HEAD-TO-HEAD: Fidelity versus Schroders

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

Performance

The Schroder fund has delivered strong annual returns for several years, and its three-year cumulative performance exceeds its peers and, by some margin, the return posted by the Fidelity product.

It has generated 36.49% over three years, compared with a sector average of 27.43% and a disappointing -0.61% by the Fidelity fund, according to FE Fundinfo. Annualised volatility of about 21% are similar for both products.

The contrast in performance has been especially stark this year, during the rally in China stocks led by consumer discretionary, technology and other growth sectors.

The Schroder fund is up 27.75%, whereas the value-oriented Fidelity fund is down 7.15%, according to FE Fundinfo.

At the helm of the Fidelity fund, “Jing Ning’s adherence to her value discipline may cause periods of underperformance when growth stocks rally,” according to Share.

2019 was a prime example as the strategy severely lagged the MSCI China 10/40 Index and peers.

However, she has managed to deliver robust long-term returns over her tenure, and overall Share “continues to think highly of Ning and her adherence to the investment process, making this strategy an attractive proposition”.

The strategy for the Schroder fund has delivered strong returns since Louisa Lo took over in August 2013, according to Share.

“Outperformance has been consistent, with the fund posting better returns than its peers every calendar year since Lo’s arrival in charge,” said Share.

Discrete annual performance

 Source: FE Fundinfo. Annual returns in US dollars. *to 4 September 2020

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