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Right timing to diversify and focus on Europe and Value

10 June 2025
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    Key Highlights

    • Value has been outperforming over the past five years, but in a relatively inconsistent manner1. We believe the conditions are in place for a durable rally of this long-neglected segment of the market.
    • European value offers an exceptional buying opportunity because:
      • Europe remains cheap relative to the US
      • Value trades at a historical price discount to growth (value spread)
      • The interest rate environment is no longer a drag on value as it was in the ultra low-rate era
      • American trade policy coupled with the radical change in European economic policies may serve as an additional catalyst
    • HSBC GIF Euroland Value provides a structural exposure to the Value factor. Gross of fees, the fund has outperformed the MSCI EMU by over 140 per cent since 2004 and ranks well compared to Euroland peers