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.
HEAD-TO-HEAD: Blackrock versus Pimco
FSA compares two Asia (ex-Japan) fixed income products: the Blackrock Asia Tiger Bond Fund and the Pimco Asia Strategic Interest Bond Fund.
FEES
“It’s important to take into account fund expenses, as they come directly out of returns,” said Ge.
The ongoing charges figure (OCF) of 1.22% for the retail share class of the Blackrock fund ranks in Morningstar category’s middle quintile.
“That’s not great, and we don’t think this share class will be able to deliver positive alpha relative to the category benchmark index, which explains its Neutral analyst rating,” said Ge.
The Pimco fund’s OCF of 1.50% ranks in Morningstar category’s second-costliest quintile.
“That’s poor,” said Ge.
The median OCF for the Asian bond fund sector is 1.32%, according to FE Fundinfo data.
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