Funds Benefitting from the Value Rotation

2020 was all about growth, but with value making a comeback, Morningstar analyst Jonathan Miller looks at the funds benefitting from the turning tide

Jonathan Miller 24 May, 2021 | 10:00AM
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The trials and tribulations of stock markets are such that in observing short-term returns, there has been a fairly remarkable comeback. Over 12 months to the end of March 2021, global equities are up 39%, and while the UK has lagged with a 26.7% rise over this period, more-recent performance has started to paint a different picture.

If you think back to last year's volatility, it was airlines, oil, banks, energy, and cyclical parts of the market that felt the brunt of the downturn, while technology and disruption quickly started to appear as winners in the Covid-19 pandemic. As an investor, remaining calm was key, and if you were able to allocate capital, the “Covid trade” worked.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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About Author

Jonathan Miller  is Director of Manager Research, Morningstar UK

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