Ng pointed out that the Barings fund has been more volatile than both the Fidelity product and the index.
“If you look at 2018, for example, the Barings fund underperformed by a huge margin relative to the benchmark, and this year it has rebounded and performed better than the index and the Fidelity fund.”
Annual discreet calendar performance
| Fund / benchmark |
YTD 2019 |
2018 | 2017 | 2016 | 2015 |
2014 |
| Barings Asean Frontiers |
9.89 |
-13.17 | 31.09 | 5.23 | -11.7 |
8.57 |
| Fidelity Asean |
7.23 |
-7.27 | 26.53 | 4.84 | -17.65 |
6.97 |
| MSCI AC Asean Index |
4.27 |
-8.36 | 30.14 | 6.2 | -18.35 |
6.42 |
Three-year annualised volatility
| Fund / Index |
Volatility |
Sharpe ratio |
| Barings Asean Frontiers |
11.78 |
0.08 |
| Fidelity Asean |
10.78 |
0.11 |
| MSCI AC Asean Index |
11.01 |
0.08 |
Ng said that the more concentrated portfolio of the Barings fund is a driver of the higher volatility.
Turning to the Fidelity fund, he said its more diversified portfolio has helped ease volatility relative to the index.. In addition, the previous manager’s investment style, which avoided huge off-benchmark bets, contributed to lower volatility.
Smartphones on wheels
Driving decarbonisation: how to access new forms of alpha
Unmasking the dividend opportunity
Who’s afraid of higher interest rates?
Thematic investment series: Innovative transformation cuts across “old” and “new” economy companies
Investment Ideas for 2021: Explore the untapped potential in China Small Companies
Healthcare’s innovation shifts into high gear
Step up your portfolio by doubling down on sectors set for long-term growth
Exciting opportunities in AI & Robotics outside of traditional tech
An investment opportunity for the coming decades: the environment
Investing by your religious conviction; Contrarians at Fidelity are looking at cars; Matthews Asia sees a Chinese catalyst; S&P Global’s SPIVA scorecards; Ninety One on emerging markets; Jefferson and much more.
Part of the Mark Allen Group.
