Morgan Stanley: Korea Tops May List of Index Rankings in Three Categories 

Performance evaluated in terms of country, factor, and sector.

Morgan Stanley Capital International (MSCI) released its best and worst performing indices for May 2017, basing performance in terms of country, factor, and sector.

In single-country index rankings, the best-performing country was Korea at 8.1%. The worst in that category is Australia, at -3.9%. The All Country World Index (ACWI) returned 2.3% overall. Korea was also the best year-to-date (YTD) performing country at 27.6%. The worst YTD country was Canada at 0.4%. The YTD market index (ACWI) returned 11.3%. Korea forward P/E was also the cheapest, at 9.3. The most-expensive country was Switzerland, with a forward P/E of 17.9. The ACWI forward P/E is 16.

The performance of factor index ratings were driven by momentum, which was at 4.1% for May, and 16% YTD. The lowest-performing factors were May’s enhanced value (1.4%) and the YTD’s high dividend yield (10.1%). The ACWI returned 2.3% in May, and 11.3% YTD. Using the forward P/E, minimum volatility USD is the most-expensive factor with a 19% forward P/E. Enhanced value is the cheapest, with a forward P/E of 9.8. The ACWI forward P/E is 16.

Finally, May’s best-performing sector was utilities at 5.6%. Its worst was energy at -1.5%. The ACWI returned 2.3%. Information technology is the best YTD performing sector at 21.9%, while energy falls to the bottom of the pile at -6.9%. The ACWI has returned 11.3% YTD. Using the forward P/E, real estate was revealed at the most-expensive sector, with a forward P/E of 22. Financials were the cheapest with a forward P/E of 11.8. The market forward P/E is 16.

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