Find explanations from Vanessa Bonjean, Senior Fund Analyst, on the main factors that have guided fund performance over the past quarter.
The European equity market – Q2 2019:
Following the market rally in Q1 2019 (+12,8% for the MSCI Europe index*), European Equity markets’ progression paused, ending the quarter up +3%. The resumption of tension over trade wars and core bond yield continuing to fall led the market to sell-off in May before stabilizing again. In this context, the outperformance of Growth versus Value, which continues (+5,6% for the MSCI Europe Growth* index, versus +0,2% for the MSCI Europe Value* index), was exacerbated during May’s market drawdown as cyclical value massively sold off. Small Caps* slightly lagged the broader MSCI Europe index, with the Euromoney European Smaller Companies index* up +2,4% over the quarter, though it is worth noting that Mega Caps outperformed.
At the sector level, Technology, Industrials and Consumer Discretionary performed the best, whilst traditional value areas of Banks, Telecommunication Services and Energy lagged.