Posted inHead To Head

HEAD-TO-HEAD: Blackrock versus Capital Group

FSA compares two global equity products: the Blackrock GF Global Dynamic Equity Fund and the Capital Group New Perspective Fund.
by Rupert Walker

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CONCLUSION

Wolfstetter has a higher conviction for the the Capital Group offering, which is reflected in the funds’ Morningstar Analyst Ratings.

“Having skilled managers who use a blend of styles and deftly navigate the global investment universe earn Capital Group New Perspective a Morningstar analyst rating of gold on its cheapest share classes, while pricier share classes earn ratings ranging from bronze to silver.

FE Fundinfo also rates the Capital Group fund higher, with four crowns, compared with just two crowns for the Blackrock product.

FE Fundinfo bases its assessment on a fund’s three-year history of delivering alpha, minimising relative volatility and producing consistent returns; Morningstar’s criteria is based on historical risk-adjusted return.

Nevertheless, Wolfstetter emphasised that the Blackrock fund sits in the global large-cap blend Morningstar category, while the Capital Group fund, which tends to have a growth bias, is assigned to the Global Large-Cap Growth Morningstar category.

“Blackrock GF Global Dynamic continues to benefit from a flexible, broadly diversified, and risk-aware approach, but at this stage multiple manager changes in recent years keep its Morningstar analyst rating at neutral for all its share classes,” said Wolfstetter.

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