ClearBridge Large Cap Value ESG Portfolios Q4 2025 Commentary

Franklin Templeton4.63K FollowersFollow5ShareSavePlay(6min)CommentsSummaryThe benchmark Russell 1000 Value Index gained 3.8% for the quarter, capping off a 15.9% return for 2025.During the fourth quarter, quality stocks across the market cap spectrum underperformed the broader market by the widest margin since the late 1990s.Capital One reported a large earnings beat driven by lower credit costs and a large reserve release helped by lower charge-offs.A fourth-quarter rotation to health care driven by a decline in policy uncertainty, improved earnings, attractive valuations and a pickup in M&A activity helped our holdings.We believe the shifting market regime offers significant value opportunities, especially as overall market breadth improves and capital flows shift away from high-flying growth stocks. phongphan5922/iStock via Getty Images Key Takeaways Markets: U.S. equities finished a strong 2025 albeit with more subdued gains in the fourth quarter, with the S&P 500 Index rising 2.7% during the period to end the year up 17.9%. Value stocks outpaced growth in the This 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.