The FSA Spy market buzz – 13 December 2024
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HEAD-TO-HEAD: Alliance Bernstein vs Columbia Threadneedle
FSA compares the AB American Growth Portfolio and the Threadneedle (Lux) American Fund.
Performance
Although both funds have underperformed their benchmark indices, Ng noted that they have outperformed their sectors on a three-year basis.
Ng highlighted 2016, when both funds largely underperformed.
Discreet annual calendar performance
| Fund / Index |
2018 |
2017 | 2016 | 2015 | 2014 | 2013 |
| AB American Growth Portfolio |
13.14 |
28.92 | 0.52 | 8.52 | 11.71 |
34.37 |
| Index: Russell 1000 Growth |
17.09 |
30.21 | 7.08 | 5.67 | 13.05 |
33.48 |
| Threadneedle (Lux) American Fund |
11.14 |
24.8 | 5.08 | 1.61 | 8.94 |
32.91 |
| Index: S&P 500 |
11.01 |
21.83 | 11.96 | 1.38 | 13.69 |
32.39 |
|
Sector: HKM Equity |
8.3 | 20.51 | 7.19 | -1.31 | 10.22 |
32.5 |
Source: FE Analytics
“When Donald Trump was elected US president, there was a strong cyclical rally, with low-quality stocks going up.”
At the time, fund managers focusing in growth-oriented companies underperformed during the period, he added.
Meanwhile, both funds performed well in 2017, benefitting from the performance of growth stocks during the year, particularly in the IT sector. However, the AB Fund underperformed its own benchmark.
“The AB fund is a growth-oriented strategy, but it doesn’t mean that 100% of the fund invests in growth areas,” said Ng. “It still holds some consumer staples and even financial and material names, which may not be in the Russell Index.”
In terms of volatility, Ng is not concerned by ether fund, since they are in line with the market.
| Fund / Index |
YTD volatility |
| AB American Growth Portfolio |
14.42% |
| Index: Russell 1000 Growth |
15.52% |
| Threadneedle (Lux) American Fund |
15.03% |
| Index: S&P 500 |
14.72% |
| Sector: HKM Equity North America |
14.34% |
Source: FE Analytics
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