BNY Mellon Long-Term Global Equity shrugs off vaccine-inspired value rally as 'short-term headwind'

Structural headwinds needed for long-term growth, manager adds

Any market shift in favour of value stocks is a short-term concern for growth investors, according to Walter Scott client investment manager Murdo MacLean, who said "structural tailwinds" will continue to benefit stocks within the BNY Mellon boutique's growth-focused Long-Term Global Equity fund over the next market cycle.

Reports of successful vaccine developments last month saw market commentators once again eyeing a return to favour for value investing, with the MSCI World Value index bucking the trend of the last decade by returning 11.4% in a record-breaking November stock rally compared to a 7.7% return for the MSCI World Growth index, according to FE fundinfo. However, MacLean said that "over any meaningful time period" wealth created by companies has been the key driver of share prices, "even if that relationship breaks down temporarily". He added: "If you get a market rotation, value approaches...