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

123456

Conclusion

The AB fund has a four-star Morningstar rating and an analyst rating of Bronze, while the Blackrock fund carries three stars and a Neutral analyst rating.

Morningstar’s star rating looks at historical risk-adjusted performance and the analyst rating is based on forward-looking analysis.

Based on the analyst rating, Wolfstetter prefers the AB fund over the Blackrock fund.

“In the end, it’s driven by our conviction on the lead manager, that is what is driving the Bronze rating,” she said.

However, she noted that investors should be aware of the risk that the fund is not easily replicable.

If the lead manager were to leave, a big change may be required in the fund’s analyst rating, she added.

Wolfstetter noted that both funds have different styles. For example, The AB fund would be more suitable for investors who prefer to have limited downside risk, while the Blackrock fund is for investors with a tilt toward growth who have a comparatively higher risk tolerance.

“I would say there would be a number of alternatives to choose from and probably it wouldn’t be the Blackrock fund at this stage.”

She added that she first wants to see more stability in the fund’s investment team.

123456

Related Stories

FSA SPY

The FSA Spy market buzz – 13 December 2024

M&G’s positive outlook; Wisdom from Schroders’s podcast; Alliance Bernstein on the power of curiosity; Janus Henderson on responsible AI; China’s retirement revolution; Apple and much more.

Part of the Mark Allen Group.