The FSA Spy market buzz – 26 April 2024
Golden mystery, Next big Healthtech thing, Plastic everywhere, The Magnificent Seven wane, Dreary fund presentation hell, Putting The Economist in its place, A touch of Shakespeare and much more.
The First State fund has delivered exceptional returns tracing back to August 2003 when the fund was incepted.
“Between 1 Aug 2003 and 30 Nov 2016, the fund gained 13.42% per year, beating the MSCI AC Asia Pacific ex Japan Index by 365 basis points and ranking in the first percentile among peers,” Share said.
Its 3-year performance almost doubled the Schroders fund and tripled the benchmark, as shown in the above chart, by returning 18.18%.
However, the recent performance, the one-year return as of September-end (13.36%) was lagging the index by 471 basis points, mainly due to the underweight of Samsung Electronics, she noted. “Investors should note that Lau invests with a long-term mindset, and be prepared to ride out periods of short-term relative under-performance.”
Share said both funds offer good downside protection and low volatility.
The three-year downside capture ratio, which measures how much the fund will fall when the benchmark drops 100%, is 69.7% for First State fund and 75.7% for Schroders one. Category average of Morningstar’s Asia Pacific ex-Japan equity basket is 91%.
Volatility of the First State and Schroders fund over the three years, in terms of standard deviation, is 12.43 and 12.26 respectively, versus 14.56 of Morningstar’s Asia Pacific ex-Japan equity category, as well as 15.03 of the benchmark.
Golden mystery, Next big Healthtech thing, Plastic everywhere, The Magnificent Seven wane, Dreary fund presentation hell, Putting The Economist in its place, A touch of Shakespeare and much more.
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