Global Quantitative Insights: Factors, Flows & Fault Lines: Navigating the Divergence

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Global Quantitative Insights: Factors, Flows & Fault Lines: Navigating the Divergence

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29 Jun 2026 02:55:56 ET │ 69 pages

Global Quantitative Insights

Factors, Flows & Fault Lines: Navigating the Divergence

CITI'S TAKE

Europe

Price Momentum continues to anchor global style outperformance, proving

to be the most resilient factor year-to-date. Shorter-term reversals, David T Chew AC

however, suggest that a transitionary phase for style leadership may be +44-20-7986-7698

approaching. Style valuations remain elevated but not extreme for Price david.chew@citi.com

Momentum while Growth valuations have compressed, reducing the risk of

a valuation-driven correction. Within Growth, outperformance is

increasingly skewed toward earnings delivery, particularly durable earnings US

growth, rather than forward-looking or top-line metrics. Separately recent

flow and positioning trends point to divergence with leaderships more Richard W Schlatter AC

strongly expressed in Developed Markets, particularly North America. +1-212-816-0591

richard.w.schlatter@citi.com

Price Momentum leads global factor performance — Style performance shifted

Anju Bhandari ACtoward a more pro‑risk stance over the month, but with increasing instability in

factor leadership. Defensive factors lagged as Low Risk continued to unwind, while +1-212-816-3812

Growth showed uneven performance—initially rebounding from early March before anju.bhandari@citi.com

recent weakness. Price Momentum remains the strongest factor year‑to‑date,

delivering consistent returns across all regions. However, shorter‑term reversals and

choppier Growth dynamics point to a potential transitionary phase for Asia

Growth/Value factor leadership.

Yue Hin Pong AC