Head To Head

HEAD-TO-HEAD: Axa IM versus T Rowe Price

FSA compares two global equity funds: The Axa Framlington Global Technology Fund and the T Rowe Price Global Technology Equity Fund.

by Francis Nikolai Acosta 28 August 202030 November 2020

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Darius McDermott, Chelsea Financial Services

INTRODUCTION

With the lock-down measures imposed by different countries to contain the Covid-19 pandemic, asset and wealth managers have built the case for the stay-at-home economy companies, which include the technology sector.

On a year-to-date basis, global technology stocks have indeed outperformed their broader peers, with the MSCI ACWI Information Technology Index up 30.36% versus the MSCI ACWI Index’s returns of just 4.8%.

Fund managers are now taking advantage of the opportunities presented in the tech sector and are pushing technology-focused products to investors.

For example, in Hong Kong, three firms will be offering tech ETFs tracking the new Hang Seng Technology Index that was just launched in late-July.

Other firms operating in the SAR have also opted to offer technology-themed products, including Mirae Asset Global Investments, which listed two China thematic ETFs that invest in the robotics and AI and semiconductor themes, and Nikko Asset Management, which launched the E-Games Active ETF in June this year and the Global Internet ETF in October.

Against this backdrop, FSA asked Darius McDermott, managing director at Chelsea Financial Services, to compare two highly-rated global technology equity funds: The Axa Framlington Global Technology Fund and the T Rowe Price Global Technology Equity Fund.

	Axa IM	T Rowe Price
Size	£1.21bn ($1.61bn)	$1.02bn
Launch date (Sicav)	2011	2015
Manager	Jeremy Gleeson, Tom Riley	Alan Tu
Three-year cumulative return	111.40%	83.30%
Three-year annualised return	26.02	20.4
Three-year annualised alpha	6.04	0.08
Three-year annualised volatility	23.01	22.96
Morningstar analyst rating	Bronze	Bronze
Morningstar star rating	****	****
FE Crown fund rating	***	**
OCF	0.82%	1.02%

Source: FE Fundinfo, Morningstar Direct.

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