Key takeaways
- In the past six years, the value investment style has returned to favour, outperforming on a global basis and supporting our belief that the 2020s could be the decade of the ‘cheap asset’.
- The current investment regime is characterised by instability and volatility, which can present mispriced opportunities for disciplined, long-term value investors.
- Although value stocks have performed well recently, there is still a wide valuation gap between cheap and expensive stocks; value opportunities can be found across markets and sectors, providing potential portfolio diversification benefits.
- The M&G (Lux) Global Strategic Value Fund seeks to capture value opportunities around the world using a tried-and-tested approach. Stocks are selected using a simple three-stage process; the combined effect of stock selection and the value style are expected to be principal drivers of the fund’s performance.
Investment styles often move in cycles. Throughout the 2010s, growth was in the ascendancy. But in 2020, we proposed that a regime change could be imminent. The 2020s, in our view, were set up to be the decade of the ‘cheap asset’.
