Posted inHead To Head

HEAD-TO-HEAD: Aegon Industrial versus E Fund

FSA compares two onshore China aggressive mixed-asset products: The Aegon-Industrial Herun Structured Mixed Fund and the E Fund Kexiang Fund.
by Francis Nikolai Acosta

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PERFORMANCE

Given that both the Aegon Industrial and E Fund offerings are growth-oriented funds, they are expected to outperform when growth stocks rally and lag when more defensive and value stocks are in favour.

“In 2018, for example, both funds lagged their peers when growth stocks were not in favour,” she said.

While both products have consistently outperformed their peers, the Aegon Industrial fund has fared better than the E Fund product on a three-, five- and 10-year basis, according to Morningstar data.

Cumulative performance

Total return % 1 year 3 years 5 years 10 years
Aegon-Industrial 63.91 28.27 22.88 20.07
     +/- Category 8.47 11.15 9.69 10.57
E Fund 61.48 20.83 19.8 15.58
     +/- Category 6.03 3.71 6.61 6.25
Source: Morningstar

 

Discreet annual calendar performance

Total return % YTD 2020 2019 2018 2017 2016
Aegon-Industrial 53.3 62.87 -25.54 27.74 -7.49
     +/- Category 10.89 16.36 -1.58 13.44 6.63
E Fund 45.09 60.71 -25.49 25.21 -14.96
     +/- Category 2.67 14.2 -1.53 10.91 -0.84
Source: Morningstar

 

“The E Fund offering may outperform when high growth sectors and small- and mid-cap stocks lead the market, as we have seen in the second half of 2019 and the first half of 2020.

“But it is more volatile given the exposure in small- and mid-cap stocks, as well as its larger sector bets,” Liang said.

Three-year risk measures

Fund / Index Volatility Sharpe
Aegon-Industrial 23.34 1.22
E Fund 25.11 0.88
Category 21.17 0.85
Source: Morningstar

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