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HEAD-TO-HEAD: Axa versus Fidelity
FSA compares two global real estate products: the Axa Framlington Global Real Estate Securities Fund and the Fidelity Global Property Fund.
The Axa and Fidelity funds versus their benchmark index and sector. Source: FE Analytics. In US dollars.
Performance
Van Genderen said that performance of the two products does not differ significantly because they both invest in only one sector.
“The stocks in the universe can be correlated with each other,” he said.
Discreet annual performance (%)
| Fund / sector |
YTD 2019 |
2018 | 2017 | 2016 | 2015 |
2014 |
| Axa fund |
19.62 |
-7.68 | 11.39 | 0.82 | -1.18 |
10.33 |
| Fidelity fund |
19.36 |
-6.89 | 11.18 | -0.7 | -2.65 |
18.06 |
| FTSE EPRA Nareit Developed Index |
19.84 |
-4.74 | 11.42 | 4.99 | 0.05 |
15.89 |
| Sector : HKM Property |
16.9 |
-7.79 | 17.95 | -1.43 | -1.03 |
10.72 |
Source: FE Analytics. In US dollars.
However, Van Genderen said that both products may perform differently in a given market environment.
He believes that the Axa fund may perform better in a downmarket, given its quality approach.
“Typically, quality companies that have less debt on the balance sheets are more resilient to a market downturn.
“On the other hand, the Fidelity fund may perform better in a strong bull market, given that it invests in the riskier, turnaround stocks.”
Like their performance, Van Genderen does not expect any huge difference in volatility because stocks in the global real estate universe tend to be highly correlated with each other.
Three-year annualised volatility
| Fund / Index |
Volatility |
| Axa fund |
10.44 |
| Fidelity fund |
10.34 |
| FTSE EPRA Nareit Developed Index |
10.29 |
| Sector : HKM Property |
9.57 |
Source: FE Analytics. In US dollars.
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