Value retakes the lead as risk appetite revives

FTSE Russell analysis

Value strategies globally gained a slight edge over quality investing in the second quarter of the year, amid waning worries about global banking-sector stability and an imminent economic slump.

According to factor analysis by FTSE Russell, value investing rebounded in most markets during a second quarter rally after faltering in the first quarter, with much of its outperformance coming in June as the US banking scare subsided and economic data remained surprisingly resilient. Value was ahead particularly in markets with big exposures to the robust recovery in financials, namely emerging markets and Japan, as the banking crisis ebbed.  Quality lost steam but held its own, however, doing best in markets with big tilts to high-flying tech stocks, particularly in the US and Asia...