LMGTX
ClearBridge International Growth-C
Introduction to ClearBridge International Growth-C
The ClearBridge International Growth-C Fund (LMGTX) is designed to achieve maximum long-term capital appreciation while minimizing risk to principal. As a Foreign-Large Growth fund, it primarily invests in common stocks and securities convertible into or exchangeable for common stocks. Managed by Franklin Templeton Investments, this fund is tailored for investors seeking growth opportunities outside the United States. With a focus on international equities, LMGTX offers exposure to a diverse range of industries and markets, making it a compelling choice for those looking to diversify their portfolios with foreign assets.
At A Glance
Executive Summary
LMGTX offers robust foreign equity exposure with a focus on growth, featuring a high expense ratio but strong 1-year returns.
Focus on international growth stocks Strong recent performance Diverse sector allocation
High expense ratio Limited bond exposure Potential volatility due to foreign market focus
Performance Highlights and Recent Trends
LMGTX has demonstrated impressive performance over the past year, with a 1-year return of 17.54%, outperforming its benchmark, the MSCI ACWI xUS DivAdj Index, which returned 17.25%. This strong performance is indicative of the fund’s effective stock selection and strategic allocation in high-growth sectors. However, the fund’s 3-year annualized return of -2.45% suggests some volatility, likely due to market fluctuations and global economic conditions. Despite this, the fund’s 5-year and 10-year returns of 4.97% and 6.01%, respectively, highlight its potential for long-term growth, making it an attractive option for investors with a higher risk tolerance.
Sector and Geographic Allocation Insights
The ClearBridge International Growth-C Fund is heavily weighted towards the Technology sector, which comprises 20.22% of its portfolio, followed by Industrials and Health Care at 18.43% and 18.39%, respectively. This allocation reflects a strategic focus on sectors with high growth potential. Geographically, the fund is predominantly invested in non-U.S. equities, accounting for 92.45% of its assets, providing investors with significant exposure to international markets. This global diversification is a key strength, offering potential for capital appreciation across various economic environments and reducing reliance on any single market.
Risk Metrics and Volatility Considerations
LMGTX exhibits a beta of 1.04, indicating a slightly higher volatility compared to the market. The fund’s standard deviation of 3.88% and a Sharpe Ratio of 0.02 suggest moderate risk-adjusted returns. The max drawdown of -7.5% highlights potential downside risk, although the fund has shown resilience with a recovery length of just three months. These metrics underscore the importance of understanding the fund’s risk profile, particularly for investors who may be sensitive to market fluctuations. The fund’s correlation with its benchmark at 87.62% suggests a strong alignment with broader market trends, which can be advantageous during periods of market growth.
Comparative Analysis with Similar Funds
When compared to similar funds such as AB Sustainable Global Thematic-C (ATECX) and Fidelity Adv Intern’l Growth–C (FIGCX), LMGTX holds its ground with a competitive 1-year return of 17.54%. However, its expense ratio of 1.79% is higher than its peers, which may be a consideration for cost-conscious investors. Despite this, LMGTX’s focus on high-growth international equities and its strategic sector allocation provide a unique value proposition. Investors should weigh the fund’s higher costs against its potential for superior returns, particularly in the context of its strong recent performance and growth-oriented strategy.
Top Holdings and Market Cap Distribution
The fund’s top holdings include prominent companies such as Novo Nordisk AS, Industria De Diseno Textil SA, and SAP SE, each contributing significantly to the fund’s performance. The market cap distribution is skewed towards extra-large companies, which make up 57.99% of the portfolio, followed by large-cap stocks at 33.65%. This focus on larger, established companies provides a level of stability and potential for consistent returns, while also allowing for growth through strategic investments in medium-cap stocks. This balanced approach to market cap allocation is designed to optimize growth while managing risk.
Expense Ratio and Cost Considerations
With an expense ratio of 1.79%, LMGTX is on the higher end compared to its peers. This cost reflects the active management and strategic international focus of the fund. While higher expenses can impact net returns, the fund’s strong performance and growth potential may justify the cost for investors seeking exposure to international markets. It’s important for investors to consider whether the potential for higher returns outweighs the additional costs, particularly in the context of the fund’s recent outperformance and its strategic allocation in high-growth sectors.
Conclusion: Suitability for Growth-Oriented Investors
The ClearBridge International Growth-C Fund stands out for its focus on international growth stocks and its strong recent performance. With a diverse sector allocation and significant exposure to non-U.S. equities, it offers a compelling option for growth-oriented investors looking to diversify their portfolios. However, the fund’s higher expense ratio and potential volatility due to its foreign market focus may not suit all investors. Those with a higher risk tolerance and a long-term investment horizon may find LMGTX to be a valuable addition to their investment strategy, particularly if they are seeking to capitalize on global growth opportunities.
Similar Securities
AIIEX: Invesco EQV International Equity-A | International Growth Opportunities
AIIEX offers international growth with a focus on strong earnings momentum, featuring a diversified portfolio and competitive returns.
AIVBX: American Funds Internat'l Vantage-A | Global Growth Investment
AIVBX offers 80% foreign equity exposure with a 0.99% expense ratio, focusing on growth in large-cap international markets.
FNGAX: Franklin International Growth-A | Foreign-Large Growth Fund Analysis
FNGAX offers exposure to non-U.S. mid-large cap equities with a focus on growth, boasting a 1-year return of 20.63% and a diverse sector allocation.
OIGAX: Invesco Oppenheimer Intern'l Growth-A | Foreign Growth Opportunities
OIGAX offers exposure to foreign growth stocks with a focus on emerging markets, featuring a 1.1% expense ratio and a diverse sector allocation.
AEPGX: American Funds Europacific Growth-A | Foreign-Large Growth Investment
AEPGX offers diversified exposure to European and Pacific stocks with a competitive 0.85% expense ratio, ideal for growth-focused investors.
Futher Reading
https://finance.yahoo.com/quote/LMGTX/”>Yahoo: ClearBridge International Growth-C
https://ftcloud.fasttrack.net/web/chart/LMGTX
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