The FSA Spy market buzz – 12 April 2024
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Both funds have been a consistent performer for each calendar year, with the exception of 2018, when both offerings had negative returns, according to McDermott.
While the funds have performed in a similar fashion, the BNY Mellon fund has slightly outperformed in recent years when growth stocks have led the market.
Annual calendar performance (%)
Fund / index / sector | YTD 2021 | 2020 | 2019 | 2018 | 2017 |
BNY Mellon Global Leaders | 4.39 | 22.82 | 29.35 | -7.45 | 22.58 |
Index: MSCI World | 4.86 | 16.5 | 28.4 | -8.2 | 23.07 |
Ninety One Global Equity | 7.56 | 15.8 | 23.72 | -14.74 | 22.76 |
Index: MSCI AC World | 5.81 | 16.82 | 27.3 | -8.93 | 24.62 |
Sector: Global equity | 5.84 | 17.17 | 24.01 | -11.83 | 22.2 |
In addition, although the BNY Mellon fund has a more growth-style bias, McDermott believes that the product can outperform when markets are falling.
“This is supported by the fact it only fell 7.5% in 2018,” he said.
Its volatility has been lower as well given its bias toward high quality companies, despite being more concentrated.
“The BNY Mellon fund is very high conviction, but over the past years, its maximum drawdown and volatility measure has been slightly lower than the Ninety One fund.”
Three-year annualised volatility
Fund / index / sector | Volatility | Sharpe |
BNY Mellon Global Leaders | 19.84 | 0.59 |
Index: MSCI World | 20.71 | |
Ninety One Global Equity | 21.07 | 0.27 |
Index: MSCI AC World | 20.2 |
Equity that is not Kool, Abrdn’s fund closures, Lombard Odier loves private markets, China’s ugly debt graph, Mountainous interest rate analogies, US housing costs, Gold smuggling, Advertising and much more.
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