􀀗 Top global sectors: Health Care,
Telecoms, Utilities
􀀗 Bottom global sectors: Materials,
Financials, Consumer Discretionary
􀀗 Information Technology was the biggest
gainer and Materials the biggest loser
Defensive sectors continue their domination of the HSBC
Sector Scorecard with a clean sweep of the top ranks.
Notable movers on the month were IT (↑4), which moved
out of the bottom three, and Materials (↓3), which slumped
to the foot of the table. Cyclical sectors and Financials still
languish at the bottom of the table.
The Telecoms sector is joined by Health Care at the top of
the ranking table. The two sectors figure in the top three
ranks in all regional ranking tables (except Asia Pacific ex
Japan where Telecoms is ranked fourth). Utilities retained its
number three rank. The top three sectors showed good
performance on price momentum and valuation components.
IT climbed four positions to sixth rank, driven mainly by an
improvement in its earnings momentum rank. Financials
moved off the foot of the table, climbing one place to join
Consumer Discretionary in eighth position. The Materials
sector was by far the biggest loser, falling three places to
rock bottom (10th) largely due to a slump in the earnings
momentum component.
Background
The Scorecard is intended as a useful tool in fundamental
analysis, providing a clear ranking of regional and global
sectors on the basis of several key factors. We focus on three
broad sector attributes, which loosely correspond to
momentum, growth and value investing: Price momentum,
Earnings momentum and Valuation. For each of these key
areas we produce a single score per sector and region in a
way that is concise and consistent over time. Regions
covered are Global, US, Europe ex-UK, UK, Japan and
developed Asia ex-Japan.

Scorecards 3
Global sectors 3
Regional sectors: US 4
Regional sectors: Europe ex UK 5
Regional sectors: UK 6
Regional sectors: Asia ex Japan 7
Regional sectors: Japan 8
Global cross-regional ranking of sectors & industries 9
Appendix 1: methodology 14
Three levels of analysis 15
Scorecard tables 15
Scorecard factors 16
Appendix 2: valuation model data 19
Sector valuations and composite ranking 20