HEAD-TO-HEAD: Blackrock vs First State
By Kate Lin, 28 Sep 18
FSA compares the Blackrock GF Asian Dragon Fund and the First State Asian Growth Fund.
Andrew Daniels, Morningstar
At the beginning of 2018, fund selectors had high hopes for Asia-Pacific ex-Japan equities.
Respondents to FSA’s Asset Class Research in late 2017, for example, indicated strong interest for these assets. They stood out with the highest net number of potential buyers – which is calculated as a difference between the percentage of respondents who said they would add them to their allocation and the percentage who said they would reduce them in the following 12 months.
However, Asia-Pacific (ex-Japan) funds for sale in Hong Kong were among the bottom performers among regional equity products. According to FE, the category has returned -6.55% year-to-date.
China and Korea, accounting for 35% and 17% of the weighting in the index, respectively, contributed the most to the loss. Year-to-date, the MSCI China Index returned -7.71% while MSCI Korea was -9.15% in US dollar terms.
Against this backdrop, FSA talked to Andrew Daniels, Hong Kong-based senior analyst for manager research at Morningstar, for a comparative analysis between two Asia ex-Japan funds: the Blackrock Asian Dragon Fund and the First State Asian Growth Fund.
Blackrock Asian Dragon
First State Asian Growth
Richard Jones and Alistair Thompson
|Morningstar analyst rating|
|Morningstar star rating|
|FE Crown fund rating|
Source: Morningstar, FE Analytics
*Trailing three years to 28 September
**Year-to-date to 28 September