HEAD-TO-HEAD: Allianz versus Schroders

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Conclusion

Morningstar awards the Allianz fund two stars. It also states in relation to the analyst rating that the “strategy is in the trusted hands of an experienced and highly regarded manager, but his team needs to find solid footing after several changes in recent years”.

Morningstar also noted that the fund is relatively new but said that it relies on a time-tested approach that has been successfully implemented at the European-focused strategies managed by Winkelmann’s team.

Meanwhile, Morningstar awards the Schroders fund five stars. It also describes in relation to the analyst rating how the process of stock selection gives the fund an edge.

Somers and MacLennan reside in Schroders’ six-strong global and international equity team, while a team of 10 sector specialists filter out the best ideas from Schroders’ broader global analyst team.

In addition, the sustainable growth investor group, which is formed by the pair as well as Simon Webber from the global and international equity team and several members of the firm’s sustainability teams, provides further scrutiny.

Morningstar awards the Allianz fund an analyst rating of neutral and bronze for the Schroders fund.

FE Fundinfo, which bases its assessment on a fund’s three-year history of delivering alpha, minimising relative volatility and producing consistent returns, awards the Schroders fund five stars and does not give the Allianz fund a rating due to its shorter duration.

Overall, van Genderen reckons that the two funds offer slightly different options for investors, although the Schroders fund edges it.

“If investors really want high-quality, high growth, probably the portfolio of the Allianz fund is more suitable. If they want a bit more flexibility in terms of style, less ‘growthy’, more valuation aware, probably the portfolio of Schroders is more suitable,” he said.

“If you look at the ratings, then I would say the Schroders fund has a bronze rating for the retail share class, while the Allianz fund has a neutral rating. So that’s telling something about our conviction in the two strategies.”

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