Why value investing will roar back in the 2020s

(1) Source: Eugene F. Fama & Kenneth R. French. June 1992: “The Cross-Section of Expected Stock Returns”, available from https://doi.org/10.1111/j.1540-6261.1992.tb04398.x. February 1993: “Common risk factors in the returns on stocks and bonds”, available from https://doi.org/10.1016/0304-405X(93)90023-5. (2) Source: Martin Currie Australia, MSCI, IRESS, Kenneth R. French Data Library; as of 31 October 2022. Returns are based on Fama/French Research Portfolios: Value data is based on the average return on the Fama/French small & big high book-to-market portfolios, and the growth data is based on the average return on the small & big low book-to-market portfolios. Monthly return series from July 1926 through October 2022. Available from: http://mba.tuck.dartmouth.edu/pages/faculty/ken.french/data_library.html#Research. (3) For Australian data, as Kenneth R. French Data Library series ends in Dec 2021, the MSCI Australia Value/Growth and S&P/ASX All Ordinaries Accumulation indices are used to fill the gap to October 2022. (4) Source: Martin Currie Australia, FactSet; as of 15 December 2022. (5) Source: Martin Currie Australia, Morningstar Direct; as of 31 October 2022. Based on AUM of Morningstar Australia OE Funds & ETFs Australia Fund Equity category. Value: Australia Large Value & Mid/Small Value and World Large Value; and Growth: Australia Large Growth & Mid/Small Growth and World Large Growth. (6) Source: Martin Currie Australia, FactSet; as of 15 December 2022. IMPORTANT INFORMATION The information provided should not be considered a recommendation to purchase or sell any particular security. It should not be assumed that any of the security transactions discussed here were, or will prove to be, profitable. Past performance is not a guide to future returns. Issued by Franklin Templeton Australia Limited (ABN 76 004 835 849, AFSL 240827). This publication is issued for information purposes only and does not constitute investment or financial product advice. It expresses no views as to the suitability of the services or other matters described in this document as to the individual circumstances, objectives, financial situation, or needs of any recipient. You should assess whether the information is appropriate for you and consider obtaining independent taxation, legal, financial or other professional advice before making an investment decision. Neither Franklin Templeton Australia, nor any other company within the Franklin Templeton group guarantees the performance of any Fund, nor do they provide any guarantee in respect of the repayment of your capital. Please read the relevant Product Disclosure Statements (PDSs) and any associated reference documents before making an investment decision. In accordance with the Design and Distribution Obligations and Product Interventions Powers requirements we maintain Target Market Determinations (TMD) for each of our Funds. All documents can be found via franklintempleton.com.au or by calling 1800 673 776. Livewire gives readers access to information and educational content provided by financial services professionals and companies ("Livewire Contributors"). Livewire does not operate under an Australian financial services licence and relies on the exemption available under section 911A(2)(eb) of the Corporations Act 2001 (Cth) in respect of any advice given. Any advice on this site is general in nature and does not take into consideration your objectives, financial situation or needs. Before making a decision, please consider these and any relevant Product Disclosure Statement. Livewire has commercial relationships with some Livewire Contributors.