ClearBridge All Cap Value Strategy Portfolio Manager Commentary Q3 2018

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Includes: CNX, CSCO, DVN, HBI, JNJ, KLAC, KR, MRK, ORCL, RLGY, SCI, SYF, VECO, VZ, WFC
by: ClearBridge Investments
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.

The ClearBridge All Cap Value Strategy had a positive return during the third quarter of 2018, underperforming the Strategy’s benchmark.

On an absolute basis, the Strategy had gains in seven of the 11 sectors in which it was invested during the quarter (out of 11 sectors total). The primary contributors to the Strategy's performance were the health care, industrials and information technology sectors.

In relative terms, the Strategy underperformed its benchmark primarily due to stock selection decisions during the quarter. Stock selection in the financials, energy and real estate sectors detracted the most from relative returns during the period. Conversely, stock selection in the consumer discretionary and IT sectors boosted relative results.