Jeffrey Schumacher

Investors have plenty of choices. The financial services sector encompasses a diverse universe from which portfolio investors can make their selections. Traditionally, banks and insurers dominate, but companies involved in payments, stock exchanges, capital markets, and asset management are also part of the broad range of investment opportunities.

The investment year 2024 has proven to be a successful one for investors in global equities. The Morningstar Global TME Index closed the year with an impressive gain of 25 percent.

Thematic funds have grown significantly in size, number, and prominence globally over the past five years. Despite recent underperformance, these funds seem to maintain a lasting role in investors’ portfolios. Higher costs, greater volatility, and the slim odds of success do not deter investors from chasing popular investment trends.

The election of Donald Trump as President of the United States brings a range of uncertainties. Only once more clarity emerges about the course that will be taken on key issues will the full impact of this election result on the U.S. economy, international trade, and geopolitical tensions become clear. However, this did not prevent investors in U.S. small-cap stocks from taking a speculative advance on favourable scenarios for them.

From depressed to euphoric. The mood of global stock markets could change rapidly during the third quarter of 2024. To navigate through such volatile market conditions, investors need a long-term vision, patience, and perspective.

Investors continue to have unwavering confidence in oil company Shell, according to recent research by De Nederlandsche Bank. This makes Shell still a cornerstone in many Dutch investment portfolios. However, professional investors view (fossil) energy stocks very differently.

Despite global securities markets enjoying a robust first half of 2024 and various investment categories capturing the interest of European investors, some segments failed to impress. Which asset classes, investment styles, and regions fell out of favor with investors?

This edition of the Morningstar Fund Radar delves into the investment strategies that have caught the attention of European investors and highlights some surprising trends from the first half of the year. India has emerged as a standout among emerging markets.

This week’s Morningstar Fund Radar shines a spotlight on global equity funds, revealing a stellar performance led by US tech giants and highlighting the political twists shaping investor sentiment worldwide.

The surge in global equities is primarily driven by large-cap stocks. Smaller companies have not fared as well, and this disparity has persisted since 2021, Morningstar Fund Radar’s analysis shows.