UK stocks have largely lagged global markets since British voters chose to leave the European Union in a referendum on 23 June 2016.
The FTSE All Shares Index returned 15.37% on a three-year cumulative basis, which compares to the MSCI AC World Index return of 39.55%, according to FE data.
Also underperforming is the UK’s fixed income market. The Bloomberg Barclays Sterling Aggregate Index has returned -3.85% during the period, versus the Global Aggregate Index’ 4.32%.
However, over the past one year to April 2019, UK fixed income funds had net inflows of around $4.7bn, according to data from Morningstar Direct. During the same period, investors withdrew around $8.5bn from UK equity funds.
Against this backdrop, FSA asked Darius McDermott, managing director of Chelsea Financial Services and Fund Calibre, to compare two UK investment grade products: the Axa Sterling Short Duration Fund and the Invesco UK Investment Grade fund.
|
Axa |
Invesco |
|
| Size |
£892.7m ($1.13bn) |
£67.3m ($85.5m) |
| Inception |
2010 |
2006 |
| Manager |
Nicolas Trindade, Phil Roantree |
Luke Greenwood, Lyndon Man |
| Three-year cumulative return* |
3.31% |
10.99% |
| Three-year annualised return** |
1.06% |
3.59% |
| Three-year annualised alpha** |
0.78 |
1.71 |
| Three-year annualised volatility** |
0.87 |
5.37 |
| Morningstar analyst rating |
Neutral |
Neutral |
| Morningstar star rating |
* |
*** |
| FE Crown fund rating |
* |
* |
| OCF |
0.87% |
0.84% |
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