Posted inHead To Head, News, Research

HEAD-TO-HEAD: First State vs Value Partners

FSA compares the First State Asian Equity Plus Fund and the Value Partners High-Dividend Stocks Fund
by Fund Selector Asia
Performance

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Source: FE. All data relevant is converted to US dollar for comparison purpose.

The First State fund shows consistent outperformance over the Value Partners’ fund and other peers on a one-, three-, and five-year basis.

Ng noted that the Value Partners’ fund tends to be more volatile than the First State fund. “Smaller caps and China-related stocks can fluctuate a lot, which may result in a higher volatility.”

“The Value Partners fund performs better on a ten-year basis because of its impressive outperformance in the market rebound starting in 2009. After the financial crisis, its CIO office advised the fund to take a more aggressive position, which led to an outperformce during the year.”

Ng added that the First State fund has downside protection because of an absolute return approach. It also tends to perform better than Value Partners under a fundamentals-driven rally, but does not benefit from sentiment-driven market rallies.

In terms of portfolio dividend yield, the First State fund generates 2%, which Ng said is rather low compared with dividend funds in Asia. The Value Partners fund delivers a 4% yield, according to the April factsheet.

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