The FSA Spy market buzz – 28 March 2025
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HEAD-TO-HEAD: Henderson vs Polar Capital
FSA compares the Henderson Horizon Global Technology Fund with the Polar Capital Global Technology Fund.
Both funds charge an outperformance fee, in addition to their ongoing charges. They both apply a high-water mark provision to their performance fees, which means that the manager will earn the fee for outperformance of the benchmark only after recouping losses of the previous year, explained Meakin.
The Henderson fund charges a 20% outperformance fee and a 1% OCF. “While the fees vary across investment groups, 20% is toward the higher end,” commented Meakin.
The Polar Capital fund charges a 10% outperformance fee and a 1.16% OCF.
“When there’s a performance fee, we like to see that the management fee is commensurately lower,” said Meakin. Otherwise, they would fail as incentives aligning the interests of fund managers and investors, he added.
The Henderson fund shares registered for sale in Hong Kong carry a 1.88% OCF according to data from FE. The Polar Capital fund shares authorised for sale in Singapore charge 1.66% OCF.
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