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.
HEAD-TO-HEAD: Alliance Bernstein vs Columbia Threadneedle
FSA compares the AB American Growth Portfolio and the Threadneedle (Lux) American Fund.
Conclusion
The AB Fund is rated four crowns by FE Analytics, while the Threadneedle Fund has three crowns.
FE’s crown-rating methodology makes use of a fund’s alpha, volatility and a measure of the consistency of their performance.
Ng prefers the AB Fund, citing the manager’s longer track record, both within the company and in managing the fund.
That said, Ng said investors should be aware that the AB Fund is more sensitive to sector rotations, given its stronger growth tilt.
“Investors should be aware that growth and momentum has been in the market for quite some time for now. Going forward, if there’s a rotation, the AB Fund could not be in a beneficial position,” he added.
In addition, although he prefers the AB Fund, he said that the Threadneedle Fund may appeal to investors who are more valuation-conscious and less sensitive to sector rotations.
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