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: Franklin Templeton versus Loomis Sayles
FSA compares two US growth equities products: the Franklin US Opportunities Fund and the Natixis Loomis Sayles US Growth Equity Fund.
INTRODUCTION
Growth investors have reaped high rewards during the past decade’s bull market, leaving value investors scampering for the leftovers.
Silicon Valley has provided stock market winners, despite trading at extraordinary multiples, while advocates of undervalued and unglamorous stocks have struggled.
The Russell 3000 Growth index is up 354% in the last 10 years, more than double the return of the Russell 3000 Value index, according to FE Fundinfo data.
Meanwhile, the coronavirus pandemic has simply exacerbated the disparity, as growth investors have been encouraged by predictions that technology trends will accelerate.
The growth index has risen 27% since the start of the year, and the value index dropped 9.8%, FE Fundinfo data shows.
Whatever the eventual result of the presidential election – and its aftermath – it is unlikely that growth stocks will lose their lustre.
FSA asked Isaac Poole, global chief investment officer at Oreana Portfolio Advisory, to compare two US growth funds that he is considering for his portfolios: the Franklin US Opportunities Fund and the Natixis Loomis Sayles US Growth Equity Fund.
| Franklin Templeton | Loomis Sayles | |
| Size | $6.22bn | $2.81bn |
| Inception | 2000 | 2016 |
| Managers | Grant Bowers, Sara Araghi | Aziz Hamzaogullari |
| Three-year cumulative return | 77.90% | 58.43% |
| Three-year annualised return | 17.63% | 14.54% |
| Three-year annualised alpha | 9.38 | 7.51 |
| Three-year annualised volatility | 21.95% | 20.25% |
| Three-year information ratio | 1.08 | 0.93 |
| Morningstar star rating | ***** | *** |
| Morningstar analyst rating | neutral | silver |
| FE Crown fund rating | **** | ***** |
| OCF (clean share class) | 1.81% | 1.15% |
Source: FE Fundinfo, Morningstar. (Data in US dollars, 5 November 2020)
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