Head To Head

HEAD-TO-HEAD: Fidelity versus First State

FSA compares two Greater China equity funds: the Fidelity Greater China Fund and the First State Greater China Fund.

by Francis Nikolai Acosta 30 November 201810 November 2020

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Germaine Share, Morningstar

Introduction

Greater China funds have seen net outflows this year, according to Germaine Share, Hong Kong-based associate director for manager research at Morningstar.

“There was some interest earlier this year because Chinese equities had a great year last year. But then the trade war concerns started up again, and it’s been pretty much a down market this year.”

The MSCI Golden Dragon Index, which measures the performance the Greater China market, is down 11.01% this year versus the positive 44.19% performance in 2017, according to data from FE Analytics.

However, sentiment could be turning. Asia’s fund selectors have shown increased interest in buying Chinese equity funds in the next 12 months, according to forward-looking data collected by FSA.

Against this backdrop, FSA asked Share to compare two Greater China equity funds: the Fidelity Greater China Fund and the First State Greater China Growth Fund.

	Fidelity	First State
Size (fund level)	$604m	$547.7m
Size (Strategy level)	$1.3bn	$700m
Inception	1990	2002
Manager	Raymond Ma	Martin Lau
Three-year cumulative return*	35.44%	38.93%
Three-year annualised return*	9.75%	10.74%
Three-year annualised alpha*	6.28	7.18
Three-year annualised volatility*	18.34	18.1
Morningstar analyst rating	Gold	Bronze
Morningstar star rating	*****	*****
FE Crown fund rating	****	**
OCF (retail share class)	1.97%	1.60%

Source: Morningstar, FE Analytics

*28 Nov 2015 – 23 Nov 2018

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