Q4 2024 Active Management Review: Strength In Financials And Tech

2025-01-29 05:10:00 ET

Summary

• The financials sector performed strongly in global markets during Q4, largely due to a combination of monetary easing and dovish commentary from key central banks.
• The fourth quarter was a more favorable environment for active managers in Emerging Markets, International, U.S. Small Cap, Australia, Long/Short and Global Real Estate, while being more challenging for Global, U.S. Large Cap, Europe, the UK, Canada, Japan, and Listed Infrastructure managers.
• The Momentum factor performed well across most global markets outside of the U.S., while the Growth factor also outperformed in all markets besides Europe and Japan.

During a rocky fourth quarter, strength in the financials sector was a unifying theme across global markets. The sector performed well on the back of monetary easing and more dovish rhetoric from central banks in key regions around the globe. Case-in-point: the U.S. Federal Reserve (Fed), the Bank of England (BoE), and the European Central Bank (ECB) all reduced policy rates during the quarter, while the Bank of Japan (BoJ) and Chinese authorities offered relatively more dovish commentary about future policy....

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