The FSA Spy market buzz – 6 September 2024
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.
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% |
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.
Part of the Mark Allen Group.