Posted inHead To Head

HEAD-TO-HEAD: Blackrock versus First State

FSA compares two Asian fixed income funds: the Blackrock GF Asian Tiger Bond Fund and the First State Asian Bond Fund.
by Francis Nikolai Acosta

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The Blackrock and First State funds versus its sector in Hong Kong. Note: Data for their benchmark index, the JP Morgan Asia Credit Index, is not available on FE Analytics. All NAVs have been converted to US dollars.

Performance

The performance of both funds is driven by credit selection, according to Ng, but he highlighted differences in the way both funds have performed.

He said he believes the Blackrock fund tends to outperform when Asian bonds are rallying. “It tends to do better on the upside, like in 2017 and 2014.”

Fund / benchmark

YTD 2018

 2017 2016 2015 2014 2013

2012
Blackrock GF Asian Tiger Bond Fund

-4.09

 6.72 4.70 2.28 8.19 -2.95

14.16
First State Asian Bond Fund

-3.41

 5.37 3.73 1.31 6.01 -2.28

10.99
Asia-Pacific fixed income sector

-3.74

 6.74 3.32 -1.82 2.59 -1.44

7.75
Source: FE Analytics

On the flipside, he believes the First State fund tends to do better on the downside.

“It protects capital better than the Blackrock fund, especially this year.”

He added that the First State fund’s volatility is lower than the Blackrock fund.

Fund / Index

Volatility
Blackrock GF Asian Tiger Bond Fund

3.1
First State Asian Bond Fund

2.56
Asia-Pacific fixed income sector

2.75
Source: FE Analytics

 

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