The FSA Spy market buzz – 13 December 2024
M&G’s positive outlook; Wisdom from Schroders’s podcast; Alliance Bernstein on the power of curiosity; Janus Henderson on responsible AI; China’s retirement revolution; Apple and much more.
HEAD-TO-HEAD: Axa versus Fidelity
FSA compares two global real estate products: the Axa Framlington Global Real Estate Securities Fund and the Fidelity Global Property Fund.
Fees
The ongoing charges (OCF) of the Axa fund’s clean share class is 1.16%, while the Fidelity product’s OCF is 1.94%.
Both funds are more expensive than their peers, according to Van Genderen. The peer median OCF for the clean share class of global real estate funds is 0.98%, he said.
For the retail share classes in Hong Kong, the Axa fund’s OCF is 2.02%, while the Fidelity product’s OCF is 1.94%. The OCF peer median of SFC-authorised real estate funds is 1.94%.
Van Genderen believes that both products should lower their fees to make them more attractive to investors.
“The global property market is already a very difficult market to beat. So the lower the cost, the easier it will be for fund managers to outperform the benchmark,” he said.
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