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.
The Axa fund charges a 0.55% fee for its clean share class (without distribution fees), while the Pimco fund charges 0.76%. The average for the category is 0.63%, making the Axa fund a bargain and the Pimco fund in the more expensive range.
Pimco’s higher fees is to some extent justified by its more active approach, Dobrescu noted. Also, “the managers have quite a lot of drivers [available to them] to try to add value and compensate for the fees handicap,” she added.
Fund managers in this category have been experiencing some fee pressure.
“We are seeing a lot of new offerings coming into the space, including ETFs, that come at very competitive pricing, and are able to replicate the performance of the index quite faithfully,” Dobrescu said.
The category has seen an increase in the share of passive funds. At the end of July 2017, 37.8% of AUM of inflation-linked bond funds was in index funds or ETFs. Three years earlier, the share of passive funds was only 27%.
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.
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