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 Invesco
FSA compares two UK corporate bond funds: the Axa Sterling Short Duration Bond Fund and the Invesco UK Investment Grade Bond Fund.
Conclusion
The Axa fund receives a one-star Morningstar rating and an analyst rating of Neutral, while the Invesco product receives three-stars and also a Neutral analyst rating.
Morningstar’s star rating looks at historical risk-adjusted performance and the analyst rating is based on forward-looking analysis.
Chelsea’s McDermott is positive on both funds as they have different roles to play in a portfolio.
“We like both funds for different reasons. The Axa fund is a more defensive fixed income element in a portfolio.” For investors concerned about rising interest rates or inflation, the Axa product could be a consideration, he said.
“If you are more positive on bonds and think interest rates have peaked, the Invesco fund may appeal more,” McDermott said.
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