Global 'value' tilt intensifies as US outflows hit 'growth' stock funds hardest

More global investors are rotating into non-US "value" stocks, fund managers say, as stretched US valuations, rising fiscal strains, and weakening cash flow forecasts make rallying American equities look comparatively less attractive, reports Reuters.

Investors have withdrawn $152 billion from US growth funds in the first nine months of 2025, even as the S&P 500 advanced into record high territory, already equaling total outflows for all of 2024, LSEG data for September showed.

Asset managers overseeing more than $6 trillion told the Reuters Global Markets Forum, opens new tab that investors expect non-US "value" and small-cap equities to benefit from overseas dovish monetary policy, increased fiscal stimulus, and cheaper valuations.

Outside the US, stronger earnings, margins and returns highlight underappreciated fundamentals in small-cap and value stocks alongside already attractive valuations.

"From a valuation perspective, we like non-US value stocks - so yes, a factor tilt," Sebastien Page, head of global multi-asset and chief investment advisor at T. Rowe Price told the Reuters Global Markets Forum, opens new tab. The global investment management firm oversees $1.73 trillion in assets, with Sebastien's multi-asset division accounting for $602 billion.