The FSA Spy market buzz – 22 March 2024
AllianzGI on China stewardship, Death of the mutual fund, W’s top financial centres, Schroders on Japan, Swiss cuts and Japanese hikes, Reddit, Book wisdom and more.
“We clearly have more conviction in the Pimco fund,” said Dobrescu.
This is reflected both in Morningstar’s people rating (high for Pimco, average for Amundi) and its process rating (above average for Pimco, average for Amundi).
Dobrescu also believes that Pimco has other more investor-friendly attributes.
“The firm has a more robust investment culture, a better talent pool overall and a more successful fund line-up,” she said.
The strategy saw large outflows during March and April 2020, but it had built liquidity over the prior 12-18 months as Pimco backed away from tightening valuations.
“Managing those flows while keeping returns in healthy range of its peers underscores the management team’s appeal,” said Dobrescu.
In contrast, the Amundi fund “has seen several rounds of changes in its supporting cast, and its strategy entails high risks, which limits our conviction,” she said.
Nevertheless, the mixture of assets in the portfolio has “generally been additive under Crosnier’s watch, although it has struggled in risk-off periods,” she said.
AllianzGI on China stewardship, Death of the mutual fund, W’s top financial centres, Schroders on Japan, Swiss cuts and Japanese hikes, Reddit, Book wisdom and more.
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