Value's bounceback into favour: Three UK equity fund picks from Morningstar

Sector style rotation

Few will remember a more challenging and unpredictable year than 2016. Curveball after curveball was thrown, writes Morningstar Europe's Jonathan Miller.

Yet the FTSE All-Share index still managed to post a healthy gain of 16.8%. While the pound's fall has been a determining factor, as the year went on other movements came into force, meaning there is more to this than meets the eye.  In the fourth quarter a turning point was reached when we witnessed a sector and style rotation. This had started to take hold in the latter part of the summer, but became more pronounced in the final quarter when defensive and quality growth areas, that had been outperforming for so long, took a notable hit. MSCI's Value Weighted index is best performing...