Posted inHead To Head

HEAD-TO-HEAD: Eastspring vs Henderson

FSA compares two Asia-Pacific real estate funds: the Eastspring Asian Property Securities Fund and the Henderson Asia Pacific Property Equities Fund.
by Fund Selector Asia
Conclusion

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FE gives the Eastspring fund a five-crown rating and the Henderson one, four crowns, indicating that the former posted much better risk-adjusted performance in terms of alpha, volatility and consistency over the last three years, Ng said.

However, he pointed out the the Eastspring product might be exposed to liquidity risks due to the small fund size and the exposure to emerging Asia.

“The fund seemed to experience a massive redemption in the first quarter of 2015 when the fund size dropped by half in the period.” Fund size tumbled to $7.7m in January 2015 from $13.9m a month earlier, and remained relatively stable afterward.

“Under these circumstances the fund manager may be forced to liquidate some of the less liquid holdings in order to meet the redemption pressure,” Ng said.

It’s hard to single out one fund as the best choice because the investment focus of each is different, Ng continued.

“For investors who do prefer avoiding exposure to emerging markets, the Henderson fund would suit better.

“Investors who are happy to gain some exposure in emerging Asia can consider the Eastspring fund,” he concluded.

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