Bank of America reported a shift in global fund performance for June, with Value funds experiencing a median decline of 0.88% compared to their benchmarks. Only 24% of Value funds managed to outperform in June.
Despite the setback, BofA acknowledges that Value funds still hold an edge year-to-date, with 52% outperforming their benchmarks. The median YTD return for outperforming Value funds sits at 0.27%.
In contrast, BofA says Growth funds weathered June’s market movements slightly better. Nearly half (49%) of Growth funds outperformed their benchmarks, with a median relative return of -0.04%. However, Growth funds haven’t fared as well year-to-date, with only 40% exceeding their benchmarks and a median YTD relative return of -0.84%.
BofA’s report also highlights interesting stock picks within each fund category. They identify companies with strong “Triple Momentum” (positive momentum in earnings, price, and news sentiment) that are heavily weighted by the respective funds. Among these, Growth funds favor NU, Icon (NASDAQ:) plc, On Holding, and TSMC, while Value funds lean towards BJ’s Club, US Foods, Ameriprise Financial (NYSE:), and Hana Financial.
The report concludes by noting the struggles of aggressive funds, those with a very high Active Share Ratio. These funds are said to have underperformed the market by a median of 2.72% year-to-date and 0.62% in June alone. Conversely, funds closely following the benchmark have performed better year-to-date.
