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HEAD-TO-HEAD: Blackrock versus Fidelity
FSA compares two global multi-asset income funds: the BGF Global Multi Asset Income Fund and the Fidelity Global Multi Asset Income Fund.
The Blackrock and the Fidelity funds versus the global mixed-asset sector in Hong Kong. Source: FE Analytics.
Performance
Given that both products have very similar strategies, their performances are also quite similar, according to Claus.
Both products aim to limit downside risks, which explains why they have performed better than peers during down markets, she said.
However, Claus believes that Fidelity places more emphasis on limiting drawdowns.
Discreet calendar performance
| Fund / benchmark |
YTD 2019 |
2018 | 2017 | 2016 | 2015 |
2014 |
| BlackRock GF Global Multi-Asset Income |
9.88 |
-4.89 | 8.66 | 5.34 | -2.35 |
4.11 |
| Fidelity Global Multi Asset Income |
9.82 |
-2.99 | 10.13 | 6.74 | -1.31 |
2.79 |
| Sector : HKM Mixed Asset International |
9.87 |
-9.37 | 17.08 | 1.57 | -4.42 |
1.11 |
Source: FE Analytics
In negative periods such as 2018 and 2015, for example, the Fidelity fund performed better than the Blackrock fund.
Because the Fidelity product has the stronger focus on limiting drawdowns, in up markets the expectation is that the Blackrock fund would outperform Fidelity.
“You would expect that, but interestingly, the Fidelity fund has captured more upside over the last years.”
In terms of volatility, Claus pointed out that both products have significantly lower volatility than the category average:
Three-year annualised volatility and Sharpe ratio
| Fund / Index |
Volatility |
Sharpe ratio |
| BlackRock GF Global Multi-Asset Income |
3.53 |
0.38 |
| Fidelity Global Multi Asset Income |
3.64 |
0.56 |
| Sector : HKM Mixed Asset International |
6.72 |
0.24 |
Source: FE Analytics
“Over the long-term, they have very similar volatility, but the Fidelity fund has achieved a higher risk-adjusted return.”
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