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HEAD-TO-HEAD: Aberdeen Standard versus Schroders
FSA compares two Asia-Pacific (ex-Japan) equity funds: the Aberdeen Standard Sicav I – Asia-Pacific Equity Fund and the Schroder ISF Asian Total Return Fund.
The ASI and Schroders funds versus their benchmark index, the MSCI AC Asia Pacific ex-Japan Index and sector in Hong Kong. Source: FE Fundinfo. In US dollars.
Performance
Given that both funds have a quality-bias, Daniels believes that the funds provide downside protection when markets are down.
“But you would expect them to generally lag during bull markets,” he said.
Discrete calendar performance (%)
| Fund / index / sector |
YTD 2020 |
2019 | 2018 | 2017 | 2016 | 2015 | 2014 |
| ASI |
0.89 |
18.67 | -11.2 | 32.45 | 3.76 | -14.92 |
2.11 |
| Schroders |
2.12 |
17.84 | -15.09 | 39.47 | 6.6 | -3.13 |
6.47 |
|
MSCI AC Asia Pacific ex-Japan |
0.72 | 19.48 | -13.68 | 37.32 | 7.06 | -9.12 |
3.09 |
|
HKM Equity – Asia Pacific ex-Japan |
-0.2 | 18.21 | -16.05 | 35.01 | 2.3 | -8.49 |
3.94 |
Source: FE Fundinfo. In US dollars.
However, Daniels has more conviction that the Schroders fund will outperform the benchmark and its peers longer-term than the ASI fund.
“We have more conviction in the Schroders fund due to a higher process score.
“There are reasons for the ASI strategy to still outperform [the market], but given the changes in the process in recent years, we do not have the same level of conviction as before,” Daniels said.
In terms of volatility, Daniels expects that the ASI fund is more volatile than the Schroders fund, given that the Schroders option has the hedging feature to keep volatility lower.
Three-year annualised volatility
| Fund / Index |
Volatility |
Sharpe |
| ASI |
13.73 |
0.35 |
| Schroders |
12.8 |
0.45 |
| MSCI AC Asia Pacific ex-Japan |
13.78 |
|
| HKM Equity – Asia Pacific ex-Japan |
13.07 |
Source: FE Fundinfo. In US dollars.
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