The FSA Spy market buzz – 6 September 2024
Machine learning Chinese investment, BlackRock’s AI patience, Time Magazine’s AI cover, happier staff equal better returns, do wealth managers add value? sexy legs and much more.
Both the Axa and T Rowe funds invest in global technology stocks and employ a bottom-up approach to investing.
At first glance, both funds look similar. For example, the offerings have a tilt toward US-listed companies, although the Axa fund has a higher allocation to the market, according to McDermott.
Country/regional allocation
Axa IM | T Rowe Price | ||
Country | % | Country | % |
North America | 86.28% | US | 69.7 |
Emerging markets | 6.31% | China | 7.4 |
Developed Apac (ex-Japan) | 1.32 | Canada | 4.4 |
Europe (ex-UK) | 1.27 | Taiwan | 3.7 |
UK | 2.01 | Netherlands | 3.5 |
Singapore | 3.2 | ||
Germany | 3.1 | ||
South Korea | 2.6 | ||
Brazil | 0.8 | ||
Argentina | 0.5 |
In addition, both funds have Facebook, ServiceNow, Salesforce and Amazon.com on their top 10 holdings, according to their fund factsheets. The level of concentration of their top 10 holdings is also similar, lying between 35-40% of their portfolios.
Top 10 holdings
Axa IM | T Rowe Price | ||
Company | % | Company | % |
Apple | 7.9% | Amazon.com | 6.10% |
Alphabet | 6.5% | Alibaba | 5.90% |
Visa | 3.6% | Shopify | 4.40% |
Qualcomm | 3.0% | Netflix | 4.30% |
2.8% | Taiwan Semiconductor Manufacturing | 3.70% | |
ServiceNow | 2.6% | Sea | 3.20% |
Paypal Holdings | 2.5% | Salesforce.com | 3.20% |
Salesforce.com | 2.4% | 3.20% | |
Amazon.com | 2.4% | Slack Technology | 2.80% |
Cisco Systems | 2.3% | ServiceNow | 2.80% |
Number of holdings | 66 | Number of holdings | 50 |
However, McDermott pointed out that both funds have some differences, particularly on the market-cap spectrum that they invest in.
According to him, the Axa fund is more open to investing in small- to medium-sized companies.
“[The Axa manager] believes the benchmark is populated with the successful technology companies of the past, not necessarily the future. He, therefore, looks for new technology with proven commercial viability,” McDermott said.
On the other hand, the T Rowe fund is more biased toward mid- to large-cap companies “that they believe are positioned to benefit from key secular trends and have long-term growth prospects”. cu
Market cap | Axa IM | T Rowe Price |
Giant | 34.31% | 47.86% |
Large | 27.46% | 36.17% |
Mid | 24.06% | 11.20% |
Small | 5.00% | 0.53% |
Machine learning Chinese investment, BlackRock’s AI patience, Time Magazine’s AI cover, happier staff equal better returns, do wealth managers add value? sexy legs and much more.
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