The FSA Spy market buzz – 1 November 2024
Battleshares’ old versus new, Goldman Sachs’ Cassandra warning, Hong Kong property’s negative equity woes, Ninety One’s trillion-dollar question, Contrarian alert from CB, Lists and much more.
Investors considering the two funds should take into account their level of differentiation and conviction. The Allianz fund is more diversified than the Kempen fund, which has a high conviction portfolio.
Despite the high conviction approach, in the past “the Kempen fund has been lower in risk,” Van Genderen noted.
Investors who are looking for explicit incorporation of ESG criteria in the investment process, should consider the Kempen fund.
While the management fees differ, Van Genderen doesn’t consider the difference material.
Despite the better historical performance and lower risk of the Kempen fund, as measured by the three-year return and performance ratios, Van Genderen assigns a higher (forward-looking) analyst rating – Bronze – to the Allianz fund. He rates the Kempen fund neutral.
“I have more conviction in the Allianz fund than in the Kempen fund currently,” he said. The forward-looking rating reflects his unease with the recent turnover in the Kempen team, as well as with the “unimpressive performance” of the firm’s sustainable European small-cap strategy.
Frank Hansen, the manager of the Allianz fund, “is one of the most experienced managers within the European small cap space,” Van Genderen wrote in his fund report. The size of the team, and the expected synergies with the managers of the insurance mandate, should also contribute to the better quality of the management process.
Battleshares’ old versus new, Goldman Sachs’ Cassandra warning, Hong Kong property’s negative equity woes, Ninety One’s trillion-dollar question, Contrarian alert from CB, Lists and much more.
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