The FSA Spy market buzz – 22 November 2024
Dimensional excludes the Middle Kingdom; JP Morgan’s optimistic outlook; Household wealth is rocketing; Schroders is thinking about privates; Ninety One’s pithy AI; German woes and much more.
HEAD-TO-HEAD: Ninety One versus Threadneedle
FSA compares two UK equities products: the Ninety One UK Alpha Fund and the Threadneedle UK Select Fund.
Source: FE Fundinfo. Cumulative returns in US dollars.
Performance
The Ninety One fund has generated three-year cumulative return of 8.01% with annualised volatility of 22.61%, according to FE Fundinfo. UK equities funds available to Hong Kong retail investors is 7.95% (24.32% volatility).
The Ninety One product recorded positive returns in two of the past five calendar years, the strongest of which came in 2019 (23.84%) and 2017 (21.61%) in US dollar terms. The biggest decline came in 2018, when the fund fell almost 16.30%.
Threadneedle three-year cumulative return of only 2.12%, with annualised volatility of 23.45%. Its strongest calendar years were 2019 (22.32%) and 2017 (22.65%), but even then, it underperformed its benchmark, FE Fundinfo data shows.
The fund also suffered in 2018, falling 19.3% over the calendar year.
“It has only managed to beat the index in one of the past five calendar years, and that was in last year’s downturn,” said McDermott.
“But has so far, it has had a stronger start to 2021 than the Ninety One product,” said McDermott, with a US dollar return of 12.39%, compared with 11.04% by Ninety One, according to FE Fundinfo.
Discrete calendar year performance
| Fund/Sector |
YTD* |
2020 |
2019 |
2018 |
2017 |
2016 |
| Ninety One |
11.04% |
-3.65% |
23.84% |
-16.30% |
21.61% |
-9.99% |
| Threadneedle |
12.39% |
-5.76% |
22.32% |
-19.33% |
22.65% |
-12.81% |
| FTSE All Share Index |
14.46% |
-6.94% |
23.95% |
-14.77% |
23.82% |
-2.12% |
| Equity – UK |
14.41% |
-5.84% |
23.24% |
-16.61% |
20.41% |
-7.04% |
Source: FE Fundinfo. Annual returns in US dollars. *31 Dec 2020 – 21 May 2021
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