The FSA Spy market buzz – 3 May 2024
Catholic principles investment, Brown Advisory and ESG, Robotics and automation fun, China’s little bounce, Frontier investing excitement, Zero downside in wonderland, Bambu’s demise and much more.
As Morningstar emphasises in individual fund reports, it is critical to evaluate expenses, because they come directly out of returns.
The ongoing charge figure (OCF) of Capital Group New Perspective is 0.87% on its Z clean share classes, which is lower than the 1.09 charged on the D2 clean classes of BGF Global Dynamic. Capital Group New Perspective’s B retail classes charge 1.63% against 1.84% for the BGF fund’s A2 retail classes.
The median fund charges 1.57%, so both OCF are high, according to Wolfstetter
The OCFs for both products are in Morningstars’ second costliest quintile, but the firm does not think that the Blackrock fund can overcome its high fees to deliver positive alpha relative to its category benchmark index,
In contrast, Morningstar believes that the Capital Group fund is able to generate alpha, despite its expensive fees, based on the research firm’s assessment of the fund’s people, process and parent pillars.
Catholic principles investment, Brown Advisory and ESG, Robotics and automation fun, China’s little bounce, Frontier investing excitement, Zero downside in wonderland, Bambu’s demise and much more.
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