ClearBridge Canadian Equity Strategy: Navigating Market Dynamics in Q2 2026

The ClearBridge Canadian Equity Strategy, despite positive absolute returns, underperformed the S&P/TSX Composite TRI in Q2 2026 due to negative security selection and sector allocation. The Canadian equity market saw strong performance, with geopolitical factors, AI investments, and infrastructure initiatives influencing various sectors. The strategy adjusted its portfolio by adding risk in high-quality businesses with strong fundamentals and attractive valuations, while exiting positions with moderated conviction or less favorable risk-reward profiles.