The Pictet fund receives a four-star Morningstar rating and an analyst rating of Silver, while the Allianz product is not yet rated as it was just launched last year.
The Allianz fund’s institutional share class, however, receives a five-star rating and an analyst rating of Neutral, according to Morningstar Direct.
Morningstar’s star rating looks at historical risk-adjusted performance and the analyst rating is based on forward-looking analysis.
Chelsea’s McDermott is positive on both funds in terms of their teams and processes.
“Both funds are investing in a theme which is only likely to grow in relevance in the future as we globally look to improve the sustainability of our water resources,” he said.
However, he noted that he would “lean marginally” toward the Pictet offering given the more extensive experience of the team.
He also acknowledged that he is more familiar with the Pictet managers.
“We just know the Pictet people better so we have more confidence in picking them,” he said.
“But the [higher] conviction of the Allianz fund makes it an attractive option for those willing to hold for the longer-term,” he said.
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