Schroders to add two Unit Trusts to its sustainable funds moneymarketing.co.uk - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from moneymarketing.co.uk Daily Mail and Mail on Sunday newspapers.
Value stocks are resurgent, lifting the funds that back them
The turnaround in stock markets as lockdowns ease, lifting the shares of companies hit hardest by the pandemic, has sent funds that were languishing at the bottom of the performance charts last year surging to the top of the table.
The rebound in the shares of “value” companies, such as high street retailers, banks and leisure and hospitality firms, follows prolonged poor performance and heavy falls last year.
Funds that back them racked up losses for their investors and trailed rivals in 2020 but have now sprung into life. Among funds investing in British stocks, 60 which were among the bottom 25pc performers last year are now in the top 25pc for 2021.
The four British value funds to buy if tech stocks keep tumbling
Businesses that have struggled during the pandemic are expected to soar in the recovery
Technology firms have been hit by higher inflation fears
The great rotation away from high-growth companies to value stocks shows no signs of abating, so how can investors profit from the shift?
Telegraph Money has identified four British funds best placed to capitalise on the move away from the dominance of American technology stocks as markets begin adjusting to a return to more normal economic cycles.
Expectations of a resurgent economy, which in turn should bring higher inflation and rising interest rates, has dented the valuations of technology firms – typically calculated by using future earnings, discounted to the current level of interest rates. With higher interest rates, these earnings become less valuable.