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: CCB Principal vs E Fund
FSA compares two China onshore funds available for sale in Hong Kong through the Mutual Recognition of Funds (MRF): the CCB Principal Dual Income Bond Fund and the E Fund Stable Return Bond Fund.
The CCB Principal fund’s H class (for sale in Hong Kong) has estimated ongoing charges of 0.91% per year, which is close to its fee level in the mainland. “The fee is priced low and reasonable”, as compared to the onshore funds in the same category, said Yao.
The E Fund product currently only sells in onshore China. It has total fees of 1.11%. “The product charges are in the middle of the category.”
One point to note is that the onshore funds normally charge a redemption fee. For the CCB Principal fund, the level is set at a flat rate of 0.025% in the SAR.
In the mainland, the two funds have redemption fees set according to the holding period. The CCB Principal fund’s varies from 0.10% (holding period less than one year) to zero if the investor holds it longer than two years. The E Fund’s charges 0.75% if holding period is less than a month, and the fee is waived if it is longer than two years.
Related Stories
Promoted Content
-
Despite headwinds, ESG continues to perform
-
Tap into Japan’s post-pandemic growth trends
-
Nuveen broadens income sources via private capital and real assets
-
Dynamism is the name of the game for this global macro strategy
-
M&G Episode Macro shines after tough year
-
Sustainable Investing in Changing Market Conditions
-
Fixed income – making ground in ESG as ETFs see rapid growth in AUM
-
Taking a thematic approach to harness disruption
-
Accessing India’s tech future
-
Ninety One: Finding opportunities in times of change
