Style is as key as sector

Style is as important as sector in terms of determining the relevant portfolios for clients, according to David Gasparro, chief investment officer at Schroders. The group's research points to value and growth styles having a very low correlation with each other, far lower than correlation between countries or within sectors. 'In 2000, the Salomon US Value Index outperformed the equivalent growth index by 26.4%, whereas the broad US market only outperformed the Japanese market by 6.71%,' Gasparro said. Schroders attribution analysis points to country allocation being secondary to secto...