Index Investments: Can value relive its glory days?
In this live-recorded webinar, STANLIB Index Investment’s Chief Operating Officer, Wehmeyer Ferreira and Portfolio Manager, Ann Sebastian, unpack the short and long term drivers behind this investment style. Their conversation included insights into various equity style performance over different economic and business cycles, a closer look at drivers of value performance compared to growth, challenges to the sustainable performance of value as a style and the outlook for equity styles in a world on the road to recovery.
Value style investing outperformed growth stocks for years before the global financial crisis. But in the years after, the performance gap between the two styles widened significantly in favour of growth stocks. As the world recovers from the effects of Covid-19, we have seen a value performance rally, begging the question: Is this rally sustainable after years of lagging performance?
STANLIB’s Index Investment team considers the elusive fundamentals of value investing to find an answer to the question.