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.
Both the JP Morgan and UBS funds have consistently outperformed their benchmark index and peers, according to Liang.
However, she noted that the funds’ strong performance in the past year is partly due to their focus on growth stocks.
“Both funds will do well when growth stocks are in favour,” she said.
On the flipside, Liang said that the funds may underperform when value stocks rally.
However, she noted that the UBS fund may provide more downside protection in value rallies as it is more flexible in terms of managing its cash position.
“In 2018, value stocks performed better than growth stocks, but the UBS fund was still able to outperform the index due to its large cash position,” she said.
Discreet annual performance (%)
Fund / index / sector |
YTD 2020 |
2019 | 2018 | 2017 | 2016 | 2015 |
2014 |
JPM China |
-1.71 |
41.29 | -23.13 | 59.11 | -4.64 | -7.71 |
6.12 |
UBS (Lux) Equity China Opportunity |
-2.92 |
41.56 | -14.66 | 59.37 | -2.3 | 15.95 |
1.86 |
Index : MSCI China 10/40 GTR in US |
-8.48 |
22.41 | -18.11 | 49.62 | 0.65 | -7.81 | 8.69 |
Sector : HKM Equity China TR in US |
-6.96 |
27.57 | -22.2 | 37.83 | -8.52 | -4.85 |
17.26 |
In terms of volatility, Liang expects the UBS fund to be less volatile compared to the index, given that it makes use of cash to limit downside risk, while the JP Morgan fund’s volatility would resemble that of the index given that it is more benchmark-aware.
Three-year annualised volatility
Fund / Index |
Volatility |
JPM China |
22.98 |
UBS (Lux) Equity China Opportunity |
21.02 |
Index : MSCI China 10/40 GTR in US |
21.19 |
Sector : HKM Equity China TR in US |
19.07 |
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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