Head To Head

HEAD-TO-HEAD: Fidelity versus Income Partners

FSA compares two Asia high-yield products: Fidelity Funds – Asia High Yield A and Income Partners Managed Volatility High Yield Bond Fund

by Thomas Blott 21 October 202228 October 2022

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Source: FE Fundinfo. Three-year cumulative returns in US dollars.

Performance

Both funds have maintained relatively attractive coupon yields but the capital outcomes have been universally challenging, which is unsurprising given the backdrop of China’s property sector. Fidelity has delivered a return of -40.95% year-to-date and -14.22% last year, while for Income Partners, their figures are -37.35% and -8.23% respectively.

Fidelity has suffered more due to its greater exposure to the China property sector, although that exposure has been managed lower and cash management has helped. In contrast, Income Partners has a reasonable long-term track record, performing well relative to its peers and the index in three and five-year periods.

1-year returns have been more challenging for Income Partners, although Poole notes that the team has stuck to their process and managed downside volatility well.

Discrete calendar year performance

Fund/Sector	YTD*	2021	2020	2019	2018
Fidelity	-40.95%	-14.22%	6.99%	11.95%	-4.67%
Income Partners	-37.35%	-8.23%	10.75%	8.44%	-6.81%

Source: FE Fundinfo. Annual returns in US dollars. *1 Jan 2022 – 14 Oct 2022

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