M&G North American Value Fund

10 min read 1 Apr 21

Summary: Please find below an update from Daniel White, manager of the M&G North American Value Fund, discussing the powerful market rotation to value that has been underway in recent months.

The main points to note are:

  • Cheap ‘value’ stocks have outperformed the US market since 1 September 2020, having underperformed for the previous decade
  • This change in sentiment towards the value style has been driven, in our view, by several factors including positive coronavirus vaccine news, optimism about a global economic recovery and rising government bond yields
  • With a wide valuation gap still remaining between the cheapest and most expensive stocks in the US market, we believe the value rotation could potentially continue

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By Dan White

The value of investments will fluctuate, which will cause prices to fall as well as rise and you may not get back the original amount you invested. Past performance is not a guide to future performance.

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