White Wolf’s PE howl, What’s in a (fund) name? Growth versus value – again, Wall Street makes its predictions, BlackRock joins the Gen AI trend, Pity Walmart, Albert’s genius, advertising and much more.
As fund research firm Morningstar points out, it is critical to evaluate expenses, as they come directly out of returns.
The median ongoing charges figure (OCF) for 50 Asian fixed income products available to Hong Kong retail investors is 1.36%, according to FE Fundinfo data.
The Blackrock fund’s annual expenses fee of 1.22% is in Morningstar’s middle quintile, and the research firm concludes that within the contest of its fees the fund is unlikely to generate positive alpha relative to its benchmark.
However, Poole believes the OCF is “reasonable”, and that the managers can add value above the index return because of its flexible investment mandate.
The OCF of 1.06% for the Hong Kong retail share class of the Fidelity fund is within Morningstar’s second-cheapest quintile for its category, which explains its award of an analyst rating of Bronze.
“Again, the fee is acceptable, especially because the it is not a traditional bond fund with a conventional, benchmark-tracking mandate,” said Poole.