- 31 dec.Vector 2021 Annual Review
- 15 okt.Q3 Review
- 17 aug.Chinese crackdowns
- 22 jul.Vector 2021 Semi-Annual Review
- 25 jun.Why we still like value
- 25 mei'Transitory' Inflation
- 22 apr.Reversal to the mean?
- 17 mrt.Vector's take on sustainable finance
- 09 mrt.Sustainability-related disclosures in the financial services sector (SFDR)
- 19 feb.David versus Goliath: An analysis of 2020 stock market performance
- 30 dec.Vector 2020 Annual Review
- 20 nov.Factor momentum
- 20 okt.How will the US elections influence your portfolio?
- 25 sep.Are better times for quant investing on the horizon?
- 26 aug.Fama/French going through its biggest drawdown since 1963
- 17 jul.Vector 2020 Semi-Annual Review
- 25 jun.A Look At Post-Corona Market Valuations
- 25 meiUnprecedented times call for unprecedented measures...
- 23 apr.Vector's outlook on the Corona Crisis
- 13 mrt.Market correction: sense or sentiment?
- 17 feb.The market and sector concentration
- 14 jan.Notice to shareholders
- 31 dec.Vector 2019 Annual Review
- 17 dec.Fama/French going through its second biggest drawdown since 1963
- 15 nov.The Alpha Lifecycle
- 16 okt.Vector 2019 Q3 Review
- 10 sep.A new prospectus
- 14 aug.Market Review: July
- 10 jul.Vector 2019 Semi-annual Review
- 14 jun.Are factor premia disappearing?
- 21 meiHow persistent is regional outperformance?
- 12 apr.Market recovery: sense or sentiment?
- 12 mrt.Markets solidify recovery
- 12 feb.Stock Markets Rebound
- 31 dec.Vector 2018 Annual Review
- 14 dec.2019 (outrageous) predictions!
- 20 aug.Temperatures and stock markets heat up
- 18 jul.Vector 2018 Semi-annual Review
- 14 jun.Do exporters suffer during trade wars?
- 15 meiStrong earnings put markets on the road to recovery
- 17 apr.Q1 Overview
- 13 mrt.Stock Markets: Episode VI: The return of volatility
- 02 mrt.Vector wins Morningstar Germany and Belgium Awards!
- 22 feb.Vector Flexible wins De Tijd/L'Echo Awards for the third year in a row!
- 16 feb.Navigator 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