The Barings and the Fidelity funds versus their benchmark index. Source: FE Analytics. In US dollars.
Performance
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
|
Source: FE Analytics
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
|
Source: FE Analytics
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.