Posted inHead To Head

HEAD-TO-HEAD: AB versus Blackrock

FSA compares two US large-cap equity funds: the AB Select US Equity Portfolio and the BGF US Flexible Equity Fund.
by Francis Nikolai Acosta

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Fees

The AB fund’s clean share class’ ongoing charge (OCF) is 0.79%, while the Blackrock fund’s OCF is 1.07%, according to Wolfstetter.

The clean share class of the AB fund is competitively priced, while the Blackrock fund is more expensive than the peer fund median. The peer median for the clean share classes of US large cap funds is 0.89%, according to Wolfstetter.

However, for their retail share classes, both funds are more expensive than the peer median.

The AB fund’s retail share class’ OCF is 1.98%, while the Blackrock fund’s OCF is 1.82%. The peer median for the retail share class of the sector is 1.58%.

Wolfstetter believes that both funds can lower their fees as both already have sizable assets. , Both managers each manage at least $10bn in assets in the same strategy, which includes both mutual fund, segregated mandates and other structures.

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