Posted inHead To Head

HEAD-TO-HEAD: Fidelity vs Pinebridge

FSA compares two Greater China equity products: the Fidelity Greater China Fund and the Pinebridge Greater China Equity Fund.
by Rupert Walker

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Conclusion

FE Analytics has awarded the Fidelity fund four crowns and two crowns to the Pinebridge fund. The crown-rating methodology assesses the fund’s alpha, volatility and consistency of performance.

Ng concurs with his firm’s assessment, but with a small caveat.

“The Fidelity fund performs better in upward markets, largely due to its growth bias. The Pinebridge fund perhaps offers slightly better downside protection, but Fidelity’s flexible approach means that it has also held up well in more volatile or weak market conditions,” he said.

Perhaps more worrying, Fidelity’s Ma focuses on the type of high tech growth company that is central to President Xi Jinping’s “Made in China 2025” project – which is anathema to some US policy makers.

As the current Sino-US trade conflict and the recent sanctions against Huawei demonstrate, companies are vulnerable when they are in sectors that become the focus of controversy and accusations of unfair practices, said Ng.

“Nevertheless, despite these big-picture concerns, the Fidelity fund remains a better option,” Ng concluded.

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