The FSA Spy market buzz – 26 April 2024
Golden mystery, Next big Healthtech thing, Plastic everywhere, The Magnificent Seven wane, Dreary fund presentation hell, Putting The Economist in its place, A touch of Shakespeare and much more.
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.
Golden mystery, Next big Healthtech thing, Plastic everywhere, The Magnificent Seven wane, Dreary fund presentation hell, Putting The Economist in its place, A touch of Shakespeare and much more.
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