ISIN INF209K01BR9

Overall analysis

3-yr rolling excess returns and TE against benchmark have been good overall; but the funds’ performance in the short run has been deteriorating. The fund had given the maximum excess return in comparison to its peers; but has dropped to below first quartile over the past 1 year.

Performance analysis

Rolling returns – 3yr rolling excess returns over 7 years 

Snail trail – 3y…

Tracking error – 1yr

Information ratio – 1yr

Rolling returns in quartiles

The rolling return chart shows excess 3-year annualised returns in context of peer return quartiles. The blue line’s time above the third green median line indicates the fund’s better than median performance.

Rolling risk/return (Snail-trail) 

The snail-trail chart shows excess 3-year annualised returns and volatility against index. The top-left quadrant indicates higher than index returns with lower volatility.

This fund has shown impressive 3-year excess returns, touching 10% per annum and a significant time around the 4-6% pa, whilst lower than index volatility of 2-3% pa. However, the excess return came down to around 2% towards the end of 2021.

Tracking error

The tracking error chart shows how the fund ‘tracks’ against the index. The higher the TE, the more active the fund’s return has been, with the 2-4% range considered to be barely active, 4-6% range considered to be reasonably active and anything higher attributed to concentrated/focused funds. Funds with TE of less than 2% can be considered to be closet indexers.

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Information ratio

The information ratio is a measure of ‘risk-adjusted return’ as it’s the excess return per unit of excess volatility. Active funds should have IR of higher than 1, ideally higher than 1.3 at least to indicate skill. 

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Prepared by – name, June 2023