The FSA Spy market buzz – 22 March 2024
AllianzGI on China stewardship, Death of the mutual fund, W’s top financial centres, Schroders on Japan, Swiss cuts and Japanese hikes, Reddit, Book wisdom and more.
The Blackrock fund receives a Morningstar analyst rating of Silver and a five-star rating, while the Fidelity fund receives a Bronze analyst rating and a four-star rating.
Morningstar’s analyst rating is a forward-looking analysis of a fund, while the star rating looks at historical-adjusted performance.
Dobrescu did not say which fund she prefers, but instead referred to the analyst rating.
“We have a higher conviction on the Blackrock fund, which is reflected through its Silver rating, which is higher than Fidelity’s Bronze rating,” she said.
Dobrescu highlighted Blackrock’s better risk-adjusted returns as well as its lower fees, which explains its higher rating.
That said, Dobrescu noted that Fidelity’s rating is still high. “We rate a lot of funds in this category, and having a high rating means we think that a strategy is one of the most predictable in their category and has the potential to outperform long-term.”
The Fidelity fund’s yield of 2.87% is also far higher than Blackrock’s 1.61%.
She added that that Fidelity fund may be suitable for investors who could take more risk, given that the fund is very concentrated.
“They would have to tolerate a little bit more risk and choppy performance. But for investors who have the patience with a long investment horizon, it is a strong proposition.”
AllianzGI on China stewardship, Death of the mutual fund, W’s top financial centres, Schroders on Japan, Swiss cuts and Japanese hikes, Reddit, Book wisdom and more.
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