HEAD-TO-HEAD: Allianz versus Invesco

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Source: FE Fundinfo (Cumulative returns in US dollars)

Performance

The performance of the Alllianz fund for the two years of its existence “has been a mixed story,” said McDermott.

It has generated a 12.4% cumulative return since its launch in December 2017, but has 24.04% annualised volatility during its brief history, according to FE Fundinfo data.

“It was one of the worst performers among China equity funds in 2018,” said McDermott.

In US dollar terms, it fell 26.45% during the 2018 calendar year, underperforming its MSCI China All Share index (-23.1%) and the sector average (-22%), according to FE Fundinfo data.

“However, it rebounded strongly this year,” said McDermott.

The fund has risen 44.85% in the year to 20 December, comfortably outperforming its index (25.75%) and its sector average (25.69%), due to superior stock selection.

In contrast to the gyrations experienced by the Allianz fund, “the Invesco fund’s performance has been solid,” said McDermott.

It has a five-year US dollar cumulative return (the fund’s base currency is UK sterling) of 52.45%, better than its benchmark MSCI China 10/40 index (41.64%) and 30 percentage points higher than the China equity fund sector average (21.89%), according to FE Fundinfo data.

The Invesco fund’s strongest calendar year was 2017, when it returned 48.95%, but it lost money the following year, dropping 14.58% — although not as much as its benchmark and sector average, which declined 18.11% and 22.20% respectively.

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