITX.MC, KER.PA, LIN, MC.PA, NVDA, NVO, OCLSY, REL.L, ROG.SW, SAFRY, SAND.ST, SAP, SMCAY, SU, TEP.PA | AI, growth, international, Japan, Pharmaceuticals, semiconductors, value |
ASML AZN ARGX SMCAY |
ClearBridge's international growth strategy suffered as value dramatically outperformed growth by 900+ basis points in Q3. Despite underperformance, managers maintain conviction in their disciplined approach across secular, structural, and emerging growth companies. Active repositioning included upgrading healthcare and Japan exposures. They view current value leadership as temporary and believe the portfolio is positioned for alpha generation when growth leadership returns. |
| Jun 30 2023 | 2023 Q2 | 0005.HK, 0388.HK, 0700.HK, 4568.T, 7733.T, 8035.T, ACN, ALC, AMS.MC, ASML, CP.TO, DTE.DE, ITX.MC, KER.PA, LSEG.L, NICE, REL.L, TEP.PA, TRI.TO, XRO.AX | AI, growth, healthcare, international, Japan, semiconductors, technology, value | - | ClearBridge International Growth underperformed due to Japan underweight and growth focus during value rally. Team excited about AI opportunities with holdings like ASML, Tokyo Electron, NICE positioned for secular trend. Selectively reduced Japan underweight while avoiding cyclical value traps. Added Xero, trimmed Teleperformance. Maintains disciplined growth approach targeting structural winners from AI and other innovation themes. |
| Mar 31 2023 | 2023 Q1 | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q2 |
AIGenerative AI has evolved from a technology platform story into a global supply chain bottleneck story. The scale of AI capital spending is overwhelming the existing manufacturing base for advanced computing, creating constraints across multiple IT product categories including semiconductors, storage, networking, and optical infrastructure. These supply/demand imbalances are creating pricing power for key suppliers across Asia and Europe. |
Infrastructure Semiconductors Data Centers Networking Optical |
Semiconductor CycleMemory manufacturers are seeing higher margins for NAND memory which powers AI inference workloads. Generative AI is reshaping NAND from a cyclical storage commodity into a strategic data center bottleneck. Analog chip makers are benefiting from AI-driven demand for power management circuits, enabling companies to push through multiple price hikes in the quarter. |
Memory NAND Analog Power Management Pricing Power | |
JapanJapan has developed into the highest-conviction opportunity. Its emergence from decades of deflation, a more pro-business policy environment, and ongoing Tokyo Stock Exchange governance reforms are creating a multi-year improvement in corporate profitability and shareholder returns. Structural changes are driving higher returns on equity through balance sheet optimization, share buybacks, improved capital allocation, and stronger corporate governance. |
Governance Deflation Buybacks ROE Reform | |
Data CentersDemand for low-cost, high-capacity storage is structurally rising to support AI data infrastructure. Hyperscalers are customizing their AI networking infrastructure using white box switches paired with chips and software from other vendors, using it as a competitive differentiator. Optical photonics businesses are growing rapidly to enhance connectivity of AI chips and servers within and across data centers. |
Storage Networking Optical Hyperscalers Infrastructure | |
Defense SpendingIndustrial companies are benefiting from electrification, the energy transition, and defense spending. The portfolio has increased exposure to these areas, particularly within Japan. |
Defense Industrials Japan | |
| 2026 Q1 |
Energy TransitionThe fund is seeking companies supporting energy security and benefiting from increased fiscal spending in Europe, including defense stocks and those enabling electric grid infrastructure. They purchased French utility Engie and are positioning for higher infrastructure spending in Europe. |
Energy Security Grid Infrastructure Utilities Infrastructure Spending |
JapanThe fund moved meaningfully into Japan with five new positions, citing tailwinds including rising interest rates that should boost bank margins, ongoing governance reforms driving higher returns and shareholder-friendly actions, and expansionary fiscal policy under the Takaichi administration supporting domestic demand and defense spending. |
Japanese Banks Governance Reform Fiscal Policy Interest Rates | |
SemiconductorsThe fund diversified exposure to semiconductor capital equipment with additions of ASM International and Lasertec. ASM leads in atomic layer deposition for advanced semiconductors, while Lasertec is positioned to benefit from EUV memory adoption and AI infrastructure growth. |
Semi Equipment EUV AI Infrastructure Memory | |
DefenseWar has changed cost economics globally, and the fund is seeking companies supporting energy security and benefiting from increased fiscal spending in Europe, including defense stocks. They mentioned defense spending as a tailwind for Japan under the Takaichi administration. |
Defense Spending Geopolitical Risk Fiscal Spending | |
AIThe launch of Claude Cowork and other generative AI tools heightened concerns about competitive dynamics in IT, with AI-native solutions potentially altering pricing and growth rates. The fund reduced software exposure due to AI disintermediation risks but positioned in semiconductor equipment benefiting from AI infrastructure buildouts. |
Generative AI Software Disruption AI Infrastructure | |
| 2025 Q4 |
AIAI was a dominant market driver of U.S. stocks and continues to influence market leadership. The AI-driven rally led to historic levels of market concentration with just five stocks accounting for nearly 45% of the S&P 500's total return in 2025. Strong AI-related investment was the backbone of U.S. growth in 2025. |
Artificial Intelligence Technology Market Concentration Growth Innovation |
RatesThe Federal Reserve has cut interest rates 1.75% since 2024, easing financial conditions and supporting markets. The Fed resumed rate cuts in September and markets expect further easing into 2026, albeit at a slower pace. Historically, equities have responded favorably following the restart of easing cycles. |
Federal Reserve Interest Rates Monetary Policy Easing Financial Conditions | |
InflationThe inflation storm that dominated recent years appeared to be easing, at least in the short term. November and December inflation surprised to the downside, easing investor concerns about persistent inflation pressures. However, inflation is likely to remain above target near term. |
Consumer Prices Federal Reserve Monetary Policy Economic Data | |
DollarThe U.S. dollar fell over 9% in 2025, pressured by a high starting valuation and mounting concerns about global investor concentration in U.S. assets. With the Federal Reserve still focused on easing policy, narrowing interest rate differentials may drive a further decline in the dollar. |
Currency Exchange Rates Federal Reserve International | |
| 2025 Q3 |
BiotechnologyEuropean biotechs Argenx and UCB delivered solid contributions with robust sales growth and positive clinical trial results. Argenx benefited from strong Vyvgart autoimmune treatment sales and renewed pipeline confidence. UCB rose on strong uptake of recently launched treatments Bimzelx and Rystiggo, plus positive Phase 3 seizure disorder trials. |
Autoimmune Pipeline Clinical Trials Treatments Sales Growth |
AIAI infrastructure buildout is driving investment opportunities, particularly through Celestica's connectivity and cloud solutions segment poised for 20%+ annual revenue growth. Softbank provides exposure to AI through ARM Holdings and OpenAI stakes. China is developing a standalone AI and technology universe as part of its growth strategy. |
Infrastructure Connectivity Cloud Solutions ARM Holdings OpenAI | |
ChinaChina is positioned for growth through developing AI and technology capabilities plus building a self-sufficient healthcare system, leading to a burgeoning homegrown biotechnology industry. Bellwether tech and Internet names are gaining domestic market share. The strategy has been expanding emerging market weighting with a return to China exposure. |
Technology Healthcare Self-sufficient Domestic Market Internet | |
FinancialsThe strategy meaningfully repositioned bank exposure, adding Banco Santander, HSBC, and KBC Group while exiting BBVA and HDFC Bank. Focus on banks with streamlined geographic footprints, cost-cutting measures, wealth management opportunities in Asia, and strong capital positions for distributions or acquisitions. |
Banks Wealth Management Cost Cutting Capital Position Geographic Footprint | |
| 2025 Q2 |
Defense SpendingNATO members pledged to increase defense spending to 5% of GDP, with Germany, France and the U.K. committing to raise defense outlays as the U.S. pulls back from its lead military role. Companies tied to increasing defense spending in Europe and Japan were among the Strategy's leading contributors including Mitsubishi Heavy Industries, Safran, Airbus, and BAE Systems. |
Defense NATO Military Aerospace Security |
Energy TransitionGerman electricity equipment and services provider Siemens Energy saw robust results as its grid technologies and gas services divisions saw record volumes. New purchase E.On should benefit from higher investment in grid infrastructure with improved regulatory environment for electricity networks and higher allowed returns to attract capital. |
Grid Infrastructure Utilities Renewable Energy | |
AICompanies supporting the buildout of generative AI capabilities did well, led by semiconductor equipment maker Tokyo Electron and contract manufacturer Taiwan Semiconductor. Tencent is well-placed to use AI solutions to accelerate growth through better user experience and advertising growth due to the reach of its content/data ecosystem. |
Artificial Intelligence Semiconductors Technology Gaming Advertising | |
GoldCanada's Agnico Eagle Mines provides direct exposure to appreciating gold prices and serves as a hedge against a weak dollar and geopolitical tensions. Gold is an attractive store of value that protects against uncertainty and inflation. |
Gold Mining Inflation Hedge Geopolitical | |
| 2025 Q1 |
Defense SpendingDefense spending is expected to increase dramatically in the EU and Japan, boosting revenues for aerospace contractors like Airbus and Mitsubishi Heavy Industries. Germany is leading substantial increases in defense spending as Europe shoulders greater responsibility for security. Military spending in Japan could increase from 1% to 3% of GDP. |
Defense Military Aerospace Security Contractors |
Infrastructure SpendingGermany is leading substantial increases in infrastructure and overall fiscal spending as the Continent begins to shoulder greater responsibility for economic growth. European fiscal spending plans are supporting international equity outperformance and providing policy latitude for continued economic expansion. |
Infrastructure Fiscal Government Investment Europe | |
Electric VehiclesThe Chinese EV market is being boosted by many local manufacturers with exciting new model introductions, an extensive network of 2 million charging stations with universal plug standards, and simple payment platforms. BYD was added as the world's largest EV maker, benefiting from government support of private industry in China. |
Electric Vehicles Charging China BYD | |
Energy EfficiencyTrane Technologies has a sharp customer value proposition as its HVAC products have improved energy efficiency meaningfully in the past five years, bringing significant energy cost savings and quick paybacks. Avoidance of fines for non-compliance with pending energy efficiency regulations in the US and Europe motivates sales. |
Energy Efficiency HVAC Regulations Savings | |
Data CentersGas turbines for electricity generation are seeing significant growth due to increased power demand from data centers, electrification and reshoring of manufacturing. Trane Technologies' data center business is also growing at a rapid pace, supporting the company's expansion. |
Data Centers Power Electricity Growth | |
| 2024 Q4 |
LuxuryAdded French accessories maker Hermes which limits supply of ultra-premium handcrafted leather goods despite huge consumer demand. This creates waitlists but underpins brand desirability and exclusivity. Opportunities exist through increased volume, pricing power and product categories like ready to wear, jewelry, watches and beauty still in early growth stages. |
Luxury Hermes Premium Exclusivity Pricing Power |
E-commerceStrong performance from e-commerce holdings including Shopify and Sea Limited. Repurchased Spotify after management implemented price increases across subscription services and cut costs to enhance earnings. These changes led to growth in average revenue per user and meaningful operating margin expansion while maintaining strong market position. |
E-commerce Shopify Sea Limited Spotify Streaming | |
SemiconductorsTaiwan Semiconductor was among stable growers supporting portfolio performance. ASML was among greatest detractors from absolute returns. Germany could potentially boost spending on semiconductors as early as second quarter following elections, which could provide stimulus to the sector. |
Semiconductors Taiwan Semiconductor ASML Germany | |
GLP1Novo Nordisk, the portfolio's second largest position, declined following disappointing clinical trial for next-generation weight loss molecule. Managers believe investors overreacted to slight miss of efficacy targets and expect the drug combination will be the best weight loss drug on market despite the trial not being a failure. |
GLP1 Novo Nordisk Weight Loss Clinical Trial | |
| 2024 Q3 |
JapanThe manager is convinced that Japan's move to upgrade profitability, capital allocation and shareholder returns is authentic, adding four new Japanese positions. The Bank of Japan's latest Tankan survey confirmed continued recovery in domestic demand, rising GDP growth and low risk of deflation returning. |
Japan Profitability Capital Allocation Shareholder Returns Domestic Demand |
ChinaChinese equities surged following aggressive stimulus from Beijing, but the manager believes more needs to be done to restart growth. The manager has pared back direct holdings over the past year due to ongoing weakness and is evaluating indirect exposure. |
China Stimulus Recovery Consumer Spending Policy | |
AIThe manager maintains confidence in the broadening adoption of Gen AI and sees opportunities in AI-based PCs driving a multiyear growth recovery in the PC business through higher-priced AI-enabled devices. |
AI Gen AI AI PCs Technology Adoption | |
SemiconductorsThe manager maintains confidence in the turnaround of memory markets in semiconductors and the secular growth opportunities, despite recent weakness in semiconductor equipment makers like ASML and Tokyo Electron. |
Semiconductors Memory Equipment Cyclical Recovery | |
GLP1The manager maintains confidence in GLP-1 pharmaceutical developers like Novo Nordisk as leaders in the secular growth market of diabesity treatments, despite recent underperformance in the rotation away from growth stocks. |
GLP1 Diabesity Pharmaceuticals Secular Growth Healthcare | |
| 2024 Q2 |
AIInternational IT stocks continued to diverge from their generative AI-driven U.S. counterparts, creating performance headwinds. TSMC benefited from renewed strength as the foundry of choice for Nvidia and other AI silicon developers. Accenture's AI projects are ramping up fast and will become increasingly meaningful as companies need to digitize operations and move to cloud. |
Semiconductors Cloud IT Services Foundries |
SemiconductorsThe strategy maintained active positions in semiconductor names including TSMC and Tokyo Electron. After a strong run, Tokyo Electron was trimmed to fund the repurchase of TSMC, whose share price had lagged. TSMC saw renewed strength as the foundry of choice for chipmaker Nvidia and other AI silicon developers. |
Foundries Semi Equipment AI Taiwan | |
BiotechnologyPerformance was supported by diversified healthcare exposure, particularly European biopharma companies Novo Nordisk and AstraZeneca. The strategy exited Daiichi Sankyo, a leader in developing antibody drug conjugates (ADC) to treat cancer, after achieving price objectives while maintaining exposure through partner AstraZeneca. |
Pharmaceuticals Oncology Europe Drug Development | |
BanksMarket downdrafts presented buying opportunities where market risk perceptions differed from the managers' own views. The strategy reduced bank underweight by adding Lloyds Banking Group and BBVA, seeing sizeable tailwinds in net interest income and profitable market positioning in core markets. |
Regional Banks Interest Rates Europe Mexico | |
| 2024 Q1 |
AIPositions tied to generative AI drove performance for the second straight quarter. Semiconductor equipment makers Tokyo Electron and ASML, which manufacture equipment critical to the development of GPUs that power large language models, were top contributors. Enterprise resource planning software maker SAP was also a standout. |
Semiconductors GPUs Software Equipment Enterprise |
GLP1The large and growing opportunity in diabetes and obesity treatment continues to drive performance. Novo Nordisk, a leading developer of GLP-1 pharmaceutical treatments, continues to execute well. Zealand Pharma is making progress in clinical trials for a new therapeutic for liver disease and obesity with promising results. |
Diabetes Obesity Pharmaceuticals Biotechnology Clinical | |
LuxuryConsumer spending on luxury goods shows resilience with less operational volatility over an economic cycle. LVMH showed resurgent results in high-end apparel and spirits, while Ferrari targets ultra wealthy buyers less sensitive to price and more geared to investment value in luxury items. |
Consumer Apparel Automotive Premium Resilience | |
AutomationSchneider Electric is well-positioned to participate in several secular demand drivers including energy and power management needs to support AI and cloud growth, and accelerating demand for electrification across economies. The company should see margin expansion due to faster growth in software and system sales. |
Industrial Software Electrification Power Systems | |
| 2023 Q4 |
AIRecognition of generative artificial intelligence opportunities for companies outside the U.S. Semiconductor equipment makers ASML and Tokyo Electron are considered enablers of AI, while enterprise software maker SAP and IT consultant Accenture are seen as facilitators of AI adoption. RELX and Thomson Reuters own large proprietary data sets and stand to become key beneficiaries of the processing power of large language models that drive generative AI. |
Generative AI Semiconductors Enterprise Software Data |
SemiconductorsSemiconductor equipment makers ASML and Tokyo Electron rose strongly in the quarter as enablers of AI. Hoya maintains high rates of innovation and focuses on optical products critical for the manufacturing of semiconductors. SMC is well-positioned for continued share gains in the growing markets of manufacturing automation for semiconductors. |
Semi Equipment Optical Products Manufacturing Automation | |
JapanJapan remains an outlier among global equity markets as the only developed market that has not raised policy rates. The Bank of Japan is trying to engineer inflation after decades of deflation. Improvements are taking place at the company level around improving capital allocation and returns, board independence, linking compensation to performance and better disclosure. |
Bank of Japan Inflation Corporate Governance Capital Allocation | |
GrowthGrowth stocks outperformed in the fourth quarter as a more palatable yield environment supported growth after preceding quarters where rate rises were a concern. The manager believes conditions conducive to growth outperformance will be more prevalent in 2024 from factors such as a more benign rate environment and more challenging overall macro backdrop. |
Growth Stocks Yield Environment Rate Environment | |
| 2023 Q3 |
GrowthThe strategy remains committed to a disciplined, valuation approach to portfolio construction that delivers diversification by investing across three types of growth companies: secular, structural and emerging. The managers believe the portfolio is well-positioned to deliver alpha as headwinds of restricted global liquidity and lower-quality leadership begin to dissipate. |
Growth Secular Structural Emerging |
ValueValue stocks outperformed growth by over 900 basis points during the quarter, with the MSCI EAFE Value Index up 0.59% compared to an 8.64% loss for the MSCI EAFE Growth Index. Value's outperformance was driven by traditional value sectors including financials, materials and energy stocks. |
Value Outperformance Financials Materials Energy | |
AIASML is positioned as the leading provider of extreme ultraviolet lithography equipment to makers of graphic processing units and similar semiconductors powering demand for artificial intelligence applications. The company is in a prime position to benefit from the secular AI buildout, though it has not yet benefited from AI enthusiasm like U.S. counterparts. |
AI Semiconductors GPU Lithography | |
PharmaceuticalsThe managers swapped Roche for AstraZeneca, believing AstraZeneca has a deep, diverse pipeline of products and a patent portfolio with no material expirations until the 2030s. They also added Argenx, a Dutch biotechnology company that demonstrated a successful launch for its myasthenia gravis drug. |
Pharmaceuticals Pipeline Biotechnology Patents | |
JapanThe managers added SMC, a global leader in pneumatics automation solutions, to take advantage of the improved corporate environment in Japan. They believe SMC will benefit from the strong capital spending cycle driven by electric vehicles and rechargeable batteries, with better shareholder returns possible due to changing environment in Japan. |
Japan Automation Corporate Shareholder | |
| 2023 Q2 |
AIThe team is excited about generative AI potential both from current portfolio positioning and innovative companies being researched. They believe AI will be adopted widely across sectors with productivity improvements. Portfolio holding Accenture positioned to guide companies with AI implementation. |
Generative AI Machine Learning Productivity Implementation Innovation |
JapanJapan drove international equity performance with new stock exchange and government policies aimed at improving corporate governance and profitability. The team reduced their Japan underweight during the quarter but remains selective, focusing on structural growth stories rather than cyclical value plays. |
Corporate Governance Tokyo Stock Exchange Value Rally Structural Growth Policy | |
SemiconductorsSemiconductor equipment makers like ASML and Tokyo Electron are well-positioned for AI demand and gradual recovery in semiconductor capex. Rising capital intensity with EUV proliferation expected to drive strong growth across the value chain. |
Semiconductor Equipment EUV Capital Intensity AI Demand Recovery |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jan 15, 2026 | Fund Letters | Elisa Mazen | AZN LN | AstraZeneca plc | Health Care | Pharmaceuticals | Bull | New York Stock Exchange | Defensiveness, growth, pharmaceuticals, pipeline, Regulation | Login |
| Jan 15, 2026 | Fund Letters | Elisa Mazen | NWG LN | NatWest Group plc | Financials | Diversified Banks | Bull | New York Stock Exchange | banking, Capital, dividends, Loan_Growth, valuation | Login |
| Jan 15, 2026 | Fund Letters | Elisa Mazen | ROG SW | Roche Holding AG | Health Care | Pharmaceuticals | Bull | Swiss Exchange | growth, innovation, Oncology, pharma, pipeline | Login |
| Jan 15, 2026 | Fund Letters | Elisa Mazen | HEI GR | Heidelberg Materials AG | Materials | Construction Materials | Bull | Xetra | Cement, Decarbonization, Margins, materials, Stimulus | Login |
| Oct 9, 2025 | Fund Letters | Elisa Mazen | UCB BB | UCB SA | Financials | Biotechnology | Bull | Shanghai Stock Exchange | Biotech, growth, Immunology, Margins, Neurology, pipeline, valuation | Login |
| Oct 9, 2025 | Fund Letters | Elisa Mazen | CLS CN | Celestica Inc. | Information Technology | Electronic Manufacturing Services | Bull | NYSE | AI, buybacks, growth, infrastructure, manufacturing, Margins, valuation | Login |
| Jul 9, 2025 | Fund Letters | Elisa Mazen | 7011 JP | Mitsubishi Heavy Industries, Ltd. | Industrials | Industrial Conglomerates | Bull | NYSE | backlog, Defense, energy, infrastructure, Margins | Login |
| Jul 9, 2025 | Fund Letters | Elisa Mazen | TSCO LN | Tesco plc | Consumer Discretionary | Food Retail | Bull | NYSE | cashflow, grocery, inflation, Margins, scale | Login |
| Jul 9, 2025 | Fund Letters | Elisa Mazen | EOAN GR | E.On SE | Utilities | Multi-Utilities | Bull | - | CapEx, dividends, earnings, Regulation, utilities | Login |
| Jul 9, 2025 | Fund Letters | Elisa Mazen | AEM CN | Agnico Eagle Mines Ltd. | Materials | Gold | Bull | TSX | cashflow, Gold, Hedging, inflation, Production | Login |
| Jul 9, 2025 | Fund Letters | Elisa Mazen | MC FP | LVMH Moet Hennessy - Louis Vuitton SE | Financials | Apparel, Accessories & Luxury Goods | Bear | Euronext Stock Exchange | Demand, Luxury, Margins, restructuring, valuation | Login |
| Sep 30, 2023 | Fund Letters | ClearBridge Investments International Growth ADR Strategy | ASML | ASML Holding N.V. | Information Technology | Semiconductors & Semiconductor Equipment | Bull | NASDAQ | AI, Equipment, growth, Lithography, Netherlands, semiconductors, technology | Login |
| Sep 30, 2023 | Fund Letters | ClearBridge Investments International Growth ADR Strategy | AZN | AstraZeneca PLC | Health Care | Pharmaceuticals | Bull | NASDAQ | growth, healthcare, Oncology, patents, pharmaceuticals, pipeline, UK | Login |
| Sep 30, 2023 | Fund Letters | ClearBridge Investments International Growth ADR Strategy | ARGX | argenx SE | Health Care | Biotechnology | Bull | NASDAQ | biotechnology, Emerging Growth, Myasthenia Gravis, Netherlands, pipeline, rare diseases | Login |
| Sep 30, 2023 | Fund Letters | ClearBridge Investments International Growth ADR Strategy | SMCAY | SMC Corporation | Industrials | Industrial Machinery | Bull | OTC | Automation, Capital Spending, Electric Vehicles, Industrial, Japan, Pneumatics, shareholder returns | Login |
| - | Fund Letters | ClearBridge Investments International Growth ADR Strategy | 4543.T | Terumo Corporation | Health Care Equipment & Services | Health Care Equipment | Bull | Tokyo Stock Exchange | Blood Management, cardiovascular, Healthcare Equipment, Japan, M&A, Medical devices, secular growth | Login |
| - | Fund Letters | ClearBridge Investments International Growth ADR Strategy | 7936.T | ASICS Corporation | Consumer Discretionary | Textiles, Apparel & Luxury Goods | Bull | Tokyo Stock Exchange | Athletic Footwear, Brand Quality, Japan, Operational Improvement, Running Shoes, Specialty retail, turnaround | Login |
| - | Fund Letters | ClearBridge Investments International Growth ADR Strategy | 8766.T | Tokio Marine Holdings Inc | Financials | Insurance | Bull | Tokyo Stock Exchange | cross-holdings, Global Insurer, Japan, M&A, Premium Increases, Property & Casualty Insurance, value unlock | Login |
| - | Fund Letters | ClearBridge Investments International Growth ADR Strategy | 4091.T | Nippon Sanso Holdings Corporation | Materials | Chemicals | Bull | Tokyo Stock Exchange | Corporate Governance, Industrial Gases, Japan, M&A activity, materials, ROE improvement, Shareholder Engagement | Login |
| - | Fund Letters | ClearBridge Investments International Growth ADR Strategy | 0992.HK | Lenovo Group Limited | Information Technology | Technology Hardware, Storage & Peripherals | Bull | Hong Kong Stock Exchange | AI PCs, China, market share, Operating System Upgrade, Personal Computers, Server Storage, technology hardware | Login |
| - | Fund Letters | ClearBridge Investments International Growth ADR Strategy | BN.PA | Danone SA | Consumer Staples | Food Products | Bull | Euronext Paris | consumer staples, demographic trends, Food Beverages, france, Margin Improvement, Medical Nutrition, portfolio transformation | Login |
| TICKER | COMMENTARY |
|---|---|
| 8035.T | Semiconductor capital equipment maker Tokyo Electron doubled in the quarter while Dutch semi cap names ASML and ASM International as well as Japan's Lasertec also delivered strong gains. |
| ASML | Semiconductor capital equipment maker Tokyo Electron doubled in the quarter while Dutch semi cap names ASML and ASM International as well as Japan's Lasertec also delivered strong gains. |
| ASM.AS | Semiconductor capital equipment maker Tokyo Electron doubled in the quarter while Dutch semi cap names ASML and ASM International as well as Japan's Lasertec also delivered strong gains. |
| 6920.T | Semiconductor capital equipment maker Tokyo Electron doubled in the quarter while Dutch semi cap names ASML and ASM International as well as Japan's Lasertec also delivered strong gains. |
| TSM | Taiwan Semiconductor, the world's largest foundry for high-end chips, was up strongly as it continued to gain pricing power due to its near monopoly on production and advanced technology. |
| PRY.MI | Italian fiber optic cable manufacturer Prysmian benefited from industry supply constraints, allowing the company to raise prices as demand continues to outpace supply. |
| 9984.T | Japan's Softbank, a major investor in OpenAI and related LLM and AI infrastructure projects, also rose on positive momentum from accelerating AI capex and the prospect of mega cap IPOs for leading LLMs. |
| BA.L | Our AI holdings offset weakness among a handful of industrials names including U.K. defense contractor BAE Systems and Australian logistics provider Brambles. |
| BXB.AX | Our AI holdings offset weakness among a handful of industrials names including U.K. defense contractor BAE Systems and Australian logistics provider Brambles. |
| AZN | The Strategy was also hurt by underperformance in health care, with U.K. pharmaceutical maker AstraZeneca down on the FDA's failure to approve a new breast cancer treatment, and Japanese medical device and semi cap equipment maker Hoya lower on an earnings miss. |
| 7741.T | The Strategy was also hurt by underperformance in health care, with U.K. pharmaceutical maker AstraZeneca down on the FDA's failure to approve a new breast cancer treatment, and Japanese medical device and semi cap equipment maker Hoya lower on an earnings miss. |
| IFX.DE | Analog chip makers such as new addition Infineon are also benefiting from AI-driven demand for power management circuits to regulate voltage for specific server workloads, enabling the German company to push through two price hikes in the second quarter alone. |
| STX | This is benefiting Ireland-based data storage provider Seagate Technology, a key supplier of the hard drives supporting AI data infrastructure, where demand for low-cost, high-capacity storage is structurally rising. |
| CLS | Canada's Celestica manufactures white box networking switches that can be paired with chips and software from other vendors. These systems offer lower hardware costs and greater flexibility, enabling hyperscalers to customize their AI networking infrastructure and use it as a competitive differentiator. |
| NOKIA.HE | Finland's Nokia has transformed itself over the last decade from primarily a wireless and telecom provider into a leading supplier of long-haul optical and lasers that enable high-speed data connectivity over longer distances. With key rival Ciena at capacity, Nokia is expanding its own production capabilities fivefold to meet accelerating demand for connecting multiple data centers into AI clusters. |
| HLMA.L | U.K.-based technology conglomerate Halma also has a rapidly growing optical photonics business that allows hyperscalers to enhance the connectivity of AI chips and servers within and across data centers. The company's design and installation business has doubled in revenue over the last two years and is projected to grow approximately 30% annually going forward. |
| NWG.L | We took profits in U.K. bank NatWest Group and Italian bank Intesa Sanpaolo as earnings progression has slowed and to focus on companies with long-term growth drivers at more attractive valuations like Swiss investment bank and wealth manager UBS Group. |
| ISP.MI | We took profits in U.K. bank NatWest Group and Italian bank Intesa Sanpaolo as earnings progression has slowed and to focus on companies with long-term growth drivers at more attractive valuations like Swiss investment bank and wealth manager UBS Group. |
| UBS | UBS is expected to announce more favorable capital requirements later in the year, which should lead to higher capital returns. |
| PRU.L | We also swapped French insurer AXA Group for U.K. insurer Prudential, which has improved distribution and streamlined its platforms in Asia. We expect strong inflows from mainland China and Hong Kong clients who want to diversify wealth away from real estate. |
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