UBS Equities-Global Style Guide _All major regions outperform in July_ Wi...-116962213

ab1 August 2025Global ResearchGlobal Style GuideAll major regions outperform in JulyGlobal markets continue to rallyGlobal equity markets continue the upward trend in July with a monthly return of 2.0%. All regions were up in July with Asia ex Japan still leading the global outperformance (3.96%). All regions remain up for the year, with Asia ex Japan leading the year to date returns at 15.1%. Turning to sectors, Health Care and Consumer Stables where the two sectors down in July, and Information Technology continues to dominated the outperformance with a monthly return of 4.3%. Focusing on sector returns for 2025, the leading sector is still Industrials with year to date returns of 15.8%, closely followed by Utilities (15.7%), Communication Services (14.5%) and Financials (14.3%). Most factors down in JulyIn July, we continue the June trend, and find the most significant factor returns on the negative side. Low risk and Free Cash Flow yield saw the sharpest declines. Momentum and Growth show mixed results, depending on the specific factor, whereas Size outperforms. EPS Growth was the best performing factor with a return of +2.8%. Factor PEs stay above long term averagesMacro factor importance has a small rebound in July with U.S. Yield 2Y holding the largest explanatory power. Cross-sectional volatility, and pairwise correlations were mostly flat. Equity prices remain elevated relative to long-term averages, especially in Australia and the U.S.. Turning to factors we find that all factor forecast PEs for July, except Health Care, are well above historical averages. Figure 1: Style Factor Performance Last Month - WorldSource: FactSet, UBS Quantitative DatabaseThis report has been prepared by UBS Securities Australia Ltd. ANALYST CERTIFICATION AND REQUIRED DISCLOSURES, including information on the Quantitative Research Review published by UBS, begin on page 12. UBS does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision.EquitiesGlobalQuantitativePaul WinterAnalystpaul-j.winter@ubs.com+61-2-9324 2080Oliver Antrobus, CFAAnalystoliver.antrobus@ubs.com+61-3-9242 6467Amanda BelcaidAnalystamanda.belcaid@ubs.com+44-20-7568 3072Cathy Fang, PhDAnalystS1460518100001cathy.fang@ubs.com+86-21-3866 8891Ariel Goyeneche, PhDAnalystariel.goyeneche@ubs.com+49-69-1369 1275Sebastian HohmannAnalystsebastian.hohmann@ubs.com+41-44-234 5000Jaiwish NolanAnalystjaiwish.nolan@ubs.com+1-212-713 1489Daniel PerryAnalystdaniel.perry@ubs.com+44-20-7901 6263Will StephensAnalystwill.stephens@ubs.com+852-3712 3892Christine VargasAnalystchristine.vargas@ubs.com+44-20-7568 2409Global Style Guide 1 August 2025ab 2Global Style GuideUBS ResearchMARKET OVERVIEWWhat's Driving the markets?Macro factors help provide a top-down view o