The FSA Spy market buzz – 6 September 2024
Machine learning Chinese investment, BlackRock’s AI patience, Time Magazine’s AI cover, happier staff equal better returns, do wealth managers add value? sexy legs and much more.
According to FE data, the Invesco fund has outperformed its benchmark on a three-, five- and 10-year basis.
Cumulative performance
Fund / benchmark |
3 years |
5 years |
10 years |
Invesco Japanese Equity Advantage |
30.68 |
39.56 |
132.53 |
Index: TSE Topix |
28.56 |
29.46 |
88.90 |
Pictet Japanese Equity Selection |
31.95 |
22.36 |
70.67 |
Index: MSCI Japan |
29.23 |
27.40 |
85.59 |
On a yearly basis, the Invesco fund also tends to outperform the market, given its strong emphasis on quality.
“The Invesco fund tries to outperform the market regardless of what the current market condition is. They also seem to do well in a down market,” he added.
Discreet annual performance
Fund / benchmark |
YTD 2019 |
2018 | 2017 | 2016 | 2015 |
2014 |
Invesco Japanese Equity Advantage |
7.31 |
-9.34 | 29.86 | 5.14 | 9.26 |
-1.11 |
Index: TSE Topix |
7.72 |
-13.73 | 26.55 | 3.46 | 11.69 |
-3.4 |
Pictet Japanese Equity Selection |
8.02 |
-16.48 | 25.41 | 3.64 | 6.7 |
-4.04 |
Index: MSCI Japan |
8.48 |
-12.58 | 24.39 | 2.73 | 9.9 |
-3.72 |
Turning to the Pictet fund, Ng believes that the product’s performance depends on whether value stocks are in favour.
“If value stocks rally, the Pictet fund will benefit. But if there is a market rotation toward growth companies, the Pictet fund will underperform,” he said.
Taking 2016 as an example, he said that deep value stocks were favoured during the second half of the year and the Pictet product returned 14.6% while the Invesco fund only returned 3.1%.
“But for the full year 2016, the Invesco fund still outperformed. That means that in the first half, the Invesco fund’s outperformance was stronger in magnitude.”
In terms of volatility, the Invesco fund is less volatile than the Pictet product, according to data from FE.
Three-year annualised volatility
Fund / Index |
Volatility |
Invesco Japanese Equity Advantage |
12.49 |
Index: TSE Topix |
12.39 |
Pictet Japanese Equity Selection |
13.62 |
Index: MSCI Japan |
12.15 |
Machine learning Chinese investment, BlackRock’s AI patience, Time Magazine’s AI cover, happier staff equal better returns, do wealth managers add value? sexy legs and much more.
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