The FSA Spy market buzz – 6 September 2024
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The alpha source for both funds is mainly from stock selection. Both managers have demonstrated consistent good performance, according to Share.
However, Share believes that the Fidelity fund has more potential to capture the upside when Greater China markets are rallying.
“I would expect the First State fund to lag [during market rallies] because they are not really into sexy, hot momentum-driven stocks,” Share said.
But the First State product is more downside resilient when markets are down, given its focus on quality, she noted.
“You would expect it to do well in market conditions like this year, which has been a down market.”
Discrete annual performance (%)
Fund / benchmark |
YTD 2018 |
2017 | 2016 | 2015 | 2014 | 2013 |
2012 |
Fidelity Greater China Fund |
-12.45 |
48.12 | 4.60 | -3.48 | 6.79 | 14.16 |
23.12 |
First State Greater China Growth Fund |
-10.30 |
49.88 | 1.88 | -3.24 | 4.09 | 12.00 |
20.40 |
Index : MSCI Golden Dragon |
-11.01 |
44.19 | 5.75 | -7.12 | 8.06 | 7.25 |
22.65 |
In terms of volatility, Share said she would typically expect the Fidelity fund to be less volatile than First State’s product because it is more diversified and more benchmark-aware.
However, it is different in this case. Given that the First State fund is more quality-focused, it has been the less volatile of the two.
“The First State fund has consistently had a lower standard deviation over the three-, five-, and 10-year periods,” Share said.
Three-year annualised volatility*
Fund / Index |
Volatility |
Fidelity Greater China Fund |
18.34 |
First State Greater China Growth |
18.1 |
Index: MSCI Golden Dragon |
17.96 |
Machine learning Chinese investment, BlackRock’s AI patience, Time Magazine’s AI cover, happier staff equal better returns, do wealth managers add value? sexy legs and much more.
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