Stockpickers would have fared well investing Canadian stocks, Enhanced Value factor stocks and financials in June, according to the latest MSCI All Country World Index monthly report.
The best performing country in the Single Country index in June was Canada (3.1 per cent) and the worst was the United Kingdom (-1.9 per cent), while the ACWI market returned 0.5 per cent.
Of the top five contributors four were financials such as Toronto-Dominion Bank, Royal Bank of Canada, Bank Nova Scotia and Bank Montreal and one industrial, Canandian National Railway.
Highest weighting was 8.1 per cent from Royal Bank of Canada with price return (-1m) 4.4 per cent but Bank Montreal returned 8.5 per cent despite being a 3.5 per cent holding.
Year to date, the best performing country was South Korea (28.9 per cent) and the worst, Canada (3.5 per cent), while the market (ACWI) has returned 11.8 per cent.
Using the forward P/E, the most expensive country is USA at 18.1 and the cheapest was South Korea with a forward P/E of 9.4, while the market forward P/E was 15.9.
The best performing factor for June was Enhanced Value (1.5 per cent) and the worst, Quality (-0.6 per cent) against an ACWI market return of 0.5 per cent.
Top five active weightings within Enhanced Value index were Samsung Electronics with 4 per cent weighting returning 4.7 per cent (-1m); Cisco Systems at 1.4 per cent returning -1.2 per cent; Toyota Motor at 1.3 per cent returning -2.7 per cent; Wal-Mart Stores at 1.1 per cent returning -3.2 per cent and CVS Health at 0.9 weighting returning 4.8 per cent.
Year to date, the best performing factor was Momentum (16.7 per cent) and the worst, Minimum Volatility USD (9.9 per cent) against the market return of 11.8 per cent.
The most expensive factor on a forward P/E ratio was Minimum Volatility USD with a forward P/E of 18.9 and the cheapest, Enhanced Value with a forward P/E of 9.7, while the ACWI P/E was 15.9.
The best performing sector in June was Financials (4.1 per cent) and the worst, Telecom Svc (-2.5 per cent), against the ACWI returned of 0.5 per cent.
Top four contributors in the financial sector were all US stocks: JP Morgan Chase 4 per cent weighting returning 8.9 per cent (-1m); Wells Fargo at 3.3 per cent weighting returning 6.2 per cent; Citigroup at 2.3 per cent weighting returning 8.5 per cent, Bank of America at 3 per cent weighting returning 5.9 per cent. Fifth top contributor was GB stock HSBC Holdings with 2.3 per cent weighting and 6.5 per cent return.
The best performing sector year to date was Information Technology (20.7 per cent) and the worst, Energy (-8.3 per cent), while the market returned 11.8 per cent.
The most expensive sector was Real Estate with a forward P/E of 28.6 and the cheapest, Financials with a forward P/E of 12.1, while the market forward P/E was 15.9.
stephanie.spicer@ft.com
