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.
Morningstar pays a lot of attention to management charges and expenses, and share classes that charge excessive fees are typically assigned lower ratings.
The ongoing charges figure (OCF) for the retail share class of the BNP Paribas fund is 2.23%, which is in Morningstar’s costliest quintile.
It is well above the 1.60% median OCF for environmental funds available to Hong Kong and Singapore retail investors, FE Fundinfo data shows.
Nevertheless, the fund “should be able to deliver positive alpha relative to the category benchmark index [MSCI World]”, which explains its Morningstar analyst rating of Bronze, said van Genderen.
The OCF for the Pictet fund is 2.01%, which although lower than the BNP Paribas product, is also within Morningstar’s priciest quintile.
Again, van Genderen believes that the strategy should still be able to generate alpha net of fees.
Yet, he agrees that the OCFs for both feature funds are “quite expensive”.
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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