The FSA Spy market buzz – 28 March 2025
JP Morgan Asset Management gets enhanced; Thailand wants some leverage; Natxis is surveying the world; A billionaire here, another there; Business social media lunacy; Andrew Carnegie’s wisdom and more.
With China being one of the first countries to contain the pandemic, Chinese equities became one of the best-performing asset classes last year.
The MSCI China returned 29.67% for the full year 2020, which compares with the 16.82% return of the MSCI All Country World Index.
However, with the rest of the world catching up on the back of the vaccine rollout, returns in the China equity market have become muted, returning only 0.9% on a year-to-date basis.
Louise Liu, investment strategist at Oreana Financial Services, continues to believe that Chinese equities should provide investors with long-term investment opportunities.
“China has a massive domestic consumer base, which is the real driver of the economy,” she said.
“We remain positive on the asset class, and we don’t see we are lowering our allocation to the asset class any time soon,” she said.
Against this backdrop, FSA asked Liu to compare two China equity funds, and she chose the Schroder ISF China Opportunities Fund and the UBS (Lux) Equity Fund – China Opportunities Fund.
Schroders | UBS AM | |
Size | $1.76bn | $15.3bn |
Inception | 2006 | 1996 |
Manager | Louisa Lo | Bin Shi, Denise Cheung, Morris Wu |
Three-year cumulative return | 45.85% | 44.23% |
Three-year annualised return | 13.41% | 13.35% |
Three-year annualised alpha | 3.78 | 4.46 |
Three-year annualised volatility | 22.27 | 20.82 |
Morningstar analyst rating | Gold | Silver |
Morningstar star rating | **** | ***** |
FE Crown fund rating | **** | ***** |
OCF | 1.84% | 2.40% |
Benchmark | MSCI China | MSCI China 10/40 |
JP Morgan Asset Management gets enhanced; Thailand wants some leverage; Natxis is surveying the world; A billionaire here, another there; Business social media lunacy; Andrew Carnegie’s wisdom and more.
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