The FSA Spy market buzz – 26 July 2024
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There is a wide divergence in the performance of the two products since the launch of the Haitong fund on 20 May 2016.
Fidelity has earned a 14.19% cumulative return, much higher than the -1.03% return by Haitong and significantly outperforming the Asia Pacific sector average of funds available to Hong Kong and Singapore retail investors.
Fidelity has also done better over a one-year period, posting a positive return of 0.11% versus -0.02% for the sector and -3.08% by Haitong. However, the latter’s focus on China property bonds has, so far, paid off this year. Haitong is up 6.68% during the last three months, outstripping the 4.6% return by Fidelity.
In contrast to their often divergent returns, the two funds share a propensity to take risk.
“Both funds experience above average volatility,” said Ng.
Asia fixed income annualised volatility since 2016 ranges from 2.7% to 3%, which is lower than Haitong’s 4.59% and Fidelity’s 3.54% volatility.
Discrete annual performance %
Fund / Sector / Index |
2018 |
2017 |
2016 |
2015 |
2014 |
Fidelity |
-4.67 |
6.95 |
13.56 |
1.47 |
3.49 |
Haitong |
-6.78 |
0.22 |
– |
– |
– |
Sector |
-3.07 |
6.74 |
3.32 |
-1.82 |
2.59 |
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