Whether or not a period of sustained performance by value stocks will continue is difficult to predict. However, the longer-term secular trends towards digitalization and focus on sustainable investing are driving changes to business models and the increasing importance of intangibles in company valuations.

These trends affect both value and growth companies alike; as a result, how company management are embracing these changes, considering and addressing environmental, corporate and social risks and opportunities, should be embedded features of how managers assess all companies. Taking that as a ‘new’ given, crucially, timing style is hard to do, therefore for long-term investors we conclude that the value style still deserves an allocation alongside other investing styles in an equity portfolio.

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You can also read the first article from the series here.

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