The FSA Spy market buzz – 31 March 2023
Retirement at Aviva Investors, inflation beneficiaries (maybe), Allianz Global Investors is going all in in China, BNP Paribas’ thematic outlook, UBS and Credit Suisse, Nasdaq performance and much more.
With the lock-down measures imposed by different countries to contain the Covid-19 pandemic, asset and wealth managers have built the case for the stay-at-home economy companies, which include the technology sector.
On a year-to-date basis, global technology stocks have indeed outperformed their broader peers, with the MSCI ACWI Information Technology Index up 30.36% versus the MSCI ACWI Index’s returns of just 4.8%.
Fund managers are now taking advantage of the opportunities presented in the tech sector and are pushing technology-focused products to investors.
For example, in Hong Kong, three firms will be offering tech ETFs tracking the new Hang Seng Technology Index that was just launched in late-July.
Other firms operating in the SAR have also opted to offer technology-themed products, including Mirae Asset Global Investments, which listed two China thematic ETFs that invest in the robotics and AI and semiconductor themes, and Nikko Asset Management, which launched the E-Games Active ETF in June this year and the Global Internet ETF in October.
Against this backdrop, FSA asked Darius McDermott, managing director at Chelsea Financial Services, to compare two highly-rated global technology equity funds: The Axa Framlington Global Technology Fund and the T Rowe Price Global Technology Equity Fund.
|Axa IM||T Rowe Price|
|Launch date (Sicav)||2011||2015|
|Manager||Jeremy Gleeson, Tom Riley||Alan Tu|
|Three-year cumulative return||111.40%||83.30%|
|Three-year annualised return||26.02||20.4|
|Three-year annualised alpha||6.04||0.08|
|Three-year annualised volatility||23.01||22.96|
|Morningstar analyst rating||Bronze||Bronze|
|Morningstar star rating||****||****|
|FE Crown fund rating||***||**|
Part of Mark Allen.