Global Active Value
International equities performance It would be an understatement to say 2008 has been a challenging year, particularly for value strategies. Chart 1 shows the return of various market indices since 1 July 2007 and global equity markets have fallen dramatically across the board.
In local terms, that is ignoring the impact of exchange rates, the MSCI World index is down 41.3% while the Value style of investing has fared worse at -43.7%. Small caps have also been hit hard down 50%. Emerging markets initially held up well but have fallen back dramatically since April.
For Australian investors, the impact of these declines would have been lessened for those in unhedged global equity products. Global returns in AUD terms have been approximately 20% better because of the massive depreciation of the AUD.
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