HEAD-TO-HEAD: FSSA versus GQG Partners

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Source: FE Fundinfo. Cumulative returns in US dollars.

Performance

Both of the products are relatively new.

The FSSA Global Emerging Markets Focus Fund was launched in 2017 but the Singapore share class came later in June 2019.

Since then, it has returned 9.55% (in US dollar terms), according to FE Fundinfo, compared with a sector average of 26.43% and 27.84% by its MSCI Emerging Markets Index benchmark.

The fund is down -0.92% year-to-date, according to FE Fundinfo data, underperforming the sector average (3.20%) and its benchmark (-0.37%).

“You would expect the fund to underperform if certain sectors, such as tobacco and munitions firms, it excludes do well,” said McDermott.

“The GQG Partners Emerging Markets Equity Fund has been around a little longer, having been launched in February 2017,” McDermott noted.

It has generated a 63.01% three-year cumulative return, outperforming the emerging markets equity sector average (38.91%) and its MSCI Emerging Markets Index benchmark (40.57%), according to FE Fundinfo. Its 34.51% return since the launch of the FSSA product in June 2019 is also better.

Particularly strong calendar years include 2020, when it delivered 32.62%, compared with 15.16% by its sector and 18.31% by its benchmark.

“It had a very good 2020 – double the peer group – and its overweight to India and underweight to China have heled this year,” said McDermott.

“The fund has had good performance and generally been less volatile than the market and its peers,” he added.

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