HEAD-TO-HEAD: Fidelity versus UBS

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Conclusion

Morningstar has awarded the Fidelity product three stars based on historical returns, and a neutral analyst rating for its retail share class. The firm gives the UBS fund four stars, and also a forward-looking analyst rating of neutral.

FE Fundinfo, which bases its assessment on a fund’s three-year history of delivering alpha, minimising relative volatility and producing consistent returns, awards the Fidelity product two crowns, and rates the UBS fund higher with three crowns.

“The Fidelity Asian High Yield is a trailblazer in the Asian high-yield bond space and benefits from a well-established investment process,” said Ge.

“The fund is a pioneer, and we have always liked the fund.”

“However, we are still building confidence in the new leadership after the departure of the fund’s long-time manager,” he cautioned.

Launched in 2007, the strategy benefits from a time-tested and well-structured approach focused on building an income portfolio via bottom-up credit selection.

“The new managers, so far, have reaffirmed the robustness of the investment process,” said Ge.

Morningstar has been covering the UBS BS Asian High Yield Fund for less time, but is impressed with its stable management team, consistent strategy and its performance.

“The fund benefits from a proven bottom-up-focused investing approach and a seasoned Asian credit portfolio manager who has supported the strategy since its launch,” said Ge.

“Under Dilkes’ leadership, the strategy has delivered strong results while curbing volatility,” he said.

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