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.
Given that both funds invest in the technology sector, they are expected to do well in growth markets, according to McDermott.
Discreet annual performance
Fund / index / sector | YTD 2020 | 2019 | 2018 | 2017 | 2016 |
Axa IM fund | 35.01 | 39.15 | 0.78 | 42.14 | 2016 |
T Rowe Price fund | 44.77 | 31.85 | -10.92 | 46.01 | 7.73 |
MSCI ACWI Information Technology | 30.56 | 47.52 | -5.47 | 42.27 | 4.91 |
He noted that in theory, the Axa fund may not fare well in a market sell-off because of its investments in small-cap companies.
“But the thematic stock-picking approach taken by the fund manager means that he has been able to avoid significant losses at these times,” he said. For example, when the technology index was down in 2018, the fund still produced positive returns during the year, FE Fundinfo data shows.
Longer-term, the Axa fund has performed better than the T Rowe offering on a three- and five-year cumulative basis, according to FE Fundinfo.
Fund / benchmark | 3 years | 5 years |
Axa IM fund | 111.40% | 214.10% |
T Rowe Price fund | 83.80% | 198.44% |
MSCI ACWI IT Index | 102.46% | 212.21% |
In terms of volatility, both offerings are slightly more volatile than the index, according to FE Fundinfo.
Three-year annualized volatility
Fund / Index | Volatility |
Axa IM | 23.01 |
T Rowe Price | 22.96 |
MSCI ACWI IT Index | 21.93 |
Source: FE Fundinfo
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.