- 31 DecVector 2021 Annual Review
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- 22 JulVector 2021 Semi-Annual Review
- 25 JunWhy we still like value
- 25 May'Transitory' Inflation
- 22 AprReversal to the mean?
- 17 MarVector's take on sustainable finance
- 09 MarSustainability-related disclosures in the financial services sector (SFDR)
- 19 FebDavid versus Goliath: An analysis of 2020 stock market performance
- 30 DecVector 2020 Annual Review
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- 25 SepAre better times for quant investing on the horizon?
- 26 AugFama/French going through its biggest drawdown since 1963
- 17 JulVector 2020 Semi-Annual Review
- 25 JunA Look At Post-Corona Market Valuations
- 25 MayUnprecedented times call for unprecedented measures...
- 23 AprVector's outlook on the Corona Crisis
- 13 MarMarket correction: sense or sentiment?
- 17 FebThe market and sector concentration
- 14 JanNotice to shareholders
- 31 DecVector 2019 Annual Review
- 17 DecFama/French going through its second biggest drawdown since 1963
- 15 NovThe Alpha Lifecycle
- 16 OctVector 2019 Q3 Review
- 10 SepA new prospectus
- 14 AugMarket Review: July
- 10 JulVector 2019 Semi-annual Review
- 14 JunAre factor premia disappearing?
- 21 MayHow persistent is regional outperformance?
- 12 AprMarket recovery: sense or sentiment?
- 12 MarMarkets solidify recovery
- 12 FebStock Markets Rebound
- 31 DecVector 2018 Annual Review
- 14 Dec2019 (outrageous) predictions!
- 20 AugTemperatures and stock markets heat up
- 18 JulVector 2018 Semi-annual Review
- 14 JunDo exporters suffer during trade wars?
- 15 MayStrong earnings put markets on the road to recovery
- 17 AprQ1 Overview
- 13 MarStock Markets: Episode VI: The return of volatility
- 02 MarVector wins Morningstar Germany and Belgium Awards!
- 22 FebVector Flexible wins De Tijd/L'Echo Awards for the third year in a row!
- 16 FebNavigator wins Morningstar France Award!
Vector 2022 Semi-Annual Review
14 Jul 2022
Developed market equities had a difficult first half of the year, in fact, the worst in over half a century of stock market history. Rising inflation, interest rate increases by central bankers and concerns about growth prospects all contributed to declining equity valuations. While the double-digit losses of global equity were partially offset by the appreciation of the US Dollar, global equity still ended the first half of the year 13.5% lower in Euro-terms.
This sharp appreciation of the USD somewhat masked the fact that the United States (-14.4%) was the worst performing broad region in local currency. The technology sector, which is disproportionally located in the States, did little to help the region’s performance as the sector suffered severely from the steady increase in interest rates. Globally, growth (-21.6%) and Momentum (-17.4%) – two styles that tended to invest heavily in technology stocks – are also down significantly. Yet, despite the significant underperformance of growth stocks, the valuations in this segment of the market still remain rather elevated.
Europe (-13.8%), which was definitely not helped by FX-effects so far, had a similar decline as the USA during the year. Emerging markets (-10.4%) had a mixed run: while the region suffered severely during the first quarter as China – a heavyweight within the index - imposed heavy restrictions that affected economic activity, it held up surprisingly well during the second quarter of the year. The biggest winners of 2022 thus far are value-minded (i.e., basic resources), or safer (i.e., utilities) sectors: value stocks lost only 4.6% and low volatility stocks did even better, ending the first half of the year on a loss of just 1%.
Both Vector Navigator (-5.4%) as Vector Flexible (-2.0%) have had strong relative performance during the first half of the year. While our flagship fund, Navigator, has outperformed its Morningstar category by 6.1%, our flexible allocation fund did even better as it outperformed the competition by 9.5% so far. Both funds are proving quite resilient against the market downturn. We hope this strong relative performance can continue during the second half of 2022.
Werner, Thierry & Nils