HEAD-TO-HEAD: Blackrock vs UBS AM

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Conclusion

The Blackrock fund receives a Morningstar analyst rating of Neutral and a four-star rating, while the UBS AM fund receives a Bronze analyst rating and five-star rating.

Morningstar’s analyst rating is a forward-looking analysis of a fund, while the star rating looks at historical risk-adjusted performance.

Share prefers the UBS AM fund over the Blackrock product.

“It is definitely more of a longer-term holding as you see it is committed to the growth story. Sometimes it would have short-term headwinds, but we like the team a lot better and we think the process has been executed consistently and the track record has been very strong.”

However, Share believes that UBS AM can reduce the fund’s fees.

“We feel that it is an area where they can improve. The fund has actually seen quite strong inflows in the past few years, despite the asset class being out of favour. [Given the fund’s size], they could definitely do something in terms of lowering their fees.”

The Blackrock fund, Share said, could be a consideration for investors looking for outperformance.

“If they make their calls right with the flexible investment process, they may outperform in all market environments, whether it would be growth or value, if they can time the market right,” Share said.

“If you’re an investor with a much higher risk tolerance, and you’re trying to outperform every year, then the Blackrock fund may be interesting.”

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