ClearBridge Appreciation Portfolios Q4 2025 Commentary

Franklin Templeton4.63K FollowersFollow5ShareSavePlay(6min)CommentsSummaryThe S&P 500 Index extended its advance in the fourth quarter, rising 2.7% and finishing the year up 17.9%.The ClearBridge Appreciation Portfolios underperformed the benchmark S&P 500 Index in the fourth quarter, while health care and communication services sectors were the main positive contributors.Eli Lilly shares rose as the U.S. government struck a deal to offer GLP-1s to Medicare and Medicaid patients, opening up millions of additional prescriptions.We believe the probability of a correction has risen, and the possibility a selloff could prove more prolonged makes the 'buy the dip' mentality more precarious.We remain focused on through-the-cycle outperformance via downside protection, and we increasingly believe risks may be starting to outweigh the prospective rewards. peshkov/iStock via Getty Images Key Takeaways • Markets: The S&P 500 Index extended its advance in the fourth quarter, rising 2.7% and finishing the year up 17.9%. Following the “Liberation Day” selloff, the index posted gains in each subsequent month (eight consecutive monthly advances), climbing 37% from the April 8This article was written byFranklin Templeton4.63K FollowersFollowFranklin Resources, Inc. [NYSE:BEN] is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 150 countries. Franklin Templeton’s mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company offers specialization on a global scale, bringing extensive capabilities in fixed income, equity, alternatives and multi-asset solutions. With more than 1,300 investment professionals, and offices in major financial markets around the world, the California-based company has over 75 years of investment experience and over $1.4 trillion in assets under management as of June 30, 2023. For more information, please visit franklintempleton.com and follow us on LinkedIn, Twitter and Facebook.