Posted inHead To Head

HEAD-TO-HEAD: Henderson vs Polar Capital

FSA compares the Henderson Horizon Global Technology Fund with the Polar Capital Global Technology Fund.
by Fund Selector Asia
Conclusion

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While both funds have delivered decent performance over the last few years, the choice between the two funds depends on the investor’s preference.

The Henderson fund tends to stay close to its benchmark, with a relatively low active share. It is more suitable for investors who are looking for less variability versus the index and more exposure to the heavyweights of the sector, noted Meakin.

The fund’s large-cap bias should provide a better protection in weaker market conditions, he said. “That has helped the performance in the past, in 2008 and 2011, which were very tough years,” he noted. The higher concentration in top companies, however, adds company-specific risk.

The Polar Capital fund is more active in its approach, delivering more exposure to disruptive technologies. This involves more risky bets, which have, however, led to the fund’s outperformance with respect to the benchmark and the Henderson fund over the past few years, albeit at the cost of higher volatility.

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