News

HEAD-TO-HEAD: Fidelity vs Haitong

FSA compares two Asian high yield bond funds with sharply contrasting strategies and profiles: the Fidelity Asian High Yield Fund and the Haitong Asian High Yield Bond Fund.

by Rupert Walker 15 February 201910 November 2020

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Source: FE Analytics. Time period since launch of the Haitong fund. Fund NAVs in US dollars.

Performance

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

Source: FE Analytics

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