Fund performance
Both of the funds deliver higher dividend yields than that of their respective benchmarks. While Threadneedle’s yield tends to be higher, one has to note that Invesco is often willing to trade off yields in return for better capital appreciation.
For the latest positioning of the two funds, Threadneedle is adding more defensive exposure while Invesco is leaning towards economically sensitive stocks due to attractive valuation.
A look at cumulative performance returns:
| Period | Threadneedle (%) | Invesco (%) |
|
6 months |
-7.08 | -3.01 |
| 1 year | 3.46 | 0.48 |
|
3 years |
27.12 | 30.63 |
| 5 years | 22.32 | 67.02 |
A snapshot of discrete annual performance to last quarter end:
| Period | Threadneedle (%) | Sector (%) |
| 1 year | -0.8 | 0.83 |
| 3 years | 19.77 | 25.85 |
| 5 years | -0.02 | -3.00 |
| Period | Invesco (%) | Sector (%) |
| 1 year | -4.51 | -5.79 |
| 3 years | 23.43 | 18.06 |
| 5 years | 6.25 | -5.68 |
A look at both funds’ volatility:
| Beta | Volatility | |
| Threadneedle | 1.0 | 10.00 |
| Invesco | 0.93 | 9.38 |
| MSCI AC World | – | 9.70 |
| MSCI World | – | 9.18 |
Ng noted that for investors seeking protection, Threadneedle’s returns and record would look appealing. For investors with a greater risk appetite, Invesco will be a suitable choice.
“Invesco could perform better going forward as the condition of stock markets stabilise. On the other hand, Threadneedle could offer better downside protection as uncertainties remain,” Ng said.
“Invesco will suit investors who value a balance between income and growth, while those who have a higher income focus can consider Threadneedle,” he added.
