Posted inHead To Head

HEAD-TO-HEAD: Allianz versus FSSA

FSA compares two China equity products: the Allianz China A Shares Fund and the FSSA Greater China Growth Fund.
by Rupert Walker

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Darius McDermott, Chelsea Financial Services

Introduction

Investors in China equities suffered a disastrous 2021. The markets reeled from sudden clampdowns on the technology sector, including on leading companies such as Alibaba and Tencent, the wholesale closure of online educators and restrictions on gaming firms. Meanwhile, the enormous debts of many property companies incited fears of devastating defaults.

To many global investors, the measures seemed arbitrary and the property sector’s woes debilitating, and might cause them to wonder whether the risks of allocating to the China market are justifiable, despite rationalisations that they were imposed for the objective of “co-prosperity” or to reconfigure China’s economic growth model.

The MSCI China index plunged 21.64% last year, according to FE Fundinfo, bucking the trend of global stock market resurgence. The MSCI World index rose 20.14%, and the S&P 500 surged 28.71%.

Against a background of China’s persistence with its “zero-covid” policy, FSA asked Darius McDermott, managing director, Chelsea Financial Services, to select two China equity products for comparison: the Allianz China A Shares Fund and the FSSA Greater China Growth Fund.

Allianz

FSSA
Size

$12.6bn

$1.13bn
Inception

2009

2002
Managers

Anthony Wong, Kevin You

Martin Lau, Helen Chen
Three-year cumulative return

146.77%

61.99%
Three-year annualised return

34.12%

24.12%
Three-year annualised alpha

18.70

4.15
Three-year annualised volatility

23.27%

18.84%
Three-year information ratio

1.90

0.31
Morningstar star rating

*****

****
Morningstar analyst rating

Bronze

Silver
FE Crown fund rating

*****

****
OCF (retail share class)

2.30%

1.58%
Source: FE Fundinfo, Morningstar. (Data in US dollars, 25 Jan 2022)

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