The FSA Spy market buzz – 22 November 2024
Dimensional excludes the Middle Kingdom; JP Morgan’s optimistic outlook; Household wealth is rocketing; Schroders is thinking about privates; Ninety One’s pithy AI; German woes and much more.
Fees
The products have the same annual management fee of 1.75%, and the ongoing charges figures (OCF) for their retail share classes are similar too. The OCF for the ASI fund is 2.0% and 1.99% for the First State fund, compared with the mean OCF for the sector of 1.80%, according to FE Fundinfo.
The fees are by no means the most extortionate among the funds’ peers – there are three which charge over 3% — but nonetheless “they are a little on the high side”, said Cheung.
“However, it is a risky asset class covering a wide range of sectors and countries, which perhaps justifies a higher charge than other fund categories,” he said.
“So, I’m not particularly concerned that the fees are above average – as long as the managers deliver alpha,” he added.
Dimensional excludes the Middle Kingdom; JP Morgan’s optimistic outlook; Household wealth is rocketing; Schroders is thinking about privates; Ninety One’s pithy AI; German woes and much more.
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