Posted inHead To Head

HEAD-TO-HEAD: Blackrock versus Fidelity

FSA compares two Asian fixed income products: the Blackrock GF Asian Tiger Bond Fund and the Fidelity Asian Bond Fund.
by Rupert Walker

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Conclusion

 

“The Blackrock fund is steady performer overseen by a highly-regarded manager, backed by a strong team with a consisted well-executed investment approach,” said Poole.

The product has a four-star rating from Morningstar, whose criteria is based on historical risk-adjusted returns.

FE Fundinfo, which bases its assessment on a fund’s three-year history of delivering alpha, minimising relative volatility and producing consistent returns, awards the fund the equivalent four crowns.

“The Fidelity fund has the flexibility to make significant allocations away from its benchmark, and its managers have typically used that scope successfully,” said Poole.

The product benefits from an experienced portfolio manager, a well-resourced research team, and a robust investment framework.

Morningstar awards the fund three stars and a Bronze analyst rating, but FE Fundinfo is more cautious, giving it just two crowns.

“The fund research firms perhaps tend to penalise funds which divert from their benchmarks significantly because there is a risk that the process is not repeatable,” said Poole.

Poole likes both funds, but would allocate them to clients with different risk profiles.

“The Blackrock fund is more suitable for conservative clients, whereas the Fidelity product would be appropriate for investors prepared to take on greater risk,” he said.

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