Posted inHead To Head

HEAD-TO-HEAD: First State vs Schroders

FSA compares two Asia-Pacific dividend-focused funds: the First State Asian Equity Plus Fund and the Schroder ISF Asian Equity Yield Fund.
by Fund Selector Asia
Conclusion

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The First State fund receives a Morningstar Analyst Rating of Gold and a five-star rating, and the Schroders fund a Silver and four-star.

Morningstar’s analyst rating is a forward-looking analysis of a fund, while the star rating looks at historical risk-adjusted performance.

Analysts assign the ratings on a five-tier scale with three positive ratings of Gold, Silver, and Bronze, a Neutral rating, and a Negative rating. A Gold, Silver, or Bronze rating means Morningstar analysts think highly of the fund and expect it to outperform over a full market cycle of at least five years.

The First State fund stands out mainly because of the portfolio manager and the comparatively lower fees, Share noted.

“The fund manager has a strong track record and  is also responsible for a range of Greater China mandates,” she said.

While income-themed products have been quite popular in recent years, she added that the Schroders fund might be more suitable for investors who want a clear dividend mandate and look for yield.

To offer better downside protection, the First State fund would be the better option of the two, she said.

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