SBIEX
ClearBridge International Value-A
Introduction to ClearBridge International Value-A
ClearBridge International Value-A (SBIEX) is a mutual fund designed to provide investors with a total return from both capital growth and income. The fund achieves its objective by investing at least 65% of its assets in a diversified portfolio of equity securities from established non-United States issuers. As a Foreign-Large Value fund, it is managed by Franklin Templeton Investments and is categorized under the Foreign Stock objective. This fund is particularly appealing to investors seeking exposure to international markets with a focus on value investing, offering a yield of 3.90%.
At A Glance
Executive Summary
SBIEX offers diversified non-US equity exposure with a 3.90% yield, suitable for value-focused investors seeking international diversification.
Pros:
- Diversified international exposure Attractive yield of 3.90% Focus on established non-US issuers
Cons:
- Higher expense ratio of 1.26% Negative alpha and Sharpe ratio Recent underperformance against benchmark
Performance Analysis: A Mixed Bag
The performance of SBIEX has been somewhat mixed over recent periods. The fund has delivered a 1-year return of 11.11%, which is below its benchmark, the MSCI ACWI xUS DivAdj Index, which returned 17.25% over the same period. Over longer periods, the fund’s annualized returns are 4.96% over five years and 2.50% over ten years, indicating moderate growth. However, the fund’s alpha is negative at -6.16%, and the Sharpe ratio is -0.46, suggesting that the fund has not been able to generate returns commensurate with its risk level. This underperformance relative to its benchmark and peers may be a concern for potential investors.
Portfolio Composition: A Focus on Non-US Equities
SBIEX’s portfolio is heavily weighted towards non-US equities, with 95.87% of its assets allocated to this asset class. The fund’s top holdings include prominent international companies such as Industria De Diseno Textil SA, SAP SE, and Hitachi Ltd. The sector allocation is diverse, with significant investments in financials (20.62%), industrials (16.40%), and technology (15.56%). This diversified sector allocation aims to mitigate risks associated with specific industries while capitalizing on growth opportunities across various sectors. The fund’s focus on large-cap and extra-large-cap companies, which together constitute 77.08% of the portfolio, suggests a preference for stability and established market players.
Risk Metrics: Understanding the Volatility
The risk metrics for SBIEX indicate a level of volatility that investors should be aware of. The fund has a beta of 1.11, suggesting it is slightly more volatile than the market. The standard deviation is 3.83%, which is relatively low, indicating moderate volatility. However, the fund’s downside risk, measured by the Ulcer Index, is 2.66, and the maximum drawdown is -9.5%, which occurred between September and November 2024. These metrics highlight the potential for significant losses during market downturns. Additionally, the negative Treynor ratio of -5.55 and the high correlation with the benchmark (94.46%) suggest that the fund’s performance is closely tied to broader market movements.
Comparative Analysis: How SBIEX Stacks Up
When compared to similar funds, SBIEX presents a mixed picture. Its expense ratio of 1.26% is higher than some of its peers, such as BNY Mellon Worldwide Growth-A (PGROX) with an expense ratio of 0.0113. In terms of 1-year returns, SBIEX’s 11.11% lags behind PGROX’s 17.73% and Putnam International Equity-A (POVSX) at 14.66%. However, SBIEX offers a higher yield of 3.90%, which may appeal to income-focused investors. The fund’s beta of 1.11 is higher than its peers, indicating greater volatility. Investors should weigh these factors when considering SBIEX against other international value funds.
Sector and Market Cap Allocation: Strategic Diversification
SBIEX’s sector and market cap allocation reflect a strategic approach to diversification. The fund’s largest sector allocations are in financials, industrials, and technology, which together account for over 50% of the portfolio. This allocation strategy aims to balance growth potential with stability. In terms of market cap, the fund is heavily weighted towards large-cap (32.93%) and extra-large-cap (44.15%) companies, which are typically more stable and less volatile than smaller companies. This focus on larger companies may provide a buffer against market volatility, making the fund suitable for investors seeking a more conservative approach to international investing.
Yield and Income Potential: A Key Attraction
One of the standout features of SBIEX is its attractive yield of 3.90%, which is higher than many of its peers. This yield is a significant draw for income-focused investors looking for regular income from their investments. The fund’s focus on established non-US issuers, many of which are large-cap companies, supports its ability to generate consistent income. This income potential, combined with the fund’s diversified international exposure, makes SBIEX an appealing option for investors seeking both growth and income from their international investments.
Conclusion: Is SBIEX Right for You?
SBIEX stands out for its diversified exposure to non-US equities and its attractive yield of 3.90%. However, potential investors should consider the fund’s higher expense ratio and recent underperformance relative to its benchmark. The fund’s focus on large-cap and extra-large-cap companies provides stability, while its sector diversification offers growth opportunities. SBIEX may be particularly suitable for value-focused investors seeking international diversification and income. However, those concerned about volatility and performance relative to peers may want to explore other options. Overall, SBIEX offers a compelling mix of income and international exposure for the right investor profile.
Similar Securities
DODFX: Dodge & Cox International Stock-I | Diversified Foreign Equity Investment
DODFX offers diversified foreign equity exposure with a competitive 0.62% expense ratio, focusing on value stocks across multiple countries.
PNGAX: Putnam International Value-A | Foreign Value Investment
Putnam International Value-A (PNGAX) offers a 2.19% yield with a focus on foreign large value stocks, providing growth and income potential.
TEMFX: Templeton Foreign-A | Global Value Investment
TEMFX offers diversified foreign equity exposure with a focus on value. It stands out with a 2.44% yield and a strategic allocation in financials and cyclicals.
TRIGX: T. Rowe Price International Value Equity | Foreign-Large Value Fund
TRIGX offers a blend of growth and value in large-cap foreign stocks with a competitive 0.85% expense ratio and 2.47% yield.
MEURX: Franklin Mutual European-Z | European Value Investment
MEURX offers European value exposure with a 0.95% expense ratio and 2.48% yield, focusing on capital appreciation and income.
Futher Reading
https://finance.yahoo.com/quote/SBIEX/”>Yahoo: ClearBridge International Value-A
https://ftcloud.fasttrack.net/web/chart/SBIEX
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