Posted inHead To Head

HEAD-TO-HEAD: HSBC vs Fidelity

FSA compares two Asian high yield bond funds: the HSBC Asian High Yield Bond Fund and the Fidelity Asian High Yield Fund.
by Francis Nikolai Acosta
Conclusion

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FE gives both the HSBC and Fidelity funds a five-crown rating, indicating that both had strong risk-adjusted performance in terms of alpha, volatility and consistency over the last three years.

According to Ng, it is very difficult to name which fund is better, adding that there are only a few funds in the Asia high yield market. Both funds could qualify for the market leader, especially given the quality of the investment teams and performance.

Ng said that a choice between the two will depend on the diversification needs or preference of the investor.

“It comes down to preference: Does the investor prefer to invest more in credit or more in sovereign bonds?”

For sovereign and quasi-sovereign bond exposure, the HSBC fund would be more suitable, Ng said.

For more credit exposure with little emphasis on government bonds, the Fidelity product is the more suitable choice, Ng said.

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