Dobrescu believes that both the Blackrock and Fidelity funds do well on an absolute return basis. In addition, both products have consistently been in the top first or second quartiles in their category.
She added that the aim of both funds is to outperform the benchmark regardless of the current market environment.
“Both expect that they will do well in either a bull or bear credit market.”
Annual discreet calendar performance (%)
| Fund / benchmark |
2018 |
2017 | 2016 | 2015 | 2014 |
2013 |
| BlackRock GF Euro Corporate Bond |
-0.66 |
2.53 | 4.86 | 0.39 | 7.78 |
2.22 |
| Fidelity Euro Corporate Bond |
-1.55 |
2.16 | 4.95 | -0.84 | 9.33 |
2.10 |
| Index : ICE BofAML Euro Corporate |
-0.72 |
2.42 | 4.75 | -0.43 | 8.25 |
2.39 |
However, Dobrescu noted the funds’ difference in volatility.
“The Fidelity fund’s volatility has been more elevated,” she said, adding that it is due to the overweight in financials.
| Fund / Index |
Year-to-date Volatility |
| Blackrock GF Euro Corporate Bond |
1.62 |
| Fidelity Euro Corporate Bond |
2.41 |
| ICE BofAML Euro Corporate |
1.39 |
“For that reason, risk-adjusted performance is not as quite impressive on the Fidelity fund as it is on the Blackrock fund,” she said, adding that the Blackrock product has a Sharpe ratio, which measures risk-adjusted performance, higher than the Fidelity fund and the benchmark.
| Fund / Index |
Three-year Sharpe ratio |
| Blackrock GF Euro Corporate Bond |
1.58 |
| Fidelity Euro Corporate Bond |
0.98 |
| ICE BofAML Euro Corporate |
1.27 |
Who’s afraid of higher interest rates?
How can a sustainable approach also ensure you don’t compromise performance?
M&G Episode Macro shines after tough year
Dynamism is the name of the game for this global macro strategy
Appetite for thematic investments grows amid rates and inflation concerns
Accessing India’s tech future
Fixed income – making ground in ESG as ETFs see rapid growth in AUM
Investors turn to real estate for alternative income
Ninety One: Finding opportunities in times of change
Market volatility is creating enticing opportunities for value investors
“Everyone wants a quick win,” said a veteran Hong Kong wealth manager to Spy this week over steak and a nameless Aussie red. “Slow and steady is alien to most of my clients.” It is not just Hong Kong-based investors who have this enthusiasm, it would seem. Spy was staggered to read that Americans spent […]
Part of the Mark Allen Group.
