The FSA Spy market buzz – 6 September 2024
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Both products have underperformed their benchmark indices on three-year cumulative basis, according to data from FE Fundinfo.
Given the AB fund’s bias toward high quality companies, Wolfstetter expects the fund to hold up better in market selloffs, but would lag in more speculative rallies.
“With elevated price multiples, the AB portfolio could take more of a hit in a sustained, valuation-driven correction,” she said.
Turning to the Blackrock fund, Wolfstetter said that the portfolio has produced higher downside capture ratios compared to both its index and the AB fund.
However, given its lower portfolio-level price multiples, it carries less valuation risk, she said.
Discreet calendar performance
Fund / index | YTD 2020 | 2019 | 2018 | 2017 | 2016 |
AB American Growth Portfolio | 17.91 | 32.48 | 0.3 | 29.61 | 1.07 |
Index: Russell 1000 Growth | 26.22 | 36.39 | -1.51 | 30.21 | 7.08 |
Blackrock GF US Flexible Equity | 1.72 | 26.65 | -8.93 | 24.62 | 8.37 |
Index: Russell 1000 | 7.73 | 31.43 | -4.78 | 21.69 | 12.05 |
Three-year annualized volatility
Fund / Index | Volatility |
AB American Growth Portfolio | 19.95 |
Index: Russell 1000 Growth | 21.7 |
Blackrock GF US Flexible Equity | 19.59 |
Index: Russell 1000 | 21.65 |
Machine learning Chinese investment, BlackRock’s AI patience, Time Magazine’s AI cover, happier staff equal better returns, do wealth managers add value? sexy legs and much more.
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