Posted inHead To Head

HEAD-TO-HEAD: Fidelity vs UBS

FSA compares the Fidelity China Focus Fund and the UBS China Opportunity Fund.
by Francis Nikolai Acosta
Performance

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*All fund and benchmark NAVs have been converted to US dollars

The chart shows the three-year cumulative performance of the funds and the MSCI China Index, according to FE data.

Both funds performed better than the index over the three-year period.

Liang attributes both funds’ performance to their respective managers’ stock selection.

For example, the Fidelity fund’s underweighting in telecommunications and overweighting in materials added the most value to fund performance, she said.

For the UBS fund, although it has performed well, Shi’s benchmark-agnostic approach can lead to periods of relative underperformance and “lumpy returns”, which explains its underperformance in 2014 and 2015, Liang explained.

However, during the market meltdown in 2015, he was able to lock-in profits by raising cash levels.

“At times, Shi is willing to actively manage his cash position if he thinks that the market is overheating,” Liang said.

In terms of volatility, the Fidelity fund is less volatile than the MSCI China Index and the UBS fund, according to FE data.

 

Three-year volatility
Fidelity fund

20.39
UBS fund

21.49
MSCI China Index

21.28
Source: FE Analytics

Liang said that the UBS fund is slightly more volatile given its benchmark-agnostic approach.

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