Fund buyers back value style to beat growth over next year

Anna Fedorova
clock • 3 min read

Fund buyers have been rotating their equity exposure from growth to value plays, to take advantage of improving global economic conditions.

Growth stocks have strongly outperformed value names since 2009, but the latter are now starting to pull ahead (see graph below). Between 31 December 2008 and 30 December 2011, the MSCI USA Growth index was up 49%, versus 23.5% for its value counterpart. However, over the past year, the MSCI US Value index began to outperform, returning 31.5% over the 12 months to 31 July 2013, compared to 25.8% for the Growth index. “Last year, the place to be in the US was growth-style funds, but a lot of investors are now looking at value-driven managers and unloved areas that are going to re-ra...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Investment

7IM's Ben Kumar: When behavioural biases are not all they seem

7IM's Ben Kumar: When behavioural biases are not all they seem

Investment identity more important

Ben Kumar
clock 02 July 2025 • 3 min read
Aegon AM launches UK-domiciled global income fund

Aegon AM launches UK-domiciled global income fund

In response to client demand

clock 27 June 2025 • 1 min read
CCLA's Charlotte Ryland and Joe Hawkes: How to position for the end of the 90-day tariff pause

CCLA's Charlotte Ryland and Joe Hawkes: How to position for the end of the 90-day tariff pause

Focus on quality

Charlotte Ryland and Joe Hawkes
clock 26 June 2025 • 4 min read
Trustpilot