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International Growth EAFE Strategy 4Q25 Update

January 15, 2026

Portfolio Manager Michael Testorf highlights how the Strategy is navigating a value-led international equity market, reviews fourth quarter performance and recent positioning moves, and discusses the key themes and regions expected to drive performance in 2026.

Related Perspectives

Preparing for Improving Growth Earnings
International Growth EAFE 4Q25: We have increased our exposure to stocks with value characteristics through our structural growth bucket, mostly by expanding allocations to banks.
Leaning on Banks Through Value Cycle
International Growth ADR 4Q25: European and U.K. banks are benefiting from a cyclical resurgence and improving earnings. We have increased exposure through our structural growth bucket.
Global Equity Outlook 2026: Looking Beyond the Mega Caps
PMs Jeff Bailin, Elisa Mazen and Sam Peters highlight the most compelling investment opportunities among small/mid cap growth, international growth and value equities in the year ahead.
Holding Steady in a Value-Led Market
International Growth EAFE 3Q25: The Strategy mostly kept pace in a value-driven period with our positioning in IT and financials, which reflects our orientation as growth managers, creating minimal headwinds.
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  • Past performance is no guarantee of future results. Copyright © 2026 ClearBridge Investments. All opinions and data included in this commentary are as of the publication date and are subject to change. The opinions and views expressed herein are of the author and may differ from other portfolio managers or the firm as a whole, and are not intended to be a forecast of future events, a guarantee of future results or investment advice. This information should not be used as the sole basis to make any investment decision. The statistics have been obtained from sources believed to be reliable, but the accuracy and completeness of this information cannot be guaranteed. Neither ClearBridge Investments, LLC  nor its information providers are responsible for any damages or losses arising from any use of this information.

  • Performance source: Internal. Benchmark source: Standard & Poor's.

  • Performance source: Internal. Benchmark source: Morgan Stanley Capital International. Neither ClearBridge Investments, LLC nor its information providers are responsible for any damages or losses arising from any use of this information. Performance is preliminary and subject to change. Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. No further distribution or dissemination of the MSCI data is permitted without MSCI’s express written consent. Further distribution is prohibited. 
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