Posted inHead To Head, News, Research

HEAD-TO-HEAD: Columbia Threadneedle vs Fidelity

FSA compares the Threadneedle (Lux) Global Asset Allocation Fund with the Fidelity Growth & Income Fund.
by Fund Selector Asia
Mixed-Asset Funds

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Luke Ng, FE Advisory Asia

Mixed-asset funds (also called allocation funds) invest in several asset classes, usually dominated by equity and fixed income, but sometimes with significant allocations to commodities and other alternative asset classes.

They can aim to deliver different investment objectives, such as income or capital appreciation with reduced volatility.

At times, mixed-asset funds may hold a substantial allocation to cash to reduce overall volatility. Such allocations are rare in single asset class (equity, bond or commodity) funds, as users of these funds manage their cash positions separately.

Mixed-asset funds suit more cautious investors, “who would like to access the equity market in a more conservative way”, according to Luke Ng, senior vice president at FE Advisory Asia.

They also suit investors who wish to concentrate all their investments in one fund, outsourcing security selection, country, regional and asset allocation to the fund managers who will invest across asset classes. Multi-asset, in a sense, can serve as a discretionary portfolio in one fund.

With this in mind, FSA compares two mixed-asset funds: the Fidelity Growth & Income Fund with the Threadneedle (Lux) Global Asset Allocation Fund.

Threadneedle (Lux) Global Asset Allocation Fund Fidelity Growth & Income Fund
Size $70.3m $97m
Inception 30 April 1986 20 November 2001
Manager Maya Bhandari (since 2016) Eugene Philalithis, George Efstathopoulos (since 2015)
Morningstar Rating *** ****
FE Crown Fund Rating ** ***
Fees (OCF) 1.65% 1.69%

Data: FE, fund fact sheets

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