Posted inHead To Head

HEAD-TO-HEAD: Axa IM versus T Rowe Price

FSA compares two global equity funds: The Axa Framlington Global Technology Fund and the T Rowe Price Global Technology Equity Fund.
by Francis Nikolai Acosta

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The Axa and T Rowe Price funds versus the MSCI ACWI Technology Index.

PERFORMANCE

Given that both funds invest in the technology sector, they are expected to do well in growth markets, according to McDermott.

Discreet annual performance

Fund / index / sector YTD 2020 2019 2018 2017 2016
Axa IM fund 35.01 39.15 0.78 42.14 2016
T Rowe Price fund 44.77 31.85 -10.92 46.01 7.73
MSCI ACWI Information Technology 30.56 47.52 -5.47 42.27 4.91
Source: FE Fundinfo. In US dollars.

He noted that in theory, the Axa fund may not fare well in a market sell-off because of its investments in small-cap companies.

“But the thematic stock-picking approach taken by the fund manager means that he has been able to avoid significant losses at these times,” he said. For example, when the technology index was down in 2018, the fund still produced positive returns during the year, FE Fundinfo data shows.

Longer-term, the Axa fund has performed better than the T Rowe offering on a three- and five-year cumulative basis, according to FE Fundinfo.

Fund / benchmark 3 years 5 years
Axa IM fund 111.40% 214.10%
T Rowe Price fund 83.80% 198.44%
MSCI ACWI IT Index 102.46% 212.21%
Source: FE Fundinfo. In US dollars.

In terms of volatility, both offerings are slightly more volatile than the index, according to FE Fundinfo.

Three-year annualized volatility

Fund / Index Volatility
Axa IM 23.01
T Rowe Price 22.96
MSCI ACWI IT Index 21.93

Source: FE Fundinfo

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