The FSA Spy market buzz – 20 December 2024
Merry Christmas! The Year in Funds; Nuclear; Mag-7; Small Caps; Robotics; Bitcoin; Large Cap Growth; US Manufacturing; AI; Big Data; Lithium Batteries; Emerging Markets; Warfare and much more.
HEAD-TO-HEAD: Blackrock vs Pimco
FSA compares the Blackrock GF Euro Bond Fund and the Pimco GIS Euro Bond Investor Fund.
Fees
The Pimco fund’s clean share ongoing charge (OCF) is 81 basis points (bps), which Dobrescu described as significantly above normal for the sector.
“That’s disappointing, particularly given the large volume of assets managed by Pimco, which could clearly do more to pass its economies of scale down to investors,” she said.
The median for the fund category is 60bps, which the Blackrock OCF also exceeds – although the premium is less egregious. It charges 63bps, “which should be lower given the size of the fund and the much lower charges made by ETFs and passive funds with similar portfolios,” said Dobrescu.
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